2 ASX shares leveraged to the eCommerce shift

The shift to eCommerce was given a shove by the onset of coronavirus. We take a look at 2 ASX shares leveraged to this trend.

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The shift to eCommerce was given a shove by the onset of coronavirus. Consumers are increasingly moving their shopping activities online, including for necessities such as groceries. According to Ibis World, online shopping grew by 15.5% per year in the five years to 2020. It was forecast to continue growing strongly, but the pandemic has fueled that growth, pushing even more customers online. We take a look at 2 ASX shares leveraged to this trend. 

Kogan.com Ltd (ASX: KGN)

The Kogan share price has more than quadrupled from its March low with the online retailer reporting record sales. Kogan benefitted from a spike in sales during the first lockdown while many bricks and mortar stores were forced to close. Gross sales increased 103% year on year in April and May. This drove a 130% increase in gross profit across the period. 

Kogan added 126,00 active customers in May, growing active customer numbers to 2,074,000 at the end of the month. Sales then almost doubled in June, rising 95% to more than $94 million. Kogan's online success has pushed the company's share price well up with its current price-to-earnings (P/E) ratio sitting at 89.95. 

Nonetheless, Kogan stands to benefit from the long-term shift to eCommerce which has been accelerated by current events. As founder Ruslan Kogan told the Australian Financial Review, "our business is booming as more customers than ever choose Kogan.com".

Temple & Webster Group Ltd (ASX: TPW)

Online home furnishings retailer Temple & Webster has seen both sales and its share price rise as consumers eschew physical shopping. The Temple & Webster share price has climbed nearly 400% from its March lows. The company traded strongly in the second half with revenue growing by 90% compared to the prior corresponding period. 

In the financial year to 31 May, Temple & Webster reported year to date revenue of $151.7 million which was up 68% on the prior corresponding period. Active customer numbers increased by the same percentage to 440,257. The company is well placed to take advantage of the structural shift to online in the furniture and homewares market. 

CEO and co-founder Mark Coulter said, "we remain bullish about the longer-term shift from offline to online driven by changing consumer preferences and demographics. Customers are experiencing the benefits of our channel, including range, convenience, and value". 

Kate O'Brien has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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