E-commerce is a vast industry with plenty of beneficiaries. With the huge proliferation of online shopping sites in recent years, we have also seen impressive growth for any and all companies that are associated with e-commerce sites and online selling platforms.
E-Commerce Site Builders
The e-commerce market isn’t just for big players anymore. We are seeing smaller brands launch their own online shops, offering up more options for investors. While these smaller business are unlikely to have IPOs anytime soon, the platforms on which they are built continue to see sustained growth on the stock market.
Shopify (NYSE:SHOP) offers users a complete e-commerce solution, allowing retailers to set up their own online shops so they can sell their own products through their own store. They do not have to go through e-commerce giants like eBay and Amazon, giving them more freedom to do business their own way.
It is no wonder e-commerce website builders such as Shopify have seen so much growth in recent years.
Shopify has seen its revenue quadruple since 2013, and it is predicted to increase by another 70% by the end of 2016. While 2016 will be a year of investment for the company, Shopify is aiming for a goal to achieve non-GAAP profitability in Q4 of 2017.
Wix.Com (NASDAQ:WIX) is an e-commerce site builder that has been listed for almost three years, and serves as a great example for the kind of success that Shopify could experience on the stock market. Over the course of the past year, Wix has seen its shares increase by 10.78%, and the company continues to see sustained year-on-year growth.
Offline Brands with E-commerce Affiliations
When brands begin working with e-commerce sites, they become much more attractive to investors. A prime example is Fitbit (NYSE:FIT), which saw its shares increase 5.4% to 18.85 right after the announcement of its distribution deal with Tmall.com.
Owned by e-commerce giant Alibaba Group, Tmall.com offers Fitbit increased reach into one of the biggest consumer markets in the world. The brand will be featured as a major presence on Tmall.com, and this new association will only contribute to further growth for both parties.
Online Payment Platforms
Payment processing for the e-commerce sector continues to grow quickly, at a rate of almost 10% per year. Worldpay Group (LON:WPG) is a well-rounded payment processor with a strong foundation for its brick-and-mortar platform as well as an online payments service.
The company launched its IPO in 2015 at 240p per share, for a valuation of £4.8 billion ($6.8 billion). Experts are confident that the stock will experience consistent growth in the ‘high-teens’.
Paysafe Group (LON:PAYS) has an online platform which continues to experience success as the e-commerce market continues to expand. Despite a hack that saw the company’s shares drop significantly in in 2015, the group has seen a 7.52% increase in the past six months and continues to climb to make for an attractive investment.