Online shopping returns to growth in Europe amid fierce competition

Recovering consumer confidence has boosted online shopping in Europe this year, industry group Ecommerce Europe said on Wednesday, while low-cost marketplaces like PDD Holdings'?Temu have heightened competition.

Inflation has hurt shoppers' spending power around the world and helped fuel rapid growth in online platforms selling cheap products.

In the United States, low income households - with annual income of US$50,000 or less - have increased their online spending more than other groups, according to Bank of America research, a trend that points to greater price competition online in the critical holiday quarter.

eCommerce turnover in Europe is expected to hit €958 billion (US$1.05 trillion) this year, up from €887 billion in 2023, an 8% increase, or 5% in inflation-adjusted terms, according to the Ecommerce Europe report, which covers 38 countries in the region including Britain.

That would make this the first year since 2021 that eCommerce turnover is up after accounting for higher prices, which drove consumers to buy less and trade down to cheaper items.

Amazon targets faster deliveries and buying with new tech

Amazon, in its quest for greater efficiency, has developed new systems to shave seconds off each package delivery and to help customers make faster buying choices, even for new product types that they may know little about.

The company announced Wednesday it has created spotlights within its trucks to guide delivery people to packages for each stop along a route.

The technology, which Amazon is calling Vision Assisted Package Retrieval, works by shining a green light on packages so that the deliverer does not have to waste precious seconds reading labels.

“When we speed up deliveries, customers shop more,” said Doug Herrington, CEO of Amazon worldwide stores in remarks at the event. “Once a customer experiences fast delivery, they will come back sooner and shop more.”

Amazon said it would equip 1,000 active delivery trucks, supplied by EV maker Rivian, with the spotlight tech early next year. Herrington said the delivery van ceilings are equipped with cameras and LED projectors that instantly read package labels so it knows which are bound for which customers.

Yves Rocher launches its own marketplace

Yves Rocher, the French botanical beauty specialist, has launched a new marketplace to broaden its digital reach. Since September 23, the brand’s eCommerce platform now features offerings from a dozen “committed” beauty brands. These partners focus on complementary segments such as children’s care, pregnancy products, men’s grooming, and dietary supplements. Among the first brands to join are Ouate, a hygiene brand for children and babies, Miyé, which specialises in hormonal balance and well-being, and Monsieur Barbier, a men's grooming label.

“In 2023, I announced an ambitious transformation plan for Yves Rocher, with digital as one of its key pillars. The launch of the marketplace, which aligns perfectly with our sustainable brand commitments, is a crucial step in our acceleration in this segment. It provides like-minded brands the opportunity to join our movement and benefit from our commercial strength,” stated Guillaume Darrousez, CEO of Yves Rocher.

The marketplace is expected to host around 50 brands within the coming months and will also be available on Yves Rocher’s mobile app. The long-term goal is to expand this model to other European markets, further enhancing the brand’s digital footprint.

To attract partner brands, Yves Rocher is leveraging its extensive network, including 660 stores in France, 8 million customers, and a website that receives 50 million visits and processes 1.5 million orders annually.