E-Commerce volume grew by 42 percent in 2018 and reached 59.9 billion TL
According to Informatics Industry Association (TÜBİSAD)'s "Turkey E-Commerce Market Size" annual report, the e-Commerce sector reached the volume of 59.9 billion TL with 42 percent growth in 2018. Between the years of 2014-2018, the sector's average annual growth rate became 33 percent.
"Turkey E-Commerce Market Size in 2018" report that measured the developments in e-commerce market in Turkey according to international standards, was announced at a press conference. According to the report, e-Commerce industry in Turkey continued to grow without slowing down and reached the volume of 59.9 billion TL with 42 percent growth in 2018.
Informatics Industry Association (TÜBİSAD)'s Chairperson Kübra Erman Karaca made the opening speech of the meeting and the presentation was carried out by TÜBİSAD e-Commerce Commission President Burak Ertaş. Deloitte Turkey Director Alper Günaydın participated as a speaker at the meeting.
Informatics Industry Association (TÜBİSAD)'s Chairperson Kübra Erman Karaca who made the opening speech of the meeting stated that the e-commerce sector continued its rapid growth in a year which was challenging for Turkey's economy and said:
“E-commerce industry, perhaps now would be more accurate to say digital commerce, is among rapidly growing, evolving and the most dynamic sectors in Turkey.
It is of great importance that digital transformation takes place within the public sector and large enterprises as well as in SMEs, society and individuals. The fact that individuals adapt to developments that will make their lives easier by using new technologies is a driving force in the growth of the sector. The contribution of SMEs to technological growth through adaptation to new business models and their contribution to economic growth is extremely important. These dynamics of both sectors contribute to the growth of digital commerce.
We will share with you soon "Turkey E-Commerce Market Size" report that we have prepared this year for the sixth time. E-Commerce is a growing part of the information and communication technologies sector... We wish the TÜBİSAD report will be beneficial to the sector, which we think will play an important role in the development of our country's electronic commerce applications and volume.”
THE SHARE OF THE MAJOR ONES IS INCREASING
Deloitte Turkey Director Alper Günaydın who stated that they are very glad to be a part of the work on Turkey e-commerce market size this year, drew attention to the high performance of the major shopping sites. Günaydın said that the market share of the top 10 major shopping sites continued to increase and stated that:
“In parallel with the previous years, the traffic, shopping return rates and basket size performances of large-scale sites are increasing more than the smaller sites. In the last 5 years, the market share of the top 10 sites increased from 40 percent to 53 percent.
Mobile traffic share has also passed the desktop traffic in many categories due to increased smartphone ownership, reduced mobile internet costs and increased mobile compatibility of sites.”
EFFECTS THE ECONOMY POSITIVELY
TÜBİSAD e-Commerce Commission President Burak Ertaş said that the continuing growth of e-commerce volume is rejoicing not only for the sector but also for the country's economy.
“When we look at the volume of e-commerce in Turkey in the last 5 years, we see an average of 33 percent growth. Last year there was a growth of 42 percent. E-commerce needs to be addressed not only as online shopping but also with the sectors it mobilizes. In this respect, e-commerce makes a significant contribution to the development of tourism, technology and retail sectors in our country.
Despite the positive data coming from our sector, the ratio of e-commerce to the total retail market is 5.3%, which is below the average of developing countries. We believe that the e-commerce sector, which is highly dynamic with technological innovations, will have higher shares in the coming years with the development of mobile internet and mobile applications in our country."
REPORT RESULTS
TÜBİSAD E-Commerce Market Description and 2018 Market Size in Turkey Results:
Total Market: 59,9 billion TL (42 percent annual growth)
Breakdowns:
Holiday-Travel: 22,9 billion TL (54 percent annual growth)
Only Online Retail: 20,8 billion TL (41 percent annual growth)
Multi-Channel Online Retail: 10,7 billion TL (30 percent annual growth)
Online Betting : 5,5 billion TL (26 percent annual growth)
Only Online Retail:
Online Marketplace : 10,4 billion TL (48 percent annual growth)
Online- Multi Category: 4,8 billion TL (37 percent annual growth)
Online – Special Shopping: 4,4 billion TL (35 percent annual growth)
Online – Vertical: 1,2 billion TL (26 percent annual growth)
Multi-Channel Online Retail:
Multi-Channel – Electronic: 3,4 billion TL (13 percent annual growth)
Multi-Channel – Clothing & Shoes : 2,6 billion TL (52 percent annual growth)
Multi-Channel – House & Decoration : 1,3 billion TL (46 percent annual growth)
Multi-Channel – Entertainment & Culture : 0,5 billion TL (30 percent annual growth)
Multi-Channel – Other : 2,8 billion TL (30 percent annual growth)
The share of e-Commerce in total retail (the ratio of online transactions in the Total Retail market):
Turkey: 5,3 percent
Average of Developed Countries: 11,1 percent
Average of Developing Countries: 5,9 percent
FEATURED TRENDS
- With the price increase and exchange rate’s effect seen in consumer products, basket sizes increased more than in previous years.
- Increasing foreign tourist traffic to Turkey had positive effects on airline and accommodation companies' online traffic figures. In addition to traffic, holiday travel category grew rapidly due to the increasing exchange rate's effect.
- In line with the decline in demand for durable consumer products, the electronic category showed lower performance compared to the past.
- While the total retail sector in Turkey showed low growth performance last year; due to the rapid growth of the e-commerce channel within the sector, the share of e-commerce increased rapidly and reached 5.3%.
Definitions
e-Commerce: Online transactions via mobile devices such as computers, tablets or mobile phones are called "Online". Shopping where the product or service order can be made via online channel, delivery can be online or offline (non-online deliveries such as delivery by hand, via shipping, etc.), payment can be made online or offline (payment on delivery, money order, eft etc.)
e-Commerce Category Definitions:
" Multi-Channel ": Both online and physical stores
"Only online": Those who do not have a physical store but only sell on the internet
"Marketplace": Sites that enable buyers and sellers to communicate and make transactions through the website.
"Special Shopping": Discounted sites with membership system that organize campaigns specific to their members.
"Multi Category ": Various product and service sites
"Vertical": Sites that provide specific products or services
Turkey e-Commerce Market Size - 2018 report was prepared by TÜBİSAD, with project partnership of Association of e-Commerce Operators (ETİD), and with project data partnership of Deloitte Turkey Project Management and Similarweb and İnveon.