Impact of 5g on Ecommerce

Your shopping isn't going to be same, Ecommerce in all new mode with rose in 5G

The world is changing every day with new technology coming up and one technology that is expected to change everything is 5G. The fifth generation of a cellular network is known as 5G. It is said to be 100 times faster than 4G. As per Next Generation Mobile Network Alliance, for anything to be categorized under 5G, it should produce at least 1 gigabit per second to tens of workers on the same office floor. This massive speed is definitely going to change the whole internet experience.

One such industry that is sure to witness major change due to 5G is E-commerce. Global eCommerce is expected to reach $4.8 billion by 2021, a significant increase from the $2.3 billion revenue recorded in 2017. Currently, 5G is full of speculation. Ecommerce executives can make use of 5G to improve their omnichannel and mobile retail strategies. Let’s look into the factors which will help in improving the constraints around it

Never expected Speed Before

This is the most and obvious factor that is bound to change the eCommerce sector. The gap between 4G and 5G is going to be humongous with 5G respected to exceed the bar of 5G and eventually planned to reach 10Gb/s. Pages full of heavy elements would also load in a matter of seconds. It also is going to change how web pages are made. Developers would have an option to add more images and videos on pages. Ecommerce retailers would have a chance to design pages as lucrative as they want without worrying much.

Increasing consumer base

According to a recent Adobe Digital Insights report, 5G will increase eCommerce revenue by $12 billion by 2021 if major telecommunications companies follow through on their rollout plans. 5G is bound to increase the accessibility of internet and surfing it will be more enjoyable on mobile devices. More people are expected to browse online along with faster websites and apps serving them in record time.

VR will have a bigger role

Virtual reality (VR) refers to the practice of fully immersing oneself in a three-dimensional computer-simulated world, typically through the use of a headset. Because of the massive amount of data required by this technology to provide this immersive experience, a sluggish or unreliable connection will ruin the effect of VR, and the customer experience will be lost. Customers may prefer to shop in-store rather than online for a variety of reasons, including the desire to fully visualize the product. This is possible with a fully immersive virtual reality experience. This technology will massively boost sales of experience-driven sales such as hotel rooms and theatre seats, as the customer will be able to get a taste of what’s to come. The power of 5G will bridge the gap between the consumer and the product being sold online, kicking off the customer’s journey to the purchase.

AI will be more casual

Companies are increasingly using Artificial Intelligence-powered customer service tools on e-commerce platforms, such as chatbots and virtual personal assistants. These replicate the experience of shopping in a real store, complete with a real shop assistant to assist you with your purchase. Speed is critical to a positive customer experience, and the increased speed of 5G, combined with a reduction in latency, will make these customer service tools indispensable to online businesses. Retailers will be able to reduce customer drop-off and cart abandonment by providing essential information and advice at lightning speed, as the right personalised information is instantly available for customers.

Multi-device shopping has a lot of scopes

The speed and ease of use that 5G will bring to the e-commerce experience, combined with the proliferation of smart and internet-connected devices in everyday life, will enable online purchases to be made using devices other than mobile phones and computers. Cars that can browse the internet using 5G, watches that allow purchases to be made anytime, anywhere, and even fridges that automatically place orders to restock themselves when they detect that they are running low on certain items are all examples of how 5G will enable e-commerce to expand into new avenues.


Talking about all of these things does give an impression that having 5G technology would be the end of all problems but that is not true. With the emergence of 5G, the capacity is going to be skyrocket high. As per reports by Visual Networking Indexes on the global Internet traffic, Video content is expected to account for 79% of mobile traffic by 2022 rising from 23% in 2017. The deployment of 5G infrastructure will result in increased bandwidth, which will drive up demand for high-quality video services and eCommerce is sure assured to be a significant part of it.          


One thing we need to understand is that video services on mobile networks aren’t as same as broadband networks.  For starters, a wide range of mobile devices in use means a wide range of video resolution playback. Finally, traditional mobile networks continue to rely on data centers to deliver video content. Current 5G networks are mostly non-standalone (NSA), which means they rely on the existing 4G core. This means that some of the most anticipated 5G use cases, such as remote surgery or driverless cars, are still some time away.


Nonetheless, 5G NSA can support more devices concurrently than 4G, while also providing greater bandwidth and lower latency. This means that the initial benefits, such as UHD streaming, can become a reality. In theory, more people will be able to stream video content at higher resolutions, such as 4K and 8K, at the same time, but networks must be prepared to handle the additional data surge. Operators understand the importance of continuing to meet consumers’ high expectations as content services become more popular and an even larger and more important revenue stream for them. To do so, they must rethink their network architectures, relocating caching to the network’s outskirts.


With this massive increase in content consumption, internet providers are required to deliver more content in high resolution and along with improved experience with the burden to reduce their costs. Rather than building capacity for peak demand, a potentially more cost-effective, but certainly more agile approach is to use cloud-native and virtualization technologies to optimize infrastructure and assign resources as needed – especially when such technologies are built to be compatible with existing virtualization platforms that a CSP may already have.


When it comes to delivering content to users, the general rule of thumb is that the closer you are to those users, the faster you can deliver the content. And the faster you can deliver the content, the more satisfied your customers will be. There is a rise in new forms of the virtual content delivery network which is based on caching technology that allows network operators and streaming platforms to accelerate the delivery of your favorite eCommerce sites.


The latest generation vCDNs are well versed in tightly integrating with the network and deployed at the edge for 5G edge cloud data centers. They are comparatively smaller than traditional data center sites.    


Following lockdowns, delivering video to thousands of spectators gathered at the same spot is going to be a huge task. Traditional CDNs are incapable of supporting these experiences; it would be far too expensive due to bandwidth requirements and result in far too much lag because traditional CDNs are located outside of the telecom network or in a central data center. This highly elastic, cloud-native CDN technology, on the other hand, can handle high-density situations like those found in stadiums and city centers, as well as demand spikes from live sports events, season finales, and viral content.  


Traditional content delivery networks will struggle to match 5G in terms of speed and capacity as 5G rollout accelerates around the world, and operators face growing consumer appetites for high-fidelity video and new experiences like virtual reality. As mobile devices increasingly dominate how content is accessed, and increasing levels of data processing occur at the network edge, content delivery speed and latency are more important than ever. The 2020 content delivery boom is not a passing fad. It is the future of mobile, and it, along with 5G, must be embraced by e-commerce in the coming years. This entails having the CDN and caching technology in place to provide subscribers with new, better, faster services. And revel in the ensuing business boom. 


Operators need to focus on the importance of continuing to meet consumers’ high expectations as online services become more popular throughout the world. In order to do so, they must rethink their network architectures and relocate caching to the outskirts of the network. Thousands of people streaming services at the same time generate a massive amount of data and transcoding requests which might be the case during flash sales. It is impractical to send requests and distribution in a core network for the stadium, instead, it would make more sense to get it done locally in order to provide low latency.

Mogi’s Proprietary Video Tech

Mogi’s Video Tech solutions are available end-to-end (Video Transcoding + Video Player + Mogi Streaming Engine (Multi-CDN delivery) + DRM + Video Analytics) or you can use individual products from the entire suite like just the Video Transcoding. Mogi also provides white-label end-to-end plug n play solutions for OTT and Edtech Platforms, with Web, Android and iOS apps as well as a dedicated CMS for OTT and LMS for EdTech.

One of the best individual products we have is our Transcoding Architecture, which is a unique cluster-based process, does the transcoding within 30% of the content length. The transcoding architecture’s result includes a highly compressed video of up to 50% with no loss in quality, and if you choose quality enhancement, a 40% compression with the enhanced video quality.

The pricing for Transcoding is very competitive as well, and along with it you get a highly compressed output with the same or higher quality. This means not only is your contractual pricing is low due to competitive pricing, but your bandwidth consumption also reduces, and user experiences increase multifold. It’s a win-win for all of us (Users, Clients, Mogi).

Contact us now to make your website load faster, rank Higher on SEO, and reduce bounce rates –

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