What are the Challenges that Amazon Go will Face?

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Recently, Amazon noted what is known as a convenient retail concept through the process of building an unattended store, Amazon Go, at the retail conference ShopTalk.

According to RetailDive, Amazon Go in Seattle was first launched to the general public in January 2018, and there may be other 6 stores in Seattle. The simple and convenient shopping process is selling point of Amazon Go.

Dilip Kumar, Amazon Go and Amazon Books technology VP, summed up the challenge of establishing an unattended store as three points: First, Amazon Go must integrate technology with the environment, and this invisible technology is much harder than it looks; Second, Amazon uses computer vision and machine learning to create a shopping environment, but it requires a lot of cameras to identify products and shoppers in a wide range of crowded places. It also needs to identify things like jam tastes in a small area. Third, Amazon must develop many new algorithms to perform the task of “removing something from a rack”.

In Amazon’s vision, RFID technology or RFID tag attached on every product is not a solution. They believe that creating a powerful hardware and software integration program will make no one store run perfectly. Gianna Puerini, vice president of Amazon Go, said that traditionally physical shopping accounts in most of the time for most people. How to provide consumer-appropriate goods, reasonable prices and a convenient shopping environment are challenges that Amazon Go must present perfectly.

Puerini said that consumers still think that physical shopping has its charm, but most consumers do not like to queue up to check out. In addition to removing the checkout link, Amazon Go still has to arrange 1 to 2 store employees to stand at the exit, telling consumers that they “really” can take something and leave. As consumers get used to it, this situation will be reduced.

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