Amazon Go Cashierless Supermarkets, Pop-Up Stores Coming Soon
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The store itself was nice enough. But it was small, and felt like a novelty, like a lab experiment and not an actual convenience store. As a software engineer, I was also keenly aware of the massive array of tracking technology all around me, and that didn't feel great.
I don't really have any complaints. It was convenient, but not "oh wow this changes my life" convenient. If this kind of technology pushes down the prices (though that's honestly hard for me to see how), that will be a benefit.
To be allowed into the store requires a few prerequisites which unfortunately not everyone has the benefit of possessing; smart phone with data service, credit card, amazon account.
For most people this is no problem. But what about all the people who rely on cash based systems to exist? What about people who don't have smart phones with internet plans (though this is becoming an increasingly small population, it's still very prevalent)?
Now what happens to those people when this becomes a standard and the alternative options diminish? Food deserts in underserved (poor) neighborhoods are already wide spread in the US, this credit based system which relies on an app will only make it harder for people who already suffer.
https://www.pewresearch.org/global/2019/02/05/smartphone-own...
75% of Americans have credit cards.
https://www.creditcards.com/credit-card-news/ownership-stati...
10% of Americans use only cash.
https://www.creditcards.com/credit-card-news/payment-method-...
62.7 million Americans don’t have smart phones
82.5 million Americans don’t have credit cards
33 million Americans use only cash
Another way to look at it
The equivalent of the entire population of the United Kingdom not having smart phones
The entire population of Germany not having credit cards
Nearly the entire population of Canada using only cash
The one problem Amazon would have here is preventing customers from leaving if their purchase exceeds their cash balance on the card. Seems relatively easy to stop with a 2-step system for exiting (cross a line/barrier to signal that you're leaving, wait for a physical barrier to open after the payment method is debited).
Costco, Sam's Club, and other similar 'big box' stores are usually located in less-dense areas and are not competing directly with 7-11s or other convenience stores.
It’s not hard to get a cheap smartphone (something like 60-80% of homeless people own a smartphone based on a quick google) and if you qualify for SNAP, you can almost certainly get a free smartphone through the lifeline program.
> data service
Amazon Go stores have free WiFi.
> credit card
Edit: Originally stated you can use gift card credit, but that’s incorrect. You can get a secured card with no credit check though.
> amazon account
Free and obviously easy to get if you have access to the internet, which virtually everyone does through a public library.
That being said, we have plenty of grocery stores in my area and they seem to compete quite well with Costco. I am not worried about these stores, and I don't plan on using them because I find them to be a privacy issue. I think there are plenty of people who either prefer cash or don't want to tie their food purchases to their Amazon account to keep traditional grocery stores in business.
Then I go to a place like safeway and literally everyone pays with a credit card and gives up their phone number so they can get MAJOR discounts on purchases (ie, $1/item vs $3/item) and points towards things. Even the folks on EBT are using some kind of credit cards instead of the old vouchers.
I believe actual stamps have been gone for over 20 years at this point.
These stores are now < 0.1% of all stores. Worrying about what might go wrong if/when they're 90% seems very premature.
Part of this is security - walking around with lots of cash / keeping it at home (which may be a shared room) is just not workable.
But people are screaming for just the opposite with stores that don’t accept cash. They want government intervention.
The Amazon Go convenience store at 920 5th Avenue (looking from the outside) felt a bit sad in their dining setup - it's a tiny bar that seemed designed for quick, alone consumption. I'm guessing most folks going there grab a lunch then go back to their office to eat. (image: https://www.google.com/maps/place/Amazon+Go/@47.6063189,-122... )
Just look at Amazon.com vs Walmart, Walmart is still in business, even though running a brick and mortar store is more expensive than an online store.
In the UK we have at least three tiers of supermarket.
You're not going to see the riff raff in Waitrose because they can't afford it. "Above" that you have more esoteric health shops.
You might see middle-class folk who are cost-conscious (waves) in the low end supermarkets.
Pound shops and discount retailers tend to have a specific style - music, decor etc - that reinforce the fact that they're 'poor people stores'.
Sure, theoretically you could go and buy your groceries in the expensive stores if you're skint, but in practice no-one actually does that.
Is this to the exclusion of debit cards?
Lately there are numerous items at my store that have gone out of stock, some of them for a few weeks now, and telling them about it gets a shrug and a "sorry, 'corporate' controls inventory" response. Not sure what 'corporate' means here but okay.
Long story short - Go is a fun thingy but I don't think they're ready for retail. I deleted my app.
They mean someone outside the store manages it. Someone who manages across the corporation rather than just at the retail location.
How long can a thing be out of stock before its sales dip upon return? Do users who regularly buy those things stop visiting? Buy other products in the same category? (Do they switch back when stock resumes?). Etc...
I assume they'll handle it the same way Amazon Prime Now seems to handle delivery from Whole Foods: it's a platform where weight doesn't actually matter.
I get insanely variable results when I have Whole Foods items delivered via Amazon Prime. 2 lbs of chicken breast might be as little as 1.2 lbs, or as much as 2.5 lbs. In either case, it's priced as 2.0 lbs. If you're savvy enough to weigh it and realize you've been stiffed, Amazon refunds the entire item, so it's a win for the consumer...I guess?
In general I find that my weight-based fruit/vegetable/meat/bulk bin item purchases via Prime Now slightly exceed whatever I actually requested and paid for, and Amazon never charges for delivering more than you initially requested. But maybe 1/8th of weight-based items will be drastically under-weight. I have a kitchen scale handy, so I always catch this and report it. Amazon has never failed to refund the full cost of the item, but I do wonder how many other consumers are never noticing that they've been scammed when Prime Now fails to deliver the weight that was paid for.
This would run afoul of commerce laws in pretty much every US state. Tare must be set from zero, not relative to whatever happens to be on the scale, and certainly not on the fly.
Another huge regional grocer, HEB, does this in Texas with their largest and most upscale stores, and it's been a norm for nearly a decade.
Alternatively, the entire shelf is a scale, but the shelves are smaller so that only one person can pick vegetables at a time.
Another approach would be to have a scale and require them to stick their potatoes on it, but not require the other, tedious steps like entering a PLU code or printing a sticker. If you can track them picking up items off a shelf and putting them in their cart, presumably you can also track an additional intermediate step where they put it on a scale. (And connect that scale to the network, take a reading when you see them stick potatoes on it, and correlate that.)
Of course you can always just sell by unit and not in bulk. Sell 1 pound, 2 pound, and 5 pound, and 10 pound bags of potatoes instead. Maybe even 0.5 pound if someone wants a small quantity. Or for things whose size doesn't vary much (like apples), just sell by number of apples.
For steak, the packages are normally already weighed and labeled, so the problem might be easier if you can just scan a label that's already printed.
The one in the West Loop is right next to the trains and sees a lot of traffic during rush hour. So they have 4+ employees just standing around watching people. The ones at random locations in the loop aren't as busy - so only have a couple employees in those stores.
Actually I think it's weird that Amazon has so many employees in Go stores. You'd think they'd just need 1 person to stock things and call the police if someone jumps over the gate without scanning their phone. Every time I see a group of their employees standing around I want to ask "why haven't any of you been replaced by robots yet?"
I used to regularly get lunch in < 30 seconds at Amazon Go. My record was 12 seconds for a soda and sandwhich. They added more processing time for that calculation at some point. But I basically could get things as quick as my feet could take me in and out.
It's really not the same experience. You should try it when you get the chance.
Here are my most recent trip times according to the app (assume a 15s overestimate to my real experience):
37s - Dr Pepper
32s - Dr Pepper
1m12s - Dr Pepper, sandwhich, cookies
33s - Dr Pepper
1m33s - Dr Pepper
36s - Dr Pepper
44s - Vitamin Water
46s - Sandwhich, cookies
30s - Vitamin Water
32s - Dr Pepper
31s - Dr Pepper
35s - Dr Pepper
I would estimate that most of these have a 15s overestimate.
This has not been a Dr Pepper advertisement.
Shopping at the Go Store is much faster. When you're grabbing a single item you can have times of ~10 seconds. Grabbing more items and you save more time by not having to check out. No checkout, no lines, no figuring out why your phone or card isn't accepted, or what error message is on screen etc. In and out as simply and efficiently as possible.
I wouldn't say it is revolutionary, but it does cut down the time it takes to go shopping. It's like a perfect version of self-checkout.
Another, more subtle feature is that I never wait in line because I have trained myself to never go at peak times. I waste a certain amount of time thinking about it.
That said, I find the idea of a cashierless store super-creepy and will be among the last adopters.
It's nice that you save a couple minutes, but I doubt it really has much impact on your day.
Or was that all on Thursday morning?
I absolutely guarantee it will change your spending habits this coming decade.
I'm not sure if there's a way to understand until you experience it being walking distance from your office.
I suppose it is not so likely there will be a store in walking distance the next few years.
I had previously tried other markets with handheld UPC scanners or mobile device scanning, but still ended up with delays I'd rather avoid (passing through the queue at self-checkout). Amazon Go really is completely effortless once you have checked in to the store, although doing things like putting items into your own backpack while shopping feels...very weird. But being able to waltz out the door with zero delays is a true luxury in urban areas where markets almost always have long queues for checkout (regardless of if they have a human attendant or not).
Using vision to solve a problem always seems inefficient but it scales out way better than anything else (ie the various ways google maps uses vision when in a world with perfect map data it wouldn’t be needed).
"Unidentified item in the bagging area!"
"Please place item in the bagging area!"
How would you like to pay? Pick credit card Please complete purchase on separate device to the right.
Do people really love even those voice / flow of these machines?
I've used amazon go. It is as far as I can tell very low friction. I'm not 100% sure how they figured out what I got but it was correct in my case.
Also, the Scan and Go system they have at Sam’s Club is awesome. I can scan items on my phone as I’m shopping. When I’m done, I tap purchase, and then walk out with my stuff.
Amazon's method may require you to log in or scan in with a barcode from the Amazon app, but just about everyone already has some basic experience with the Amazon service. And once you do a single scan, it just works.
TBH I don't feel particularly happy about programmers removing retail jobs. Yeah for sure technology advances always remove some people from their jobs, but there are consequences.
Not sure about data on time saved, but I average 2-5 minutes on each trip to the Go store in Seattle.
As for removing retail jobs, Amazon does hire a ton of people for every store to restock, answer questions, prepare deli foods, etc. So the jobs are likely moving to different parts of the store.
Also, I’m not sure what the official goals of Go are, but I always thought it was to remove friction during checkout. Not to save costs on cashier jobs.
Is it fair to say that you are making the claim that there is no net decrease in labor hours when compared to a similar store that does staff cashiers?
> I’m not sure what the official goals of Go are but I always thought it was to remove friction during checkout.
I visited the Seattle store one evening in April while in town for an Amazon onsite. It was completely empty from customers but there was a dude sitting at the entrance to the alcohol isle asking for ids and a girl trying to fit some products into some curly thing.
Friction is (re)moved from point a to point b.
Classic 2010s tech play.
Is this any different than Caterpillar removing ditch diggers’ jobs, or internet remove postal carrier and television channels’ jobs?
If you sit around expecting the rest of the world to take care of your best interests, you’re going to have a bad time.