"TRACXPOiNT invents the connected shopping cart" - HUB Institute
January 30, 2018
Why Amazon Go Shouldn’t Be Your Retail Inspiration
December 20, 2018
In an effort to compete with online shopping, physical retailers are turning to the latest technologies to combat the common pain points customers face. And as Amazon continues to make waves in the industry, its recent endeavor, Amazon Go, has focused on one major pain point: the checkout. Shoppers can agree that standing in line to pay for items – whether it’s a quick snack or your family’s weekly haul – is a major waste of time and a deterrent from shopping in stores. However, while focusing on checkout-free retail is important, it ultimately leaves other in-store experience problems intact, such as customer service or out of stock inventory. Below, we’ll explore a more cost-effective and rewarding option for both shoppers and retailers.
Amazon Go: Not Frictionless for Everyone
While Amazon Go and similar concepts based on ceiling cameras have addressed one problem with the traditional checkout process by automating certain aspects of the purchase, checkout and payment processes, they don’t address much else.
So is the Amazon Go concept a good choice for all retailers, or just Amazon? Like many innovative technologies before it, we can applaud them for being first, but not for being right. Firstly, Amazon Go technology is designed for small-format stores, with its flagship measuring at just 1,800 square feet. For larger retailers looking to implement the same technology, issues of loss prevention and inventory management also arise.
What’s more, Amazon Go-like technology is too expensive for retailers to consider as a retrofitting option. According to Coresight Research, Amazon Go stores reportedly cost over $1 million each, in just hardware alone. That’s not to mention that this is only upfront spend; ongoing costs such as infrastructure maintenance and upgrades will continue to add up. For most retailers, this is simply not a good option.
Instead, retailers should look to solutions with a lower barrier to entry, offering small up-front costs, limited operational disruption and less time to value, all while allowing brands to control their own data and relationships with customers.
Once in use, the shopping cart can load a shopper’s grocery list as well as buying patterns, and has the ability to suggest compatible products with the most valuable offers. Additionally, with checkout right on the built-in touch screen, shoppers no longer have to stand in long lines, a major source of frustration when it comes to in-store shopping.
The shopping cart’s solutions also provide retailers real-time insights and analytics based on cart data such as shopper location, sales analysis and aisle or shelf performance. This allows for more conversions and increased revenue while simultaneously offering customers a more personalized and value-added shopping experience.
Improve Your In-Store Experience with Tracxpoint
If you’re a retailer looking to solve your checkout problems at a fair price without upending your entire operation, while also improving your understanding of and relationship with your customers, Amazon Go shouldn’t be your source of inspiration. Bridging the digital divide and providing all the services your customers expect doesn’t need to require downsizing or a massive upfront investment, it just requires a new take on an outdated service. To learn more about your options, reach out to us today.