Everything About The E-Commerce Sector Stocks In The US
The US e-commerce industry hit an all-time high in 2020, making it a potentially exciting sector for outside investors. Let’s take a look at the top US e-commerce companies, and how to invest in sector-specific US stocks from India.
E-commerce penetration for U.S. retail sales has seen a massive year-over-year jump in 2020. According to publicly available data, the industry made a record leap of 44.0%, growing from $598 billion in 2019 to $861 billion revenue in 2020.
For many years, Amazon was the market leader with close to 43% share of online sales in the US. This year marks the growth of other retailers as well, reducing Amazon’s share to approximately 31% of the total sales.
This blog aims to provide an overview of the US e-commerce sector, along with a list of popular sector stocks and some key data on its dramatic growth in 2020.
Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.
What Is The E-commerce Sector In The US?
E-commerce means conducting commercial transactions via the internet. The terminology is commonly used to refer to buying and selling across consumer sectors such as retail, grocery, services, etc. You can consult a
E-commerce penetration for U.S. retail sales has seen a massive year-over-year jump in 2020. According to publicly available data, the industry made a record leap of 44.0%, growing from $598 billion in 2019 to $861 billion revenue in 2020.
For many years, Amazon was the market leader with close to 43% share of online sales in the US. This year marks the growth of other retailers as well, reducing Amazon’s share to approximately 31% of the total sales.
This blog aims to provide an overview of the US e-commerce sector, along with a list of popular sector stocks and some key data on its dramatic growth in 2020.
Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.
What Is The E-commerce Sector In The US?
E-commerce means conducting commercial transactions via the internet. The terminology is commonly used to refer to buying and selling across consumer sectors such as retail, grocery, services, etc. You can consult a Cube Wealth Coach or download the Cube Wealth App.
It also includes internet banking and payments through online gateways. Data shows that e-commerce is growing at an exponential rate in the US, and worldover.
Top e-commerce companies in the US include the likes of:
A quick look at the top categories of online purchases made in the US in 2020 (below) indicates the industries in which e-commerce is thriving and slated to grow.
The graph shows the top responses to “Which of these items have you bought online in the past 12 months?”
Source: Google
Top Facts Of US E-Commerce Sector
1. The retail revenue for the e-commerce sector in the US $861 billion revenue for 2020.
2. Out of the total retail sales in the US, online sales account for 21% of the figure.
3. The COVID-19 pandemic has acted as a catalyst in this sudden growth explosion in the sector.
4. Amazon has the largest market share, largest revenue and market capitalization in the US e-commerce industry.
5. Close to 38% of the total digital buyers belong to the age group of 25 to 44 years.
Top 10 Most Popular E-commerce Sector Stocks In The US
1. Company: Alibaba Group
Ticker: BABA
Market Cap: $632.087 Billion
EPS: 9.31
Beta: 0.88
Present Value: 231.87
2. Company: Amazon.com Inc.
Ticker: AMZN
Market Cap: $1.556 Trillion
EPS: 41.83
Beta: 1.13
Present Value: $3,089.49
3. Company: Shopify Inc.
Ticker: SHOP
Market Cap: $139.328Billion
EPS: 2.59
Beta: 1.56
Present Value: $1,140.63
4. Company: Booking Holdings Inc.
Ticker: BKNG
Market Cap: $98.351 Billion
EPS: 1.44
Beta: 1.25
Present Value: $2,401.04
5. Company: GoDaddy Inc.
Ticker: GDDY
Market Cap: $12.315 Billion
EPS: -2.94
Beta: 0.97
Present Value: $72.41
6. Company: eBay Inc.
Ticker: EBAY
Market Cap: $37.969 Billion
EPS: 7.89
Beta: 1.16
Present Value: $55.80
7. Company: Etsy Inc.
Ticker: ETSY
Market Cap: $27.874 Billion
EPS: 2.69
Beta: 1.62
Present Value: $221.14
8. Company: Expedia Inc.
Ticker: EXPE
Market Cap: $25.117 Billion
EPS: -19
Beta: 1.75
Present Value: $174.59
9. Company: JD.com
Ticker: JD
Market Cap: $137.661 Billion
EPS: 0.15
Beta: 0.83
Present Value: $84.02
10. Company: CoStar Group Inc.
Ticker: CSGP
Market Cap: $32.259 Billion
EPS: 5.93
Beta: 0.89
Present Value: $818.55
Past Trajectory Of Investment Returns In The US E-commerce Sector
Growth Of US E-commerce As A Percentage Of Total Sales
Year
Online Sales
2010
6.4%
2011
7.2%
2012
8.0%
2013
8.8%
2014
9.7%
2015
10.7%
2016
11.8%
2017
13.2%
2018
14.4%
2019
15.8%
2020
21.3%
Source: DigitalCommerce360
Percentage Growth In Online Sales Of US’ Top 10 Retailers, 2019 to 2020
Company
Growth
Amazon
39.1%
Walmart
65.4%
eBay
26.2%
Apple
32.3%
The Home Depot
71.2%
Best Buy
105.5%
Target
103.5%
Wayfair
51.0%
The Kroger Co.
79.2%
Costco Wholesale
60.3%
Source: emarketer
How To Invest In The US E-commerce Sector Stocks?
The Cube Wealth App helps you invest in US e-commerce sector stocks from India. It is a simple and efficient platform that guides you to open a US brokerage account with Cube's partner, DriveWealth.
Cube lets you invest in US stocks for as little as $1 with advice from Award-Winning, Registered Investment Advisor (RIA), Rick Holbrook. Download the Cube Wealth appto invest in US e-commerce sector stocks from India.
FAQs
1. What are the key factors driving the growth of e-commerce stocks in the US?
Ans. The growth of e-commerce stocks is driven by factors such as increased consumer adoption of online shopping, convenience, the expansion of digital payment options, and the widespread use of smartphones.
2. Which are some of the major e-commerce companies in the US stock market?
Ans. Major e-commerce companies in the US include Amazon, eBay, Shopify, PayPal, and many others. These companies are leaders in their respective niches within the e-commerce sector.
3. What are the risks associated with investing in e-commerce sector stocks?
Ans. Risks in the e-commerce sector may include market competition, changing consumer preferences, regulatory changes, cybersecurity threats, and the need for continuous technological innovation.
4. How can investors make informed decisions when investing in e-commerce sector stocks in the US?
Ans. To make informed investment decisions, investors should conduct thorough research, analyze financial reports, monitor market trends, and consider their risk tolerance and investment goals. Consulting with a financial advisor can also be valuable.
Conclusion
The e-commerce sector in the US represents a dynamic and rapidly evolving segment of the stock market. The convenience, innovation, and growth opportunities presented by this sector have made it a significant focus for investors. E-commerce stocks encompass a wide range of companies, from online retail giants like Amazon to fintech firms providing payment processing solutions.
Investors looking to capitalize on the e-commerce sector's potential should be aware of both the opportunities and challenges it presents. The convenience and widespread adoption of online shopping have driven growth, but competition, changing consumer preferences, regulatory shifts, and cybersecurity risks are potential challenges.
Important Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of US' most popular service sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
Thanks For Subscribing!
We'll send you interesting emails about exciting investment options.
Oops! Something went wrong while submitting the form.
A data-backed, personalised MF review—delivered discreetly to your
inbox.
Upload CAS
We’ll email your personalised mutual fund review in a few days—our
experts, who have 40+ years of experience, go beyond quick
algorithms to deliver deep, customised insights.
To get recommendations aligned with your goals, fill out your risk
profile
here.
For any questions, feel free to reach us at wealth@bankoncube.com
