Covid-19 brought about a change in how people do things. Shopping was one of the activities that underwent a change. It moved more towards e-commerce, leaving physical stores rush-free or, closed. Sure enough, May experienced a surge of 78% in e-commerce sales. It shows that people’s appetite for shopping hasn’t subsided. It has taken on a new dimension. Analysts argue that, people aren’t going to stop online shopping because restrictions have now eased up. The convenience of e-commerce will ensure that its popularity continues.
More Money Spent on Online Shopping in April and May
The report by Adobe Analytics continues to surprise. People spent more money on online shopping in April and May 2020 than they spent in the whole of the 2019 holiday season. According to the 2020 Digital Economy Index for May, consumers spent more than $153 billion in online shopping in April and May, which was 7% more than their shopping expenses in the November and December shopping season of 2019. Shopping season in May had a 78% year over year surge. Online retail can, therefore, be a great investment opportunity. Invest in the Online Retail Revolution Motley Fool analyst Danny Vena points out some of these online retail stocks which, he reckons, have the greatest likelihood of benefiting from the online retail revolution.
Amazon’s Path to Ecommerce Growth
Amazon ($AMZN) can enjoy this trend since it has already reported revenue worth $75.5 billion, which was a year over year rise of 26%. This was the fastest pace seen by the company since 2018 Q3. Its operating income exceeded $4 billion while profits were in the region of $2.5 billion. Amazon has been around for so long, and it has proven to have withstood many tough situations. Profits have received a big boost too. Amazon intends to invest in employee testing, improved cleaning procedures as well as personal protective equipment. All with the aim of protecting both customers and employees from Covid-19 exposure. While the company could be spending $4 billion on these procedures, they could help Amazon continue its e-commerce growth.
Target’s Unique Model Makes It Popular
Target ($TGT) looks set to benefit from the new popularity of e-commerce. It has always favored the approach of targeting potential customers from various channels. Its same-day services have been particularly popular among shoppers. They allow people to shop online but pick up orders from their stores or parking lots. They can also get them delivered to their residences. In the first quarter, Target experienced year over year revenue growth of 11%. Comparable store sales experienced a growth of 10.8%, while comparable sales in just the digital sales department rose 141%. Same-day sales rose 278%. The company also experienced gains in market share in all five core merchandise categories.
So, with online stock trading, you have the chance of putting your strategies to the test. TradeZero.co offers advanced direct access trading platforms for efficient trading.
The content of this message and its attachments are intended only for the informational and educational use for the intended recipient and may contain confidential and privileged information. If you are not the intended recipient, any dissemination, distribution, or copying of this message or its attachments is prohibited. If you received this message in error, please notify the sender by replying to this email immediately and delete this message and its attachments from your computer. This content does not constitute an offer to sell or a solicitation to buy any security or instrument which may be referenced upon the site, or an offer to provide advisory or other services by the writer or company employing the writer in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. All communications sent to or from TradeZero, Inc. are subject to archive and review by TradeZero, Inc. and by regulatory and law enforcement authorities. We explicitly disclaim all liability for any action taken based on any information contained in this writing.