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Date : 02/11/2021

3 Top Performing ASX E-Commerce Stocks Of 2021

Top 3 ASX E-Commerce Stocks To Buy In 2021

The ASX 200 lost 46.5 points or 0.63% to $7,324.30 in Tuesday’s trade. The market retraced its gains of 0.8% in the previous session as policymakers from the RBA removed their 2024 rate guidance amid a stronger-than-expected economic recovery, whilst discontinuing the 3-year bond yield target.

Our List of ASX E-Commerce Stocks to Buy Now

There are a few e-commerce ASX shares that are growing very quickly that may be worth considering in November 2021. Now, some of these companies are investing heavily to achieve high rates of long-term growth. However, the underlying profitability could be quite high.

Temple & Webster (ASX: TPW)

Temple & Webster is an online retailer of furniture and homewares. Some of its products include office furniture, lighting, rugs, wall art, and home decor. Temple & Webster is one of the e-commerce ASX shares that’s growing quickly.

Temple is already a leading online retailer of furniture and homewares. But the company is nowhere near done, it wants to become the largest player in the whole industry, both online and offline.

The company is growing very quickly. In FY21, revenue rose 85% year on year to $326.3 million. In the period of 1 July 2021 to 27 August 2021, revenue had increased by another 49%.

The business stated that it’s experiencing four different tailwinds. There’s the ongoing adoption of online shopping due to structural and demographic shifts. Next, these trends are being accelerated because of COVID-19. Furthermore, there is the benefit of an increase in discretionary income due to travel restrictions. Finally, there has been strong housing market growth.

This e-commerce ASX share is focused on strengthening its customer proposition. This is built around having the biggest and best range of furniture and homewares, combined with a great customer service experience.

Temple is investing heavily in marketing to win new customers and grow its brand awareness. In FY21, revenue per active customer rose 12% year on year due to customers repeating buying more often and spending more when they do.

At the time of writing, TPW is trading at $12.28 per share.

Kogan.com Ltd. (ASX: KGN)

One of the ASX shares that could be a top buy and hold investment of the moment is the e-commerce, Kogan. KGN is one more stock that should be taken as a long-term play. While KGN has just completed a mediocre 12 months in FY21 along with a soft start of FY22, we remain positive in the long-term outlook. The reason for that is KGN’s sizeable customer base and strong market position. In addition, Kogan is benefiting from the ongoing shift to online shopping. As a result, this leaves the company well-placed for growth over the next decade.

What happened during FY21? Well, variable demand and excessive inventory have caused big impacts on Kogan. FY21 gross profit went up 61% to $203.7 million. On the other hand, net profit fell 86.8% because of one-off inventory, logistics and Mighty Ape acquisition costs. However, the business is starting to see a return of growth again.

In FY22, Kogan expects to deliver strong growth with its exclusive brands. Furthermore, KGN will focus on the enhancement and development of its marketplace. And finally, we should see the benefits from the full integration of the Mighty Ape business to materialise in earnings growth onward 2HFY22.

Today, Kogan closed the day at $9.71 per share, at a level near significant support. Hence, that could be the right time to get involved in this long-term investment while KGN is still cheap.

Webjet Ltd. (ASX: WEB)

Webjet is engaged in the provision of online travel bookings. The Company is in the digital travel business providing services in regional consumer markets. Webjet is also involved in global wholesale markets via its online channel. In short, the company operates through the segments, including Travel B2C and B2B.

At the time of writing, the Webjet share price is $6.38, just 0.78% lower than its previous close but slightly 1.75% higher than it was last week. Additionally, it is currently about 25% year to date. So, what exactly moved Webjet share prices?

The Webjet share price moved in circles for most of last month. Indeed, it was a disappointing finish considering its shares touched a 52-week high of $6.89 on 4 October.

Investors appear to have mixed feelings when it comes to deciding the value of Webjet shares in the current climate. While some international routes have restarted, Webjet will be hoping for a speedy recovery. This will have a positive effect on the company which has been in hibernation mode since early last year. Although, Webjet still has substantial cash reserves to survive the ongoing crisis that has put the travel industry in a tailspin.

In its FY21 results released, the company had a strong capital position at hand. Pro forma cash stood at $431 million with an average cash burn rate of around $5.5 million per month. This gives Webjet the ability to weather the unpredictable nature of COVID-19 for the next 6.5 years without having to raise additional capital.

In addition, the company highlighted that its WebBeds business has been profitable since July 2021. It’s a positive sign that recovery is not far off, particularly given Australia’s accelerated vaccination program.

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