Amazon.com, Inc. ( AMZN ) grocery stores are phasing out the "Just Walk Out" checkout method, according to a report released by The Information on Tuesday. The e-commerce giant is replacing the checkout technology with a “smart-cart” system called Dash Cart.

What To Know: Amazon ( AMZN ) introduced the Just Walk Out feature in 2016, which allows customers to scan a QR code upon entering the store, select items to purchase and walk out of the store without a formal checkout process. The system uses cameras and sensors combined with a team of remote employees who watch shoppers to identify the items purchased by each customer and complete the transactions accurately. 

Several issues have plagued the company’s experimental checkout system, including consumers waiting several hours for the transactions to be finalized and high costs associated with the system of cameras and sensors needed in each location. 

Amazon Fresh stores will move to a form of self-checkout called Dash Cart, which uses a scanner and screen embedded in each shopping cart, allowing customers to checkout as they shop. The stores will also install self checkout counters for customers who are not Amazon ( AMZN ) members.

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Amazon ( AMZN ) will open new Fresh locations with the Dash Cart technology. The company plans to make the switch from Just Walk Out to Dash Carts at most of its existing Amazon Fresh stores over the next 18 months. Amazon ( AMZN ) will reportedly keep the Just Walk Out technology in a small number of Amazon Fresh stores in the United Kingdom, as well as in some of its Amazon Go convenience stores. 

AMZN Price Action: According to Benzinga Pro, Amazon ( AMZN ) shares were down 0.28% at $180.47 at the time of publication Tuesday. 

Image: Alexa from Pixabay