Despite experiencing the hassle-free purchasing benefits of online shopping, people have not stopped visiting physical retail outlets. As of now, 82 percent of customers across the world prefer visiting physical retail stores to touch and feel every product before buying (Source: Gitnux). This is gradually motivating physical store owners to explore opportunities to seamlessly elevate the conventional shopping experience of customers. However, in retail shopping, people often have to stand long in the cash counter queue to pay their bills. This used to take a lot of their time and patience. This inconvenience is prompting many brick-and-mortar retail store owners to serve their customers with a smooth, instant, and efficient self-checkout system with the help of a professional e-commerce app development company.
According to the report of the National Retail Federation, 62 percent of customers have confessed that the self-checkout system is seamlessly improving their retail shopping experience.
In this blog post, we will help you to know the essential steps to implement a self-checkout system in retail outlets using AI. Moreover, we will also let you know about certain brands that are offering self-checkout facilities to their customers. However, let us first explore:
What are the Leading AI Technologies Used in the Retail Self-checkout System?
1. Computer Vision
This AI-centric technology uses cameras of your physical retail store to smoothly obtain essential information like quantity, market price, manufacturing date, etc. with the total bill to be paid by analyzing every product image to share these details with your customers through your store app during the time of checkout.
However, implementing this AI technology in a physical store requires vast expertise and skills. So, it will be beneficial for your retail business to seek help from a reliable ecommerce app development company.
2. Machine Learning
It empowers computer vision technology with real-time analysis of every product image to provide accurate billing information to customers through your retail store app. This technology comes with trained algorithms that frequently update themselves with the ability to recognize different products pretty conveniently.
Why Should You Deploy AI-based Self-checkout in Retail?
The incorporation of an AI-based self-checkout system with the help of an e-commerce software development company will not only provide relief to your customers from standing or waiting for long hours in queues but will also enable your retail business to witness crucial dividends such as:
1. Reduce Excess Cost
By introducing a robust self-checkout system, your retail store will have the option to automate billing, inventory management, and other activities with minimum human intervention.
This will eventually help you to bring down the overall budget of running a physical outlet without compromising the service quality.
2. Increased Customer Footfall
The deployment of an AI-based self-checkout system with the help of an ecommerce app development company will empower your store to serve a huge customer segment within a very short duration also during peak hours.
Similarly, it will also let you witness higher sales and increased customer satisfaction as you provide them with a reliable alternative to avoid standing in the long bill payment queue.
3. Ensure Accuracy
When you set up an AI-powered self-checkout system, it will substantially eliminate the scope of manual error during barcode scanning, product billing, and so on. This will let you serve customers pretty efficiently throughout the year.
4. Boost Operational Efficiency
As installing an AI-based self-checkout system helps your customers to complete every transaction themselves, this privilege offers you plenty of scope to focus on other activities that will elevate the operational efficiency of your outlet to offer a seamless shopping experience to a diverse consumer segment.
5. Analyze Customer Behavior
When you incorporate an AI-powered self-checkout system with the help of a recognized ecommerce software development company, you also have the chance to access key insights on the shopping habits of your customers, how much time they are spending in your store, and so on.
Acquiring this vital information will allow your marketing team to aggressively promote your store’s offerings with attractive deals and discounts to the desired customer segment on various social and digital platforms.
What are the Essential Steps to Implement AI Self-checkout in Retail?
1. Choose the Right Automation System
There are two options before you implement the AI-powered self-checkout system in the retail store.
- Full Store Automation
You can proceed with full store automation just like established brands like Walmart, Tesco, and Amazon have done where retail stores are equipped with autonomous checkout facilities.
In these stores, cameras always track customers’ movement and play a crucial role in generating the bill whenever a customer picks an item from a shelf. However, this system is filled with challenges like identifying products having a similar package, constantly tracking different persons, etc.
- Partial Store Automation
It involves installing a vending machine that you have the flexibility to place anywhere in the retail store. As a result, it spares your effort from managing the whole outlet. These machines often appear like glass fridges or shelves and are packed with computer vision technology to track the entire purchasing process till the final checkout.
Now, it all depends on your store size, customer footfall, and other factors to determine the ideal AI-based self-checkout system.
2. Essential Infrastructure
When incorporating an AI self-checkout system in your retail outlet, you have to arrange crucial items like:
- Cameras– to record and transfer visuals.
- Video Processors- it will help to optimize the desired image or video for computer vision technology.
- QR Scanner- Customers have to scan a QR sticker that is pasted in front of the vending machine door to gain access inside the store to select and pick up the products of their choice.
- Model Server- installing a robust server will help in real-time processing of the captured visuals with preserved data of every product to ensure accuracy.
3. Address Privacy and Compliance
When installing an AI self-checkout system in the retail store, you also have to concentrate on meeting regulatory compliances like GDPR, DSA, CPA, COPPA, and so on. It will help to boost the credibility and reputation of your business.
4. Focus on Customer Experience
You must concentrate on conceptualizing an intuitive and user-friendly design for your AI self-checkout retail kiosk or vending machine. It will enable your customers to understand the entire self-checkout process without involving any human assistance. Hence, to come up with an ideal design, consult with a leading e-commerce app development company.
Top Brands with AI-powered Self-checkout System
Amazon
This reputed e-commerce organization has earned the reputation for redefining the retail shopping experience of customers with the deployment of its Amazon Go retail stores. These stores have no human cashiers. The AI-based self-checkout system runs on the power of IoT-based cameras and sensors with the brand’s cutting-edge Just Walk Out shopping technology.
Walmart
It is another recognized retail brand that has also served its customers with an AI-based self-checkout facility with the introduction of the Scan & Go app. This application allows shoppers to scan every product so as to pay the bill instantly by using the app inside the store. When moving out of the store, their purchase receipts are automatically delivered to the store associates.
Lowe’s
This leading brand is mainly involved in selling home improvement commodities. It has also gained admiration from customers for implementing an efficient AI self-checkout system. This is helping its consumers to finish every transaction at an impressive pace and convenience.
How Do We Help Your Retail Brand to Set Up an AI Self-checkout System?
At Red Apple Technologies, we always help your retail business to evolve with the changing technological landscape. From inventory management to introducing AI-based self-checkout facilities, our ecommerce app development solutions are designed to fulfill every requirement that will allow your brand to stand out in the competitive retail market. We have already gained proficiency in the ecommerce/ retail segment with the introduction of groundbreaking apps like SwiftScan Shopper, LoyaltyLift, etc. Our developers and designers are equipped with new-age skills and technologies that allow them to handle your ecommerce/ retail app development projects of distinct complexities. To know more about our expertise and skills in uplifting retail brands, connect with our enterprising professionals.
What are the benefits of using AI in self-checkout systems for retailers?
Answer: The adoption of AI-based self-checkout systems has served retail owners with crucial advantages like empowering a huge customer segment with the ability to finish every transaction by themselves, optimizing operational efficiency, eradicating store management budget, and so on.
How can retailers ensure the successful implementation and adoption of AI-powered self-checkout systems?
Answer: To ensure the smooth and hassle-free implementation of a robust AI-powered self-checkout system, retailers must establish contact with a reliable ecommerce app development company. It will allow them to attain the desired outcome flawlessly.
How does AI improve the customer experience at self-checkout systems?
Answer: The deployment of AI-based self-checkout systems will provide relief to your customers from standing in long queues with a contactless payment facility. Besides, it will also encourage them to buy at any time from your store as the AI self-checkout system functions 24/7.
How Much Does It Cost to Set Up an AI Self-Checkout System in retail?
Answer:The budget depends on various factors like preferred automation systems, retail business size, customer footfall, infrastructural facilities, and so on. Hence, to receive the right estimation, communicating with an established app development company will be useful.