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The e-commerce industry has been one of the major beneficiaries of pandemic-led changes in consumer behavior. Consumers are depending more now on e-commerce platforms for their day-to-day needs. E-commerce companies like Amazon.com, Inc. (AMZN) and Shopify, Inc. (SHOP) saw record revenues in 2020.

However, not every e-commerce company is performing that well. In fact, some are struggling to maintain and grow their operations or to capitalize on growing e-commerce demand. These companies were not doing well when the pandemic started, and are likely to underperform further with the global economy still in the throes of the pandemic.

Baozun, Inc. (BZUN) and Blue Apron Holdings, Inc. (APRN) are two companies that are currently facing several issues and might not perform well in the near-term.

Baozun, Inc. (BZUN)

BZUN provides e-commerce solutions for brand partners. The company delivers end-to-end services, such as IT infrastructure, online store design, customer service, order fulfillment, etc. BZUN’s stock has declined 16.8% since hitting its high in July.

The company has been shifting from a distribution-based model to a non-distribution model over the last few years. This means that it will no longer be shipping orders for its clients, but instead will let the brands ship their own orders. This move could mean BZUN adds less value to its clients and may reduce the effectiveness of the company’s offerings.

For the third quarter, the company’s total operating expenses increased 20.5% compared to the same period last year. The company’s fulfillment expenses rose 25.9% during the same period.

BZUN’s POWR Ratings are consistent with this bleak outlook. It has an overall rating of “Neutral” with a “D” for Trade Grade. It is ranked #33 of 115 stocks in the China industry. BZUN shares were trading at $36.20 per share on Friday afternoon, down $0.24 (-0.66%). Year-to-date, BZUN has gained 9.30%, versus a 16.03% rise in the benchmark S&P 500 index during the same period.

Blue Apron Holdings, Inc. (APRN)

APRN delivers fresh ingredients along with recipes to make meals at home. The company offers cookbooks, cookware, wine, prep tools, and more. APRN’s stock has fallen 58% since hitting its high in mid-March.

APRN has been unable to meet demand this year, which is driving the company to offer fewer menu options. The company’s operations have also faced reduced availability of items, and has been unable to meet orders it accepted from customers on occasion. The company also closed a fulfillment center earlier this year, which created a logistics and storage problem.

For the third quarter, the company saw a decline in its number of customers by 7% versus the same period last year. The company also saw a net loss of $15 million during the same period. APRN’s EPS is expected to decline at a rate of 28% per annum over the next five years.

APRN’s poor prospects are also apparent in its POWR Ratings, which assigned it a “Sell” rating. It has an “F” for Trade Grade and Buy & Hold Grade. It is ranked #46 of 61 stocks in the Internet industry.

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