E-Commerce in Türkiye (2000–2022)

As of 2021, Türkiye achieved a turnover of $16.3 billion USA, surpassing Sweden and ranking as the 18th largest market in the e-Trade sector, behind place. Türkiye contributed to the global e-commerce growth rate of 15 percent in 2021 with a 38 percent increase in its own e-commerce market. Global e-commerce sales are expected to continue rising in the coming years, and Türkiye aims to secure a share of this expanding market. In this pursuit, particular attention is being paid to policies targeting East and Southeast Asia, especially due to their growing middle classes and lagging offline infrastructure. Between 2021 and 2025, Türkiye is projected to grow at an annual rate of 15 percent, outperforming the global average of 6 percent.^【1】

Use of E-Commerce Platforms and Population

Internet penetration in Türkiye stands at 77.7 percent. According to the 2022 Europe E-Commerce Report, 37 percent of the Turkish population made at least one online purchase in the past three months. Moreover, 98 percent of online purchases were made from domestic sellers. A large proportion of e-commerce transactions are conducted by young individuals aged 15 to 29 age, presenting specific opportunities for Türkiye. For instance, Türkiye’s population is among the youngest in Europe, with individuals aged 15 to 24 accounting for more than 15 percent of the total population according to the Turkish Statistical Institute.^【2】 This high youth ratio signals that future e-commerce platforms in Türkiye will have a substantial market base.

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Internet Access and E-Commerce Potential

One of the essential conditions for the widespread adoption of e-commerce is reliable and high-quality fast infrastructure. In this regard, countries’ fiber-optic networks are becoming increasingly prominent, and e-commerce capacity is directly proportional to the extent of fiber deployment. In Türkiye, the total fiber length across alternative providers reached 100,332 kilometers by the end of the second quarter of 2022. Turkish Telekom alone has a fiber network extending 345,056 kilometers.^【4】 Plans are underway to expand this network length in the coming years to enhance e-commerce activities.

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Rise of E-Commerce in Türkiye

Data from the Tusiad report shows that the size of Türkiye’s e-commerce market has been growing over the past decade. The average annual growth rate has been 43 percent.^【6】 In 2021 specifically, e-commerce accounted for 17.7 percent of total trade. By the end of 2021, this share reached as high as 20 percent, indicating the significant impact of year-end global sales promotions.

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Advantages and Limitations of E-Commerce

Strengths

• Increasing interest in e-commerce over time,

• Ability to compare prices,

• Easy and efficient communication with customers,

• Low transaction costs,

• Expanding network of e-commerce companies,

• Rapid growth in market share,

• Presence of major brands in the e-commerce environment,

• Establishment of the E-Commerce Sector Council,

• Potential to access global markets,

• 24/7 availability to customers.

Weaknesses

• Failure to ensure reliability of payment and order systems,

• Inability to assess product quality and physical condition at the time of purchase,

• Presence of shipping costs with every order,

• Limited product variety,

• Recognition challenges during initial stages,

• Poor user-friendliness of websites,

• Slow internet speed and infrastructure infrastructure deficiencies,

• Low customer satisfaction. (Low or absent interaction between sellers and customers leads to dissatisfaction.)

Opportunities

• Effective access to the youth population,

• Increasing internet penetration,

• Development of a legal infrastructure,

• Growth in the number of mobile telephone and device users,

• Advancements in payment systems,

• Ability to provide personalized recommendations based on cookies,

• Rapid determination of competitive prices based on demand.

Threats

• E-commerce creating a fully competitive environment with rivals,

• Buyers constantly seeking product variety and innovation,

• Privacy concerns among customers and sellers,

• Absence of traditional bargaining practices in this system,

• Customers distancing themselves from e-commerce due to fraud,

• Weakness in advisory and support systems,

• Taxation as a problem barrier,

• Rising costs of Technology, that is, information systems.