Anyone with an Amazon account and the Amazon Go application on their phone can enter the store (it generates a unique QR code that is scanned at the store access turnstiles), pick up a product and walk out the door without going through a store going to need physical box. For the entire process, the company uses the same intelligence and artificial vision technology that is used to drive autonomous vehicles.

The store opens a year later than originally planned (the opening had been announced for the first quarter of 2017) and after a year in beta (they started experimenting in this physical space in December 2016) for Amazon’s exclusive use -Staff Seattle.

Amazon GO capitalizes on trends that are already transforming the retail industry, from smartphone technology that enables in-store access, to smart carts and shelves that allow you to track purchases, to real-time online inventory management in the operational Part.

It’s not just that the technology is ready. In addition, according to experts, two already consolidated trends coincide in time:

omnichannel. In other words: Buy what you want, when you want. Today, the customer does not accept restrictions on schedules, returns, etc. and sees the brand as a whole. In that sense, they don’t accept that a franchise business is any different from a corporate business.

Price. After a few years of intense crisis, users have become much more price-oriented than before, they explain. Carrying a brand that is “affordable but attractive” can be an advantage, so all chains have struggled to cut prices and margins to reach more volume and more markets. The most significant impact of this policy is that prices – and quality – have become largely the same between brands, making it difficult to tell them apart.

Amazon has been experimenting with innovative business concepts such as Amazon Fresh PickUp, Amazon books and the Dash button to automatically replenish household items.

Did Amazon rush the launch?

When it comes to selling your product, you not only need to consider financial aspects or the level of product development, you also need to know what your window of opportunity is. Are you going out too early? what are they in front of you None of the above…? Of course, it’s not the same to be a consolidated company like Amazon, with a communication capacity and an already established customer base that you don’t have.

When you’re developing the first version of your product, you’re still making assumptions: you don’t know exactly what your customer wants. But you not only have to validate your product, but also whether your model is scalable. It works, but does it have options to grow? This approach was also followed by Amazon in this case.

“It’s not math. No industry is like the other. Each of them has a different dynamic. A company’s first goal is to get revenue it doesn’t have and grow it. Everyone understands how to achieve this increase in sales: advertising, promotional campaigns, pricing strategies… To achieve this, the product must be available on the market as soon as possible,” says Juan José Marcos, mentor of the Business Angels Madrid + network i.e.

The theory is that it is cash. “It seems unbelievable, but it’s difficult to decide when your product will be ready. You need to know how to take a step back: see what you’ve done, how much you have left to do, where you’re going… The rate at which the business is consuming the resources it starts with before it starts generating revenue is important. Your output must be synchronized with your box,” summarizes Jorge García-Luengo, consultant at Polymath Ventures. At Amazon, the box is not a variable.

How much of minimal and doable?

Arturo Castelló, an entrepreneur who founded a company specializing in the development of gamification applications aimed at the personal and professional development of individuals and companies, points out that “in the development of our technological platform believed that the most important thing was to have a product available as soon as possible Minimum Viable (PMV). But going out with a half-baked product is a high risk. You have to be fast, yes, but the product has to live up to expectations. If the prescribers you want to draw attention to don’t think the product is good when you first launch it on the market, it will be very difficult for them to change their mind when you launch this product again with improvements . We’ve always been faced with the dilemma of speed versus quality: you can’t just bring everything to market.”

Amazon opened the doors of the store when it met minimal expectations.

company management