Amazon to sell Just Walk Out technology to other retailers

Rachel Sibson
Retail Analyst
@RetailAnalysis

Date : 10 March 2020

Amazon is set to sell its cashier-less technology, used in its Go stores, to other retailers, as reported by Reuters.

Just Walk Out

Amazon launched a website for its new initiative, Just Walk Out, inviting retailers to inquire about the service and answering various questions.

Just Walk Out enables retailers to leverage Amazon’s cashier-less technology in their stores, which the retailer has used in its Go stores since it launched in 2018. 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 are finished, they can just leave the store, and will be charged for their items.

Unlike in Amazon Go stores, in Just Walk Out-enabled stores, shoppers will enter the store using a credit card, and will not need to download an app or create an Amazon account. To get a receipt, shoppers will have to visit a kiosk in the store and enter their email address. By using the same credit card to enter any Just Walk Out-enabled store in the future, receipts will be automatically emailed.

Amazon said the installation of the technology will take a few weeks, and it will offer retailers 24/7 support via phone and email. The retailer also stated on the Just Walk Out website that it will only collect the data needed to provide shoppers with an accurate receipt, comparing this as similar to typical security camera footage.

Amazon Go, San Francisco - Source: IGD Research

Amazon services

Amazon is becoming a service provider, just as much as it is a retailer. For example, in 2019, Amazon’s total net sales reached $280,522m. Net product sales (Amazon’s direct sales of products, digital content etc.) were 57% of the total, growing at 13%. In comparison, service sales (third-party seller fees, including commissions and any related fulfilment and shipping fees, AWS sales, Amazon Prime membership fees, advertising services, and certain digital content subscriptions) represented 43% of the total, but grew by 32%. New initiatives such as the Just Walk Out service enable Amazon to re-invest into the wider group and improve its proposition, creating a virtuous cycle.

Keep up to date with developments at Amazon

See the latest Amazon news here and IGD Retail Analysis subscribers can learn more from our Amazon Strategic Outlook presentation.

Retail Analysis subscribers can read our Amazon Go Grocery, Seattle store visit report to see how it continues to push the boundaries of innovation in food retailing.