In 1994 Jeff Bezos founded the now well known online shopping company called Amazon. Now, over 20 years later the company has grown from online shopping and opened its first in person store.
On Monday Jan. 22 the first Amazon Go location was opened in Seattle, Wash. The store utilizes sophisticated technologies developed by Amazon, to track purchases automatically. The store is devoid of all chashiers, registers and self checkouts.
Amazon uses computer vision, machine learning software and hundreds of cameras throughout the store, to detect and track every item on the shelves and in shoppers’ bags. Customers enter the store, pick out what they want and leave without ever waiting in a checkout line.
How? Before entering the store customers must download the stores smartphone app, which is linked to their Amazon.com account. When you enter Amazon Go you swipe your phone at the front gates to ensure you have downloaded the app. This is how Amazon bills you later.
The technology in the store tracks every time you pick up and set down an item from the shelves. Anything you pick up and do not set back down is considered in your cart. Amazon sends you a receipt for your items moments after leaving the store.
This also eliminates the risk of shoplifting. A New York Times reporter covering the new store tried to trick the system and sneak out sodas, with Amazon Go’s permission. He was unable to trick the system and it billed his account for the items just like Amazon Go designed it to.
The app also has a refund button available when you receive your receipt. Customs who find problems with items or flaws in the system my get a refund for said item, without having to return it to Amazon Go.
The refund button is largely based on the honor system. Amazon says they predict misuse of it to be minimal, and are confident in their systems accuracy.
The facility is 1,800 square feet and is almost a mini mart of sorts. Merchandise available for customers include convenience store type items like soda and chips, as well as some things normally found at the Whole Foods supermarket chain, which Amazon owns.
While Amazon Go employs no cashiers, the technology that runs the billing system has not entirely eliminated the need for associates in other parts of the store.
Amazon Go still has many employees. Amazon says the technology just shifts the role of associates to other areas of the store. Gianna Puerini, executive in charge of Amazon Go, says associates are now employed in areas the company feels would benefits customers experience best.
Employees at the store have tasks such as restocking shelves, assisting customers, greeting shoppers as they enter the store and checking I.D. in the beer and wine section.
There is even a kitchen neighboring Amazon Go, where chefs and staff prepare meals available for sale in the store.
Amazon hasn’t announced any official plans to expand Amazon Go or use its technology in other stores. However, according to the New York Times, there is some speculation as to what Amazon plans to do with the technology.
One such theory is that Amazon will sell the technology to other retailers. If that decision was made many cashier jobs may change or be eliminated.
The other main theory is that Amazon may utilize their new technology in the Whole Foods chain they own. However, executive Puerini says the company does not plan to do so.
According the Bureau of Labor Statistics, there are 3.5 million cashiers in the U.S. A good portion of those work in grocery stores. Amazon Go technology has the potential to drastically change shopping experience for both the customers and employees.
Cerridwyn Kuykendall
Associate Editor