Whenever we talk about e-commerce, the first name that comes to mind is Amazon (NASDAQ:AMZN). It is natural to think of the largest e-commerce company and one that delivers everything in the shortest span. While Amazon is one of the best e-commerce businesses out there, its valuation is soaring and the company is building a diversified business where it generates revenue from areas other than e-commerce. I’ve identified three e-commerce stocks that could perform better than Amazon and generate significant returns in the long term. 

Now is the time to cash in on the e-commerce hype and look for stocks that can become the next Amazon. These companies have set themselves apart in the industry by offering something that Amazon doesn’t and they have carved a niche for themselves. The future of e-commerce is bright and here are three stocks that can help you make the most of it. 

E-commerce Stocks to Buy: Shopify (SHOP)

The e-commerce giant Shopify (NYSE:SHOP) is one of the best stocks you can bet on. Since its IPO in 2015, the stock has soared more than 1000% and has shown tremendous strength amidst market volatility. 

The company offers a platform for merchants to sell their products while it allows consumers to make quick and convenient purchases. It also allows developers to build more features and retain 100% of their revenue up to a maximum of $1 million. 

These reasons have made Shopify a top choice for customers, merchants, and developers. The self-service tools make it convenient for all three parties to use the platform and there is significant demand for its services. As merchants shift away from the large marketplace of Amazon, Shopify will be the next best choice. 

The world is moving towards e-commerce and Shopify has ample opportunities to expand. It reported an impressive first quarter and beat expectations. Its revenue came in at $1.86 billion and the EPS stood at $0.20. 

The gross payments volume jumped 60% year-over-year to $36.2 billion while the gross merchandise volume increased 23% YOY to $60.9 billion. The growth in merchandise value shows that the company is moving in the right direction.  Shopify is set to report results this week and it could beat expectations.

Walmart (WMT)

Despite the tough economic environment, Walmart (NYSE:WMT) is standing tall. A legacy business, Walmart is known for its chain of supermarkets across the United States. The company has established itself in such a manner that it becomes convenient for consumers to walk into a Walmart nearby. 

With fulfillment centers spread across the country, Walmart continues to attract customers through low-priced products. However, keeping the changing trends and preferences in mind, the company has invested in the e-commerce business which has become a growth driver today.

In the first quarter, online sales soared 21% YOY and the total revenue reached $161 billion. Despite competition, there is room for Walmart to expand and it is leaving no stone unturned to win the e-commerce segment.

It has also introduced advertisements on the platform which allow third-party sellers to advertise their products. The ad segment revenue grew 24% in the quarter. What I like about Walmart is that the company is not only growing revenue but also seeing higher profits. 

Up 27% YTD, Walmart stock is trading for $67 and is on a rally. Walmart is also a dividend-paying stock with a yield of 1.23%. I believe Walmart can keep innovating and moving ahead even in testing times. While low consumer spending can hurt the business, the long-term picture looks attractive. Buying Walmart below $100 is a smart move and this investment could pay off in the next few years. 

MercadoLibre (MELI)

A leader in the e-commerce space, MercadoLibre (NYSE:MELI) holds a strong position in Latin America. The company enjoys an edge in the industry due to the lack of competition and manages to address a large market. It controls more than one-fifth of the total e-commerce sales in Latin America and this has helped it report impressive financials, leading the stock to soar higher. It is the finest combination of an e-commerce and fintech business. 

Up 16% YTD, the stock is exchanging hands for $1,776 as of writing and is up over 150% in the past five years. In the second quarter, the company reported a 20% YOY jump in gross merchandise volume.

Besides e-commerce, the company sells debit cards, prepaid cards, digital payment solutions, and point-of-sale devices in addition to investment and savings products through its fintech segment Mercado Pago. 

Monthly active users on the fintech platform jumped 20%, and revenue soared 42% to $5.1 billion. After that, net income soared 103% YOY. With a presence across multiple countries, MercadoLibre is set to benefit as we transition towards digitization.

It generates impressive cash flow and the complete spectrum of online and offline fintech services has made it an industry leader. MercadoLibre is the Amazon of Latin America and it is here to stay. Considering its current footprint, the company can enjoy a wider market despite growing competition. 

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.