Current Events #11 (MP3 #2)

     Before the age of the Internet when people needed to buy something they would go out to a store that sold the item they were looking for. When the Internet came along some websites, such as eBay and Amazon, started selling goods online and gained popularity. A term has been coined to describe the transaction of goods online, e-commerce. E-commerce is now a normal part of people's lives and the rise of it is a major reason why traditional stores, refered to as brick-and-mortar stores, are on the decline. Many factors favor e-commerce over brick and mortar; websites are more convenient to access than physical store, websites cost less since there is less/no staff to pay, etc. Amazon, however, is tinkering with the idea of a brick and mortar store being staffed with humans, shifting to a cashierless store design.

An example of how AmazonGo looks

     Amazon, one of the biggest e-commerce sites, is planning to open around 3000 AmazonGo stores in the coming the years. These stores would lack any human cashiers. Unlike traditionally staffed stores these AmazonGo stores would require the customer to download an app before entering. Customers would scan their phones at a turnstile and would proceed to shop for items they want. Sensors would detect what the customer is taking and would bill it instantaneously, essentially eliminating the need for humans behind a counter. These sites would have a high upfront cost, however. Opening one of these sites could cost up to $1 million but plans to combat the high upfront cost include selling prepared food to go. The thought behind this is fewer security devices are needed to keep track of the inventory, reducing equipment costs, and the profits of the site will start coming in sooner. The model behind AmazonGo is a convenience store that sells prepared food, a small selection of groceries, and on the go foods. These sites are planned to open in major cities which could threaten many casual fast food chains such as SevenEleven, Subway, Panera Bread, and various local family run establishments. Amazon Go would be essentially opening in the same convenient locations as its casual competitors but its lack of lines due to computers replacing humans would give it a huge edge over competitors, making it a go to place for a quick bite. Some locations may not be able to keep up with AmazonGo stores and will have to go out of businesses as a result. The repercussions of the concept of AmazonGo was felt in the markets; with stock prices for retail giant Walmart dropping around 0.6% the day news of AmazonGo was spread. If Amazon opens its 3000 Go stores it will become one of the largest retailers in the US and will enter a new investment period, where profitability is not the goal but expansion when it comes to opening new AmazonGo stores.
     My personal reflections are that technology can revolutionize an idea that we would think unchangeable but it bring consequences with its revolutions. Brick and mortar stores usually have human staff maintaing the site. Some may work behind cash registers, others cleaning and stocking, and some even helping customers but always there is a human presence. Amazon has changed that idea through use of cameras, sensors, and the Internet of things with the same cameras and sensors telling a computer what a customer is taking, helping it calculate the charge the customer pays. Humans need not apply at these computerized stores. The idea of a humans working in brick and mortar stores was perhaps a major difference between the e-commerce experience and physical experience but now even that distinction might change thanks to technology. While this is very revolutionary for the brick and mortar design one must consider what happens to the humans laid off. If many companies and stores, not just Amazon, start using human less stores there will be many people without jobs that can't find a new one since a computer has taken their place. If the unemployment rate increases who knows what political turmoil could ensue in the US and around the world. Instead of dealing with faulty mortgage systems, however, it will be dealing with companies needing less humans on a job and more humans needing a job at the same time. A great revolution to a system of business, yes, but we must be ready to deal with the potential consequences of such change.

Works Cited:
Soper, Spencer "Amazon Will Consider Opening Up to 3,000 Cashierless Stores by 2021" 19 Sep 2018. Web 2 Nov 2018.

<https://www.bloomberg.com/news/articles/2018-09-19/amazon-is-said-to-plan-up-to-3-000-cashierless-stores-by-2021>