Frequently asked Cashierless Questions
What is a cashierless checkout?
Cashierless checkout is a retail technology that allows customers to purchase goods in physical stores without the need for a cashier. This is typically achieved by using computer vision, sensors, and other technologies to automatically track what items a customer takes from the store and charge them for those items when they leave. Some examples of famous cashierless checkout systems include Amazon Go and Standard Cognition. As you keep reading on our page you will find many more exciting solutions.
Why are there cashierless stores?
There are many reasons why retailers might choose to implement cashierless checkout technology in their stores:
- Efficiency: Cashierless checkout systems can speed up the checkout process for customers and reduce the number of staff required on the shop floor.
- Cost savings: Besides the high initial investments, by reducing the need for cashiers, retailers can save on labor costs on the long haul.
- Enhanced customer experience: As most of you can confirm, nobody likes to wait to pay their purchase. By eliminating the need to wait in line to check out, cashierless checkout technology can improve the overall customer experience and make customers come back more frequently.
- Data collection: Cashierless checkout systems can collect data on customer behavior and purchase history. This data can be used to improve inventory management and target marketing efforts. It combines the tools online merchants use and bring the to brick and mortar stores.
- Contactless payment during pandemics: As all of us experienced in the past years, pandemics can happen. Cashierless checkout allows customers to pay without direct contact with the cashier which reduces the risk of spreading viruses.
What is just walk out shopping?
A sort of cashierless checkout technology invented by Amazon is called “just walk out shopping”. This advanced technology enables customers to pick things directly off the shelf and exit the store without having to go through the typical checkout procedure. The technology automatically tracks what merchandise a customer buys from the shelf and charges them for those products as they leave using a combination of computer vision, sensors, and other technologies. The system also makes use of an App-based system to track customers and finally charge them for the products they put in their shopping bag.
An example of a store that uses just walk out shopping technology is Amazon Go. Amazon Go uses a combination of cameras and sensors to track customers and items in the store, allowing customers to simply grab what they want and leave without having to wait in line or interact with a cashier.
Is Amazon Fresh cashierless?
Amazon Fresh is a grocery store chain owned by Amazon. Even though most people will think of another tab in the Amazon app, there are physical Amazon Fresh stores. Some of the stores offer a cashierless shopping experience. Like Amazon Go, Amazon Fresh uses a combination of computer vision, sensors, and other technologies to automatically track what items customers intend to buy and charge them for items in their shopping cart when they leave the store. Customers must scan a QR code at the entrance of the store to enable the Amazon app to identify them and start shopping.
Once inside the store, customers can take items off the shelves and place them in their carts or bags, and the system will automatically track what they have taken and charge their account accordingly. Customers can also use the Amazon app to scan barcodes of items they want to purchase and see the price and nutritional information. The system is also able to restock items automatically.
Why do people choose self-checkout?
There are several reasons why people might choose to use self-checkout:
Convenience: The majority of customers believe self-checkout ist faster. Even though this might not always be true, self-checkout allows customers to quickly and easily check out without having to wait in line for a cashier. If using traditional self-checkouts, customers forget time as they are busy scanning items before paying.
Speed: Self-checkout can be faster than waiting in line of waiting for a cashier to become available. Speed highly depends whether we are talking about real cashierless technology or common self-checkouts.
Control: Many customers like the feeling of having full control over the checkout process. Self-checkout allows them to complete their purchase at their own pace.
Privacy: Even though this not true, some people may prefer self-checkout because it feels more private. There is no need to interact with people.
Language barriers: Customers not fluent in the language locally spoken may prefer self-checkout because it allows them to use a machine rather than interact with a cashier. No questions asked and thus no need to speak.
Hygiene: Self-checkout allows customers to pay without direct contact with the humans. This reduces the risk of being infected by others.
What is the disadvantage of self-checkout systems?
As previously mentioned, traditional self-checkout can require more time and attention from customers. Since customers are responsible for scanning and bagging all the items in their shoping cart, they feel that they need to very careful when checking out. Checkout can be especially challenging for customers with a large shopping baskets or those who are not familiar with the self-checkout process.
Another disadvantage is that self-checkout might motivate people to cheat. Theft can be problem with traditional systems, even though not many merchants will talk about it.
Furthermore older systems can be less reliable than a cashier-assisted checkout. Machines can have malfunctions or have technical issues that prevent customers from checking out. This can lead to delays and frustration on the customer-side.
Additionally, self-checkout may not be suitable for all customers, especially elderlies or customers with disabilities. They may have trouble with the scanning items and the physical handling of their purchase.
On the long run, self-checkout can lead to job loss for cashiers, as fewer of them are needed to operate the store.
How does cashierless technology work?
First of all we have to clarify that there is not the “cashierless technology”. Many companies are working on this rising technology and mostly use a combination of computer vision, sensors, and AI to automatically track what customers put into their baskets and what they finally have to pay.
- Identification of customers: Customers are typically required to scan a QR code or use an App based account-system to enter the store. This allows the system to identify each customer similar to any online-shopping experience.
- Computer vision: Cameras and other sensors are used to track customers moving in the store and the products chosen. Computer vision finally allows the systems to identify what items a customer has to pay for.
- Item recognition: The systems use machine learning to recognize and identify individual products based on their shape, size, weight and other characteristics.
- Payment: When customers leave the store, the system automatically charges their account for the purchase.
- Error handling: Like humans, machines make mistakes. Most systems have error handling capabilities to detect and correct errors that may occur during the checkout process.
- Store inventory tracking: The system keeps track of the store and its warehouse and updates the inventory in real-time as customers check out.
Overall, cashierless technology aims to create a seamless and convenient shopping experience for customers while reducing costs and improving efficiency for retailers.
How much theft is there in cashierless stores?
The amount of theft that occurs at cashierless stores highly varies depending on the store and the specific technical setup that is used. Some studies have found that classical self-checkout systems can lead to an increase in theft, as customers may be more likely to steal items by not scanning them or by scanning cheaper items. One reason is that self-checkouts do not provide the same level of oversight as a cashier, and customers may feel less likely to be caught.
However, it is important to note that retailers have implemented various measures to prevent and detect theft at self-checkouts. With improving technology, bypassing systems got much more difficult. Stores typically use cameras to monitor customers, weight sensors to detect when an item has not been scanned, and machine learning algorithms to identify suspicious behavior.
In any case, it’s important for retailers to monitor their self-checkout systems closely and take appropriate measures to prevent and detect theft.
Do self-checkouts save money?
Even though initial investment is necessary, self-checkout systems can help retailers save money in various ways:
- Increased efficiency: Cashierless systems can process transactions more quickly than cashiers. This helps retailers to serve more customers in less time. Modern system have (almost) no limit on how many customers can be served at one time.
- Labor costs: By reducing the need for staff, retailers can save on labor costs. Though most companies choose to improve service by using staff elsewhere.
- Reduced queue time: Cashierless checkouts can reduce the time customers spend waiting in line, which usually improves customer satisfaction and increase sales. Furthermore customers are more likely to come for future purchases.
- Reduced space requirements: Self-checkout machines take up less space than traditional checkout counters. Modern systems don’t use any floor space, allowing business to better use their floor space or reduce space.
- Improved inventory tracking: Self-checkout systems provide real-time data on customer behavior and purchase history, which can be used to improve inventory management and target marketing efforts. This advantage is getting more and more important especially when thinking about competing online-stores.
However, it’s important to note that self-checkout systems also have costs associated with them. Systems have to be purchased, maintained and staff has to be trained. Retailers need to weigh the costs and benefits of cashierless systems when deciding whether to implement them in their stores.
What if you accidentally steal from a cashierless store?
If you accidentally steal from a cashierless store, it is important to take steps to rectify the situation as soon as possible. Even though modern systems can be fooled as well, retailers won’t call system errors theft. In case you feel something went wrong, here are a few things you can do:
- Check your receipt: A few minutes after having left the store, you will receive a receipt. This may be in your account or via email. Carefully check the receipt to see if any items are not paid for.
- Return the item: Return the item to the store as soon as possible and talk to staff for clarification.
- Apologize: If you realize that you have taken an item without paying for it, apologize to the store and explain the mistake. Besides human errors, there might have been a technical error that you are not responsible for.
It’s important to know that if the theft is intentional and you are caught, you can be subject to legal consequences. In that case there is no difference to traditional shopping. Even though defining what “intentional” is may be much more difficult from a legal standpoint. Depending on the country, state, and the store policies, you can be charged with shoplifting and a criminal record can be made.
It’s always better to be honest and upfront if you realize that you’ve made a mistake. Retailers would rather have the item returned and the mistake corrected than press charges.
Why do people not like cashierless stores?
There are several reasons why people may not like stores without traditional cashiers:
- Limited assistance: Self-checkout machines do not provide the same level of assistance as a cashier, which can be a problem for customers who have questions or need help with their purchase. Anyhow most stores still have service staff around that answers any question.
- Technical difficulties: Some years ago, people may find self-checkout machines to be confusing or difficult to use, causing delays and frustration. Nowadays one doesn’t have to be a techie to go shopping in a cashierless store. Setting up the app might be the bigger issue.
- Reduced human interaction: Some people may prefer the human interaction and customer service provided by a cashier, and may find a fully technical set up not as satisfying.
- Limited payment options: Some self-checkout machines may not accept cash payments, which can be a problem for customers who do not have a credit or debit card. Fully cashierless stores commonly don’t accept cash at all.
- Increased risk of errors: Some people may be worried about making mistakes when using self-checkout machines, such as scanning the wrong item or not scanning an item at all.
- Job Loss: Some people may dislike cashierless innovation because they believe it could lead to job losses for cashiers and other retail workers.
- Privacy concerns: Customers may be concerned about the level of surveillance used in cashierless stores, and may be uncomfortable with the idea of being watched by cameras while shopping.
- Time consuming: some people may find older self-checkouts more time consuming than traditional checkout methods due to the need to scan and bag items themselves. With fully cashierless stores this issue is resolved.
While cashierless systems can offer convenience, speed, and efficiency for some customers, others may prefer the human interaction and assistance provided by a cashier.
Is self-checkout a form of AI?
Self-checkout systems and especially cashierless systems use some forms of Artificial Intelligence (AI) technology. Specifically computer vision and machine learning.
- Customer identification: Customers are typically required to scan a QR code or use an account-based system to enter the store. Only by identifying customers they can be charged for their purchase.
- Computer vision: Self-checkout systems use cameras and other sensors to track customers and items in the store. This allows the system to identify what items a customer has taken and is one of the most important modules of cashierless technology.
- Item recognition: The system uses machine learning algorithms to recognize and identify individual items based on their shape, size, weight and other specifications.
- Inventory tracking: Cashierless systems keep track of inventory in real-time as customers take items off the shelves.
- Error handling: Most systems also has error handling capabilities to detect and correct errors that may occur during the checkout process.
However, self-checkout systems are not considered a full-fledged AI system. The technology used is focused on a specific task and does not have the general intelligence and decision making capabilities like a full AI system.
Do cashierless systems prevent theft?
NRF’s Retail Security Survey found that retail shrink is an almost $100 billion problem in the US. Thus more and more retailers are thinking about how to reduce the loss and damage due to shoplifting. Cashierless systems can be an impactful instrument. Cameras, weight sensors and machine learning algorithms are designed to detect and prevent theft. Cameras are used to monitor and identify customers. Weight sensors can be used to detect when an item has not been scanned, and machine learning algorithms can be used to identify suspicious behavior.
Furthermore, when entering a cashierless store, customers know that they are monitored. This feeling of being watched alone may drastically reduce theft. It is important to note that no technology is 100% effective and it’s important for retailers to monitor their systems closely and take appropriate measures to prevent and detect theft.