Other BriefingsTurikye’s Ecommerce Sector Grew 100% In 2022
Significant opportunities in EU’s gateway to the Middle East
Türkiye’s buoyant e-commerce sector registered a growth of more than 100% in 2022, hitting a volume of a staggering TL 800 billion (around US$29.8 billion), according to an industry report prepared by iyzico, ETİD and Dogma Alares. It showed e-commerce transactions soared to nearly 4.8 billion sales in volume, which is more than twice the figure recorded in 2020, overshadowed by the COVID-19 pandemic that confined people to their homes and prompted a boom in online shopping.
Average basket values also jumped significantly, with an increase of TL 13 from 2020 to 2021 and a substantial leap of TL 79 from 2021 to 2022, the Türkiye E-Commerce Ecosystem Report said.
This surge in the e-commerce market indicates a profound shift in consumer behavior, driven by the pandemic’s impact and the growing preference for online shopping. As businesses and consumers embrace digital solutions, the e-commerce sector is poised for continued growth and innovation in the coming years.
Looking ahead, the report predicts further diversification in payment methods within the e-commerce landscape.
In addition to the traditional options like credit cards, debit cards and cash on delivery, alternative payment methods such as prepaid cards, Account-to-Account (A2A) transfers, digital wallets, shopping credits, cryptocurrency-based payments, and buy now, pay later, or BNPL, services are expected to gain traction and contribute to the sector’s expansion.
18th Largest ECommerce Market
Currently hosting the 18th largest e-commerce market globally, Türkiye continues to show an impressive upward trend both domestically and internationally.
The report indicates that although the growth momentum in e-commerce during the pandemic period has partially slowed down, it has managed to maintain its strength in Türkiye and worldwide. Notably, the pandemic has brought about a lasting change in consumer shopping habits, as highlighted in the report.
In 2022, e-commerce secured a market share worth US$5.7 trillion on a global scale, representing 5.7% of the world’s total gross domestic product (GDP) valued at US$100.2 trillion. E-commerce accounted for 22% of global retail sales.
With regard to Türkiye’s figures, the report reveals that the e-commerce sector’s size reached an economic volume of approximately TL 801 billion in 2022, corresponding to nearly 6% of the country’s US$900 billion economy.
Looking at the past five years, e-commerce’s share of the GDP has steadily increased, reaching 2.8%. This rise mainly resulted from a 1.6% growth recorded since 2019, primarily driven by the pandemic’s impact on the sector’s expansion.
While e-commerce activities in Türkiye hold a larger weight of 16.5% in the total retail market dynamics compared to similar countries, the report emphasizes that the sector still holds significant growth potential.
Back-to-School Impact
Back-to-school and special campaign periods like Black Friday and Cyber Monday contribute to the highest level of shopping between autumn and New Year’s. The back-to-school season stands out with daily transaction numbers exceeding the average by 1.3 times, closely followed by the Black Friday week.
The report also showed a 2.2% increase in the number of users utilizing e-commerce platforms compared to the previous year. As of 2022, female and male users represented 58% and 42% of the total, respectively, with a 10% increase in the female users’ share compared to 2021.
Growth Slows, Digitalization Gains Pace
Orkun Saitoğlu, the CEO of iyzico, highlighted that Türkiye’s e-commerce volume continues to show an upward trend. While the global e-commerce sector experienced a slowdown with the end of the pandemic, Saitoğlu pointed out that the acceleration of digitalization and the improvement of consumer experiences have led to a permanent shift in online shopping behavior.
He emphasized that Türkiye remains a significant player in both e-commerce and the world trade scene.
“Following a remarkable 69% increase from 2020 to 2021, Türkiye’s e-commerce sector achieved a staggering 110% growth from 2021 to 2022, reaching a sales volume of TL 801 billion. Iyzico’s secure payment infrastructure contributes to a democratic ecosystem around online shopping, and our ‘iyzico Secure Shopping’ solution has enabled us to offer secure payment options to users, becoming a symbol of trust for lesser-known brands,” Saitoğlu noted.
Turkiye has been reaching out into the Middle East and can act as a gateway to the region from the EU. The country has CEPA trade agreements with the UAE for example, while businesses in Turkiye are incentivised to export.
Dezan Shira & Associates have a partner firm in Istanbul and can assist foreign investors into the Turkish market. For information please email turkey@dezshira.com
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