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News Analysis

Buyer Beware: Why Retailers Should Think Hard About Amazon ‘Go’ Partnerships

Inside an Amazon Go store in Seattle. Photo by Bloomberg
By
Priya Anand
[email protected]Profile and archive
and
Kevin McLaughlin
[email protected]Profile and archive

Amazon is angling to become a toll collector on physical retail just as it is in e-commerce, with its vast marketplace that outside merchants access for a fee. But brick-and-mortar retailers may want to approach Amazon’s latest idea with caution.

As Amazon on Tuesday unveiled in Seattle its biggest Amazon Go outlet—grocery stores equipped with technology that eliminates the need for cashiers—The Information confirmed a Wall Street Journal report that the e-commerce giant was considering licensing the Go technology to other retailers. That could extend its tentacles throughout the brick-and-mortar landscape. Such a move could elevate the Go technology from its current experimental status into a money-making business.

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