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From Innovation to Expansion: Amazon’s Cashierless Revolution

From Innovation to Expansion: Amazon’s Cashierless Revolution
 

Amazon is making a significant push to sell its cashierless technology, known as “Just Walk Out,” to outside retailers. This move comes after the company decided to remove the technology from most of its own U.S. stores, including Amazon Fresh and Whole Foods locations, as part of cost-cutting measures led by CEO Andy Jassy.

 

The Journey of Just Walk Out

Originally launched in Amazon Go stores, the Just Walk Out system allows customers to shop without waiting in checkout lines. By using a combination of ceiling-mounted cameras, shelf sensors, and gated entry points, the technology automatically detects when products are taken or returned, charging customers accordingly.

Despite its initial promise, the rollout faced challenges. High costs and technical complexities made it difficult to scale across Amazon’s own stores. In 2018, the company planned to open 3,000 Amazon Go stores, but those ambitions have since been dialed back.

 

Shifting Focus to Third-Party Retailers

Amazon has now turned its attention to licensing this technology to other retailers. More than 200 third-party stores have adopted Just Walk Out, and Amazon aims to double this number by the end of the year. The technology has been successfully implemented in diverse locations like stadiums and universities, where it has shown promising results, such as a 112% increase in sales at Seattle’s Lumen Field.

 

Challenges and Opportunities

Selling the technology to other retailers presents its own challenges. Retailers must be convinced to trust Amazon, a major competitor, with sensitive shopper data. However, moving the Just Walk Out team to Amazon Web Services (AWS) may help alleviate some concerns, positioning the technology as a third-party service rather than a direct retail offering.

 

Future Prospects

Amazon’s strategy mirrors its successful playbook with AWS, turning internal capabilities into market-leading services. While the road to widespread adoption is long, Amazon remains committed to refining its technology and expanding its third-party partnerships. The company believes that over time, Just Walk Out can become a mainstream shopping experience.

 
 


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