E-commerce continues to gain solid momentum in this coronavirus-hit world where many major sectors are facing widespread disruptions.
E-commerce, which has already become part and parcel of lives in today’s fast-paced world, is much more in demand now owing to COVID-19-led social distancing protocols, quarantine and lockdowns, and rising fears of contracting the virus.
All these are currently strengthening online retail shopping, bolstering the adoption rate of online payment solutions and boosting m-commerce user penetration rate, which in turn are driving the worldwide e-commerce market.
This is evident from the strong performance of the Global X E-Commerce ETF (EBIZ), which has gained 18.6% on a year-to-date basis.
Online Sales, Fast Delivery & Growth Figures
Notably, growing proliferation of fast delivery services being offered by online retailers as well as traditional retailers is boosting online sales in the current scenario.
E-commerce giant Amazon (AMZN – Free Report) , which is best known for its fulfilment network strength and super fast delivery services, has been witnessing a flurry of orders on account of customers’ unwillingness to visit stores.
Further, Walmart, which is making concerted efforts to expand its fast delivery services, has witnessed 74% growth in e-commerce sales in the United States in first-quarter fiscal 2021.
A survey conducted by Retail Systems Research found that 90% out of 1200 customers were hesitant to venture out for shopping at physical stores.
According to a report by Adobe Analytics, online sales rose 49% year over year in April 2020 in the United States.
Per an Ipsos MORI survey, 50% of China and 31% of Italy consumers are switching to e-commerce more often. Other countries such as Vietnam, India and Russia have witnessed an increase of 57%, 55% and 27%, respectively.
The above-mentioned discussion reflects a booming e-commerce market. Per a report by Statista, the worldwide e-commerce space is expected to cross revenues of $2.3 trillion through 2020.
Further, the report suggests that revenues are anticipated to reach $3.1 trillion at a CAGR of 8.1% between 2020 and 2024. User penetration in the market for 2020 is projected at 46.6% and is likely to reach 60% by 2024.
Year-to-Date Price Performance
Given the upbeat prospects, investors can tap the following e-commerce stocks as these are well-poised to beat the COVID-19 qualms on strong fundamentals.
Wayfair (W – Free Report) , which is headquartered in Boston, MA, is witnessing strong acceleration in new and repeat customer orders. Also, an expanding active customer base and strength in the company’s direct retail business remain major positives.
This Zacks Rank #1 (Strong Buy) companyis aggressively investing in international regions in order to bolster presence and expand in-house-brand offerings. All these are likely to drive Wayfair’s top-line in the near term.
Beijing, China-based JD.com (JD – Free Report) is riding on its JD Retail segment, which is the key-growth driver courtesy of its robust omni-channel strategy.
Further, the company’s New Businesses segment is amajor positive. This Zacks Rank #1 company’s strengthening momentum across third-party logistics, Flash Delivery initiative and expanding 24-hour delivery service are other encouraging factors. Also, the integration of AI into JD’s warehouse network is expected to continue accelerating the delivery of its direct sales orders.
San Jose, CA-based eBay (EBAY – Free Report) is gaining on strong momentum across its managed payment offerings, which bodes well for its gross merchandise volume. Additionally, strength in promoted listings is encouraging.
Further, this Zacks Rank #2 (Buy) company’s initiatives toward enhancing seller experience by offering innovative seller tools and delivering better buyer experience by building product catalogs utilizing structured data hold promise.
Tel Aviv, Israel-based Fiverr International (FVRR – Free Report) is benefiting from marketing efficiency, and strong focus on product and technology enhancements.
Further, the launch of four industry stores, namely Gaming, E-commerce, Architecture and Politics, is expected to aid the company in expanding catalog and gaining momentum across larger businesses.
This Zacks Rank #2 stock’s accelerated AI efforts through personalization and customer support are likely to boost sales in the near term.
Meanwhile, the leading provider of postage online and shipping software, Stamps.com (STMP – Free Report) , is gaining on ramp up inits United Parcel Services partnership to all platforms.
Moreover, this Zacks Rank #2 stock’s long-term reseller agreement with United States Postal Service is a major plus.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
Author: Shilpa Mete
Source: Zacks: 5 E-commerce Stocks to Buy Amid the Coronavirus Pandemic