As ecommerce continues to disrupt traditional retail, many investors are looking for ways to invest in this fast-growing sector. Ecommerce sales are projected to reach $5 trillion globally by 2022, representing nearly 20% of total retail sales. With the rise of ecommerce giants like Amazon and Alibaba, along with direct-to-consumer online brands, there are several promising ways for investors to gain exposure to ecommerce. This article will explore ecommerce investment opportunities through public stocks, private equity, and real estate.
Invest in public ecommerce stocks and ETFs
Publicly traded ecommerce companies like Amazon, Alibaba, JD.com and Shopify have been top performers in recent years. While these stocks carry higher valuations, analysts see continued growth potential as they expand into new markets and categories. Beyond individual stocks, investors can target the ecommerce sector through ETFs like the Amplify Online Retail ETF (IBUY) and the ProShares Long Online/Short Stores ETF (CLIX) which provide diversified exposure.
Invest in private ecommerce companies
For accredited investors, private equity can provide access to fast-growing ecommerce startups before they go public. Vertical ecommerce companies focusing on specific consumer segments have attracted significant venture capital funding in areas like furniture, clothing, pet supplies and more. Sites like AngelList and EquityZen provide platforms to invest in late-stage private companies.
Invest in industrial and logistics real estate
The logistics infrastructure powering ecommerce has driven demand for new industrial real estate development. Investors can target the sector through industrial REITS like Prologis and Duke Realty which own distribution centers leased to ecommerce companies. Self storage REITs like Public Storage and CubeSmart are also benefiting from the decline of physical retail.
Leverage crowdfunding platforms
Retail investors can get behind specific ecommerce businesses through equity crowdfunding platforms like SeedInvest and Republic. These sites allow you to invest in early-stage startups developing innovative ecommerce technologies and D2C brands across many product categories.
As ecommerce takes increasing retail market share, investors have several avenues to capitalize through public stocks, private equity, real estate and crowdfunding. Focusing on long-term secular trends can provide portfolio growth.