One of the industries that is managing to showcase a stable to increasing growth in revenues for more than several years, is e-commerce sector, which is one of the top growing industries in the market.
Also making a potentially profitable investment, companies like Amazon, Shopify and Etsy are representing perfect indicators into the profitability of electronic commerce, while buying online is still on the rise even after years after e-commerce was first introduced.
Reasons to Consider Owning at Least One E-commerce Stock
With Amazon showcasing growth of 18% on sales in the second quarter on YTD charts, this e-commerce giant still remains the leader of the industry, showcasing a stable pace of growth years back.
In the meanwhile, Shopify, another e-commerce gem, is dominating year to year with the latest reports showcasing 62% of growth in revenues with the last quarter’s report, also indicating that e-commerce still represents a healthy industry.
Probably one of the top reasons why e-commerce industry still remains profitable is the fact that online shopping is trending from year to year, still able to attract new customers that are to return to their e-commerce store of choice.
If we add the fact that online shops, unlike the majority of physical retails, offer delivery and ultimate accessibility and availability of products and services 24 hours of the day and 7 days of the week, which is partially the factor driving sales and revenues up in the recent years.
Based on the records from the previous year, not many industries have the same growth potential as e-commerce, as online shopping brought 5 trillion dollars to the US alone in retail sales, while this number was set at 5.7 trillion dollars with bars and restaurants included.
However, there remains the fact that not all companies from the e-commerce industry represent profitable stock issuers, as unlike e-commerce giants and progressive companies such as Amazon, many stocks have little value in the market and are struggling with revenues and profits.
Still, “heavyweight” companies from e-commerce are supporting the industry, making it more profitable than risky.