Unmanned sales is a system in which there are no working people in the store, such as clerks or staff. Because of the impact of COVID-19 and the desire to avoid contacting people, the demand for unmanned sales has gradually increased in recent years. Furthermore, as the manufacturing system becomes more advanced and informatized, the number of companies or organizations that use advanced technology grows. Indeed, “Amazon Go” in the United States and the unmanned convenience store are popular in China and Japan. These unmanned stores are gaining popularity around the world.
As an example, the first public “Amazon Go” unmanned store opened in Seattle in January 2018. The 1,800-square-foot shop sells food, beverages, and personal care items. Customers enter the store by scanning their phones with the “Amazon Go” app. They choose items and are charged when they leave the store. Amazon tracks customers and the products they touch using shelf sensors and cameras (Pelosi, 2018).
Evolution of the unmanned sales
Unmanned sales is not a new concept, and it has evolved over time. Farmers first used unattended sales systems to sell vegetables, and ancient Greek literature also mentions coin-operated machines that applied holy water in temples. However, as technology advances, security and payment systems have improved, and the scale of unattended sales has increased. As a result, the evolution of unmanned sales is heavily influenced by technological advancements. Indeed, over the last two years, the unmanned system has grown rapidly in all sectors (H.R. Everett, 2017). Many vending machines have been invented, and many stores, from restaurants to grocery and general merchandise stores, have experimented with various unmanned and self-service concepts, including self-checkout.
Advantages of the unmanned sales
There are some positive points to the unmanned sales, such as the reduction of personal costs and expenses and ease of management. The following are the main four positive points of the unmanned sales:
- Reduction of personal costs – Unmanned sales, as the name implies, do not require the hiring of clerks and staff, which significantly reduces labor costs. Automatic checkout, for example, would reduce the need for cashiers. Excess personnel can be reduced or reassigned to customer service or other front-line positions.
- Ease of management – Thanks to the development of technology, the security and payment systems are better than before, so it is easier to check the status of goods’ inventory.
- Minimum contact with people – The spread of COVID-19 has resulted in a refusal to work closely with people and a focus on unmanned sales. Furthermore, people with expertise and skills who are missing out on business development opportunities due to shyness and poor networking skills can work relatively easily with unmanned sales because interpersonal skills are not required (Denuwara, Maijala, and Hakovirta, 2021).
- Possible to place shops in locations where they have never been before – Shopping malls are struggling, and traditional retailers are losing customers. Companies cannot afford to wait for customers to visit their stores. They must go directly to the customers. This is where self-service kiosks come in handy. These kiosks take up less space, require less staff, and can be placed in public areas such as office lobbies, campuses, and transit hubs.
Disadvantages of the unmanned sales
There are disadvantages to unmanned sales, such as the difficulty of starting up, the high cost of starting up, and the risk of theft:
- They require very high start-up costs.
- This system is built on consumer trust, and it is impossible to completely eliminate the risk of theft (Dobson, 2022).
- Not knowing how to use the unmanned cash register when checking out can be time-consuming and may lead to inefficient turnover at the checkout (“Pros and Cons: Self-Checkout,” 2020).
Technology to support unmanned sales
Companies are using the following technologies to operate unmanned sales:
- Computer Vision – One of the applications of artificial intelligence is computer vision, which allows computers to understand images. This technology is used to track customers in stores that do not have cash registers. Customers cannot be identified without facial recognition, so when they enter the store, they must scan a code with their smartphones to link their presence to their ID. The movement of merchandise in the store is also tracked by computer vision.
- Sensors on display shelves – Weight or light sensors are used in some unmanned and convenience stores to detect when merchandise is placed on or removed from shelves. This confirms the behavior captured by the cameras and can also be used to prove that a customer removed or returned merchandise from the shelves. When an item is sold out, the systems can automatically notify the store clerk.
- Barcode – Apps that allow customers to scan barcodes on products and pay for them themselves will support unmanned checkout.
- QR codes – QR codes are used by many unmanned store apps. Mobile apps, particularly in China, generate QR codes specifically for customers, which they scan to enter, exit, and pay for their purchases. Some models include QR codes on their products that customers can scan to learn more about the product.
- RFID tags – RFID tags are attached to merchandise in order to track its location in the store. Sensors at the store’s exit can read RFID data and determine which items a customer is about to take out. Because it is often not worth it to put RFID tags on low-cost items, companies such as “Amazon Go” do not use tags and instead track items using AI observation systems. On the other hand, it can be used to improve security in unmanned stores that sell high-priced goods (Pelosi, 2018).
How will the unmanned sales change in the future?
Unmanned sales will continue to gain popularity. However, in order to be more widely adopted, they must demonstrate their ability to operate consistently on a larger scale. More demonstrations and improvements are required before more retailers are comfortable with unmanned sales.
In line with technological advancements, eliminating the disadvantages of unmanned sales and expanding the benefits will allow for an up-to-date and comfortable buying and selling experience for both the seller and the customer.
References
Denuwara, N., Maijala, J. and Hakovirta, M. (2021). The impact of unmanned stores’ business models on sustainability. SN Business & Economics, 1(10). doi:10.1007/s43546-021-00136-8.
H.R.Everett (2017). A Brief Early History of Unmanned Systems. [online] Mechanix Illustrated. Available at: https://mechanixillustrated.technicacuriosa.com/2017/02/19/a-brief-early-history-of-unmanned-systems/ [Accessed 2 December 2022].
Pelosi, J. – P. (2018). Can the unmanned store reshape Aussie retail? [online] NewsComAu. Available at: https://www.news.com.au/finance/business/retail/can-the-unmanned-store-reshape-aussie-retail/news-story/55698ec10abdbc48556903fe06b131ee [Accessed 2 December 2022].
Dobson, Liliana. “Unmanned Stores. The Future or a Temporary Trend? | Medialisco.” Medialisco.com, 5 Aug. 2022, medialisco.com/sales/unmanned-stores-the-future-or-a-temporary-trend/. [Accessed 27 December 2022].
“Pros and Cons: Self-Checkout.” Springwise, 27 Jan. 2020, www.springwise.com/pros-and-cons-self-checkout/. [Accessed 27 December 2022].
