However, Amazon Go will be able to employ fewer people, as they will no longer need to employ cashiers and baggers in their stores. Increased customer demand allows grocery stores to spread out labor costs and fixed costs over a larger denominator, holding labor constant. 3 While I believe these results are overall positive, I note that only 30% baby boomers were open to shopping at an Amazon Go. Additionally, 25% of the respondents said they would pay higher prices to avoid waiting in a checkout line. In a survey of 1,000 US consumers, 75% said they would be “extremely likely” or “very likely” to shop at an Amazon Go if a store opened nearby. Pathways to Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activists Within a few minutes, she will receive an email with a detailed receipt of the items she purchased. Once the customer is finished, she simply scans her phone at a turnstile on the way out. Instead of putting items into a cart, the customer puts items directly into a bag. To enter, the customer scans her smartphone into a subway-like turnstile and begins shopping. This problem isn’t new: over the years, companies have introduced “10 items or less” lines and self-checkout stations to try and alleviate it.Īt Amazon Go, a customer must create an Amazon account and download their app before visiting the store. This leads to unhappy customers and lower labor utilization. Since shopping patterns are variable, there is often a line of customers waiting for a cashier or a plethora of cashiers waiting for customers. Traditionally, customers enter a grocery store, put items into a cart as they shop, and visit a cashier before leaving. There are plenty of articles explaining how the technology works, 2 so this blog post will focus on the operational process improvements to Amazon and its customers. Through a combination of computer vision, sensor fusion, and machine learning 1, Amazon allows customers to shop without checking out. By now, most of you have probably heard about Amazon Go – Amazon’s sans-checkout grocery stores.
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