Technology continues to change the in-store shopping experience. Apps can guide buyers to the correct aisles while online shopping allows shoppers to pre-buy their items and pick them up in-store. Two innovations that might seem similar but are significantly different are cashierless checkout and self-checkout. Self-checkout uses kiosks where shoppers scan, bag and pay for their goods without the help of a clerk. Cashierless checkout skips this process entirely. For example, Verizon's 5G Edge Cashierless Checkout solution automatically detects the items that the shoppers pick up off the shelves while shopping and allows shoppers to walk out the door without going through a checkout line. This option is convenient for shoppers, and could lead to more sales. Let's learn more about this cashierless checkout technology to see how it can be superior to self-checkout.
Understanding cashierless checkout technology
Cashierless checkout uses a combination of computer vision to detect what shoppers pick up and put down. In the case of Verizon's 5G Edge Cashierless Checkout, shoppers can check into a store using a credit card or a QR code on their phone. When they pick up an item and place it in their bag, the cameras running a computer vision application registers the action and adds that item to their virtual cart. Shoppers then walk out with items they want and the cashierless checkout application will process the transaction and submit information to the payment processor to charge the shoppers for the goods in their virtual cart. This technology is advanced enough that it recognizes the exact items that shoppers select and identifies what they return. For example, a customer can pick up both a ham sandwich and an egg sandwich, then return the egg sandwich to the shelf if the customer doesn't want it. The customer will only be charged for the ham sandwich.
Advantages of cashierless stores for retailers
There are multiple benefits of cashierless checkout for retailers. First, this option can cut down on staffing costs. Cashierless stores need employees to stock the items and respond to customer issues, but don't need cashiers, which cuts down on staffing costs. With cashierless checkoutsystems, team members can focus on more productive tasks rather than spending their time at a checkout counter. These stores also attract shoppers who don't want to use traditional checkouts. Given the choice between a traditional store and a cashierless one, some people would prefer to pick up their items quickly and get charged automatically when they walk out. The data gathered from the cashierless process can be synced with inventory management systems. This information can be used to assist with fulfillment processes and to track demand for specific products. It can also be leveraged to help retailers meet the needs of their shoppers and make more informed choices about what to stock and when.
Benefits of cashierless stores for shoppers
Cashierless Checkout experiences can can also benefit the shoppers by not having to wait at the register. A staffed or self-checkout can be a frustrating experience whether the shopper is buying two items or an entire cart of groceries. Simply walking out can save a lot of time. Cashierless stores also improve the shopping experience overall by saving space. Stores can use the area where registers would normally be to stock more inventory, so shoppers can be offered a wider selection of items. Alternatively, they can make the store's footprint smaller so shoppers can quickly buy what they need without walking across an expansive space.
Challenges of cashierless systems
Despite the multiple benefits of going cashierless for both store owners and shoppers, there are some drawbacks. First, these stores require additional technology, which must be installed and supported. The cashierless checkout technology needs to supported and monitored, so it accurately detects and reports each item selected. On the buyer side, these cashierless checkout systems require the shoppers to trust their accuracy.
How to set up cashierless checkout
While cashierless checkout require investment, some stores might be good candidates for these systems. Smaller stores can benefit from going cashierless because it will increase the amount of retail space and potential profitability. It also enables stores to be open 24/7 with minimal or no staff at certain times. The key to running a successful cashierless checkout store is to have a system you can trust and that is available for use. You need a reliable network that can hold up to high volumes of data and usage.
Revisiting self-checkout technology
While cashierless systems are still new to many shoppers, most shoppers have used self-checkout technology at least once. As of 2022, self-checkout has become the dominant format in grocery stores, with 55% of all transactions going through this type of kiosk. With these kiosks, shoppers manually scan each item like a cashier would and place their goods in bags. They pay for the items with cash or a credit card and then leave the store. Self-checkout is similar to the regular checkout experience but without a cashier.
Benefits of self-checkout
Both shoppers and stores can benefit from self-checkout systems. Stores can cut back on staffing because their cashiers will help fewer shoppers. Some stores keep a few cashiers near the self-checkout area to help when issues arise. Shoppers benefit from this technology because they can spend less time waiting in line to find an open register. For example, instead of eight shoppers waiting in line to see one cashier, they can all check out at the same time at eight self-checkout registers while that single staff member assists with any problems.
Challenges with self-checkout systems
There are some drawbacks to allowing shoppers to check out their items on their own. First, cashiers still need to check ID cards when buyers purchase alcohol. Next, shoppers make mistakes. They might double-scan an item or not understand how to navigate the screens to find produce items before weighing the items. Too many difficulties can create a poor customer experience which leaves people frustrated. Self-checkout also comes with a theft risk. Shoppers might skip a few items and walk out with goods they did not pay for (intentional or unintentional mistakes) unless an on-site team member checks their receipts or other measures are implemented to detect this activity.
How to set up self-checkout
It is easier to set up self-checkout instead of cashierless systems. Many stores can test this option with a single kiosk that is located next to a traditional cashier. If this system works out well, the store can add more self-checkout options to keep up with customer demand.
Are cashierless or self-checkout systems the future of retail?
Retailers are constantly searching for the latest trends that indicate the future of shopping. Self-checkout systems were once brand new to shoppers but many have adopted them over time. They are now commonly used by about half of the population. It's entirely possible that cashierless checkout systems will overtake self-checkout as the future of shopping, but this depends on technology adoption initiatives by retailers. In addition, if shoppers believe that the technology is difficult to use or unreliable, they won't engage with it. Store owners also need to be confident that the cashierless system investment is worth the cost in the long run – both in the form of boosted sales and reduced staffing costs. One of the best ways to explore cashierless checkout stores is to test this technology in one store or one section of a store, see how the system works and gather customer feedback about it. Ultimately, the goal is to create a streamlined and positive shopping experience which benefits both retailers and shoppers.
