After years of future reports, 5G services have finally launched in India. Users and businesses are eager to experience the magic of 5G, which is known for its blazing-fast speeds and the variety of online experiences it offers. Just as 4G had a profound impact across the country, 5G also promises to fuel the consolidation of small towns and rural areas once it becomes available across the country. In this article, we are going to find out that how 5G can become a game changer for E-commerce industry.
The e-commerce industry stands to benefit greatly from 5G technology as millions of consumers and small and medium-sized businesses in underserved parts of the country prepare to experience what e-commerce truly has to offer.
The transition from in-store shopping to online shopping has become easier with the advent of 5G technology. For example, it will allow expanded reality and artificial intelligence to unlock their true potential, leading to a host of new shopping experiences. With powerful 3D interfaces, the customer can see the product from all angles and order it from the comfort of their home. More importantly, higher bandwidth will drive live/video commerce, helping retailers provide their customers with a more complete shopping experience. However, the accessibility and affordability of the devices that support these technologies will be a determining factor in their adoption.
On the business side, 5G will ensure uninterrupted operations through a reliable network that can handle peak traffic. Additional benefits include faster access to centralized systems, as well as continuous tracking of inventory, product, price, and consumer information, along with deeper customization.
Impact on the E-commerce system
E-commerce as a sector grew 1.6 times between 2018 and 2022, driven by increased internet penetration and the growing popularity of online shopping. With its ultra-fast speeds facilitating smooth buffering and faster downloads, 5G will drive the next wave of innovation in e-commerce and potentially change online shopping as we know it.
However, the readiness of the 5G ecosystem varies across industries and the next few years will be crucial in paving the way for the introduction of the technology at the enterprise, B2B (business-to-business) and B2C (business-to-consumer) levels.
In addition to in-store benefits, 5G will improve the efficiency, accuracy and transparency of supply chain operations. For example, 5G networks will achieve more reliable package tracking and reduce inventory errors through IoT sensors and crowd communication capabilities. Cloud-based barcode tracking and inventory management will also be bolstered due to the high speed and accuracy of 5G.
Its reduced latency denotes swift response times, opening up a huge swathe of prospective applications across industries. 5G mobile telecom networks will also support the creation of smart factories, coupled with other services like holographic technologies.
The Road Ahead
The government's Digital India initiative has laid the groundwork for technological advancement in the coming years. According to McKinsey, faster connectivity in retail, healthcare, mobility and manufacturing could increase global GDP by US 1.2-2 trillion dollars by 2030. Telecommunications Regulatory Authority of India (TRAI) believes that this could generate an overall economic impact of US 1 trillion dollars for the country by 2035.
According to recent announcements from major telcos, 5G networks will be reached in all major Indian cities by December 2022. In essence, the imminent expansion of 5G services across the country will herald a digital revolution involving technologies from the new era such as AI, ML, AR, VR and Big data analysis, blockchain and the upcoming 3D virtual world of the Metaverse. All of these items will serve the dynamic and diverse demands of individual consumers, small businesses and large retail companies.
In short, the arrival of 5G will be instrumental in driving the paradigm shift of the Indian e-commerce industry by digitizing almost every aspect of the product and consumer journey. Thanks to 5G, the future-proof e-commerce industry could soon become a reality.
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