Mar 13: Amazon & Alipay

*Note: Content from other sources is summarized in normal format, my original content is in italic

1. #retail Amazon creates business arm selling automated checkout to retailers (internetretailing.net)

What’s up

Amazon decided to sell the cash-less technology behind Amazon Go to other retailers

Why should I know?

• For retailers: They will have more customers. Consumers tend to buy more in stores with high technology and less friction.
• For Amazon: customer data, holy crap!!! The online retail juggernaut can collect more shopping data without spending a bunch in brick-and-mortar stores. Also, this is the first step of Amazon in integrating technology in traditional retailers, more to come.

I guess it will take at least some years for the technology to spread over America . Currently it can only be integrated in small-sized stores, then the labor-saved cost of using this technology is still far from the upfront capital expenditure for the technology itself.

2. #retail How Amazon Delivers On One-Day Shipping (Youtube)

Let’s see how Amazon curbs the delivery burden in each step to customer

• Before you order: It analyses data to deliver products, which you are likely-to-buy, to the warehouses near your house before you buy.
• In the fulfillment center: Robots replace humans. Also, employees are paid better than normal to do more. Amazon even provides employees with wearables to track their productivity
• Long-distance delivery: Amazon increasingly operates on its own with leased cargo fleets, semi-trucks and Amazon boats.
• Last-mile delivery (highest cost): (1) Adopt technology as robots or drones and (2) Run its own Amazon-flex team with the cost-optimized model like Uber and Grab.

3. #tech ALIPAY TO HELP 40 MILLION CHINESE SERVICE PROVIDERS DIGITIZE OPERATIONS (aliza.com)

What’s up

Alipay, the mobile payment platform operated by Ant Financial, this week laid out plans to open up its platform and offer upgraded tools and features to help 40 million service providers digitize their businesses over the next three years.

Why should I know?

• A smart move of Alipay as the service sector accounts for ~60% China GDP growth and it is still in nascent stage of digital transformation, which means it has a huge untapped potential.
• Alipay’s development roadmap is typical for any mobile-payment players to follow. They went from an e-wallet, to wealth management , financial services and now even digitization services. Each step builds foundation for the next one.