Amazon [NASDAQ: AMZN] has been trending positively in the last couple of days. The pair is trading 0.76% against NASDAQ. From the previous close at $1,844.87 it has recorded an intraday high around $1,869.74 compared to the intraday low at $1,771.65. Amazon being one of the biggest stocks in the world currently shows incredible positive levels and some potential incredible gains in this quarter. From a technical perspective Amazon has a higher chance of breaking above the $2,000 mark; a move that is likely to reignite fresh gains and breaking of new barriers.
The above technical levels are staying put in spite of the pressure to accept cash at Amazon cashless Go stores. The pressure comes after both Philadelphia and New Jersey passed laws that hinder the operation of most of the stores that currently don’t accept cash. Amazon (NASDAQ: AMZN) has already announced that the Go stores will start to accept cash to avert claims that the stores supported “discrimination and elitism.”
Amazon’s mission is to continue revolutionizing the retail experience. And while the latest innovation has been stifled by the legislation, the additional investments are likely to come at a cost in turn allowing a larger volume of consumers to experience its stores. Consequently. The development is in some way a catalyst for good business because it provides for the need to open up other locations to cater for potential new customers.
Amazons future plans with Go stores
The online behemoth has audacious plans to establish up to 3,000 Go stores in the coming few years. However, at the time of writing Amazon only has 10 Go stores. To use the stores, customers must download the Amazon app which in turn is activated automatically on entering the Go stores. The app powered by artificial intelligence and omniscient Skynet-like powers allows the app to track the movements of the customers in the store, identifies all the items picked and those put down and also takes note of the items the customer leaves with.
Artificial intelligence coupled with machine learning works incredibly with the help of cameras and sensors to track all the selected items and their respective charges. The cost of the items is then deducted from the customer’s account accordingly.
Politicians were against the idea which removes the interaction with cashiers in the stores. They argue that the consumers without bank accounts, smartphones or have poor credit scores will be locked out of the shops.
Notably, in the United States there are about 8.4 million unbanked households which translates to 6.5% of the total. This also it means that these households do not have the support of financial institutions to store their money. Similarly, 20% of all the residents in the US do not have smartphones while 20% of the consumers struggle with FICO credit score under 600. The groundbreaking innovation targeted the individuals not included in the above statistics but it locked out a substantial number of potential consumers.
In spite of Amazon bowing to the legislative pressure, customers who want to experience the cashless shopping can still do so at the Go stores. Besides, Amazon’s mission statement is “to be Earth’s most customer-centric company.”