Cashier-Less Store, What are the risks?

Cashier-Less Store, What are the risks?
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When deciding to open a cashier-less retail store, there are some risks to be considered. Amazon’s cashier-less retail store is open to the general public and has received much scrutiny. Therefore, the motive behind cashier-less retail store is compelling. The risks include:

-IN-STORE EXPERIENCE

Shoppers want remarkable experience when they enter into a store. They want to interact with products, enjoy the personalized experience and engage their senses with creative sights, smells, tastes, and touch. In a cashier-less store, this will be a risk and cannot improve a customer’s in-store experience.

-SYSTEM FAILURE

A system failure can occur because of a hardware failure or a severe software issue which causes the system to freeze or reboot or stop functioning altogether. This may be as a result in an error being displayed on the screen. The computer may shut off without warning or any error message. The system failure and subsequent computer shut down occurs as an attempt to prevent damage to other software or the operating system. Also, hackers will probably target Amazon Go as the place to figure out how the sensors work. There are people who are incredibly fast at grabbing products. Computer vision technology is good, it is a blur of motion. Amazon Go will need to work incredibly fast for some shoppers who know what they want, move quickly, grab multiple items in one pass, push aside other shoppers, or unknowingly game the system in other ways. When such a problem emerges, there is a high risk in the cashier-less retail store where the system has shut down and shoppers, without security involvement, intends to shoplift.

-DATA BREACH

In a situation where there is a data breach, an attack on the website to steal sensitive data out of a database due to weak passwords, missing software patches that are exploited. Those involved gain access to the entire system of the retail store. This involves hackers who are trying to compromise less secure business. There are incidents when such a business enterprise inadvertently lose some of their financial credentials. This is a high risk to a cashier-less retail store like Amazon where there are no engineers present to monitor the data in and around the store location.

-DAMAGE TO INVENTORY

No matter how carefully workers handle inventory, the business owner will incur a loss from items being damaged. Damaged inventory, the value must be written off shortly after the loss occurs. This way the business owner disclose the amount depending on how frequently the business experience a loss from damaged inventory. Amazon’s cashier-less retail store may like experience such which is a risk to the business. Shoppers who notice damaged inventory will ignore because there is no personnel to attend to such issue in the store.

-ERROR MAKING

This also is a risk in a situation where shoppers are trying to pay for their purchased goods and the system malfunctions, there will be in an error from the system calculating the costs of goods. Immediately the error is discovered, there is no personnel in or around the store to report to because it is a cashier-less retail store. It is a form of risk to the Amazon Go where detailed schematics of the cameras as a way to circumvent any security measures related to such error.

Preventing losses in retail is a complicated situation that needs to be focused on by everyone involved in the store.  To receive online training for this, please go to https://losspreventionacademy.com

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Steven M. Degener, J.D. Clayton, CA, United States Steve has spent over 25 years in Retail Loss Prevention. His last position held was VP of Loss Prevention for a Fortune 500 company. Other positions include Deputy Sheriff and Director of Loss Prevention Services for various Retailers. Our sites include www.LossPreventionAcademy.com,LPPosters.com and LPjobsFREE.com. Follow us with Twitter at LPACADEMYcom and Facebook at the Loss Prevention Academy.

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