E-commerce stocks could be in for a major snapback at the back end of the year, driven by likely interest rate cuts. Dipping interest rates and easing inflationary headwinds should rekindle consumer appetite, giving the online retail space a much-needed boost.

During the pandemic, we saw a marked increase in online activity, which had e-commerce stocks soaring to new heights. However, the post-pandemic adjustments had these stocks reversing most of those gains as growth expectations cooled off.

However, with the current market dynamics, we could potentially see a major resurgence in e-commerce stocks. That’s especially true in emerging markets where digital access and consumer spending are rising at a rapid pace. Businesses targeting innovative, localized e-commerce solutions in these markets could help capitalize on this renewed growth phase.

That said, here are three of the best e-commerce stocks that fit the bill perfectly, offering robust long-term upside ahead.

Coupang (CPNG)

Coupang (NYSE:CPNG) is Southeast Asia’s e-commerce powerhouse, dominating the South Korean and Taiwanese markets. Unlike the ones in the West, these markets offer massive growth opportunities due to low e-commerce penetration. Mordor Intelligence projects a healthy 19.49% growth in South Korea’s e-commerce scene through 2029. Taiwan isn’t far behind, with a superb 10% increase from 2022 to 2027.

Financially, Coupang continues to thrive, pulling in net revenues of over $7 billion in the first quarter (Q1) alone. Along with the 22% jump year-over-year (YoY) in sales, the firm’s gross profit and margin shot up by 36% and 27.1%, respectively.

Not surprisingly, UBS analyst Jennifer Han is upbeat about Coupang’s prospects. She expects its current 29% slice of the $124 billion South Korean market to expand to a whopping 43% by 2026. Despite its robust growth prospects, CPNG stock trades at just 1.2 times forward sales, with Wall-Street analysts projecting a 29% upside from current levels.

Sea Limited (SE)

Sea Limited (NYSE:SE), a prominent tech giant in Southeast Asia, continues turning heads with its dynamic growth trajectory.

Its popular e-commerce arm, called Shopee, has been on a superb growth trajectory. Sales from the platform have grown from $0.27 billion in 2018 to an astounding $9 billion in 2023, showcasing its tremendous execution and ability to monetize its user base. The platform’s gross merchandise value (GMV) also witnessed a huge surge, jumping from $10.5 billion in 2018 to $78.5 billion in 2023, including a stellar 6.8% increase over the past year alone.

Shopee also kept up the pace in Q1, marked by record orders, GMV, and revenue growth. Sea The business reported an amazing 23% YOY revenue increase to $3.7 billion despite a net loss of $23 million. Its other segments, including SeaMoney in financial services and its gaming unit Garena, also demonstrated strong growth. Notable, Garena’s flagship game, Free Fire, became the most downloaded mobile game globally in Q1. With such superb results and similar results to follow, I expect SE stock to continue firing for its shareholders.

Jumia Technologies (JMIA)

Jumia Technologies (NYSE:JMIA) is an up-and-coming player in the fast-growing African e-commerce market. JMIA stock has been flying high of late after receiving an encouraging ‘buy’ rating from Benchmark analysts. This surge underscores the interest surrounding the company as a key player in a relatively untapped market.

According to the International Trade Administration, there could be north of half a billion e-commerce users in Africa by next year, reflecting a 17% compound annual growth rate (CAGR). Jumia is the best exponent of this burgeoning market, and its fundamentals reflect that notion.

JMIA reported a superb 19% increase in sales in Q1 and 57% on a currency-neutral basis. This powerful growth trajectory and significant loss reduction from $28 million a year ago to $8 million this quarter indicate Jumia’s progress. With a more conducive business and investing landscape, I expect Jumia to continue moving from strength to strength.

On the date of publication, Muslim Farooque did not have (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.

On the date of publication, the responsible editor held a LONG position in JMIA.