In the US alone, ecommerce accounted for 22.0% of retail sales in 2023, in accordance with Digital Commerce 360 evaluation of U.S. Department of Commerce data. That was a record share, up from 21.2% penetration in 2022. Nevertheless, it’s also a level that also leaves room for brand new opportunities as sellers find latest ways to attach digital transformation to purchasing habits.
Today marks the debut of the all-new Baird/Digital Commerce 360 Ecommerce Stock Index. It’s a collaboration between Digital Commerce 360 and the wealth management, capital markets, asset management and personal equity firm Robert W. Baird & Co. The index is meant to supply perspective into how corporations and technology providers that power digital commerce are being valued in public markets. It accommodates 4 categories capturing activity extending throughout the Americas and China:
- Online marketplaces
- Online retail
- Ecommerce tech
- International corporations
Readers should note that this index will complement insights from Digital Commerce 360’s Top 1000 data, which specifically tracks online retailers and their online sales in North America. The Baird/Digital Commerce 360 Ecommerce Stock Index, meanwhile, will cover each B2C retail and B2B ecommerce corporations, along with the technology vendors that serve them, with a broader give attention to global activity.
August ends in the Baird/Digital Commerce 360 Ecommerce Stock Index
The Baird/Digital Commerce Ecommerce Stock Index increased 2.2% month over month in August versus July. During a month that saw back-to-school activity for attire and college supplies, in addition to some volatility for multiple sectors, this index’s change was still barely below the two.3% increase seen for the more general S&P 500 index, in accordance with Colin Sebastian, Baird’s managing director and senior research analyst covering web/ecommerce. Stepping back to view year-to-date activity, the ecommerce index is up 8.1%, a change that appears more modest when put next with the S&P’s 17.2% increase over the identical time period.
Meanwhile, the person subsectors tracked within the index, there have been clear differences, which highlighted strong positive changes for Ecommerce Technology (up 5% 12 months so far) and Online Marketplaces (up 4%). Nevertheless, as those subsectors grew, Online Retail was down 2% 12 months so far. International ecommerce was flat.
Baird views the August performance as reflective of ongoing healthy secular and online spending trends relative to the broader retail environment, although with August consumer trends weighing on investor sentiment.
Stocks leading the index in August
Amongst marketplace and technology stocks within the ecommerce index, three of the highest performers in August, Xometry (XMTR), Mercado Libre (MELI) and Shopify (SHOP), highlight the sorts of growth stories that financial markets have rewarded.
For starters, Xometry, the B2B marketplace for manufacturers, increased its revenue 19% 12 months over 12 months to $133 million during its fiscal second quarter ended June 30. Xometry CEO Randy Altschuler touted the marketplace’s use of AI during its earnings call. On the decision, he also pointed to 25% year-over-year growth for marketplace revenue and “record 33.5% marketplace gross margin,” which was enabled by the marketplace’s 61,530 lively buyers. That variety of buyers is up 27% from a 12 months earlier.
Next, Mercado Libre, the Argentine and Uruguay-based company whose marketplaces and financial technology services operate throughout Central and South America, grew revenue 42% 12 months over 12 months to $5.1 million in its fiscal second quarter that ended on June 30.
Mercado Libre is No. 7 in Digital Commerce 360’s Global Online Marketplaces Database. The database ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).
Mercado Libre gross merchandise value by 12 months
Third, Shopify set a brand new company record, eclipsing $1 trillion in cumulative GMV processed through its ecommerce platform. That milestone from its second quarter (also ended on June 30) accompanied a 20% year-over-year increase in GMV for the period, during which Shopify revenue reached $2.05 billion. That was ok to turn into Shopify’s second-highest quarterly revenue ever, topped only by its fourth quarter in 2023.
In North America, 117 of the Top 1000 online retailers use Shopify as their ecommerce platform. The 117 online retailers combined for greater than $9.72 billion in 2023 web sales.
Shopify gross merchandise value by 12 months
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