Reaches Turkey’s e-commerce its Full Potential?

Turkey’s e-commerce market is growing dramatically and is no exception compared to other countries. Thanks to the boost of technology and online shopping during the global pandemic, e-commerce claims a more prominent place. Population growth, increase in the use of the internet, and new technology are significant factors that encourage e-commerce. As of 2020, Turkey’s population has exceeded 84 million people, making the country one of the densest countries in Europe and one of the most populated countries in the Middle East.

Since e-commerce developed in the country from the late 1990s, a tremendous acceleration is currently taking place. The internet user penetration rate has changed from 46.9% to 70.6% between 2015 and 2020. In 2020, internet usage showed a 7% increase. The time spent online ranked 12th among 42 countries.

Turkish e-commerce spendings

Turkey’s highest spending was on electronic devices through stores like Teknosa, which promotes e-commerce even further, according to e-commerce statistics. An increase in electronic devices led the sector to diversify into B2C and C2C oriented platforms. Although the country’s growth rate in e-commerce is the highest among European countries with 30%, it is still not a top-ranked country. However, Turkey is quickly catching up with developed countries. Paypal ceasing operations in the country in 2016 was a small setback for the market. But as Turkish people have a variety of alternative payment options on their hands, such as Mastercard, Visa, BKM Express, ipara, and Paytogo, it is not a showstopper at all.

Another obstacle standing in this growth sector is that companies do not yet pay attention to one-to-one marketing, according to UTIKAD research. The pandemic pushes e-commerce companies to quickly evolve. The market in 2017 was US$ 6.17 billion and will probably reach US$ 54 billion in 2023. Despite the high population and rates of internet penetration, Turkey has not yet reached its potential. But, with the high growth and increasing internet penetration, the country is projected to fulfill its full e-commerce potential in the decades to come.