The closure of physical stores during the worst of the COVID-19 pandemic accelerated e-commerce sales, very quickly making it the backbone of the retail sector. Multi-channel inventory management, tracking of shipments, contactless delivery services, and personalized shopping experiences in accordance with changing consumer tastes have allowed e-commerce companies to generate huge profits since the onset of the pandemic. The global e-commerce market is expected to grow at a 29% CAGR to $10.87 trillion by 2025.
However, record-high inflation and growing labor and supply chain constraints are forcing e-commerce companies to hike product prices to offset rising input costs. This, combined with volatility in the markets, could lead to a price retreat by overvalued e-commerce stocks in the near term.
