How Amazon Is Trying To Get Rid Of Checkout Lines At Stores

Summary

Amazon's 'Just Walk Out' technology offers a checkout-free shopping experience using AI, cameras, and RFID to track purchases and charge customers automatically. Initially launched in Amazon Go stores, the system has expanded to third-party locations like stadiums and airports. While it has increased sales and reduced theft, challenges remain, such as consumer trust, data privacy concerns, and high implementation costs. Despite removing the technology from its own large stores, Amazon's pivot to smaller formats and B2B services indicates a potential future where this innovative shopping experience becomes more widespread.

Takeaways

• 😀 Amazon's 'Just Walk Out' technology allows customers to shop without stopping to pay by simply tapping a credit card at the entrance and walking out.
• 😀 The technology, launched by Amazon in 2018, uses a combination of cameras, LiDAR, and AI to track what customers pick up and charge them accordingly.
• 😀 Amazon has expanded 'Just Walk Out' to more than 200 third-party locations including stadiums, airports, and college campuses, but removed it from its own Fresh grocery stores and some Whole Foods.
• 😀 Amazon's pivot away from large stores, focusing on smaller ones, shows that 'Just Walk Out' works best in environments with less inventory and high traffic bursts.
• 😀 New generative AI tools are being incorporated into 'Just Walk Out' to improve accuracy by combining 3D store mapping and product catalog images for better transaction tracking.
• 😀 The use of RFID technology, alongside AI and camera systems, helps Amazon accurately track items like clothing with different sizes, something cameras alone struggle to do.
• 😀 Despite early skepticism, Amazon claims 'Just Walk Out' has boosted sales by up to 112% in some locations and continues to be adopted by more third-party retailers.
• 😀 The system includes multi-modal AI architecture to enhance its decision-making process, factoring in various data streams to identify what is in a customer’s virtual cart.
• 😀 There are concerns about privacy and data handling, particularly with the use of biometric data (like Amazon One) and customer behavior tracking in the stores.
• 😀 'Just Walk Out' has made it easier for retailers to operate with fewer staff and reduced theft, especially in locations like airports where stores can operate unattended overnight.
• 😀 While the technology is promising, wide-scale adoption is uncertain, as it faces challenges like high costs, consumer trust, and the learning curve for shoppers unfamiliar with the system.

Q & A

What is Amazon's 'Just Walk Out' technology?

Amazon's 'Just Walk Out' technology allows shoppers to enter a store, pick up items, and leave without stopping to pay. The system automatically detects what items are selected using AI, cameras, and sensors, and charges the customer's linked payment method as they exit.

Why did Amazon stop using 'Just Walk Out' in its own large stores?

Amazon removed 'Just Walk Out' from its own Fresh grocery stores and two Whole Foods locations in the U.S. because it found that the technology was not ideal for large stores with complex inventory like produce and meat. It performed better in smaller store formats with simpler inventory.

How does Amazon's 'Just Walk Out' system work?

Shoppers tap a payment method at the entry gate, shop as usual, and simply walk out of the store. Cameras and sensors detect the items taken and charge the shopper's linked payment method, without requiring a traditional checkout process.

What other companies are using similar technology to Amazon's 'Just Walk Out'?

Other startups like AiFi and Grabango are working on similar autonomous checkout systems. However, Amazon has a significant advantage due to its resources and the scale at which it operates its technology.

What improvements is Amazon making to its 'Just Walk Out' system?

Amazon is enhancing its 'Just Walk Out' system by incorporating new generative AI tools, including a multi-modal AI model. This system uses 3D scanning, camera calibration, and RFID technology to improve the accuracy of tracking what shoppers take from shelves.

Why did Amazon decide to sell 'Just Walk Out' technology to third-party retailers?

After pivoting away from using it in its own large stores, Amazon decided to sell 'Just Walk Out' as a B2B service. The technology is now installed in over 200 third-party stores, including stadiums, airports, and college campuses, where it provides a more viable business model and better returns on investment.

What are the challenges Amazon faced in implementing 'Just Walk Out' in grocery stores?

Grocery stores pose challenges for 'Just Walk Out' due to their complex inventory, such as loose produce and items sold by weight. This made it difficult to accurately track items with cameras alone, leading Amazon to focus on smaller stores with more straightforward inventory management.

How does Amazon handle data privacy and security concerns with 'Just Walk Out'?

Amazon addresses data privacy concerns by ensuring that third-party retailers can trust that their data will not leak to Amazon's retail business. Additionally, it uses technologies like RFID to track items, reducing the reliance on cameras for tracking individual products.

What impact has 'Just Walk Out' had on retailers and their customers?

Retailers using 'Just Walk Out' have reported increased sales, with some locations seeing up to a 112% increase in sales. Customers enjoy the faster, more efficient shopping experience, especially in high-traffic areas like stadiums, airports, and campus stores.

What concerns do shoppers have about using 'Just Walk Out' technology?

Shoppers have expressed concerns about the accuracy of their transactions, as receipts are often delayed for several minutes after exiting the store. Some are also wary of the technology's reliance on cameras and sensors to track their purchases, raising privacy concerns.