• Marketing Land
  • Sections
    • CMO
    • Social
    • SEM
    • SEO
    • Analytics
    • Display
    • Retail
    • MarTech
    • Resources
    • More
    • Home
  • Follow Us
    • Follow
  • Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
    • Follow
  • SUBSCRIBE

Marketing Land

Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
  • Home
  • Newsletters
  • Home
Retail

Amazon Go Store now open in Seattle — How disruptive will it be?

Regardless of whether Go itself takes off, this is a watershed moment for the future of retail. 

Greg Sterling on January 22, 2018 at 11:45 am
  • More

Roughly a year later than planned, Amazon formally opened Amazon Go to the public this morning. The store has been described as a high-tech, more health-conscious version of 7-11 for millennials.

That’s not exactly right; it’s more like a shrunken-down version of Whole Foods, with an emphasis on prepared meals and higher-end brands. And, as you already know, the store has no checkout lines or cashiers.

The store is staffed with associates and workers; however, it will likely rely on fewer people to operate than traditional small grocery and convenience stores. It’s not clear how many fewer people will be required or whether it’s just cashiers that are unnecessary. Roughly 6 percent of the US workforce is employed in retail and as cashiers. That’s more than 8 million people.

A mix of technologies allows Amazon Go to operate: sensors and computer vision, combined with a smartphone app and your Amazon account. Users must install the Amazon Go app and have a default payment card selected (you’ll be offered one of your Amazon payment options).

Shoppers scan a QR code upon entering the store, much like a subway pass being scanned at an entry turnstile. The technology “automatically detects when products are taken from or returned to the shelves and keeps track of them in a virtual cart.” When shoppers exit, their default card is charged and a receipt appears in the app.

There are many skeptics who think the store will face challenges and glitches when crowded. But I would assume that the delay in opening has allowed Amazon to stress-test the technology to make sure it will work under pressure. One question I have is how it will respond when products are not replaced in their original locations but set down somewhere else in the store.

The stores are ideally suited to urban centers with concentrations of millennials. While I haven’t discussed this directly with Amazon, I assume Go is a global concept that, if successful, will expand to other markets around the world. London is particularly well-suited for these stores.

How will Amazon Go affect other retailers? That’s the big question on everyone’s mind this morning. The short answer is: not immediately. Those impacted will be grocery and convenience stores in markets where Go stores exist. Longer-term, however, the impact on retail more broadly could be profound.

Long lines and grumpy or inept in-store personnel diminish the in-store shopping experience, driving many people to avoid physical stores. Minimizing or eliminating checkout lines is something that other retailers must start working on now. The feasibility and mechanics of doing that is a much longer conversation. In addition, there are questions about whether the technology in Amazon Go could be applied across the board to other retail environments. The answer is: yes to varying degrees.

Then there’s the data that Amazon will get. This will be enormously valuable on multiple levels and will help inform the company’s online grocery business, as well as Whole Foods eventually. We could also see offline-to-online retargeting eventually, though the company has not spoken about that or how it will use the data and shopping histories captured from in-store shoppers.

Even if Go fails to live up to all this hype, we should see this clearly as a watershed moment that will impact the retail shopping in the future.


Opinions expressed in this article are those of the guest author and not necessarily Marketing Land. Staff authors are listed here.



About The Author

Greg Sterling
Greg Sterling is a Contributing Editor to Search Engine Land, a member of the programming team for SMX events and the VP, Market Insights at Uberall.

Related Topics

AmazonChannel: Retail

We're listening.

Have something to say about this article? Share it with us on Facebook, Twitter or our LinkedIn Group.

ATTEND OUR EVENTS

MarTech 2021: March 16-17

MarTech 2021: Sept. 14-15

MarTech 2020: Watch On-Demand

×

Attend MarTech - Click Here


Learn More About Our MarTech Events

February 23, 2021: SMX Report

April 13, 2021: SMX Create

May 18-19, 2021: SMX London

June 8-9, 2021: SMX Paris

June 15-16, 2021: SMX Advanced

August 17, 2021: SMX Convert

November 9-10, 2021: SMX Next

October 2021: SMX Advanced Europe

December17, 2021: SMX Code

Available On-Demand: SMX

×


Learn More About Our SMX Events

White Papers

  • Digital Marketing Report Q4 2020: Benchmarks and Insights for 2021
  • Data SEO – The Next Big Adventure
  • Getting Started with Email Marketing Automation
  • The State of Local Marketing Report 2020-2021
  • Quality CRM Data: The Key to Delivering Great Customer Experiences
See More Whitepapers

Webinars

  • How to Avoid the Digital Transformation Trap
  • How to Build a Marketing System of Record
  • Meet BIMI: The brand-boosting email security marketers must have for 2021
See More Webinars

Research Reports

  • Local Marketing Solutions for Multi-Location Businesses
  • Enterprise Digital Asset Management Platforms
  • Identity Resolution Platforms
  • Customer Data Platforms
  • B2B Marketing Automation Platforms
  • Call Analytics Platforms
See More Research
Receive daily marketing news & analysis.
Marketing Land
Download the Marketing Land app on iTunes Download the Marketing Land App on Google Play

Channels

  • MarTech
  • CMO
  • Social
  • SEM
  • SEO
  • Mobile
  • Analytics
  • Retail
  • Display

Our Events

  • MarTech
  • SMX

Resources

  • White Papers
  • Research
  • Webinars
  • MarTech Conference
  • Search Marketing Expo

About

  • About Us
  • Contact
  • Privacy
  • Marketing Opportunities
  • Staff
  • Connect With Us

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • Instagram
  • RSS
  • Youtube
  • iOS App
  • Google Play

© 2021 Third Door Media, Inc. All rights reserved.

Your privacy means the world to us. We share your personal information only when you give us explicit permission to do so, and confirm we have your permission each time. Learn more by viewing our privacy policy.Ok