Are these 2 growing ASX e-commerce shares buys?

A graphic of a pink rocket taking off above an increasing chart.

A graphic of a pink rocket taking off above an increasing chart.

There are some ASX e-commerce shares that saw booming sales during the COVID years of 2020 and 2021, and they’re still growing in 2022. However, the share prices have fallen significantly.

Expectations of rising interest rates because of high inflation are at the front of many investors minds.

Are the below two businesses opportunities after their heavy declines?

Cettire Ltd (ASX: CTT)

Cettire is a fast-growing ASX e-commerce share that sells luxury personal goods. It has expanded into other areas such as products for children.

Since the start of 2022, the Cettire share price has fallen by around 80%.

However, the company continues to deliver triple-digit growth. Earlier this week, it delivered its update for the third quarter of FY22. It said that sales revenue, which is gross revenue net of allowances and returns from customers, rose by 163% to $48.7 million. The number of active customers increased by 185% to 246,880.

But, while the number of unique website visits increased 269% to 13.3 million, the conversion rate decreased by 26% to 0.75% from 1.01%.

Cettire said that repeat purchasers were responsible for more than 50% of its gross revenue in the quarter. The ASX e-commerce share has now launched mobile apps to grow market penetration, improve the customer experience, and support retention and conversion. Even before the mobile apps, around 80% of website traffic came from mobile devices.

The company said that it is experiencing higher conversion rates and higher average order values for on-app purchases compared to other channels.

Cettire also has plans to grow in China with a partnership with JD.com.

Adore Beauty Group Ltd (ASX:ABY)

The Adore Beauty share price has fallen by almost 60% since the start of 2022.

However, the business keeps growing its revenue and active customer numbers.

In the third quarter of FY22, the company’s revenue rose 9% year on year to $42.7 million and active customers increased 7% to 880,000. That was despite cycling new customer growth of 89% in the prior period.

The number of returning customers rose 47% year on year, driven by “strategic initiatives to improve retention.”

Adore Beauty said that its mobile app accounted for over 10% of revenue. The company said that the loyalty program is scaling strongly with loyalty members contributing over 60% of revenue. It’s still on track to launch a private label in the fourth quarter of FY22.

The ASX e-commerce share said that it operates in a large and growing $11 billion market.

To stay at the front of consumers’ minds, Adore Beauty has launched its fourth podcast called ‘Makeup School’ and it’s continuing to see high levels of engagement across its other three podcasts. The company sees this method of marketing as a cheaper, more efficient way to reach customers.

Adore Beauty’s Beauty IQ podcast has reached 3.6 million downloads, while the YouTube channel has reached 2 million views.

It has also been increasing its brand awareness with Temple & Webster Group Ltd (ASX: TPW) and 7-Eleven.

The post Are these 2 growing ASX e-commerce shares buys? appeared first on The Motley Fool Australia.

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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. has positions in and has recommended Cettire Limited and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited, Cettire Limited, and Temple & Webster Group Ltd. 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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