With drones affecting practically every industry, is it any surprise retailers are taking notice? From consumer demand for individual-use drones to retailer demand for the unique capabilities of different drones, the retail industry is poised to undergo significant changes from the inclusion of drones.
Drones will have a significant impact on the industry as a whole. However, the benefits will be most clear during the busiest time of the year — the holiday season.
As Black Friday approaches, retailers are preparing inventory, checking security, increasing staff and much more. At the same time, they are hoping for something to make the holiday shopping season flow more smoothly.
Could drones be the solution?
Security benefits of drones
One of the major issues surrounding retailers during the holiday shopping season is safety and security — for both the customers and retailers.
Recently, mass shootings around the country have made individuals fearful of public settings. In addition, customers are purchasing a large amount of items, and many times placing the items in their vehicles while they continue to shop. These vehicles become targets for thieves, and these security issues can deter customers, resulting in lower revenue.
Retailers also have security issues during the holiday shopping season — namely, shoplifters. Shoplifters can destroy a retailer and, with the increased number of customers, it is harder for retail employees to monitor the customers for theft. According to Hayes International, retail crime rates increase by 30 percent over the holidays.
Most retailers have some form of security, but they stand no chance against the security drones can provide. For example, drone manufacturer Infinium Robotics designed an autonomous UAV security system. According to their website, the system does not require security guards to operate — the drone will take off, fly on a preset path and return for charging when needed.
Guards can be utilized to monitor the live feed, but they are not required to operate the system. In addition, drone security systems can be deployed to a critical emergency scene to provide live feed and possibly life-saving assistance before first responders arrive.
In order to utilize drones as a security method, the FAA requires retailers "to hold a 333 Exemption, which includes the requirement of a licensed pilot," according to Rebecca Poynter, marketing and communications director of OnPoynt Unmanned Systems. She adds that retailers could also employ a company that "offers aerial services by licensed pilot operators with aerial vehicles under [that company's] 333." This option allows retailers to almost immediately use drone technology without the hassle of the regulations and red tape.
Drones as a delivery method
During the holiday season, shipping and delivery of packages increase tremendously. Amazon announced the drone delivery concept two years ago, and even though it has still not taken off, it is a concept that could change the retail world — and holiday shopping as we know it.
Recently, Google and Wal-Mart have started their endeavor into drone deliveries. Currently, drone delivery systems are not active with any of these retailers, with the biggest hurdle being the Federal Aviation Administration.
The FAA was supposed to release its first set of guidelines by Oct. 1, 2015, but they missed that deadline and now expect them to be released at some point in the spring, according to NBC News. Without these regulations, retailers will be unable to completely test their drone delivery systems.
With all of the legal issues surrounding drone delivery, Skype co-founders Ahti Heinla and Janus Friis have launched Starship Technologies, a robot company "hoping to solve the 'last-mile problem' of delivering parcels from transportation hubs to people's homes," according to a CNNMoney report.
So, while we wait for the FAA to regulate drone deliveries, robot delivery might be your next best option.
Consumer demand for drones
During the holiday shopping season, retailers want and need to be prepared with sufficient inventory. According to FAA official Rich Swayze in a Slate article, "the agency expects up to 1 million unmanned aerial vehicles to be sold during this year's holiday season." So, if you sell, or plan to sell, drones, you need to be prepared with a variety of options as well as knowledge to satisfy the abundance of interest.
Drones come in many shapes, sizes, colors and prices offering different capabilities. No one drone will satisfy all of your customers' needs. Therefore, you need to determine which drone selections will provide the most variety to your customers without offering so many that it becomes hard to differentiate and find the best option.
Retailers should also be prepared to assist customers with things like training and regulations. With the FAA recently requiring all recreational drone users to register their aircraft, you should offer assistance in registering your customers' drones with the FAA. Since drones are such a new endeavor for most hobbyists, offering this type of assistance will significantly increase your word-of-mouth advertising.
To prepare your staff, Poynter recommends these websites:
- The Academy of Model Aeronautics: They are recognized by the FAA as setting best practices for recreational hobby flyers.
- Know Before You Fly program: This site was founded by three leading organizations with a stake in UAS safety, and the goal is to help drone users understand all aspects of the industry.
Drones are quickly becoming mainstream in both business and personal use. In order to stay ahead of the game, you need to prepare your retail location for the invasion of drones. From stocking appropriate inventory to obtaining the necessary certifications and requirements, it's time to begin your journey into drone use.
Even if drones will not play a part in your holiday shopping season this year, you should start prepping for holiday season 2016 — it's coming quicker than you might think.
