Stock Prices of the Top 10 eCommerce Companies Dropped by 18% Since March

You don't have to be an investor to have heard that the stock market is currently on a downward trend. The reason for the collective uncertainty in the stock market is the intensifying discussion about tariffs that would hamper global trade – and eCommerce is particularly affected.

The S&P 500 and DAX 30 fell by 12%, and the MSCI World by 11%. In contrast, the  stock prices of the top 10 eCommerce companies dropped by 18%.

Stock Price Declines and World Developments Relate

Ups and downs in the stock market are common and part of the game – the concept is to buy when prices go down and sell when prices go up. Global political and economic developments are intimately connected to this process, as they influence how investors and stockbrokers evaluate the current and expected performance of the companies that make up the market.

Unless you have been living under a rock, you are undoubtedly reading and hearing about tariffs everywhere you turn. An increase in import tariffs by the U.S. wouldn't remain just that, but affected trading partners (such as China) would announce their own tariff increases, which would hamper international trade.

One of the reasons for the current decline includes the relation between expectations and stock value. But there are always multiple factors at play – some analysts suspect that former values were too high and are currently being adjusted.

eCommerce Company Stocks Are Declining More

The top 10 eCommerce companies (Amazon, Alibaba, PDD, Meituan, Shopify, MercadoLibre, Sea, JD, Coupang, eBay) have lost 18% of their stock value (as of 7th April 2025 at 2 PM). This is from an index measured by the stock prices of these companies on 28th of March in 2025.

The S&P 500 and DAX 30 lost 12% and the MSCI World 11%. Over the previous 10 days, the indexed share price of the top 10 eCommerce companies fluctuated slightly in the first 5 days and then fell an extraordinary 18% to 82% of its previous value on April 7. The other indices, the S&P 500, DAX 30 and MSCI World, followed a similar trajectory, fluctuating at first and then rising slightly on April 2.

Although they fell along with the top 10 eCommerce companies, their decline was less extreme. The S&P 500 and DAX 30 are at 88% of their previous prices, and the MSCI World is slightly higher at 89%. At 82% of its price ten days ago, what are the reasons for eCommerce's vulnerability?

Cross-Border Reliance Is One of the Major Factors

One of the major explanations for eCommerce vulnerability to the stock price declines is that the top 10 companies are heavily reliant on cross-border trade.

Amazon, for instance, generates a substantial portion of its revenue from international markets. If tariffs are raised, the cost of goods sold across borders rises — and either companies absorb the cost (hurting margins) or pass it on to customers (reducing demand). Neither outcome is favorable for growth projections, which investors closely watch.

Chinese firms like Alibaba, PDD, and JD.com are targeted by the initial tariffs. The U.S. is a key export market, and retaliatory tariffs could shrink their customer base while complicating logistics. The impact isn’t limited to one region: a shift in global trade relations often triggers effects on supplier networks, shipping costs, and overall market confidence.

Ironically, the United States, which started the tariff discussion in the first place, would be far more affected by the consequences than China, which has a strong domestic market and an insulated ecosystem. The U.S., as a major exporting nation, would see a large portion of its regular trade volume diminish as trade routes simply seek other directions outside of the familiar ones.