Yesterday, Amazon.com announced a new business line selling the technology behind its cashier-less convenience stores to other retailers. This is reported by none other than the renowned Thomas Reuters. Amazon said that it has “several” signed deals with its customers. A new website called Just Walk Out technology by Amazon will invite others to inquire about the service from Monday onwards.
It seems that Amazon is currently looking forward to building its internal capabilities like warehouses to help with package delivery and cloud technology to support its website and then turning those into lucrative services.
Amazon’s chain Amazon Go has brought shopping without checkout lines into the mainstream. Along with it, it has also made the market for retails without cashiers. Interestingly, this is the most common vocations in the United States currently. US venture firm Loup Ventures has estimated that this market could grow to the US $ 50 billion.
Dilip Kumar, Amazon’s vice president of physical retail and technology said “Do customers like standing in lines?” he asked. “This has pretty broad applicability across store sizes, across industries, because it fundamentally tackles a problem of how do you get convenience in physical locations, especially when people are hard-pressed for time.”
Now, let us come to the point that how will this system work? Unlike Amazon Go stores, shoppers will have to insert a credit card into a gated turnstile to enter. The turnstiles will display the logo “Just Walk Out technology by Amazon” but all other branding and store aspects will be controlled by the retailer who is using the service. As usual, all the items picked up by a customer or guests will be added to the shopper’s virtual cart and the store will then bill the credit card once the customer leaves the store. This means neither bar code scanning nor checkout lines will be required.
Media reports have suggested that currently Amazon trying to collaborate with Walmart or Target to bring its technology to airport stores. Kumar said Amazon “potentially” could sell the service to big-box rivals but would not speculate.
According to Kumar, Amazon will save the email address and tie that to the credit card information in order to charge the customer. He further said, “We prohibit the use of Just Walk Out technology data for anything other than supporting Just Walk Out retailers.”