Operational Excellence

Amazon will license to other companies structure for stores without boxes

Mar 10, 2020 | 298 views

On Monday (9), Amazon announced the launch of a new business line, which will offer other companies the technology used in Amazon Go establishments that allows the operation of a store without the need for the customer to face lines or pass through boxes to checkout.

The Seattle company told Reuters that the new business will be called "Just Walk Out" and that it already has "several" agreements signed with companies that want to implement the technology within their units.

The news is not really new to the market: since last year the company has been improving all hardware and software to achieve maximum efficiency in the system, in order to make the solution scalable and possible to be used by other businesses .

All this effort is explained by the financial potential of this new sector: according to the company Loup Ventures, the retail market without boxes is expected to grow to US $ 50 billion in the coming years.

Adjustments and uncertainties
However, the current solution will not replicate 100% what is seen inside Amazon: instead of scanning a barcode via smartphone, the consumer will insert a physical card inside a kind of ratchet and, when re-passing the card at the exit, the company will debit the amount. The counting of the items, yes, will use the technology of cameras and sensors used by Jeff Bezos' company.

Despite the fact that the service caused a furor when launched, analysts are not sure that the service will have an expressive demand, since in the meantime there are intermediate solutions that were developed within the cash automation market. And, unlike what happens with Amazon, these companies do not compete with businesses like markets and grocery stores in other plans.

However, there is a possibility that this service will grow in areas that have sales, but do not have their strength in this area, such as airports. The company said that the decision to exchange all data will be within the customer database and that the use of the value of purchases within the Amazon loyalty program will be at the expense of the companies.