Amazon’s cashless store a hit?

Fifty years ago there were a handful of ways for a merchant to accept payment. Cash, check or credit was just about it. Today there are far more payment options that a merchant can accept. It can get overwhelming. What if all of that was unnecessary? All you needed to do was open your store and that was it? Amazon is trying that and it seems to be taking off.

Earlier this year in Seattle Amazon opened its Amazon Go, a small supermarket/convenience store in downtown to the public. Patrons are able to enter by scanning the Amazon Go app on their phones at a turnstile and a camera tracks what the patron takes. The patron is charged automatically when the customer walks out. The system called Just Walk Out has been highly accurate so far and has produced few errors. No employees are needed at a register to check customers out but humans can still be found. They are still needed to stock the shelves, prepare food and to verify the age of patrons in the alcohol section. Amazon Go is the merchant of the future.

Amazon Go has been successful. A second location opened in Seattle and is bigger than the first, followed by a third Seattle store and finally recently a fourth in Chicago with expansions to New York and San Francisco coming soon. More are likely on the way as the company has plans to open up to 3,000 new locations in 50 major metropolitan areas.

The technology behind this is incredibly complex and advanced. Multiple cameras are needed to track patrons and determine what they are taking (and also what they put back) and combine with weight sensors and deep learning technology. It is much more complex than one might think since it would need to differentiate between similar sized packages with different varieties. The computers behind this are similar to that used with self-driving cars but Amazon has not gone into specifics about the technology so there is little detail out there. Amazon did make sure that the technology was ready before the first store opened so far fewer glitches have been encountered.

Is this the store of the future? In some ways it is already here with payment options like Apple Pay that allow patrons to pay with their phones. For many patrons a cashier-less store like this will take some getting used to but most will enjoy not having to stand and wait in line to check out. Considering that five years ago this was a dream it just goes to show how swiftly modern technology can move.

Payment methods are changing as well. As a merchant there is more than just cash, check and credit that can be accepted. While we at JLE do not expect you to adopt a system like Amazon Go mobile payments may be a great next step for your business. It can help to speed up checkout lines and if you just had a busy holiday season you know what we mean. Many customers cited not having to wait in line to check out as a major plus for Amazon Go so anything you can do to speed up the line can help.