Even though it was the COVID-19 pandemic that caused a surge in demand for e-commerce companies, the online shopping and commerce trend is expected to be sustained in the near-term even as COVID-19 abates given its several advantages. Thus, both Shopify (NYSE:SHOP) and eBay (EBAY) are expected to continue benefiting from the industry tailwinds given their dominant market positions. But which of these two stocks is a better buy now? Let’s find out. Shopify Inc . (SHOP) and eBay Inc. (NASDAQ:EBAY) are two established players in the e-commerce space. SHOP provides a cloud-based, multichannel commerce platform designed for small- and medium-sized businesses. EBAY operates marketplace platforms that connect buyers and sellers worldwide. Its multi-screen approach offers downloadable applications for the iPhone operating system and android mobile devices that allow access to some of its websites and vertical shopping experiences.
The e-commerce industry took off last year as people’s dependency on e-commerce services increased with their need to spend most of their time at home. While economies are reopening this year with solid progress on the vaccination front, the online commerce trend is expected to continue in the foreseeable future due to its convenience and the increasing adoption of the internet and smartphones. According to Globe Newswire, the global e-commerce market is expected to grow at a 22.9% CAGR between 2020 - 2027. Consequently, both SHOP and EBAY should benefit.
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