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Here are Bank of America's favorite e-commerce stock picks

Employees work at an Alibaba Group warehouse, Hangzhou, China.
Carlos Barria | Reuters

Bank of America Merrill Lynch's research team shared its top e-commerce stock ideas in a note to clients Tuesday.

"We view global eCommerce as a strong secular growth theme that still has five to ten years to play out," analyst Justin Post wrote in the report.

The analyst gave his five key reasons why e-commerce will continue to gain retail market share:

  1. "Consumer acceptance of eCommerce in more categories (apparel, grocery)."
  2. "Improving convenience for the shopper, including better selection."
  3. "Faster and more reliable delivery."
  4. "Use of big data and improving shopping experiences."
  5. "Offline retailer focus and new business models targeting under-penetrated segments."

As a result, the analyst predicts online global retail sales will rise 20 percent this year to $2.08 trillion. Post also forecasts 18 percent e-commerce sales growth in 2018.

Here are three buy-rated companies recommended by Bank of America Merrill Lynch to ride the e-commerce trend, along with the firm's current price targets.