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Amazon Shifts Cashierless Tech to Retailers

Amazon changed the game with Amazon Go, introducing "Just Walk Out" technology allowed shoppers to skip checkout lines
October 7, 2024

In 2012, Jeff Bezos, Amazon’s founder, famously said the company wasn’t interested in launching a “me-too” product when asked if they’d ever venture into physical stores. Fast forward six years, Amazon did exactly that, but in their own innovative style. The company introduced Amazon Go, a groundbreaking retail concept that allows customers to skip the checkout line using its “Just Walk Out” technology. This revolutionary approach eliminated the need for cashiers, offering a frictionless shopping experience and marking Amazon’s bold entry into the brick-and-mortar space.

Since then, Amazon expanded the cashierless tech to its Fresh supermarkets and two Whole Foods stores. The company even began licensing “Just Walk Out” to third-party retailers like stadiums and airports. However, the strategy has recently taken a turn. In April, under CEO Andy Jassy’s leadership, Amazon scaled back its ambitious retail plans in response to economic pressures. The company pulled “Just Walk Out” from its U.S. Fresh and Whole Foods stores, shuttered several Amazon Go locations, and paused the opening of new Fresh stores.

Despite this shift, Amazon is pushing forward with another tech solution in these stores: Dash Carts. These smart carts track purchases in real-time, allowing shoppers to bag items as they go and skip checkout altogether. While the technology is still in use in smaller Amazon Go stores and UK Fresh locations, the challenge for Amazon and other startups is scaling autonomous checkout to the point where it becomes a standard part of in-store shopping.

Amazon continues to invest heavily in its “Just Walk Out” technology. The company has shifted its focus to selling the system to third-party businesses, signing deals with universities, sports stadiums, and other retail spaces. Although scaling this technology has proven costly and challenging, with many retailers opting for simpler checkout methods, Amazon remains committed. Recent expansions of third-party stores using the system indicate that Amazon is betting big on a future where cashierless shopping becomes mainstream.

The company’s strategy mirrors its successful approach with Amazon Web Services, where it moved from using its infrastructure for internal needs to selling cloud services to third parties. Now, by offering “Just Walk Out” technology to other retailers, Amazon hopes to create a new revenue stream, though it faces the challenge of convincing competitors to trust it with customer data.

Ultimately, Amazon’s success with cashierless technology will depend on third-party adoption and a shift in consumer behavior. Although it’s still early days, Amazon is banking on this tech becoming a staple in the retail industry.

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