It has been yet another dark day for the Kogan.com Ltd (ASX: KGN) share price and the Temple & Webster Group Ltd (ASX: TPW) share price on Tuesday.
In afternoon trade, both ecommerce companies have seen their shares make double-digit declines and tumble to two-year lows.
The Kogan share price is currently down 10% to $2.68, whereas the Temple & Webster share price is down 15% to $3.01.
Image source: Getty Images
Why are these ecommerce shares sinking?
Today's declines are a little bit of a mystery but there are a couple of potential catalysts.
One is that these declines coincide with the launch of Prime Day by ecommerce behemoth Amazon.
This mega sales event could be reminding investors just how much of a force Amazon is and how it could win significant market share from these smaller rivals. Particularly given its superior delivery capabilities and the expansion of its offering since launch to now cover everything from books, clothing, whitegoods, and even furniture.
Anything else?
In addition, the weakness in the Kogan and Temple & Webster share prices mirrors what happened with their ecommerce peers on Wall Street and the LSE overnight.
For example, the likes of ASOS, Boohoo, Mercado Libre, Peloton, Shopify, and Wayfair all recorded significant declines on Monday night. It appears as though investors are feeling bearish about the prospects of online retailing in the current environment.
Following today's declines, the Kogan share price is now down almost 70% in 2022 and the Temple & Webster share price is down 72% year to date.
