There are some e-commerce ASX shares that are increasing in size really quickly.
The e-commerce sector has really taken off after the onset of the COVID-19 pandemic as consumer behaviours changed.
Some businesses are taking advantage of the tailwinds and are reporting high levels of revenue growth as they increase their capabilities and plan for growing operating leverage.
Cettire Ltd (ASX: CTT)
Cettire is a luxury online retailer which sells many tens of thousands of products from lots of different luxury brands.
The convenience of its offering and free returns is resonating with customers. FY21 was a huge year for the business, with sales revenue increasing by 304% year on year to $92.4 million and active customers jumping 285% to 114,800.
It’s a global business. More than 90% of its revenue was international in FY21. It achieved a product margin of 37% on an average order value of $723.
That fast growth continued for the e-commerce ASX share in the first four months of FY22 for the period to 31 October 2021. Sales revenue (which is after returns) jumped 172% to $57.8 million. Active customers jumped 220% year on year to 158,260.
Cettire founder and CEO Dean Mintz said:
The focused investment to further enhance Cettire’s solid foundations is delivering results. Having invested in customer acquisition and executed strongly, October monthly traffic increased 379% year on year. In addition, we are seeing very positive early signs from the migration to our proprietary storefront, with sales growth in “migrated” markets outpacing the company.
Airtasker Ltd (ASX: ART)
Airtasker describes itself as Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work. It wants to enable people to reach the full value of their skills, whilst providing truly flexible opportunities to work and earn income.
Despite all the impacts of lockdowns and difficulties, the company managed to achieve year on year revenue growth of 38% in FY21, which came with a gross profit margin of 93%. The FY22 first quarter – particularly impacted by lockdowns in Australia – still saw gross marketplace volume (GMV) growth of 6.2% year on year.
The e-commerce ASX share is still in the early stages of its international expansion, with first quarter international GMV up over 100% driven by “strong growth” in the UK. In the US it’s launching in the city markets of Dallas, Kansas City and Miami.
Not only are lockdowns seemingly over, but Airtasker said at its AGM that it is also seeing a strong positive movement in its average task value. Initially, Airtasker partially put this down to a labour shortage, but it’s also seeing more Aussies turning to the service for higher value tasks that are increasingly complex.
The company is focused on ensuring a positive first time customer experience, which is an important factor for growth according to management. It’s focused on improving this for growing engagement and revenue. Airtasker is also launching new products to drive further growth.
It’s currently rated as a buy by Morgans with a price target of $1.27.
The post 2 rapidly growing ASX e-commerce shares appeared first on The Motley Fool Australia.
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More reading
- What’s with the Cettire (ASX:CTT) share price today, up 9%?
- 2 top ASX shares for December
- Morgans names 2 exciting ASX small cap shares to buy
- 2 high-growth ASX shares profiting from the e-commerce boom
- 2 ASX growth shares to buy this month: analysts
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cettire Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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