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Use of 5G in Ecommerce

As 5G technology gains more momentum across the world, countries like the USA, Canada, Spain, China and India are pushing for wider connectivity to reap the benefits of its high-speed, low latency and wireless infrastructure.


5G holds particular potential for small, medium and large Ecommerce enterprises to adopt and incorporate into their operations, and considerably improve their business, revenue and customer acquisition and relationships. Here are some of the most beneficial uses of 5G in Ecommerce that could revolutionize the online shopping ecosystem for everyone. 

. Providing a personalized shopping experience for consumers

5G technology benefits Ecommerce enterprises with a more accurate, real-time analysis and processing of data to offer consumers a more personalized shopping experience. By understanding consumer buying behaviour and patterns, location, demographics and more, Ecommerce enterprises can better cater to their customers’ needs. Targeting ads with the right products at the right time could ensure more sales. Location data could even help boost store walk-ins for the brands’ brick and mortar outlets. The collected data can also be quickly analysed and used to deploy retargeting ads to potentially help complete the purchase of a considerable amount of abandoned cart items, and reduce consumer drop-off.

. Smoother UI 

A faster network with low latency can help Ecommerce enterprises create a smoother experience for consumers on their app and website. With 5G technology unlocking the potential for offloading computational heavy-lifting onto the cloud, apps can now be lighter and perform efficiently. Many consumers with limited network reception face issues with their online shopping experience due to slow responsiveness and results.

. Better demonstrations of products/trial for apparel and accessories

By harnessing the increased speed and low latency of 5G technology, Ecommerce platorms can revolutionize online shopping for their customers. Using technology like Augmented Reality and Virtual Reality, enterprises can create ‘virtual trial rooms’ to enhance the entire experience. By enabling customers to make better informed choices, Ecommerce platforms might also be able to reduce logistical constraints by cutting down on product return/exchange requests by letting customers choose the right fit and product at once. 

Virtual Reality can also help customers visualize the products they wish to purchase, and allow new customers to transition to online shopping. Many customers display scepticism towards online shopping, and instead prefer brick and mortar stores. This obstacle can be overcome with the help of 5G technology by adopting Virtual Reality and Augmented Reality to present a unique online shopping experience to consumers. By designing a more dynamic online marketplace, Ecommerce enterprises can bring about a paradigm shift in the shopping habits of India’s fast growing digital population.

. Improvement in supply chain management and efficiency 

The advent of 5G internet does also present an opportunity for Ecommerce enterprises to make their internal operations more efficient and expeditious. A transition towards smart factories with cloud-based inventory regulation and tracking of packages and orders has the potential to vastly improve supply chain management. This could result in a positive effect in multiple avenues including customer satisfaction, and savings for the Ecommerce enterprise.

. Providing swift and essential assistance via AI Chatbots

Virtual assistants, and chatbots have already been deployed by many large companies to assist their customers’ and answer their queries instantaneously. 5G technology makes the technology more accessible for growing Ecommerce enterprises and other companies that haven’t adopted AI-based chatbots yet. 

AI algorithms significantly improve the efficacy and accuracy of data collected from the consumers, and helps solve any issues with the right feedback, and instructions. Chatbots have other applications too besides offering customer service. Product recommendations based on previous purchases and other relevant data, tutorials and information regarding promotional offers and discounts can executed with the help of AI Chatbots.

. Making online transactions more popular, simpler and secure

A shift in consumer behaviour during the COVID lockdown resulted in a transition to digital, contactless modes of payments and boosted the adoption of online shopping among many new customers. With the introduction of 5G technology, Ecommerce platforms can reap the benefits of the established popularity of digital payment apps, mobile wallets and net-banking. 

Another positive attribute that Ecommerce enterprises can introduce with the help of 5G technology is prevention of fraudulent activities and more security for online transactions. This protects the assets of both business and consumer by enabling faster, stronger and more secure authentication, processing and transfer of funds and data. 

These are some applications and uses of 5G technology that can be harnessed by Ecommerce platforms to run their business more smoothly, enhance customer acquisition and shopping experience and protect their data and financial transactions too.