Better E-Commerce Stock: Shopify vs. Baozun
Shopify (NYSE: SHOP) and Baozun (NASDAQ: BZUN) both make it easier for businesses to set up online stores. Shopify, which is based in Canada, helps more than 1.7 million businesses set up online stores worldwide. It also enables merchants to process payments, fulfill orders, and organize their social media and marketing campaigns with its self-service tools.
Baozun, which is based in China, helps big multinational brands like Nike and Starbucks enter the Chinese market. It isn't a self-service platform like Shopify. Instead, Baozun sets up online stores, logistics services, and marketing campaigns with its own staff, so foreign companies that outsource those tasks to Baozun don't need to worry about hiring their own sales, tech, and support teams in China.
I compared these two e-commerce companies a year ago and declared that Baozun's lower valuation would enable it to outperform Shopify in 2021. That was clearly a bad call: Baozun's stock has declined about 60% over the past 12 months, but Shopify's stock has rallied more than 30%.
Source Fool.com
