Be The Expert: Drones in Retail

How Retailers Can Benefit by Using Drones as Well as Selling Them and Their Accessories

Drones seem to be everywhere and are found in an astonishingly broad scope of applications. They are used in the military, news gathering, emergency services, commercial photography, crop and structure inspections, drug running, personal hobbyist fun, and more. Drones in retail, however, generally haven’t received the same kind of widespread notice—except for deliveries.

But before we dive into drones in retail, let’s:

• Clarify some basic terminology
• Briefly review their history
• Look at drone applications in general
• Check out stats and demographics
• And see how they are being used in retail

What is a Drone?

There are three basic terms often used to describe drones: drone, UAV, and UAS. According to the Pilot Institute:

1. Drone. Think of this as a generic, non-technical term that encompasses both multicopter and fixed wing models.

“Drone is the most commonly used term to refer to any unmanned aerial vehicle…In modern times, the definition of drone has expanded to include vehicles that can be controlled remotely, on top of those that are capable of autonomous movement. Thus, a simpler way of defining a drone is simply as any vehicle that can operate without a driver or pilot inside it.”

2. UAV. This stands for Unmanned Aerial Vehicle. Technically it should NOT include accessories, etc.

“An Unmanned Aerial Vehicle (UAV) narrows down the definition of a drone only to aircraft that can fly autonomously or remotely. Although the terms “UAV” and “drone” are used interchangeably in practically all articles, websites, and news, we must make a distinction that not all drones are UAVs.”

3. UAS. This means Unmanned Aerial System. It includes everything that makes a UAV work such as…

“…GPS module, ground control module, transmission systems, camera, all the software, and the person on the ground controlling the drone. To put it simply, a UAV is simply a component of a UAS.”

So, although these 3 terms are often used interchangeably, they are not the same thing. We will be using the term “drone” in this blog, as this is a non-technical review.

A Brief Look Back: The History of Drones

You might be tempted to think drones are recent history. They are not. Depending on how far back you want to go, you could include kites and balloons. According to Propel RC,

• Kites were invented in China around 1000 BCE, with the earliest ones used primarily for cultural and religious celebrations.
• During the Song Dynasty (960-1279), kites took on military applications for signaling, reconnaissance, and even lifting soldiers into the air.
• Balloons, meanwhile, entered the scene in the 18th century in France. In 1783, the Montgolfier brothers launched the first hot air balloon carrying passengers, setting the stage for aerial exploration and transportation.
• In 1849, Austrian forces launched the first recorded use of balloons for military reconnaissance, scouting Italian positions during a conflict.
• British meteorologist James Glaisher, in the mid-19th century, utilized balloons for high-altitude atmospheric studies, further expanding their potential applications.

The Twentieth Century saw huge advances, thanks to remote control and autonomous aircraft. For most of that time, virtually all uses were military.

Courtesy Propel RC

There are many more key dates, but we just can’t cover them all here.

However, Digital Trends notes the 1960s was a pivotal time.

“Breakthroughs in transistor technology meant that, for the first time, miniaturized radio-controlled components were available to customers at a reasonable cost. What followed was a popularity boom in RC planes in the U.S. Mostly coming in kit form, these RC planes offered everything from indoor-flyable models to much larger outdoor models.”

Key Years for Drones in the Twenty-First Century

Up to this time, drones were being used for surveillance and mapping. But in 2001, drones were weaponized.

Drone Tech Planet picks up the timeline:

• 2001 saw the first armed drone strikes in Afghanistan for targeted killing of suspected collaborators in the 9/11 attack.
• 2006 saw the first commercial drone use to inspect pipelines and spray pesticides on farms. 2006 was also when the FAA…

“…issued a certificate of authorization which will allow the M/RQ-1 and M/RQ-9 aircraft to be used within U.S. civilian airspace to search for survivors of disasters.”

For that same year, Digital Trends points out…

“Recognizing the potential of non-military, non-consumer drone applications, the FAA issued the first commercial drone permits.”

2006 also saw the founding of DJI, today’s drone market share leader, by Chinese student and entrepreneur Frank Wang at Hong Kong University.

• 2010 saw the debut of the Parrot AR. Drone at the Consumer Electronics Show in Las Vegas. It was a quadcopter controlled by a smartphone or tablet.
• In late 2013/early 2014 the idea of drones in retail went very public. Amazon proposed using drones for delivery.
• And in 2017/2018, the first passenger drone, Ehang 184, was unveiled. It was autonomous so no license was required to pilot it. It had a weight limit of 220 lbs. so it could carry 1 person plus luggage.

Overview: How Are Drones Being Used Today?

Beyond personal and military use, drones (in no particular order) are being used for:

• Agricultural inspection, monitoring, and spraying of crops
• Construction for structural inspections of buildings, roofs, bridges, and other hard-to-access areas
• First responders such as police and firefighters
• Search and rescue operations
• Professional aerial filming and photography
• Wildlife monitoring
• Environmental and biologic monitoring
• Aerial surveying
• Insurance inspections after a disaster to help assess and process claims more quickly
• News and entertainment programs and shows
• Deliveries
• Drone light shows and advertising

Drone Marketplace, Statistics, and Demographics

Just how big is the drone market?

Courtesy Mordor Intelligence

Who are the major players in terms of global market share?

Courtesy Propel RC

Insider Intelligence posits that:

“Drones for the enterprise hold the most potential in the broader drone market. Insider Intelligence defines enterprise drones as all unmanned aerial vehicles (UAVs) sold directly to a business for use in its operations.”

They also predict…

“… total global shipments to reach 2.4 million in 2023 – increasing at a 66.8% compound annual growth rate (CAGR). Drone growth will occur across five main segments of the enterprise industry: Agriculture, construction and mining, insurance, media and telecommunications, and law enforcement.”

Who is flying drones?

Drone Sourced has compiled some interesting stats:

• As of 2023, there are 855,860 registered drones in the United States by the FAA
• 63% of drone registrations (536,183) in 2023 were for recreational purposes
• 37% of registrations (316,075) were for commercial operations
• Largest market for commercial drones is the agriculture industry, followed by construction and infrastructure
• 96% of drone owners in the US are men and only 4% are women
• 8% of Americans own drones
• 22% of drone owners in the US are between 45 and 54 years old, making this age range the largest segment of drone owners
• Second largest demographic is 35-44 years old, owning 20% of drones
• Third largest demographic is 25-34 years old, owning 17% of drones
• Smallest group is 65 years and older, owning 6% of drones
• Racing drones market is estimated to reach a value of ~$786 million by 2027, expanding at a CAGR of ~19% during the forecast period
• In the US, about one-third of drone purchases have been for models costing over $2,000

Drones in Retail Part 1: How Drones Are Being Used by Retailers

To many of us, drones in retail settings sounds a bit over the top – with maybe the exception of drone deliveries. But not so, according to Geospatial World.

“Whether it be seamless shopping experiences during day-to-day retail operations, marketing photography, inventory management, customer behavior analysis, delivery services, transportation, or security; Drones have set themselves in stone in the retail industry.”

Let’s look at 7 ways drones can be used for retail purposes. Some are practical. Some are a bit creepy. Probably all are for larger stores, but they are worth a review.

1. Deliveries

According to Insider Intelligence,

“Retailers, restaurant chains, and delivery companies are trialing drone deliveries across the US as they look for ways to speed up delivery times and reach rural communities.”

They point to:

• Domino’s in New Zealand doing the first drone pizza delivery in 2016
• Amazon launched Prime Air in late 2022 in select markets
• Alphabet’s (parent of Google) Wing does home delivery in partnership with FedEx, Walgreen’s, and others with its first US commercial service in 2022 in Dallas; also working in Finland and Australia
• UPS Flight Forward was approved by the FAA in 2019 to become the first-ever drone service operating as a commercial airline
• Walmart made over 6,000 drone deliveries in 2022

Courtesy Insider Intelligence

Dealerscope adds that DroneUp, a logistics company with over 22,000 network drone pilots, has partnered with Walmart to operate in-store hubs in Arkansas, Florida, Texas, Utah, and Virginia.

“For a flat fee of just $3.99, consumers can order up to 10 pounds of items at any time between 8 a.m. and 8 p.m. In regards to the future of drone use, DroneUp CEO Tom Walker said in an interview with Fast Company: “In 2023, we’re on track to continue expanding drone delivery to more states and communities while building out expanded drone service solutions for other industries like commercial real estate, construction, insurance, maritime, utilities, and more.”

2. Drone Light Shows/Advertising

Dealerscope has pointed out that not only are choreographed and lighted drones being used for entertainment and in place of fireworks but also for advertising. In 2022, Candy Crush used 500 LED drones above the skies of New York City and State Farm used drones to shout out the 2022 NBA draft.

3. Retail Marketing Photography

Speaking of advertising, Dealerscope, in the same article, noted how aerial drone photography costs much less than renting a camera robot arm. (On a personal note, I can vouch drones are also much less expensive than a helicopter with a specialized camera rig!) Drones are also smaller and can be flown in narrow areas and those with many obstacles. And they can become a permanent addition to a photographer’s gear.

For our last 4 uses of drones in retail, we turn to thoughts from Geospatial World.

4. Inventory Management

Equipped with OCR, bar code, and RFID readers, autonomous indoor drones can be used to locate inventory and assist managers in tracking inventory levels for real-time inventory data. IKEA has partnered with an indoor drone system provider and has already implemented this.

5. Retail Security

Drones can easily survey warehouses, stores, perimeters, and areas that cameras and security guards cannot.

“Drones, also in conjunction with security sensors, can detect potentially suspicious activities. In the event of theft, drones trigger the security system, promptly notifying the security team while continuously tracking the perpetrator, sharing real-time location updates, and alerting the authorities.”

6. Observation of Customer Shopping Movements and Behavior

Stationed high up, drones can record the big picture of how your customers move through your store. This can help managers analyze purchasing preferences.

“This information can also be utilized to arrange product placements, optimize floor spaces, and enhance shelf layouts. In essence, the data derived from drone observations fuels design and decoration decisions that attract more customers which in turn drives sales.”

7. Personal Shopping Assistants

Instead of letting customers roam aisles in a frustrating search for a certain product, requesting an in-store drone with sensors to help instead of an overwhelmed sales associate may be in your brick-and-mortar store’s future.

“These drones are equipped with sensors, which can verify prices and cross-reference information from centralized computer databases. Employing drone shopping assistants not only reduces labor costs but also saves time for both customers and staff.

“The envisaged system would allow consumers to request the presence of a drone via an electronic mechanism. Once engaged, individuals would have the option to either input the desired item manually or employ the drone’s integrated scanning system to initiate the search.

In the case of product exploration, the drone would adeptly guide the user at a deliberate pace to the precise aisle and location where the desired item can be found.”

Walmart is definitely interested in this idea. So much so that, in 2016, they filed a patent for Method to Carry an Item within a Retail Shopping Facility!

Drones in Retail Part 2: How Retailers Can Fly High with Drones and Drone Accessories

Even though drones are relatively inexpensive and can be employed in a number of ways, most applications are daunting and may not be practical for smaller stores. But there are ways to hitch a ride on drone popularity and make money right off the bat…er propeller. Sell drone accessories and even drones themselves!

DroneSourced and Shotkit suggest the following, non-brand specific accessories for drone users:

• Drone backpacks, bags, and cases
• FPV or VR goggles
• Monitors
• Landing pads
• Cleaning kits
• Controllers
• High-capacity memory cards
• Neutral density filters
• Sunshades for controller screen, smartphone, or monitor
• Drone strobes
• GPS tracker for those drones that don’t have GPS built in
• Car charger to power a drone’s battery charger

Here at Petra, we can supply you with Nanuk cases so your customers can safely transport their DJI drones. The Nanuk hard cases with pre-cut foam inserts fit model-specific DJI drones. They also make different sizes of cases with generic foam inserts so your drone customers, photographers, and others who need to protect their gear can customize the interior as needed.

In addition to drone cases, Petra also has refurbished Vivitar drones and GPX SKY RIDER helicopter drones. These camera drones are quite affordable.

One thing is clear. Drones in retail—as well as in many other applications—are flying high. It’s a great time to explore the different ways drones can help your business.

Ready to buy but not yet a Petra customer? Here’s how to get started.