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Expanded application of smart home products in Amazon logistics

Views:5     Author:Site Editor     Publish Time: 2021-05-25      Origin:Site

  With the rapid development of the Internet of Things and artificial intelligence in recent years, the traditional home furnishing industry's control technology, sensing technology, data analysis and processing and other intelligence have greatly improved, and the smart home industry has also ushered in a new era, artificial intelligence products Application to the logistics industry has ushered in a broad prospect. International data company IDC data show that in 2018, China's smart home market has shipped nearly 150 million units, a year-on-year increase of 36.7%. Among them, 46.1 million units were shipped in the fourth quarter, a year-on-year increase of 45.4%. It is expected that China's smart home equipment market will continue to grow rapidly in the next five years, and the market size will be close to 500 million units in 2023.

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  In the global trend of technological revolution, Amazon is undoubtedly at the forefront. Although Amazon's development in China has been tepid, but looking at the world, Amazon is still the No.1 global e-commerce company. This article uses a case to deeply analyze what new thinking Amazon Key brings to e-commerce and logistics?

  

  On the evening of October 25, Amazon announced the official launch of the smart black technology system "Amazon Key" (Amazon Key for short), and stated that the service is currently only open to Amazon Prime members and will be launched in 37 regions in the United States on November 8. The burst of "Amazon Key" service caused many domestic media reports, "No one is at home, and the courier enters the house", "No one is at home, and the express can enter the door".

  

But few people use this as an entry point to gain in-depth insights into Amazon's business layout and interpret what new thinking Amazon Key brings to China's e-commerce and logistics.

 

1. Perspective: Black Technology Amazon Key

 

 (1) Revealing the service composition of the Amazon Key intelligent system of black technology

 

1. Software application: Amazon's special online APP "Amazon Key App";

2. Hardware equipment: consists of smart door lock and Alexa Cloud Cam security camera;

Consumers need to register as members of Amazon Key, bind software applications and hardware devices, and realize the Internet of Things link, in order to enjoy the door-to-door service of automatic control switch through the Amazon Key app.

 

(2) The current Amazon Key application scenario process

 

Users can remotely monitor in real time, open the password lock to let the courier deliver the items to their home; or create a temporary password to allow friends and other service personnel to enter the room; the Alexa Cloud Cam security camera monitors; in addition, when an intruder breaks in When, the system will sound an alarm.

 

(3) Specific use effects in specific scenarios

 

1. Consumers can choose "In-Home Delivery" when purchasing goods on Amazon's official website.

 

When Amazon's courier delivers the package to the user's door, the courier can scan the label through the mobile phone and apply to enter the user's home; the user's iPhone or Android phone will receive an APP push notification reminder; the system will automatically unlock the user's home door ( No password is required), and the Alexa Cloud Cam security camera is turned on at the same time, then the courier opens the door and puts the package into the user’s home.

After leaving, the courier can click on the phone again to lock the door. The courier recipient will receive logistics reminders throughout the entire process, including a record of a marked time, and can watch the delivery process of the courier in real time through the APP or watch the video afterwards.

Here is an explanation of the note: During the whole process, the courier recipient can also choose not to let the courier enter his home.

2. When the user selects the door-to-door service online, click "Provide Access with amazon key" (accessible via Amazon Key). The door-to-door service provider opens the smart door lock to complete the door-to-door service.

It believes that Amazon's positioning is to be the smart steward of your life. "In this way, there will be more door-to-door services, such as cleaning, walking the dog, tutoring, and catering (let the chef cook the dishes before you go home, put them on the table, and go home with your girlfriend for a candlelight dinner). Transformation of the goods platform into an intelligent butler!"

 

2. Demystifying Amazon's business logic behind Amazon Key

 "Everything has its business logic behind it."

Why did Amazon choose to launch this intelligent system "Amazon Key"? The following will reveal the logic behind Amazon from the perspectives of logistics and commerce!

(1) Logistics is the original intention, by enhancing the user experience, improving the last mile delivery system 

Whether it’s from the first scene of the video or Amazon’s official introduction, Amazon Key’s original intention is to provide home delivery services for Amazon’s own logistics network, Amazon Logistics, and greatly solve the problems that have been plagued by the last mile and last mile of logistics. Mi's worldwide delivery problem: "What should I do if the express arrives home and no one signs for it at home".

Although domestic and foreign e-commerce companies have successively introduced “on-time delivery”, “appointment delivery”, “intelligent self-pickup counters”, and “post sign receipt” to solve the pain points of the scene of “express delivery arrives but not at home”, but Amazon Key provides The disruptive innovation of "smart unlocking, door-to-door delivery" has broken the last-meter delivery area isolation problem of "no one is at home, unable to sign for" (one door apart), which undoubtedly gives the current global logistics the last mile Delivery provides a whole new perspective!

In fact, in order to enhance the user’s last mile logistics experience, Amazon logistic has already controlled more express logistics business in its own hands to make the delivery service perfect.

In addition to the upcoming Amazon Key, as early as December 2013, Amazon first proposed the cutting-edge concept of "drone delivery" and created the drone delivery project "Prime Air". Recently, it has been learned that Amazon has made a comprehensive deployment of smart lockers and signed contracts with many property management companies (such as Avalon Bay Communities, Equity Residential, etc.) and property owners to install lockers for 850,000 U.S. households and provide automated solution.

According to the cooperation agreement, the property must pay Amazon US$10,000 to US$20,000 to purchase the lockers. This shows that there is a clear gap between the US and China's domestic smart express cabinet market.

In addition, FBA's imagination does lead the world in its future planning. Let's sort out how the comprehensive distribution network ecology of Amazon Logistics will be constructed in the future:

1. Horizontal direction: land net

Variable lanes: Propose a centralized road management system that can communicate information with multiple autonomous vehicles and coordinate the movement of vehicles on a large scale. At that time, the vehicles can change directions according to traffic flow.

 

2. Underground direction: underground tunnel pipeline delivery network

Underground tunnel pipeline delivery network: Lay the delivery network underground to avoid the efficiency caused by road congestion and shorten the delivery time.

 

3. Empty net layout

Air Logistics Center: Establish a floating warehouse above the designated area, and then use a small connecting "spacecraft" to transport the goods to the floating warehouse near the target site, and use drones to complete the last mile delivery.

4. Drone delivery cluster

Using small four-axis UAVs to form a "giant transport aircraft" cluster, it is arranged differently according to needs to form different shapes and matrices to meet the transportation needs of different shapes and sizes of goods.

 

(2) Planning for the future of business and layout of user data

In the future of business, data will be an important resource. Amazon uses this as an entry point to seek to occupy the mental position of consumers. At the same time, it can also enter the field of intelligent security and construct user portrait data based on the family as a unit.

Amazon Key, as the latest layout of Amazon Smart Home (smart home), builds a smart home security system through smart door locks and security cameras, fully demonstrating that Amazon has the ability to enter the field of smart security; this is also after Amazon Echo smart speakers An important member of the smart home ecology.

Looking to the future of business, Amazon Key not only breaks the global problem of home delivery by express, but also creates excellent convenience for door-to-home services. "Users order online services, server-to-home services, remote unlocking, and real-time monitoring throughout the process." The one-click connection to the door-to-door service can touch a series of life services such as cleaning, dog walking, tutoring, meal catering, maintenance and so on.

The huge commercial value behind Amazon Key is:

1. Connect services and empower Amazon Prime membership system

 

Amazon Prime membership system is the core of Amazon's membership service system, which brings billions of dollars in revenue to Amazon every year

 

2. Build user trust and accumulate user data

First of all, build user trust through the Internet of Things and mobile Internet, it is unnecessary to go into details. What is more noteworthy is the accumulation of user data.

 

The Alexa Cloud Cam security camera can capture family-based user data (such as family size, family environment, members’ food, clothing and housing...) in the future, accumulate a large amount of dynamic data, and build a more three-dimensional user/family portrait map with accuracy. Match the consumer demand of consumers.

 

Third, the problems faced by Amazon Key

Every new thing appears, it seems that most people will criticize its feasibility. To sort out the 2 big problems of the hem in front of Amazon Key:

 

1. Cost and popularity issues

The entire Amazon Key system is priced at US$249.99. Many people in China directly compare foreign prices with smart home cameras that are available in the domestic market for around 1,600 yuan, but in terms of cost, this is obviously not the same thing. A simple example: the difference between the foreign and domestic prices of the IPhone series .

However, despite the rapid development of artificial intelligence technology in recent years, artificial intelligence is still in the early stage of development in the home intelligent security market, and the people who use it are more than family white-collar workers.

From the perspective of pricing and focusing on the population, the application popularity is still relatively low, and user consumption habits need to be slowly cultivated; the current domestic smart home security is more based on the safety supervision of the elderly and children.

 

2. Family safety issues

Consumer scenarios such as "no one is at home, express delivery enters the door" have made many people worry that the service provider can enter the door at will, prone to theft, and lack of security. Points to be added here:

1) Based on the user side: Consumers can set the Amazon Key to not allow entry; in addition, consumers can obtain real-time information and video monitoring through the App, and the system itself has an alarm function.

2) Requirements for door-to-door service providers: The real-name certification of door-to-door service providers and accumulation of service satisfaction trust put forward more stringent requirements on the quality of service providers.

Amazon's technology products and services have basically been fully tested and applied abroad; but in China, the international giants are not satisfied with the water and soil, and the landing effect is often poor; such as the Amazon Prime membership system that has been extremely praised in the world. Amazon's technological revolution is more about bringing new inspiration to domestic commerce and e-commerce logistics from perspective and thinking! What new inspiration will Amazon Key bring to China's e-commerce and logistics?

 

Four, a few points worth learning

Focusing on a global perspective, Amazon is known as a logistics company and a technology company wearing a retail coat.

Every technological change of Amazon seems to bring new and revolutionary cognitions to China's commerce, especially the e-commerce logistics industry, and even the world! The following is a breakdown:

1. Smart speaker

Amazon Echo smart speaker, set off a global smart speaker revolution.

 

2. About the subversive experience of books

Amazon Kindle subverts traditional physical book reading; Amazon Book has laid out offline bookstores, setting off new bookstore retail.

 

3. Smart warehousing

 In 2012, Amazon deployed smart warehousing and acquired KIVA Robotics for $775 million. The operating efficiency of the KIVA system is 2-4 times higher than that of traditional logistics operations. The robot can run 30 miles per hour with an accuracy rate of 99.99%.

At the end of 2015, domestic e-commerce and express companies competed against Amazon Logistics to gradually test smart sorting robots; on Double 11 in 2016, major express companies used them in actual combat; in 2017, the domestic smart warehousing field was highly sought after by capital: Alibaba Investment Quick warehouse, whale warehouse, etc. Focusing on Double 11 in 2017, rookie Xinyi Technology, JD Unmanned Warehouse, Suning Smart Cloud Warehouse, SF Express, "Three Links and One Da" and other e-commerce and logistics companies use intelligent warehousing robots on a large scale...

 

4. Drone

 

In 2013, Amazon first launched the UAV delivery "Amazon Prime Air", setting off the global UAV in logistics and distribution scenarios; since then, DHL "Parcelcopters" unmanned helicopters, SF UAVs, JD UAVs have emerged... …

 

5. New retail

 

At the end of 2016, Amazon launched a new retail concept store "Amazon Go", which instantly became popular all over the world; less than 6 months later, China started a wave of unmanned convenience stores, and a large number of unmanned convenience stores emerged one after another: Ali "Tao Coffee" , Jingdong Unmanned Supermarket, Bingo Box, F5 Convenience Store, Take Go, EAT BOX...

 

This time, Amazon’s new Amazon Key will bring a new round of thinking to the two major areas of domestic smart home and e-commerce logistics:

 

(1) New inspiration: the last mile delivery of e-commerce logistics in the future "opens the door"

 

Focus on the current, domestic e-commerce and express delivery mode of the last mile: express delivery + drone + crowdsourcing logistics + smart express cabinet + express delivery point/post + community property/convenience store (pickup at the store).

 

For the C-end, the most ideal delivery method for the last mile delivery is a successful delivery (express delivery to home, someone signs for it); but the facts are often artificial, and the common phenomenon is that the courier brother delivers to the home because no one is at home. Delivery may only be stored and delivered nearby, so smart express cabinets, express self-pickup points/posts, residential properties/convenience stores are conceived.

 

Amazon Key breaks the traditional cognition: The essence of all secondary delivery/nearby storage is that the courier cannot enter the door without being home. The emergence of Amazon Key will guide domestic e-commerce companies and express companies to think about how to achieve safe entry. Amazon's ability to achieve such a layout is mainly based on Amazon's multi-dimensional ecological layout such as integration of high-tech, smart home, and self-built logistics. Whether it is systems, hardware equipment, or logistics services, Amazon is under its own control; Large companies, who will have such capabilities in the future?

 

Ali? JD? SF?

 

All of the above companies lack a deep layout in the smart home ecology to some extent; maybe Ali and JD will be realized in 3-5 years, and SF Express may act more as a high-quality express delivery service provider.

 

At present, Xiaomi is the leader in the ecological layout of China's smart home: system + hardware equipment, but it needs to think about how to connect more home services and cooperate with high-quality logistics and express service providers.

 

Will the emergence of Amazon Key kill smart express cabinets, express self-pickup points, etc.? No. Amazon Key is more of a future trend, but not the current mainstream. Take a look at Amazon. The above content has already mentioned: Amazon has comprehensively deployed 800,000 smart lockers while listing Amazon Key to build a complex last-mile delivery ecosystem.

 

(2) New departure: smart home ecology, data accumulation of user portraits, accurate matching of needs

    Amazon Key can be defined as the life steward of the smart home. Its security camera fully captures the dynamic consumption data of the family unit. Through the accumulated massive data, it analyzes the user consumption portraits of the family and family members according to the favorite needs of consumers. Connect to Amazon Mall, intelligently and accurately match products and services. This may give Xiaomi, the leader of the domestic smart home ecology, new thinking.

 

At present, under the new retail layout of Xiaomi, the "Mijia" APP connects software and smart hardware; Mijia Youpin, as a platform for crowdfunding and screening of explosive products, has 20,000 kinds of products; the future of Xiaomi 3C new retail of Xiaomi Home is even more defined It is a platform for life and department stores... From the perspective of Xiaomi's strategic play, it is vaguely like Amazon. In the future of Xiaomi smart ecology, what needs to be considered in the future is: how to use Xiaomi smart home products to capture user data based on family scenarios in all directions, accumulate massive amounts of data, build a family unit's user portrait map, accurately match needs, and intelligently recommend products.

 


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