Tag Archives: amazon

Welcome to Amazon go !

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There we are, Amazon did it : the  e-marketplace has just opened its first supermarket in Seattle (United States). Called Amazon Go, the store has the particularity of not having check-out, all going through a mobile app associated with an Amazon account. Unfortunately,  this store is only in test for now and is just opened for Amazon’s employees. It should be open to the public at the beginning of the year. Moreover, if tests are successful, Amazon plans to open more than 2,000 grocery stores, the Wall Street Journal reported on Monday, citing sources.

To enjoy Amazon Go, people will need to install the application and scan the barcode displayed on the screen before entering. Afterwards, they could store their smartphone and they will only have to take the items that interest them. Once their shopping is over, they will simply have to go out of the shop, without having to open their bag. The exit of the user will be detected and, as the user passes through the exit, the user, without having to stop or otherwise be delayed, will be sent the invoice on smartphone, with an automatic payment in the wake.

Called “Just walk out technology”, Amazon remains rather vague about how the store will work. They’re explaining that they are using computer vision, deep learning algorithms, sensor fusion, technologies that can be found in self driven cars. More details will be given next years with the opening of their stores

 

 

 

Stay tuned !

 

References:

http://www.geekwire.com/2016/amazon-go-works-technology-behind-online-retailers-groundbreaking-new-grocery-store/

http://www.news18.com/news/tech/amazon-challenges-supermarkets-opens-line-free-grocery-store-1319789.html

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A farewell to the Middleman

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The typical business model, supply chain used to be quite straight forward; There is a manufacturer that sources the materials and creates a product. A wholesaler would buy the product from the manufacturer and resell it for a small margin to the retailer, which the again sells the product to the end customer. On every step of the way, a little extra margin is added to the original price of the item so that everybody gets its share. The internet has changed that.

middlemanFrom TechCrunch, to New York Times or WSJ, everybody has proclaimed “The Death of The Middleman”. The internet has made it possible for manufacturers to reach customers directly via a website. Thus creating a better offer for both ends as the intermediary does not receive its share anymore. The supply chain is getting shorter, as manufacturers started to sell directly to costumer, at times even via their own mobile application, which even allows customers to personalize their purchased goods according to their needs.

The middleman is redefining itself and we see him again as concierge service and the like. Offering that extra service the modern customer of today is asking for. But how sustainable is that? In a highly technologized world, will it not be only a question of time until manufacturers than again are able to offer state of the art service by themselves via an App for example?

Amazon may be one of the most extreme examples. Not only does amazon.com offer the largest product range on the web for the end consumer, they increasingly start to offer own products. We see products like “amazon basics”, which are sold under the amazon brand and cover products all across the categories. Amazon knows its customers and it knows them well. How can any concierge service compete with amazon offering tailor made products?

Amazon does it, Netflix does it too. Increasingly becoming a competition to Hollywood, by offering their customers their own productions, often financed with gigantic budgets that make Hollywood productions seem small.

What’s the value of a middleman in modern eCommerce?

 

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