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Technology is changing at an exponential rate. What was impossible just years ago has now become commonplace in day-to-day life. 5G technology promises to change how we shop online forever and it’s closer than you think! If not sooner 5G technology will be powering our smartphones before 2023, but what does this mean for retailers? Keep reading to find out.
What is 5G?
5G is the 5th Generation mobile network which is said to go 10x faster than its predecessor - 4G. There’s more to 5G than just faster data speeds. 5G tech will provide higher bandwidth for future innovators like wireless virtual reality or holographic projection mapping which will lead to way better products down the line. These futuristic innovations will also lower prices due to increasing competition.
The 5th generation is still in development, but it has already been tested by many companies worldwide including China Mobile, Verizon Wireless, SK Telecom Co. Ltd., NTT Corporation (Japan), KDDI Corporation (Japan) to name a few. It's only a matter of time when 5G will become the new norm, transforming the way we buy and sell.
Growth
5G technology is the dawn of a new era of eCommerce. It will make the world smaller by giving people easier access to products. The future looks exciting with 5G technology set to revolutionize the eCommerce landscape as we know it. The high-speed influx of data would unleash the potential of the eCommerce market and the way users interact with products. It’s said that 5G will transform the way the eCommerce market works and will generate $12 billion in revenue over the next two years.
Boost to AR/VR Technology
Goldman Sachs, an investment banking company, predicts that the future of VR and AR technologies will be worth a tremendous $80 billion by 2025! The reason for this boom is said to be 5G technology which will enable virtual reality shopping experiences where consumers could try on clothes or furniture virtually before making a purchase decision. 5G would also solve the problem of bandwidth constraints for augmented reality and virtual reality applications, which require a great deal of data.
Snappier Artificial Intelligence
AI is one of our most sophisticated technologies that is being adopted by every major industry and it's no different for the eCommerce industry. The major use of AI in eCommerce is to personalize and enhance customers' shopping experience by providing options like virtual assistance, ChatBots, etc.
For online retailers, artificial intelligence can predict the future inventory requirements of online stores by analyzing website patterns of consumption. This increases efficiency which cuts costs and improves business performance.
Once 5G technology is rolled out, data will be collected at as high as 20x speed. This will result in the collection of more data on the cloud faster, making AI tech snappier than ever!
The solution to cart abandonment
A 2018 study in the U.S. found that about 61% of digital shoppers abandoned their carts due to site errors or website outages. With 5G technology, web pages will load faster and be more mobile-friendly. With a projected data download speed of 50 Gbit/s – 100 Gbits/sec (which are much higher than the current average speeds), it is clear that websites will be able to accommodate many visitors at once without slowing down for each individual user - it's one giant high-speed global party!
We’ve helped our clients bring down their cart abandonment rate drastically with the help of setting the best practices that work for their niche. Feel free to get in touch with us if you find yourself struggling with a high cart abandonment rate. We’d love to know more about your niche and help you grow your webshop.
Seamless payment experience
Due to the speed and efficiency of 5G, existing payment options, such as mobile and digital transactions, will become even more appealing to the masses and merchants alike. Digital payments will get more seamless and users will be able to compare product prices globally from one device and get notified instantly if something they want to buy goes on sale online. All of these advancements very well may help break down barriers for purchasing new items online and offline through increased convenience.
Conclusion:
5G technology is the future of eCommerce and if you are an online retailer looking into future trends, you need to consider what 5G can do for your business model or you risk missing out on potential opportunities. The sooner you adopt new technologies like 5G, the quicker your company's growth might happen.
Planning to align your business to future trends like 5G, Artificial Intelligence and Machine Learning? Schedule a free call with our eCommerce expert and tap into the uncharted territories of futuristic trends.
Articles by Faraz Haider
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