All of you might be familiar with the term E-commerce. It is defined as a business that is carried out on a website or a platform on the internet. People are able to sell and purchase products on the internet. E-commerce platforms help sellers to market their products in wider terms irrespective of the geography. With availability of technological gadgets, e-commerce is becoming widely popular across the globe. According to sources, around 1.92 billion customers purchased various products and services on the internet during the year 2019. Likewise, in the same year, the global sales on the internet were recorded at $3.5 trillion. Due to the pandemic, physical businesses witnessed complete shutdown but online selling gained a boom and this boom is likely to stay during the new normal in the post-coronavirus situation. Various e-commerce platforms continued to serve customers from their homes with safety and convenience as top priority. Now, online business has become a necessity and at times as we face another pandemic-like situation, the online business model will definitely be a continuation of physical business. According to a research, the online business selling and purchase is likely to grow at the rate of 14.7% during 2020 – 2027. During the year 2020, the online sales increased by 30.1% only in the US. This article discusses Top 15 E-commerce Stocks to Buy as shared by Insider Monkey.
Shopify Inc. is a popular online selling platform and it is recommended to buy stocks of this company. It is popular for its cloud-based e-commerce selling platforms and point-of-sale systems for retail setup. During 2020, the company reported an increase of 96% in its revenue as compared to the corresponding period in 2019. According to McClain Capital, “Shopify is currently a fast growing, yet unprofitable e-commerce platform for retailers trades at a $120 billion valuation on $1.6 billion in 2019 revenues, a valuation of 75x sales for a company that ran -8% net margins. Assuming the business will run a normal 10% net margin and trade at a generous 25x P/E in 2030, revenue will need to grow by a factor of 80 times current levels for shareholders to earn a 10% IRR over the next 10 years.” Another company is JD.com Inc. It is a Chinese online selling company and it has been listed as one of the best Chinese companies to buy stocks. There are several other companies on the list. Keep reading on 15 Best E-commerce Stocks to Buy Now.