The world of e-commerce and online selling changes fast. New technologies and new products make existing ways of...
With a couple of months away from the Fourth Industrial Revolution, the world is going gaga over the advancements and building up to the expectations of the upcoming era. While we are ready to enter the era of fastest internet connectivity, readily available uninterrupted internet access, and technological devices that were once a dream turning into reality all because of the evolving Artificial Intelligence.
With the 5G technology kicking in the tech revolution, it is surely going to set a major impact on internet commerce. While the tech heroes are yet to predict the future of 5G, let us understand what are the possible advancements of this bandwidth on the eCommerce trends.
What is 5G?
According to Forbes, 5G is the upcoming generation of mobile networks beyond LTE mobile networks. Currently, under the testing phase, 5G is expected to get at least 10 times faster than 4G connectivity. A large number of telecom giants are willing to invest in this technology. With Vodafone and Verizon already taking risks with the 5G connectivity, it is expected to hit the markets by the end of 2019.
According to a popular claim made by Verizon in October 2018, they are the first ones to launch the commercial 5G network in late 2018, with services being available in late 2019.
How fast is 5G?
The Next Generation Mobile Networks Alliance believes that 5G will provide a minimum of 1 GB per second surfing speed to all the users on the same floor, which is quite promising. Thus, 5G will be 1000 times faster than 4G, thus serving with more than 10 Gbps per second. This data may sound a little vague and seems practically impossible, but it looks promising and assures us of 10 times faster connectivity than 4G.
What is remarkable is the response time predicted with 5G. Response time is the rotating icon that you see on your youtube video screen when you click to open a new video. With 4G, the average response time is 3-4 seconds, but with 5G, it is expected to be just a millisecond, which is hardly noticeable.
5G impact on E-Commerce
By 2021, the global eCommerce is expected to rise up $5 billion, which is twice the revenue generated last year. A major factor contributing to this tremendous growth will be 5G. With more than half of the world’s population using smartphones these days, the number is expected to rise by the end of this decade, hence increasing the target audience for digital vendors.
With 5G showing a promising growth to sectors such as the internet of things, virtual reality, artificial intelligence, let us understand these aspects in detail and their exposure to 5g eCommerce.
1. Increased AI learning opportunities:
Several AI tools like Virtual Personal Assistants and Chatbots have shown their significance in improving customer service in the retails sector. These bots serve as a personal guide to the customers, which gives them a sense of personalized attention and helps them choose their preferences.
With the addition of 5G to AI, customers can download this data at lightning speeds from these virtual assistants. Since the speed resonates higher customer satisfaction, more customers will be attracted to using these tools and setting up personalized recommendations. The service providers will have more data from a vast number of customers as higher the speed, higher the chances of customers using these tools.
2. Higher use of VR and AR:
It seems like eCommerce and 5G will walk hand in hand because of the mutual benefits and a wider audience reach. Another sector being majorly benefitted with 5G will be the Virtual reality and Augmented reality market, which is expected to rise up to $80 billion by the end of 2025.
With the ultra-fast speeds assured by 5G bandwidth, we will have smoother VR runs, thus making buffers and lags extinct. With top stores like IKEA launching their first Virtual Reality campaign back in April 2016, received tremendous growth in sales and experienced positive feedback from the customers. A number of stores are expected to follow the same path with the addition of 5G to the market. As a matter of fact, NTT DoCoMo, a telecommunication firm from Japan, successfully had live streaming of 8K videos with a 5G supportive Nokia device, sounds too cool for a 2019 news, doesn’t it?
3. Smart Wearables:
Another sector that is going to experience a major upgrowth is the wearables industry. Amalgamating 5G with the wearables just booms the 5G eCommerce sector due to high-speed data at ultra-low latencies.
Thus, this comes up as a great opportunity for the retailers as it can help them send push-notifications to the customers with personalized notifications that will help increase the sales.
4. Increase in customers, increase in revenues:
Adobe Digital Insights came up with a report called “A Mobile Friendly – First World”. That consists of essential data on the US and international smartphone usage patterns. According to the projections made by Adobe under this report, the impact of 5G on eCommerce will add an extra $12 billion in the mobile commerce revenue for the retailers in the next three years. This is a clear indication that removing friction can help smooth the user experience. Thus, more potential customers will be browsing online, with lesser loading time and faster apps to cater to their needs.
The future is here!
Thus, 5G will be a drastic change in operating next-gen IoT devices along with enhancing the current ones. So, the brands must lay a foundation to satisfy these new demands that 5G technology is presenting to us, which includes tremendous speeds and greater accessibility.
Don’t wait for the 5G eCommerce to kick in, aim at taking bigger steps and take your eCommerce store to the global standards. Start focussing on preparing your store for the fastest connectivity and ensure a smooth, interactive design for your customers. Customer satisfaction is all that matters for your brand to be successful.