How 5G Will Impact eCommerce Industry In 2021

The first-generation network was evolved in 1980 and continues evolving thereafter with more increasing speed continue up-gradation. Digital commerce is rapidly growing as it getting more recognition by everyone on a worldwide level. Technology also keeps getting revolution as now the world gets introduced with 5G technology, which will provide high-speed internet access, Artificial intelligence human-like experiences that were not imagined earlier. With 5G installation in their business, they can achieve while looking at the new opportunities in the business.

We are on the brink of the Fourth Industrial Revolution

stated by the World Economic Forum.

5g will improve growth in the digital commerce market by driving $12 billion in the mobile commerce industry as per reports. 5G connects devices like a smartphone, laptop, computers with high-speed internet. Right now, 5G is available in countries china, the United States, Turkey, and 31 other countries as of January 2020 with rapidly adapting by other countries.

Here we’ll understand the concept that how 5G will transform and impact ecommerce.

5G (Fifth Generation) Technology

Fifth-generation technology is the improved version of the mobile network after 4G. A wireless network that facilitates high-speed internet with multi GBPS data, massive area capacity. It’s a broadband cellular network technology standard companies started using it in 2019. For digital marketers, and ecommerce businesses it brings a new effective business opportunity.

Key Features Of How 5G Impacting eCommerce Marketplaces & Websites

Reduction In Latency

Unwanted wait for the response when command Is given is eliminated. In 5G Latency is reduced in comparison to 3G & 4G. the speed is 4 milliseconds for broadband services,1 millisecond for IoT devices whereas the speed of 4G was 40 millisecond and the speed of 3G was 65 milliseconds.

Faster In Speed On eCommerce Stores

The speed of 5G is 100 times faster than 4g and the speed is 10GB per second.

While downloading a High-definition video or HD video in a day 4G takes 7 to 10 minutes whereas 5G takes only 5–40 seconds.

Director of Marketing and Communications at NetComm Els Baert told,

The arrival of 5G will undoubtedly bring higher speeds for end-users — but those speeds will vary depending on how operators design their networks and how many users are on the network

Expanding The Network Capacity

5g have much more network capacity than earlier fourth-generation network by expanding the new spectrum. Introducing network capacity for new services brings more flexibility and an effective programmable network. User quality is gets affected by how many people are using the network at the same place if you are at a cricket stadium you get difficulty while accessing the network in 4G but with 5G this problem gets eliminated as it provides better coverage needs with 100 times more efficiency.

VR (Virtual Reality) /AR (Augmented Reality) Technology Used By eCommerce Brands

VR is a stimulating experience which can be as similar as real-world or can be different from real-life world experiences for education purpose and entertainment purpose video games. Augmented reality is defined as a system where we can see the combination of the real-world, virtual world, 3D registration of objects virtually, and real-time interaction.

5G will improve the real-time experiences of people while doing online shopping. They can have Shop store like virtual experiences. With 5G companies will boost their sale while eliminating the gap between customers and the product sold online. Successful trial of 8K video live streaming done by broadband companies NTT, DoCoMo with the fifth-generation network.

Better Artificial Intelligence For Intuitive Shopping Experience

Chatbots and virtual personal assistant use are getting increased by the companies. 5G reducing the latency also improving the experiences of consumers. H&M using chatbots that show clothes to them as per their preference.

Chatbots give answers to FAQ (frequently asked questions) and give recommendations to consumers.

With the 5G network, customers can easily download and check the information at the fastest speed, while benefiting the online shopping retail houses.

Increase In The Number Of Consumers

As per Adobe’s Report: 5G will drive $12 billion in new mobile commerce revenue by 2021. 5g provides a smooth and fastest accessible network which will attract more customers. More customers will be beneficial for the company as it brings revenue.

Secure Omnichannel Payment Solution

Development of internet by 5g improves the payment options between seller and buyer with more security. Trust payments bring new business opportunities for business houses.

Multi-Device Accessibility

Customers can easily shop from different devices. Even when he is sitting at home and doing shopping from his laptop or while sitting at a public park and doing shopping from his mobile phone with 5G’s fastest internet speed availability.

Some of the limitations of ecommerce businesses employing new technology are given below

Fraudulent Activities

Fraudulent activities and security issues are the main obstacle of online shopping while doing online payment transaction people get afraid of scam and theft of their personal and private bank information. Even they can use high speed 5G network but security issues create the main obstacle in digital commerce.

Absence Of Tangibility

Even customers get virtual real-time experience but still they are unable to fully touch and feel the product as they can do in the offline store it creates a big obstacle for online shoppers even if they are getting 5G network speed with AI experience.

How eCommerce Businesses Can Get Ready for 5G Digital Network

1. Data collection is related to customer’s choice and their preference of buying by data collection methods.

2. Preparation of budget on artificial intelligence device buying option as buying these devices can be very expensive. Deciding how much they can spend on devices.

3. Selection of advertisements by way of HD, 3D & slow-motion video, so they easily target the audience and impress them. The selection of the right 5G network with lower latency will be more beneficial.

4. Hence it is clarified that while using 5G one must have the availability of budget as devices of AI is expensive.

Adapt Your eCommerce Business Marketing Strategy For 5G

5G brings the evolution and new business opportunity on the internet of things devices for achieving growth and objectives with more revenue while using it correctly in the online ecommerce business. New technology innovation is not as difficult as it seems with 5G. So, keep all these points in mind while you plan to start a new ecommerce development project.