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Amazon Delays Opening of Cashierless Store to Work Out Kinks

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Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#81
post #26

All it takes is a loss factor of a few percent, and the entire model breaks down. This is the same reason that long-range RFID (UHF RFID) never worked for cashierless checkout too. You couldn't ensure 100% coverage. Some tags just couldn't be read -- either due to adversarial tactics (eg. shielding with your body) or material properties (eg. metal) -- and the engineering countermeasures to overcome these challenges m…

I have seen supermarket chains do away with automated checkout (Jewel which parent company is Albertsons) systems because they increased loss factors.

I guess it depends on how you set them up. In the UK you'll find self-checkout scanners in nearly every supermarket that contain scales. Stealing with those isn't easier than just stealing in the first way. You can't just "forget" to scan an item.

Scanning while you shop, however, doesn't really seem to work. Tesco tried that and basically stopped it again. You either need to check really often (high staff costs) or will have losses.

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#82
post #4

In a nutshell: Their tech can't track items if there's a lot of people or fast movement.

And "a lot" here is 20 customers. For any decent shop they'd probably need to track at least 50, rather 100 during busy hours. Not sure if they can fix that within a few weeks.

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#83

It is not the same, but our local Sam's Club has an app that you can scan all items as you go, and pay inside the app. Then as you leave an employee checks the receipt like they do for everyone else anyway. It works great.

How is that any better though? The receipt checking probably takes just as long as scanning the items through the till. Unless they just take a cursory glance and just say "well whatever you're probably trustworthy"

At my Sam's, they just eyeball it. A lot of times they just seem to be counting to make sure you don't have extra items, not actually checking the contents. It only takes a few seconds.

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#84

Earlier quoted context omitted.

RFID is expensive. Even buying the cheapest transponders in bulk, you're still looking at $0.01-$0.05 per label - that's enough to kill the concept entirely for high-volume, low-value goods such as supermarket/grocery store goods where the profit-margins are thin enough as it is, if not loss-making.

How much per item do you pay for cashier staff though. Might be the same as the tag cost. Also in regards to RAIN RFID tags vs dumb print tags yep you are talking about a 5 cent increase. But you also lift inventory accuracy from ~70% to 99.9%.

A cashier can process tens of thousands of items per hour, at a wage of under $15 per hour. This means that the cost of a cashier can be around 0.1¢ per item sold for a busy store

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#85

Earlier quoted context omitted.

RFID is expensive. Even buying the cheapest transponders in bulk, you're still looking at $0.01-$0.05 per label - that's enough to kill the concept entirely for high-volume, low-value goods such as supermarket/grocery store goods where the profit-margins are thin enough as it is, if not loss-making.

How much per item do you pay for cashier staff though. Might be the same as the tag cost. Also in regards to RAIN RFID tags vs dumb print tags yep you are talking about a 5 cent increase. But you also lift inventory accuracy from ~70% to 99.9%.

This seems easy to estimate. At my local large suburban supermarket doing weekly shopping for a hungry family I have a receipt with the last line listing "53 items". So at 5 cents per tag, that's $2.65 of tags ending up in the landfill per week. The cashier takes less than 5 minutes for the entire transaction including scanning and payment and small talk, so (5/60)*7.25 = about 60 cents. Now cashiers are not 100% busy and get breaks so I would round the ratio down to RFID is currently about 3 times more expensive than human.

Of course a cashier can supervise up to 16 self checkouts in a low crime demographic area, so add in a new factor of 16.

For people who don't care about cost and scoff at $2.65 per visit, for a mere $9.95 they deliver...

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#86
post #77

Earlier quoted context omitted.

I have seen supermarket chains do away with automated checkout (Jewel which parent company is Albertsons) systems because they increased loss factors.

Oh. I assumed Albertson's dropped these because they were slow and inefficient, not because of loss/shoplifting. The stories I can find about it suggest the same.

Jewel/Albertsons also tried portable hand-scanners to speed up the checkout process. That quickly was pulled as well.

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#87
post #85

Earlier quoted context omitted.

How much per item do you pay for cashier staff though. Might be the same as the tag cost. Also in regards to RAIN RFID tags vs dumb print tags yep you are talking about a 5 cent increase. But you also lift inventory accuracy from ~70% to 99.9%.

This seems easy to estimate. At my local large suburban supermarket doing weekly shopping for a hungry family I have a receipt with the last line listing "53 items". So at 5 cents per tag, that's $2.65 of tags ending up in the landfill per week. The cashier takes less than 5 minutes for the entire transaction including scanning and payment and small talk, so (5/60)*7.25 = about 60 cents. Now cashiers are not 100% bus…

Tags used to be 60 cents. Now 5 cents. If they got used for masses of things e.g. groceries, they'd go down to a negligible cost. Folks like WalMart can actually drive this themselves.

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#88

It is not the same, but our local Sam's Club has an app that you can scan all items as you go, and pay inside the app. Then as you leave an employee checks the receipt like they do for everyone else anyway. It works great.

We have similar systems in stores here in Switzerland as well [1]. Very easy and quick. Fraud check is random.

[1] https://subito.migros.ch/de/self-scanning.html

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#89
post #76

Earlier quoted context omitted.

I've seen that at Sam's Club, and at a couple grocery store chains, but nobody seems to use them at the grocery store. I did once. I wish Costco would do this too. The lines at my Costco are huge no matter what day or time I visit. Sometimes I'd like to go in just for one or two things, but I decide to get it somewhere else at a higher price just to avoid standing in line behind a dozen full carts. Self-scan would fi…

I'm guessing since they just got rid of self checkout they're not gonna be doing that. (I heard they got rid of it because of too many people sharing cards, and no cashier to check the picture. Seems like an easy thing to fix, but oh well.)

Funny, BJs warehouse club still has self checkout lanes.

Re: Amazon Delays Opening of Cashierless Store to Work Out Kinks

#90

Earlier quoted context omitted.

I have seen supermarket chains do away with automated checkout (Jewel which parent company is Albertsons) systems because they increased loss factors.

Here in Australia our two major chains just convinced the police to station publicly-funded officers in the checkout area: http://www.news.com.au/lifestyle/home/crackdown-of-self-serv... Cut staff numbers without having to pay for increased security! That's just good business sense.

I'm the US we have the same thing... It's just informal, and being done by Walmart:

https://www.bloomberg.com/features/2016-walmart-crime/

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