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.
Why are these ecommerce shares sinking?
Todayâs 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 todayâs declines, the Kogan share price is now down almost 70% in 2022 and the Temple & Webster share price is down 72% year to date.
The post Why are these 2 ASX ecommerce shares are hitting two-year lows? appeared first on The Motley Fool Australia.
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More reading
- These are the 10 most shorted ASX shares
- Why I think the Temple & Webster share price is on sale right now
- Why did the Kogan share price go backwards in FY22?
- Why did the Kogan share price sink 22% in June?
- Best ASX shares to buy in July 2022
Motley Fool contributor James Mickleboro 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 Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended 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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