A Host Of Retailers Experimenting “Cashierless Checkout”April 26, 2019
According to a study by RetailCustomerExperience.com, shoppers dislike waiting in queues at checkout that half of them avoid walking into shops with long lines. More data from this study found that one-third of customers who go into a store walk out without making any purchase if they think checkout will last over seven minutes.
No retailer wants to lose that much traffic and revenue. As a result, most of them are seeking ways to improve shopper experience and speed up checkout. In essence, they are trying to employ some online shopping experiences into the brick-and-mortar point of sale.
The approach, known as cashierless checkout, has proven to be more effective than other methods like tap-and-pay mobile wallets. No wonder a host of other in-store retailers are looking to try the idea and join world-known retailer Amazon.com Inc. who is so far the leading designer of cashierless tech.
Maybe the shift to cashierless is coming as a last resort after the “self-scanning systems” failed to reduce friction because they still needed shoppers to show a receipt while walking out. Cashierless checkout allows a buyer to enter a store, scan goods into a virtual shopping cart with his smartphone, pay via his mobile wallet (anywhere within the shop) and leave the store without ever queuing for checkout.
For retailers, the prospect is that completely “eliminating” the checkout process for consumers will lead to a more frictionless in-store shopping experience and trigger repeated visits, customer loyalty, and, increased sales.
Amazon is not actively going cashierless alone. Stance, a California-based apparel store also launched this checkout method in all its 14 branches.
“Two of the main headaches for shoppers with in-store buying is limited parking space and long lines at checkout,” says Paul Zaengle, an executive vice at Stance.
“Though we can’t make parking more convenient, we can do something about to bypass checkout.”
The shift to cashierless checkout is ‘revolutionary.’
A long list of retailers is following suit, most of them are your favorite big-box retailers including;
- Sam’s Club,
All from the U.S, and;
- Tesco in the United Kingdom.
Amazon Spearheads Revolution
Amazon Go Stores is Amazon Inc.’s convenience grocery store selling packaged foods & drinks without the need for cashiers or checkout queues. The company builds the stores from scratch up.
Here’s how it works:
Amazon rents/buys a retail space in a strategic area and completely renovates it.
Tech is installed including cameras and software that track a customer’s moves in the store and sensors that “sense” when an item is dropped in a shopping basket or placed back on the shelf.
This level of digitization and security is Amazon’s way of rising above the potential downsides in the system while also meeting the needs of today’s customer— frictionless checkout.
For retailers, meeting the shopper’s need is not only a necessity but also a source of revenue. Large retailers know this, no wonder most of the names listed above are already taking active steps to make cashierless checkout a reality for shoppers.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high-risk payment processing company eMerchantBroker. He’s just as passionate about helping risky businesses get high risk merchant accounts as he is with with traveling and spending time with his dog Cooper.