5G boost to ecommerce lacklustre as consumers continue to buy on desktop
The potential of 5G to boost the seamlessness of online experiences on the go is likely to fall behind, says new analysis by GlobalData.
The report attributes the fallen hopes for the 5G to revolutionise the ecommerce to the lack of appetite to shop on the go.
The majority (60%) of UK consumers prefer to browse products on their smartphones and then make purchases on a laptop or desktop at home.
Even so, futurists expect the network to be one of the biggest retail disruptors over the next five years. They expect 5G to bring new enhancements which will make shopping on mobile sites considerably faster, which may address these reservations and encourage more consumers to shop on the go.
Although there is potential for 5G mobile technology to impact commerce, it will have patchy coverage in its early stages, and with only a handful of compatible, and costly phones, usage of 5G will be restricted in the short term.
The 5G offers faster download speeds but also lower latencies. That is, it’s able to process a very high volume of data with minimal delay, which could allow sellers to use real-time technology to collect data on shoppers’ habits. Data is used to optimise pricing strategy, predict future demand and even visual merchandising.
Lower latency of the network can also help merchants implement Internet of Things-based projects effectively. For example, smart-shelves that use sensors can keep a real-time track of stock and can communicate to logistics when a product is low, thereby simplifying the overall stock control process.