Turkey has a great potential in e-commerce

With the development of technology, e-commerce, which has shown growth in recent years, has doubled the global market in Turkey by growing 23.7% in 5 years. Associate Professor Dr. Serpil Kahraman from Yaşar University Economics Department stated that e-commerce has started to become the driving force of the country’s trade volume and economy, yet she mentioned that Turkey is behind its current potential in e-commerce. Technology advancement, the impact of the pandemic, and changing consumer preferences have led to a significant growth momentum in e-commerce in recent years, with Turkey growing by 23.7% in dollar terms over 5 years. Globally, this rate was 11.7%. Although Turkey’s e-commerce growth exceeds the global average, Associate Professor Dr. Serpil Kahraman from Yaşar University Economics Department still indicated that Turkey is behind its current potential in e-commerce.
Prof. Dr. Kahraman emphasized that the e-commerce volume has doubled in the last 4 years and the e-commerce volume’s share of Gross Domestic Product (GDP) reached 6.8% with an increase of approximately one-third compared to the previous year in 2023. She stated, ‘As you know, the Ministry of Trade of the Republic of Turkey published the e-commerce outlook report on May 27, 2024. According to the report, our country’s e-commerce volume reached 1.85 trillion TL in 2023, increasing by approximately 116% compared to the previous year. While the e-commerce volume has doubled in the last four years, the share of e-commerce volume in Gross Domestic Product (GDP) reached 6.8% in 2023, with an increase of approximately one-third compared to the previous year.’
White goods sector leads the e-commerce field. Prof. Dr. Kahraman highlighted that some sectors stand out in e-commerce and provided the following information: ‘The sectors with the largest share in e-commerce volume are white goods, small home appliances, clothing, footwear and accessories, and the food and beverage sector. The transaction volume is expected to reach 3.4 trillion TL in 2024. It is estimated that approximately 65% of e-commerce payments will be made with credit cards. It is worth noting that Turkey is one of the countries with the highest number of credit card ownership, with a total of 117.7 million credit cards recorded in 2023 according to the Banks Card Center (BKM) report. While the number of businesses engaged in e-commerce in the country is approximately 559,412, it is observed that the business owners are mostly in the 25-44 age range.’
‘Individuals aged 25-36 use e-commerce in Turkey.’ Continuing her words, Prof. Dr. Kahraman stated: ‘The countries with the highest e-commerce activity in the world are the USA, China, and the United Kingdom. Evaluating these numbers not only based on transaction volume but also on transaction quantity and trade share would be more accurate. Internet usage rates and the age distribution of the population are crucial factors in comparing e-commerce volumes. In this regard, especially in Scandinavian countries, the rate of participation in e-commerce activities based on age and the number of internet users is quite high as you would expect. Turkey ranks 17th in internet usage worldwide. Considering that the population mainly consists of individuals aged 16-64 who use the internet, which in a way represents the segment that engages in e-commerce, we should consider approximately 54 million people. Moreover, the age group that makes the highest e-commerce expenditures in our country is 25-36.’
‘It reduces the informal economy.’ Prof. Dr. Serpil Kahraman stated that the majority of e-commerce companies worldwide end in failure, and listed the measures that can be taken to increase e-commerce volume as follows: ‘Issues or weaknesses such as customer satisfaction/customer support processes, evolving consumer habits, and Search Engine Optimization (SEO) are determining factors. In this context, adequate infrastructure, efficient resource management, in essence, effective execution of e-commerce processes – where customer support is also included – are among the necessary factors to increase e-commerce volume. On the other hand, the concentration of the young population, being accessible 24/7, competitive price and cost advantages, customer-oriented marketing, and advancements in payment systems are known to be the most important advantages of e-commerce. Despite considering all these factors, it can still be said that e-commerce in our country is behind its current potential. Finally, it should be noted that e-commerce is also an important trade method in reducing the informal economy.’