Turkiye’s E-Commerce Volume Surges 115%, Hits ₺1.85 Trillion

Turkiye’s e-commerce sector experienced a remarkable growth of 115.15% last year, reaching a volume of ₺1.85 trillion. The number of businesses engaged in e-commerce rose to 559,412. Consumers aged 29 spent the most, with mobile applications being the preferred shopping method.

The Ministry of Commerce’s “E-Commerce Outlook Report in Turkiye” highlighted significant developments in the e-commerce sector. The report examined e-commerce’s role in the gross domestic product (GDP), general trade, and retail trade.

E-commerce and Economic Impact

According to the report, Turkiye’s e-commerce volume surged by 115.15% compared to the previous year, hitting ₺1.85 trillion. This significant increase was accompanied by a 22.25% rise in the number of transactions, which totaled 5.87 billion units. Looking ahead, the report predicts that the e-commerce volume will reach ₺3.4 trillion, with the number of transactions projected to hit 6.67 billion this year.

The ratio of e-commerce volume to general trade volume saw a notable increase, jumping from 10.1% in 2019 to 20.3% last year. Additionally, the share of e-commerce volume in GDP rose to 6.8%. These figures underscore the growing importance of e-commerce in Turkiye’s economy and its expanding role in the national market.

The biggest share was taken by “white goods and small household appliances”

In terms of sectoral distribution, the white goods and small household appliances sector claimed the largest share of the e-commerce volume, amounting to ₺233 billion. This sector was followed by electronics, which recorded ₺135 billion, and the clothing, shoes, and accessories sector, which reached ₺127 billion. Overall, goods accounted for 51% of the e-commerce volume, while services made up the remaining 49%. The distribution of card transactions mirrored this pattern, with 63% attributed to goods and 37% to services.

76 percent of e-commerce businesses are sole proprietorships

The Ministry’s report also provided insights into the composition of e-commerce businesses in Turkiye. The number of businesses engaged in e-commerce reached 559,412 as of last year, with nearly 540,000 operating through marketplaces. Additionally, over 35,000 businesses were registered in the Electronic Commerce Information System (ETBİS), conducting e-commerce activities via their own websites or mobile applications.

A significant majority (76%) of e-commerce businesses in Turkiye are sole proprietorships, while limited liability companies constitute 21%, and joint stock companies make up 3%. This distribution reflects the entrepreneurial nature of the sector and the dominance of small and individual enterprises.

Provincial Adaptation to E-Commerce

The Ministry developed an index to measure the adaptation of provinces to e-commerce in Turkiye. The provinces with the highest compliance were Istanbul, Kayseri, Çorum, Izmir, and Kocaeli. These regions have shown significant progress in integrating e-commerce into their local economies, driven by infrastructure improvements and a growing number of businesses embracing digital trade.

Urban Centers Leading E-Commerce Growth

The cities with the most e-commerce businesses were listed as Istanbul, Ankara, Izmir, Bursa, and Antalya. Istanbul, as Turkiye’s largest city and economic hub, unsurprisingly leads the way in e-commerce adoption and activity. The capital city, Ankara, along with Izmir, Bursa, and Antalya, are also key centers of e-commerce growth, benefiting from large consumer bases and robust commercial environments.

Consumer Trends and Mobile Shopping

The report highlighted consumer trends, noting that 29-year-old consumers were the most active in e-commerce. Mobile applications emerged as the dominant platform for online shopping, reflecting the increasing use of smartphones and mobile internet in Turkiye. This trend is expected to continue as mobile technology advances and more consumers turn to their devices for shopping convenience.

Future Projections and Continued Growth

Turkiye’s e-commerce sector is poised for continued growth, with significant increases in both volume and transaction numbers expected in the coming year. The Ministry of Commerce’s projections suggest that the e-commerce volume will more than double to ₺3.4 trillion, while the number of transactions will reach 6.67 billion. This optimistic outlook underscores the dynamic and rapidly evolving nature of Turkiye’s e-commerce market.

In conclusion, the “E-Commerce Outlook Report in Turkiye” paints a picture of a vibrant and expanding e-commerce sector that is playing an increasingly vital role in the country’s economy. With strong growth across various sectors and a significant rise in the number of businesses and transactions, Turkiye is well-positioned to continue its e-commerce success story in the years ahead.

Last Year’s Highest E-Commerce Transaction Volume Recorded in November

The busiest period for e-commerce transactions last year was in November, driven by numerous promotional campaigns. During this month, the e-commerce volume was 50% above the annual monthly averages. Notably, 24 November, Teachers’ Day, emerged as one of the days with the highest transaction volumes.

Demographics of E-Commerce Business Owners

The report revealed that 70.5% of tradesman business owners in the e-commerce sector were male, while 29.5% were female entrepreneurs. The majority of e-commerce business owners fell within the 25-44 age range. Additionally, 29-year-old consumers were the most active spenders, with most shopping conducted via mobile applications.

Istanbul Leads in Cargo Transactions

Istanbul dominated the cargo transactions, both in sending and receiving. The city accounted for 55.27% of all sent cargo, followed by Kocaeli, Ankara, Izmir, Bursa, and Kayseri. Within Istanbul, the district of Bağcılar recorded the highest cargo dispatches. When it came to receiving cargo, Istanbul again led with 29.74%, followed by Ankara, Izmir, Bursa, Antalya, and Kocaeli, with Çankaya district receiving the most shipments.

Reasons for Undelivered Cargo

The primary reason for undelivered cargo was customer refusal, accounting for 34.13% of cases. The second most common reason was the inability to find the address, which represented 26.43% of undelivered shipments. Damaged cargo was the least common reason, constituting only 1.2%.

Best-Selling Products in E-Commerce

The best-selling products in the e-commerce sector included shoes, mobile phones, laptops, desktop computers, air fryers, deep fryers, air conditioners, kitchen and dining appliances, washing machines, and refrigerators. In the food and catering sector, popular items were fruits, vegetables, tea, brewed beverages, meat, seafood, eggs, coffee, hamburgers, kebabs, and pizza.

These insights underscore the dynamic growth and changing trends within Turkiye’s e-commerce sector, highlighting key periods of consumer activity, demographic shifts among business owners, and the logistical challenges and successes in cargo handling.

Source: Trthaber / Prepared by Irem Yildiz

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