Are you looking for an Ecommerce stocks list of the best stocks to watch? Online shopping has become so big it’s started to drive brock and mortar stores out of business. As a result, if companies want to survive, they need to offer eCommerce. That’s what people want GameStop to do in order to save the company. That means any eCommerce stocks have such potential for growth. However, do your due diligence when it comes to trading. Don’t buy a stock just because it’s on a list.
What Is eCommerce?
Like the name suggests, eCommerce is the ability to buy and sell goods and services on a digital platform. Generally referred to as online shopping, the global eCommerce industry generated $4.28 trillion USD in 2020
It’s expected to grow to at least $5.4 trillion USD by 2022. The sector is home to some of the largest companies in the world. As a result, with the rapid advancement of technology on smartphones and other wearable devices, eCommerce activity is only going to become more ingrained into our daily lives.
The interesting part of the eCommerce industry is that it’s developing on a global scale. Not just in first-world countries. With the increased availability of high-speed internet, almost every region in the world is building up an infrastructure to handle a larger capacity of deliveries and shipments. There’s probably one name we’re all thinking about when we look at our own eCommerce activity.
But as dominant as that company may be in North America, there are countless other regional eCommerce brands that are making a name for themselves around the world. As a result, let’s take a look at an eCommerce stocks list from countries around the world.
What Are Some Ecommerce Stocks in the US?
It’s not a bad idea to invest in some of these eCommerce stocks list companies right now. Especially while the industry is still rapidly growing. Rather than list off all of the familiar domestic names, we’ll be venturing out into international markets also. Let’s discuss some of the fastest-growing eCommerce platforms on the market.
Amazon (NASDAQ: AMZN): It should come as no surprise to anyone that American eCommerce activity is dominated by Amazon. It’s estimated that Amazon handles nearly 40% of the eCommerce business generated in the United States. A figure that has continued to grow throughout the COVID-19 pandemic.
There are over 147 million Amazon Prime memberships in the U.S. This actually outpaces the estimated 130 million or so households in the country. That means on average there’s more than one Amazon Prime membership per American house. This is a mind-boggling statistic. Amazon is well on its way to becoming at least a $2 trillion company within the next couple of years. And its eCommerce marketplace is the driving force behind its success.
Etsy (NASDAQ:ETSY): Etsy is an incredibly popular platform for the do-it-yourself merchant that wants to sell their creations to a global audience. Largely known as an arts and crafts site, Etsy helps empower entrepreneurs to set up their own eCommerce store where they can directly distribute their products. Etsy makes money by charging fees on every transaction that happens on its platform. It is estimated that Etsy now has nearly 4.5 million sellers that led to the company reporting revenues of $1.7 billion USD in 2020.
eCommerce Stocks in Canada
Shopify (NYSE: SHOP): Shopify is a little bit different than Amazon. They don’t directly sell goods or services as Amazon does. Rather it provides the software for small business merchants to operate.
So at its core, Shopify is an eCommerce business. However, it lets other businesses handle the transactions, while Shopify collects recurring revenues on its software subscriptions.
Over 1.7 million businesses around the world use some sort of software from Shopify to power their online storefronts. And this number is only going to continue to grow.
They have very little competition and new partnerships with major companies being announced on a regular basis. As a result, this is an exciting company to keep an eye on. So add it to your eCommerce stocks list.
And if you’re looking at starting your own business and make extra money online, they could be someone to consider. In fact, that could help out your shares if you own any.
AliBaba (NYSE: BABA): No discussion about eCommerce stocks can be had without including China’s major players. There are three main eCommerce platforms: AliBaba, AliExpress, and Taobao. AliBaba is more of a b2b or business to business marketplace. AliExpress and Taobao are often cheaper as they are b2c or business-to-consumer platforms.
AliBaba hosts a Singles Day on November 11th each year like Amazon and Prime Day. In 2020, Singles Day sales hit a record-breaking $74 billion USD. Total revenues for the AliBaba Group hit $109 billion USD in 2020. The company continues to be one of the most powerful conglomerates in the world.
JD.com (NASDAQ: JD): JD.com is the largest online retailer in China. It started as a single electronics store. Now it’s a dominant name in Chinese eCommerce; outpacing AliBaba in the domestic market. JD.com has investments from some of the largest companies in the world. Including Tencent (TCEHY), Walmart (NYSE: WMT), and Alphabet (NASDAQ: GOOGL). They’ve been one of the most consistent performers. Double-digit growth occurred in sequential quarters for multiple years. It may not be well-known in the U.S., but it trades on the NASDAQ. The market cap is now well over $100 billion USD.
PinDuoDuo (NASDAQ: PDD): They have an interesting eCommerce strategy. As a result, PinDuoDuo is a larger company than JD.com. It boasts a market cap of over $150 billion USD. What’s staggering is that PinDuoDuo was only founded in 2015. Which makes it the fastest-growing tech company in the world. PDD is the world’s largest C2M or consumer to manufacture agriculturally focused platforms. That’s right, PinDuoDuo connects farmers and agricultural distributors directly to customers. Allowing users cheap access to produce and other foods. PinDuoDUo has over 825 million monthly active users. At the rate it’s growing, should hit 1 billion users by next year.
Is E-Commerce a Good Investment?
eCommerce is absolutely a good investment. Ask yourself this. Do you shop online more than in a store? Most likely the answer is a resounding yes. As a result, any eCommerce stocks list is going to come in handy. The potential for growth is astronomical. Therefore, investing in these companies can be a great idea.
Like with anything, you need to make sure you get good entries on any stock you trade or invest in. And look to see if any of these offer dividends. Then you can add to your growth with both stock price movement and dividend payments.
Ecommerce Stocks in South East Asia
Sea Limited (NYSE: SE): If you hang out on Fintwit or Reddit, you’ve probably seen this company. It seems to be one of many investor’s favorite companies for the future. Sea Limited focuses on its three main pillars; its gaming enterprise Garena, its eCommerce site Shopee, and its fintech platform Sea Money. Garena makes the game Free Fire, which has been the world’s most downloaded mobile game over the past few years.
Shopee is the most popular eCommerce marketplace for Southeast Asian countries and has recently penetrated the Latin American market as well. Sea Limited is now a $145 billion USD company, with 40% of it owned by Tencent. The Southeast Asian and Latin American markets have populations of roughly 650 million people each and are one of the fastest-growing regions in terms of access to the internet and smartphones. There’s a good chance that Sea Limited may be a $1 trillion USD company at some point in the coming decades.
Coupang Inc (NYSE: CPNG): Coupang went public in the U.S. a few months ago and has struggled to gain traction with American investors. The company’s known as the Amazon of South Korea.
In fact, they’ve famously fought off Amazon and other tech companies from entering the South Korean market. Coupang is an all-in-one marketplace that includes food deliveries, groceries, and of course goods bought on its eCommerce marketplace.
South Korea famously has an incredible 97% smartphone usage amongst its citizens, making eCommerce and other digital services essential in the country.
South Korea also has an incredibly centralized population in Seoul. And Coupang says nearly 70% of the population lives within 10 minutes from a Coupang distribution center. This allows Coupang to use its Rocket Delivery network. They guarantee overnight delivery if ordered by a certain time. Recently, Coupang has discussed plans of moving into Singapore. However, the aforementioned Sea Limited and AliBaba owned Lazada may have something to say about that.
Mercado Libre (NASDAQ: MELI): Another popular Fintwit stock, Mercado Libre is the largest eCommerce and fintech company in the sprawling Latin American market. It operates in nearly every country in South America and Central America, as well as Mexico and Spain. And like Sea Limited it has several different legs to stand on.
Mercado Libre is the original marketplace for eCommerce merchants. Mercado Pago is the digital payment system. And MercadoShops is a Shopify-like software business that helps improve the experience for its merchants. Recently companies like Sea Limited and Amazon have been making their way into Latin America. So Mercado Libre definitely has its work cut out for it now that it has to defend its turf.
ECommerce Stocks in Africa
Jumia (NYSE: JMIA): Jumia is an online marketplace and logistics services company that operates in several African countries. This company and stock aren’t nearly as established as the others on this list. However, there’s legitimate excitement over the potential of developing a logistics network and shipping infrastructure in Africa; a continent with a population of 1.2 billion people. Jumia is still bleeding money and is nowhere near being profitable or as robust as the other regions. But the possibility of the company turning into the Amazon of Africa is an enticing lottery ticket to have at its current share price.
Ozon (NASDAQ: OZON): Ozon has a similar start to Amazon as it started as an online bookstore back in 1998. The company is now the leading eCommerce retailer in Russia, and saw its usage rise to over 34 million orders in the first quarter of 2021. It seems like this situation is the opposite of a company like Coupang. Russia is a sprawling landmass that may make delivery logistics a nightmare. Still, Ozon has received plenty of praise from analysts, and could be one to watch as Russia builds up its eCommerce and digital infrastructure.
The Bottom Line
Always keep an eCommerce stocks list handy. These stocks have such potential for continued growth. As a result, you’re always going to have a steady way to make money if you know how to read the charts, patterns, and fundamental analysis of a company. Always do your own due diligence on stocks. Even large caps.