Amazon fades out its controversial Amazon Fresh system

Walking out from Just Walk Out

The system allowed customers to shop in Amazon Fresh stores without the need for traditional checkout, billing them directly via their Amazon accounts. This move, announced on 2nd April, does not affect the technology's use in the UK. Introduced in 2016, "Just Walk Out" technology enabled a seamless shopping experience but will now be replaced by a focus on the Dash Cart system. Launched in 2020, the Dash Cart allows shoppers to monitor their purchases and receive immediate receipts as they shop, addressing customer feedback for more interactive shopping features such as product locators and deal finders. Despite the initial rollout of checkout-free supermarkets, including a notable launch in London in early 2021, Amazon paused its expansion of cashierless stores in the UK in August 2022 and reassessed its strategy for physical stores. This strategic pivot reflects Amazon's ongoing evaluation of how best to differentiate its offering in the physical retail space amid broader industry experiments with checkout-free technologies and a general trend towards increasing self-service options.

Masked in controversy

Recent reports from Business Insider found that there was more than meets the eye when it came to Amazon’s seemingly innovative Just Walk Out technology, as it was effectively relying on 1,000 Indian human workers to do the job manually.

As many as 1,000 employees in India were assigned to verify customers' purchases, despite the company's claims that the system operates solely on computer vision technology. According to a 2022 report, a considerable number of transactions, specifically 700 out of every 1,000, required this manual verification. An Amazon spokesperson clarified that the role of the India-based team was primarily to enhance the training of the system's model. They added that a small fraction of transactions might need manual checks by these associates, especially when the computer vision technology is unable to confidently identify a customer's selections.

What’s next for Amazon?

As previously mentioned, Amazon's core focus will now turn to smart “Dash Carts,” to streamline and enhance customer experiences. The Dash Cart is equipped with a sophisticated combination of computer vision, sensor fusion, and deep learning algorithms. These technologies work together to automatically identify and tally items placed inside the cart. As shoppers navigate through the store, the cart's display keeps a real-time tally of their purchases, allowing customers to monitor their spending as they shop. Additionally, the Dash Cart is capable of weighing items and providing instant digital receipts, eliminating the need for traditional checkout lines. Shoppers simply exit the store through a designated lane, where the shopping total is automatically charged to their Amazon account.