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 brick-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 to save the company. That means any eCommerce stocks have such potential for growth. However, please do your due diligence when it comes to trading. Don’t buy a stock just because it’s on a list.
Chart by TradingView
| Symbol | Name |
|---|---|
| AMZN | Amazon |
| ETSY | Etsy |
| SHOP | Shopify |
| BABA | AliBaba |
| JD | JD.com |
| PDD | PinDuoDuo |
| SE | Sea Limited |
| CPNG | Coupang Inc |
| MELI | Mercado Libre |
| JMIA | Jumia |
| OZON | Ozon |
eCommerce Stocks Introduction
As 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 USD 4.28 trillion in 2020
It’s expected to grow to at least USD 5.4 trillion by 2022. In addition, 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 will only 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. So, there’s probably one name we’re all thinking about when we look at our eCommerce activity.
But as dominant as that company may be in North America, countless other regional eCommerce brands are making a name for themselves worldwide. As a result, let’s look at an eCommerce stock list from countries worldwide.
List of US Ecommerce Stocks
Investing in some of these eCommerce stock list companies is not bad. Especially while the industry is still rapidly growing. We’ll also venture into international markets rather than list all the familiar domestic names. Let’s discuss some of the fastest-growing eCommerce platforms on the market.
1. Amazon (NASDAQ: AMZN)
It should be no surprise that Amazon dominates American eCommerce activity. Amazon is estimated to handle 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 outpaces the estimated 130 million 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 few years. And its e-commerce marketplace is the driving force behind its success.
2. Etsy (NASDAQ: ETSY)
Etsy is an incredibly popular platform for the do-it-yourself merchant who wants to sell their creations to a global audience. Largely known as an arts and crafts site, Etsy helps empower entrepreneurs to set up eCommerce stores to distribute their products directly. Etsy makes money by charging fees on every transaction on its platform. It is estimated that Etsy now has nearly 4.5 million sellers, which led to the company reporting revenues of USD 1.7 billion in 2020.
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List of eCommerce Stocks in China
1. 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. On the other hand, 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 USD 74 billion. Total revenues for the Alibaba Group hit USD 109 billion in 2020. The company continues to be one of the most powerful conglomerates in the world.
2. JD.com (NASDAQ: J.D.)
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 USD 100 billion.
3. 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 USD 150 billion. What’s staggering is that PinDuoDuo was only founded in 2015, making it the world’s fastest-growing tech company. 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. It allows users affordable access to produce and other foods. PinDuoDUo has over 825 million monthly active users. It should hit 1 billion users by next year at a growing rate.
Best Trading Companies
Foreign eCommerce Stocks
1. Canadian eCommerce Stocks
Shopify (NYSE: SHOP): Shopify is slightly different from 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.
Per Manaferra, over 4.4 million businesses worldwide use some 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 are regularly announced. 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 making extra money online, they could be someone to consider. That could help out your shares if you own any.
2. S.E. Asia eCommerce Stocks
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 investors’ 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, 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 also recently penetrated the Latin American market. As a result, sea Limited is now a USD 145 billion company, with 40% of it owned by Tencent. The Southeast Asian and Latin American markets have roughly 650 million people each. Moreover, they are one of the fastest-growing regions in terms of access to the internet and smartphones. As a result, there’s a good chance that Sea Limited may be a USD 1 trillion company at some point in the coming decades.
3. South Korea eCommerce Stocks
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 is known as the Amazon of South Korea.
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 goods bought on its eCommerce marketplace.
South Korea has an incredible 97% smartphone usage among its citizens, making eCommerce and other digital services essential.
South Korea also has an incredibly centralized population in Seoul. And Coupang says nearly 70% of the population lives within 10 minutes of 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 to move to Singapore. However, Sea Limited and AliBaba-owned Lazada may have something to say.
4. Latin America eCommerce Stocks
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, Central America, 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 a 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 entering Latin America. So Mercado Libre has its work cut out for it now that it has to defend its turf.
5. Africa eCommerce Stocks
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. Unfortunately, Jumia is still bleeding money and is nowhere near being profitable or as robust as the other regions.
However, the possibility of the company turning into the Amazon of Africa is an enticing lottery ticket at its current share price.
6. Russia eCommerce Stocks
Ozon (NASDAQ: OZON): Ozon has a similar start to Amazon as it started as an online bookstore 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.
Is E-Commerce a Good Investment?
eCommerce is 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 stock list will come in handy. The growth potential is astronomical. Therefore, investing in these companies can be a great idea.
Getting 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 stock price movement and dividend payments.
Final Thoughts
Always keep an eCommerce stocks list handy. These stocks have the potential for continued growth. As a result, you’ll always have a steady way to make money if you know how to read a company’s charts, patterns, and fundamental analysis. Always do your due diligence on stocks—even large caps.
