In hindsight it seems obvious that the play was to "AWS" the whole thing: make yourself the first/best customer, nail the implementation, then sell it to the world.
If they released this at Whole Foods, I'd guess they'd fire all the cashiers there. That would make this rollout a lot less exciting for a lot of people.
I hope Amazon comes up with an awesome way to help the cashiers this technology replaces. Then if self-driving cars end up working out, that industry can learn from what Amazon did.
[0] https://www.cnsnews.com/news/article/rudy-takala/top-2-us-jo...
Since Whole Foods sells alcohol, I doubt that. There are things that lots of governments won't let you have customers “just walk out” with.
As I wrote that I realized they could even employ cashiers to do that instead.
They check ID entering the liquor section (and it is a human that checks), but otherwise it is bag it and just walk out.
They can be retrained to work in fulfillment centers. Amazon will provide the piss bottles.
I would think the majority would be employed at little restaurants, small shops, etc.
> Will people still be working in stores with Just Walk Out technology?
> Yes. Retailers will still employ store associates to greet and answer shoppers' questions, stock the shelves, check IDs for the purchasing of certain goods, and more - their roles have simply shifted to focus on more valuable activities.
The benefit is a much better customer experience, not labor savings.
The primary benefit is access to a lot better data about shoppers, not a better customer experience.
It's a massive competitive advantage far beyond whatever data they get by watching me roam the store.
Retailers that compete on "experience" like Target etc will reinvest into a better customer experience.
Retailers that compete on price like Aldis will focus solely on driving cost down.
I'm not sure why this should be on Amazon. It's on all of us to better train people to have the jobs of the future. Our education system hasn't really changed in 100+ years. It needs to.
And if these companies profit, they do so as a reward for spending the capital (dollars and manhours) in creating new technologies that improve productivity. Specifically total factor productivity in https://en.m.wikipedia.org/wiki/Cobb%E2%80%93Douglas_product...
It's on all of us because it really isn't on anyone in particular, surely not on Amazon.
I can take your statement and flip it around just as easily: why should Amazon bear the costs of paying for many R&D ideas that may or may not pay off? We should all share that cost if we're all going to benefit from those innovations
Are you seriously trying to suggest everyone benefits from Amazon’s innovations?
I'm not saying it's a great thing, just that the jobs Just Walk Out will be replacing are already being replaced by self checkout.
Recently came back to the East Bay (SF) and the Whole Foods I'm staying near, more than the others, seems like a staging store for Buy Online & 1) Get Delivered, 2) Pick Up In Store.
There are often more WF employees shopping for pick-up orders than customers walking around the store. Navigating aisles that are full of these WF shoppers gives the store a pretty signficantly different feel than the other stores that I'm a regular at. Plus, the staging/storage area at the front for ready-orders is much bigger than at other stores.
Not as true at SF city WFs, or the ones in Reno, LA, Park City and Phoenix/Scottsdale that I'm familiar with.
I'm guessing this dynamic, plus "Just walk out" is where they're headed, at least in certain densities. And that's where some of the cashiers may be transitioned.
It's not just about "AWS"-ing the thing. It's about gaining access to all of the transaction data and marrying that to what Amazon already knows about you. A retailer like Walmart would NEVER use this tech, they know their data is one of the most valuable things they have (in fact they don't share their data with anyone, while all the other FDM retailers do), but boutique retailers like J Crew or whoever would happily.
Amazon is always putting up ads for me based on my purchase history, but they're never what I wind up buying. I have no explanation for what is wrong with their algorithm.
Just call me The Hammock Man!
This was about the same time they stopped shipping things in cardboard boxes and went with bubble packs, and most recently, paper wrap with no padding whatsoever.
Basically, you choose why you're returning. In some cases if you say something other than "the item was defective", it'll only have options that cost money.
It's super rare, but I've seen it before.
Other things however come just as you would expect (paper wrapping or bubble wrapped). So it all depends on the amazon worker doing his or her job..
It's pretty obvious that people don't go around shopping for screen protectors and then buy phones to match.
But I wonder why they don't just flip the prediction? If you bought X, then advertise anything but X.
Like if you bought a toilet seat, they might advertise toilet paper instead (which would be good, because all the stores around here just ran out...)
Or maybe showing a wild selection of weird products results in people "brainstorm" other shopping needs, as a kind of anchoring.
https://en.wikipedia.org/wiki/Anchoring#Anchoring_in_negotia...
https://www.forbes.com/sites/kashmirhill/2012/02/16/how-targ...
I wonder if their creepy surveillance tech knows I said it. I was going there to pick up my brother's medicine from the pharmacy. It's a real shame. I used to LOVE shopping at Target. But the dang store has gotten greedier and super obnoxious over the years.
I was positive they used to use their tracking data to design store layouts with minimal clashing, such that they distribute the shoppers across the store. It seemed to really work, too.
In their newer layouts, I dunno what it is, but everything seems crammed together all in the same spot. They replaced the popcorn, icees, and hot dogs, with food I don't like that costs too much. They got rid of the handbasket things that were handy and all over the store, and got rid of the benches too. Then they sold their pharmacy to CVS.. which immediately threw out the kickass containers Target used to use and added a super obnoxious phone system.
Just overall, I hate shopping at Target now.
Turns out people who have just purchased something are far more likely to purchase that thing again than a random person.
This makes them the perfect person to advertise to.
Even if the percentage is quite low this can be better than advertising to the general population. Say the numbers were 1 in 10 000 impressions leads to a toilet seat sale, but 1 in 1000 people who have just bought a toilet seat buy another one soon after (first one was broken/distributor/toilet seat collector/remodelling whole home/etc).
If those were the numbers it would be silly to not advertise to recent buyers.
Essentially, the self selection of 'I just bought <x>' very often puts you in a category that is far more likely to buy <x> again than almost anyone else.
Very helpful for identifying what’s hot and releasing your own version. Figuring out seasonal trends. Or getting competitive price information to match/beet. Walmart brags about their ability to presciently stock stores, which keeps turnover & capital efficiency high.
Amazon were slightly profitable or break-even since 2003. There's a convenient chart of their profits since day one here:
https://qz.com/1196256/it-took-amazon-amzn-14-years-to-make-...
Starting in 1997 they bled money with mounting losses until about 1999, when they began to turn things around. The dotcom pop is clearly visible but they recovered almost immediately and their losses continued to shrink until about 2001-2002 when they became break even. From 2002-2011 they either made small profits or nothing, but that was obviously because they were growing at a rapid pace and putting all the money back into the business. Once AWS launches in 2006 (so about 10 years after day 1 in retail) profits start growing but then are back into the red around the time of the GFC+recession, and again in the 2012-2013 European recession. After that it's stratospheric profits.
How much investor money is "infinite money"? Somewhere between $8-$9 million before they floated on the stock market.
https://www.quora.com/Who-were-the-original-investors-in-Ama...
Obviously, investors who put money into their IPO have done extremely well and cannot claim they were shovelling money into a furnace, far from it.
The inflation in investment round sizes over the past 20 years has been staggering. I see nothing that suggests Amazon was unusual in raising so little money (comparatively speaking) before they went public.
Finally, Amazon's marketplace is just not navigable. Their search is pathetically bad, and this is nothing new, it's been a common complaint for years. Some fairly massive amount of their traffic is inbound from Google searches like "some product amazon" just because of how pathetically bad it is. The only other reasonable way to navigate their site is if their similar product suggestions or "commonly bought together" happens to nail the item you were looking for.
I've had searches where adding an additional keyword that is in the product title will actually cause the product to disappear from the search. What in the actual fuck.
That's what I thought until I was scammed by a Chinese on eBay... after countless emails, calls, even police reports, eBay did not return the 800 dollars I lost... not sure if it's an isolated case but it was pretty frustrating.
Their recommendation engine for related prducts used to be nice but that's been replaced by sponsored products which lowers the quality.
Now, the only way I use Amazon's search is when I have a SKU or part number and type it in directly. But I also do that in Google and often find the same thing elsewhere at similar or less cost (including shipping, though to be fair it may take a day or 2 longer).
eBay's search is still one of the best for me, in that it respects the keywords I put in and allows for extended query syntax to really hunt something down (which then can be turned into a saved search).
One of the most creative things I found on eBay was tool rental. I needed a tool to replace the bearings on my washing machine, and a seller was selling one explicitely as a rental: tool was charged about $120, with $35 shipping. When done, sent it back for a refund. The "shipping" included the rental fee and shipping both ways.
The one that they're missing that I really wish they would include is "multi item BIN" formats. People will list a $1 item so that they're the first result that comes up, and then the item you're looking for is high priced. The prices are in fact so high that I go out of my way to try and exclude these items using "not" keywords, setting a minimum price, and filtering to US only, which collectively get most of them.
I have a lot of saved searches for "rare" items that only get listed infrequently, or for items that I'm waiting to come down in price.
The contrast between the way those two sites handle their search is stark.
After shipping with Amazon for our non-Amazon orders for six months, we've moved about 80% of our shipments to them because they save us that much time, hassle, and money. FedEx picks up almost all the rest, with a handful of packages going out UPS and Postal due to address requirements, or customer preference on phone orders (all online orders are Amazon/eBay/website where we limit shipping choices; we are about 60% Amazon, 30% eBay, 8% website, and 2% phone orders on a typical day).
I hope that there's always a USPS option. My apartment complex has package lockers that can only be used by the USPS, so that's the only safe way to get packages delivered when I'm not home.