eCommerce has become big business in Australia, accounting for 10% of all retail spending in the country. With the onset of coronavirus, the shift to online shopping has accelerated, with many Australians shopping online for the first time. This shift is likely to be long lasting, with many shoppers expected to choose online over in-store in future. The change in consumer shopping behaviour is a major benefit to ASX retail shares with strong online channels. Let's take a look at 3 ASX eCommerce shares which are riding the online shopping wave.
3 ASX eCommerce shares that are outperforming
Kogan.com Ltd (ASX: KGN)
The Kogan share price is up 241% over the past year and 368% since its March low. Kogan is experiencing increased momentum as a result of the shift to online retailing, even as many retailers are experiencing significant pressure given current market conditions. The online-only retailer saw gross sales rise by more than 100% during the fourth quarter, while gross profit grew by more than 130%. Kogan runs a profitable business that has paid out regular dividends. Total shareholder return since Kogan's 2016 IPO has been 654.5%, with the company now worth more than Myer and David Jones combined. Kogan is growing its portfolio of online retail and services businesses. This provides diversification of income and multiple growth opportunities.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price is up 353% over the past year and 366% since its March low. Temple & Webster's online furniture and homewares business has experienced strong growth since the onset of coronavirus. Year to date revenue to 31 May was up 68% on the prior corresponding period to $151.7 million. Active customer numbers grew 68% to 440,257. Strong trading in April and May continued in June with gross sales up 130% on the prior corresponding period. The company is looking to take advantage of the structural shift to online shopping by enhancing its digital platform and strengthening its product and service offering.
Redbubble Ltd (ASX: RBL)
The Redbubble share price is up 157% over the past year and 409% since its March low. Redbubble is a global online marketplace for print-on-demand products. User-submitted artwork can be input to produce shirts, stickers, device cases, posters, and home decor. Face masks were launched in April and instantly became a notable contributor with more than 600,000 units sold, generating $9.4 million in sales. Redbubble saw strong sales growth of over 100% in the June quarter, with macro tailwinds enhancing business performance. Daily sales during the June quarter were the highest in the company's history outside the Christmas peak of 2019.
Foolish takeaway
ASX eCommerce shares are seeing concrete benefits from the shift to online shopping. With the trend likely to be lasting, I believe these benefits will continue flowing to these retailers for some time.
