ETFs To Benefit From Surge In E-Commerce Sales

The year 2020 seems to be a banner year for online sales, primarily thanks to the COVID-19 pandemic, which has ramped up the digital shift. Consumers have made a radical shift toward online shopping in order to avoid direct contact or go out of home.

According to the Brick Meets Click and Mercatus, U.S. online grocery sales hit a record $7.2 billion in June, up 9% from May. Number of customers (active during past 30 days) using online grocery pickup or delivery advanced 6% to 45.6 million in June from 43 million in May. Order frequency also grew from 1.7 to 1.9 orders per month for active households.

Per eMarketer, U.S. e-commerce retail sales are expected to jump 18% this year with 12.2% growth coming from older buyers in the age group of 65 and older. The surge would follow a 14.9% gain in 2019. Most of the sales were driven by a surge in click-and-collect including curbside pickup. The company expects U.S. click-and-collect e-commerce sales to grow to $58.52 billion, up 60.4% from the eMarketer initial forecast of 38.6% growth.

Who Wins?

Per the report, the top 10 e-commerce retail businesses are expected to grow at above-average rates of 21.8%. Amazon (AMZN - Free Report) will continue to gain U.S. e-commerce market share while Walmart's (WMT - Free Report) accelerating e-commerce growth will take it to the No. 2 position for the first time.

This is because the mega-retailer is gearing up to roll out a subscription service similar to Amazon Prime later this month. The new offering called Walmart+ will cost $98 per year with subscriber benefits including same-day delivery of groceries and other goods, fuel discounts, and other special deals.

Other e-commerce players like eBay (EBAY - Free Report), Apple (AAPL - Free Report), Wayfair (W - Free Report) and Target (TGT - Free Report) will also continue to benefit from the e-commerce boom.

Amid such solid trends, we have highlighted some ETFs for investors seeking to tap the surge in online sales.

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