3 Micro-cap E-Commerce Stocks For 2021
E-commerce has been a high-growth industry for several years, but the pandemic has helped advance digital commerce years into the future. As consumers adapt to the lockdowns and the “new normal,” online shopping has taken the reigns as a greater number of people relied on non-contact shopping solutions.
Although COVID-19 vaccine distribution is underway across the world, the initial roll-out has been sloppy and far more slow than originally anticipated by experts. As the U.S. continues to seemingly hit grim new milestones daily in the battle against coronavirus, the pandemic’s end does not appear to be as close as the world has hoped. This means that at least the first half of 2021 could be very similar-if-not-worse to what we have been experiencing over the past month.
This bodes well for the continued exponential growth of e-commerce, as lockdowns will likely continue for several months. Here are three micro-cap companies that benefit from the surge in digital commerce:
Blue Apron Holdings, Inc. (NYSE: APRN) is a direct-to-consumer meal kit provider, which offers a subscription-based offering of easily-prepared meals. During the early days of the pandemic, Blue Apron saw shares soar, as traders were banking on alternatives to grocery stores and restaurants. As the pandemic raged on, Blue Apron saw its stock price surge cool down. However, as the virus continues to reach new heights of infection, meal kit services like Blue Apron could see another surge in demand.
iMedia Brands, Inc. (NASDAQ: IMBI) operates as a multiplatform digital commerce company. The company sells its merchandise through its online portal, evine.com, and cable programs broadcasting to 87 million homes. Among the merchandise offered by the company includes home goods, apparel, bath & body products, electronics, jewelry, and more.
While TV-based shopping may not be a traditional medium for e-commerce, it has seen a resurgence during the pandemic. Other TV shopping networks like QVC and HSN have seen a surge in viewership since the beginning of 2020. Given the current trajectory of the pandemic, TV-based shopping will likely continue to see growth.
1847 Goedeker, Inc. (NYSE American: GOED) is a Ballwin, Missouri-based company that operates an online marketplace for home goods and furnishings in the United States. The company’s marketplace offers a wide range of home goods including appliances (refrigerators, microwaves, freezer, dishwashers, etc.), furniture, décor, electronics, and more.
With vacations put on hold and many people staying home, it is not surprising to see that home upgrades and renovations have seen an uptick. Consumers are trying to make their homes as comfortable and appealing as possible, to help endure the stay-at-home orders. Also, the home has also taken on the role of the office, which has led to many people upgrading rooms to serve as workspaces.
Overall, digital commerce has been a strong performer for quite some time. The pandemic is only increasing its market share and acceptance over traditional brick-and-mortar options. Today, digital commerce has expanded at such a pace that there is almost nothing you can’t order online. It will take time to get our lives back to normal, but the solidification of online shopping is here to stay.
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