By Helen Reid
LONDON (Reuters) - 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 $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 euros ($1.05 trillion) this year, up from 887 billion euros 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.