In February 2020, tech giant Amazon (AMZN 0.23%) tried a bold new idea: It opened up a grocery store without any cashiers. The company's technology allowed shoppers to just walk in and walk out without paying. But sensors and cameras monitored shoppers and billed their Amazon accounts afterwards.

Amazon called its innovation "Just Walk Out" and many thought it could completely disrupt retail shopping forever. However, on April 3 a tech-focused publication, The Information, reported that Amazon is now going in a different direction. Here are three things investors need to know about this news.

1. The technology still works

When I first heard the news, I immediately assumed that Amazon's Just Walk Out technology must not work. But that's not the case, as I'll explain more in a moment.

This is good news for entities that have already partnered with Amazon in this system. For example, the company announced "Badge Pay" in January, which is based on Just Walk Out, allowing hospital workers to simply grab food and go by scanning their badges. Hospitals that have already signed up for this, such as St. Joseph's/Candler in Savannah, should still be able to use it.

Fintech outfit Shift4 Payments should also be able to keep using it. In September, the high-growth company embraced Amazon's cashier-less technology to speed up retail transactions for its stadium and large venue customers.

For more proof that it works, Amazon intends to keep the technology at its Amazon Go chain as well as in its Amazon Fresh stores in the United Kingdom. Amazon is reportedly only removing Just Walk Out from its Amazon Fresh chain.

2. Amazon will try a more consumer-friendly version

Rather than say Amazon is getting rid of Just Walk Out, I believe it's better to say that Amazon is repackaging it into a more consumer-friendly version.

According to an Amazon spokesperson, consumers didn't like shopping without knowing the bill in real time. This was actually a problem that manifested at launch. In a 2020 article, an interviewed shopper said that Just Walk Out "makes it easy to spend more money than you would pulling out your card and seeing the total."

Therefore, Amazon is turning to smart shopping carts from here. Shoppers will still be able to skip past cashiers. But the smart carts will display the up-to-date bill as they put items into it, addressing a key consumer complaint.

3. Still a long way away from moving the needle

In 2023, Amazon generated net sales of $575 billion and had operating income of $37 billion. For perspective, it had less than 100 stores of Amazon Fresh and Amazon Go combined. In theory, its cashier-less stores could attract more customers who appreciate the convenience. But no matter how you slice it, tech innovations at grocery stores don't do much for Amazon stock because the company is just so massive already.

Far more important for Amazon investors today are things such as digital advertising. In 2023, the company generated an impressive $47 billion in ad revenue, which was growing at a 26% rate in the fourth quarter. Indeed, revenue growth for advertising is accelerating and still has room to grow.

Even more important for Amazon investors is cloud computing platform Amazon Web Services (AWS). The company has an astounding $156 billion in contracted performance obligations mostly related to AWS and these contracts cover four years on average. This is clearly an important business segment given its size. But AWS is also important because it supplies about two-thirds of total operating income.

Don't sweat the small stuff

Those expectantly waiting for Amazon to revolutionize the retail checkout experience may have to be patient; the company is still tinkering to see what works best. There are still plenty of ways this could play out. But it's possible Amazon could find something that works and enjoys mass adoption in time.

That said, Just Walk Out technology is a minor detail for Amazon's massive business and shareholders have more important things to focus on. But the good news is that the more important areas of the business are enjoying robust growth, which bodes well for Amazon stock in 2024 and beyond.