Why Amazon Reportedly Wants To Open 3,000 Automated Stores

Dennis Green: If you’re
the operator of a local convenience store or
corner shop or bodega and an Amazon Go opens up
just around the corner, you might wanna look over your shoulder. Amazon first announced its
Amazon Go project in 2016. The first store didn’t
open until 2018, January. There are now four Amazon
Go stores in operation. Three of them are in Seattle
and one of them is in Chicago. Reportedly they want to
open at least 3,000 stores in three years. That seems a little optimistic
when it took so long for them to open the first one. They’re pretty small
stores to start out with. They’re only a couple thousand square feet which is kind of closer
to a convenience store than a full-fledged grocery store. Amazon Go stores are the
famous thing that Amazon likes to say is it has
just walk out technology where you can go in, scan your
app, you can take whatever you want off the shelf and
then you just walk outside and then it charges you
for whatever you took. It uses sensors and cameras
to kind of tell what customers are taking in order to
charge them correctly. There’s two kinds of Amazon Go stores. There’s a more grocery-oriented where you can go in and
get some light groceries. And there’s another format
that’s more oriented towards prepared food that’s kind
of like a lunchtime spot. You can just go in and
grab a sandwich or a salad. So this isn’t stuff that
you really wanna wait for. It’s maybe like a candy bar
that you just wanna grab. Something that you’re gonna
go and kind of consume immediately or a grocery item
that you need for a recipe that you wanna cook that night. They also sell their Amazon
meal kits in these stores which are refrigerated kits
with a bunch of different ingredients that you can cook. 90 percent of all retail
sales are offline. It’s kind of staggering
when you think about it. You think about the fast
growth of online is still only amounts to 10 percent even in 2018 so there’s kind of like a
lot of room to run there. Most estimates peg Amazon
as taking up basically half of all e-commerce. There’s some room for them to
grow and estimates by analysts show that they will grow but
they’re looking for other avenues of growth to maintain
the velocity that they have. And the one that they’ve
pegged right now is bricks and mortar. When Amazon moves into a
market they kind of operate with this low margin
mentality where profitability doesn’t really matter until
they kind of achieve mass scale and then they can kind of
tinker with the levers. As far as Amazon making
money off of these stores, that’s kind of TBD. There’s a report that the technology that went into the first one cost a million dollars to install. That adds a big additional cost to opening the store in the first place. As far as the break-even
point, we don’t really know what the economics of these
stores even are, so it’s hard to say if they’re making money,
or they’re not making money. Amazon uses what customers
are already buying online to guess what customers wanna
buy in their Amazon Go stores. So that’s kind of like a reminder
of what they have on you. It’s a reminder of what they
know that you already like to kind of entice you to
buy it again in a store. So if they know that a specific
neighborhood or city likes a certain kind of seltzer
they’re gonna stock more of the seltzer and they’re
gonna have more flavors of the seltzer. Whether or not that’s
a good thing, I mean, it’s serving customers right?
It’s what customers want. It’s putting it in front
of them in a new way. But it might make some
customers uncomfortable. Other retailers are trying
to come up with things that compete with Amazon. A lot of them have new pick up
options where they can order online and then pick up
in store or can deliver right to customers some even with autonomous vehicles. But no grocery stores
have that kind of data to draw from like a big
E-commerce giant like Amazon has.

100 thoughts on “Why Amazon Reportedly Wants To Open 3,000 Automated Stores

  1. They will try to conquer the retail store market. They have already been investing in their own planes so that they can try to not have to pay UPS to deliver their products. Also have been looking at using drones to deliver packages. At what point can they be considered a monopoly?

  2. 2:54 … Yeah what they have on me is ähm that I personally like "Salsa A" they'll only put it in a store if many people actually like "Salsa A" too AND ACTUALLY BUY IT! So in the end there is no real difference compared to a regular store right? Items that sell good like for example "Salsa A" will be kept in stock in huge quantities, whilst other items that don't sell so good might be thrown out.

  3. Hoping these come out soon, It's such a waste of time dealing with people. And I mean that in an objective manner, not a "people suck" kind of manner. Objectively, people make things take way longer than it should, I don't want to interact, just go in, go out, you got your shit, everything is good. Saves so much time

  4. Jeff Bezos, backed by Wall Street, who sold at a massive loss for years, crushing competition and violating every antitrust law on Earth, will soon be crushing your small local businesses now.

  5. They still need people to stock the shelves, deliver stuff to the stores. You will still pay, even more, just to have the convenience, not put yourself out, not get your hands dirty. Remember: "A sucker is born every minute."

  6. Automation should be limited as such it does not affect employment…world will suffer a lot because of this in coming years. Government should intervene to prevent havaoc in the country especially India.

  7. Freemasons' that are pushing this agenda and it's just one step closer to their new world order surveillance state that will rival China.

  8. if you really wanna go, then why waste precious time on queue outside. well i guess its a hype right now and want it to experience.

  9. The smart people will start a company that runs alongside those stores. For example (this was off the top of my head): When they do grow in size and have shopping carts the goal will still be fully autonomous. So some company could offer to autonomize the
    shopping carts so they function normally until you are at your car, instead of returning the cart, you would just push a button and the
    cart would go back safely to its original location(similar to a drone when returning to its "home").

  10. Amazon will 'work for us' until we all work for it.

    Be careful who you buy from, because thats the only place that will be around in the future.

  11. This guy has probably the most boring voice I’ve ever heard to be narrating otherwise interesting videos. The unnecessarily elongated vowel sounds at the end of his sentences somehow sap all of the intrigue from the content. Fascinating.

  12. Amazon actually becomes Buy and large super store from walle. Buy and large according to lore also started off selling books, what else sold books hmmmmmmm. BnL.

  13. ⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ says:

    Now instead of "poorly" paid warehouse workers, we have this hahahaha. Sucks to be scraping the bottom of the barrel in life.

  14. why would i scan my app all just walk in there take what i want and leave lul
    what about homeless ppl
    thefts with mask
    what about after hours
    drunks and so on
    what stopping me from walking in there and take shit

  15. Now this laddies and gentleman is a good ass idea bot having to wait around , judt take it and leave good if ut in a hurry

  16. The situation where grocery prices have gone through the roof while labor costs were level and even transport costs were way down was one which was begging for competitors. Grocery prices dropped when gas dropped in EU, but anyone ever notice any drops here – ever ? I welcome any market force which would incentivize fairer pricing. I pay about 25% more for groceries than just 5 years ago, or more. And no, a monopoly by anyone is not likely to be a good thing, but for now even huge amazon is a wee bit player as far as the grocery biz in my large population area. USA produces food on massive scales at substantially lower costs than the EU or Japan (much of it originates from Latin America) and that food is unquestionably beyond any doubt of lower quality overall than you’d find in most parts of the EU and UK. Currently for the first time I can ever recall, food prices for edible quality food in the USA are just as expensive as the EU (excluding Switzerland, Iceland), sometimes more. Would be great if amazon offered better quality at lower prices.

  17. He's elongated vowel use as he speaks is absolutely terrible, also keeping saying kind of etc is just bad being a presenter 😒😕

  18. Thank God. I'm tired of these dirty bodegas/convinence stores everywhere. All those things do is give a space for lazy people and future criminals. I want Amazon taking over all these businesses in NYC. And if they want to complain they better begin cleaning up their stores and pulling out the scratched up lenolium floors they have there.

  19. This is the next big step in consumerism! Yeah, I hate all the data they gather, but this makes shopping more efficient. I've visited the Amazon Go store only twice, but I love it. Walk in, grab what you want, walk out. Of course this will also be an economic disaster waiting to happen. When people aren't having to handle money, they don't notice how much they spend. This system is designed to separate you from your money in the least painful manner possible. Also… What happens if you walk out of the store, but your payment gets decided?

  20. Imagine boonk gang at one of these stores 🏃🏾‍♂️💨💨💨(if u don’t know what I’m talking about then u old asf)

  21. Forget the no checkout, just help me FIND THINGS FASTER, especially in a big store that keeps moving items around. Maybe with some kind of augmented reality app, I would be able to walk into a store, make a beeline to my items, pick them up, and get out. If I could just find items faster (especially in a big store), I would be willing to wait at the checkout. Any shopper in human history knows that the real frustration is walking all over a store, reading numerous signs, going 1st floor, 2nd floor, isle 1, isle 2, etc. etc., and wondering where the F they put certain things.

  22. Amazon needs a strong competitor. I’m all for these types of convenient ideas, but not without proper competition.

  23. If people don't understand or see a problem with the autonomy and what kind of GRIM future it will bring, than there is something wrong with them. Once we are going to have autonomous stores and vehicles, ( cars/taxis, trucks, buses and trains ) we will have literally tens of millions of people out of jobs. And do you know what happens when there is no job and your baby is crying because he/she is hungry and your wife is screaming at you 24/7 to do something about it and your landlord is pounding on your door to get his rent? You have no other choice but to turn to alternative ways to make money. If you think US has some serious crime/gang issues now? LOL ohh boy you have no idea what is in store for us in the next 5-15 years from now.

  24. Pros:
    streamlined product distribution; at least savings from having no cashiers
    if perfected, reduced theft
    possibly less food waste
    less plastic bags
    possibility of mapping your body dimensions and skin tone to "aid" in online shopping.
    possibility of lower cost of everyday items
    possibility of using cryptocurrency
    data, data, data!!! mouth froths

    they turk mahr jerb. not that it was "yours" to begin with. nobody is entitled to a job.
    high upfront cost
    do kids need an account?
    does it recognize fishing rods? (asking for a friend)

  25. Holy crap… Bundaberg Ginger Beer is sold in the States??? AND its popular?!?!? YES!!

    So great to see Aussie products being enjoyed overseas 😊❤

  26. The store is really cool but how can you pay so when you get out it charge what you take and amazon take money from your credit card?what if we don’t have any money I don’t understand

  27. I really do not want to see this take off, they can put family owned stores that are 100 years old out of business, without breaking sweat. I do not want to see Amazon stores everywhere in fact I will never buy from them *online sure, BandM not a hope.

  28. Ma a che serve il denaro non è un diritto vivere dignitosamente🤔o vi piace tenere i paesi poveri attorno per farvi pagare🤑
    I robot non servono ?sempre schiavi 🤔 economici e famiglie separate per denaro 🤑ci si vede in paradiso o è un paradiso del dio denaro multi nazi o nale🤔per sottomettere i popoli giocandovi i soldi di tutti.
    Se non curate i poveri e i vostri fratelli vale poco mangiare 😇
    Scusate la critica 😬 ma preferisco farmi una passeggiata in montagna e raccogliere dalla terra 🤖

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