US e-commerce giant Amazon is set to open up a new business that could transform the nation's retail industry. The company announced on Monday its plans of selling its automated checkout systems to other retailers. The products it would be offering would be the same ones it is currently using in its cashier-less Amazon Go convenience stores.
According to Amazon, it currently has "several" signed deals with potential buyers for its automated checkout systems. The company did not disclose who the buyers were or how many of its systems were ordered. On its website, Amazon has placed an advert inviting other retailers to directly inquire about their new product line, which it is calling "Just Walk Out technology by Amazon."
The rollout its new business line reflects the company's strategy of turning its successful operations and systems, including its warehouse management, cloud technology, and package delivery, into lucrative services for other retailers to purchase.
Retail industry experts have pointed out that Amazon has found relative success in its chain of cashier-less Amazon Go stores. The cost savings and efficiency of Amazon's automated stores have proven to be quite lucrative and other retailers have undoubtedly taken notice. According to US venture firm Loup Venture, with the full adoption of Amazon's technology, the cashier-less retail industry could grow exponentially over the coming years.
Amazon's vice president of physical retail and technology, Dilip Kumar, stated that its technology essentially solves a lot of issues that shoppers typically have with traditional retail outlets. Kumar explained that customers generally do not like to stand in line. This issue is common across all retail industries, from small stores to supermarkets. By utilizing its technologies, retailers can solve this issue and provide more convenience to their shoppers.
The service that the company is offering retailers will include the full installation of various components such as cameras, shelf weight sensors, and other technologies that are necessary for the system to work. Unlike its Amazon Go stores, retail outlets that will use its technology will still retain control of its branding and other store aspects. Stores that will avail of its service will simply require customers to insert their credit card into a gated turnstile before they enter. Customers will then be automatically charged for the items they get upon exit, negating the need for bar code scans or checkout lines.
Kumar stated that their technology can be installed into existing stores or on new locations. The company will also provide full 24/7 support for customers to address any issues as soon as possible.
