The Turkish Online Retail eCommerce Sales for 2011 is estimated 17 billion USD | Around 35% of the Turkish Internet users are purchasing online | Credit cards are the preferred payment method | Turkey's eCommerce outlook shows 20-25% growth year over year.
Turkish eCommerce Market
Turkey has 80M people of which 45% are presumed to have internet access. Only one-third of the 35M Turks capable of going online also purchase goods and services via the internet. With 80M people Turkey has in fact the 2nd largest population of Europe (Russia not taken into account) | Germany ranks first with 81M people.
Turkey has a large and growing youth population, a key factor in the development of technology-based markets. In 2011, 25.3% of the total Turkish population was aged 14 and under, compared to 14.3% in Greece, Turkey's closest European neighbour.
The Turkish youth population is increasingly technologically literate, having grown up in the internet age. This trend is exacerbated by Turkey's growing wealth, which is allowing more consumers to buy luxury goods such as smartphones and PCs, as well as receive improved technology skills training. Turkey's GDP per capita expanded by 11.5% in real terms over 2006-2011.
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Rising internet use has been an obvious boom for e-commerce, with increasing usage of digital and social media allowing increased exposure for e-tailers through online advertising. Internet users made up 43.3% of the population in 2011, while the value of internet retailing expanded over 61% in real terms over 2006-2011.
However, although internet usage is expanding rapidly, telecom penetration levels remains below average Western European levels, meaning online businesses have a limited audience both for sales and internet marketing. A strong digital divide between the east and west of the country as well as one of the lower broadband household penetration levels in Europe in 2011 could be barriers to further growth.
The Turkish online retail sales will however most probably exceed the 19 billion US dollars in 2012. If the barriers for future growth are taken down, the Turkish eCommerce Market is expected to be one of the fastest growing in Europe for the coming years. Turkish internet retailing is forecast to expand by 54% in real terms over 2012-2016.
Preferred Online Payment Methods Turkey
Credit and Debit Cards
Turks love the rewards associated with the use of cards | across all channels 25% of all consumer spending is made using a payment card. Market analyst Glenbrook estimates that in internet retailing the international payment cards represent 82% of all eCommerce purchases in Turkey.
The generic Turkish credit card is unusual in that it carries three brands––an issuing domestic bank brand, an international payment network brand, and a domestic merchant co-brand. The merchant co-brand enables buyers to earn rewards, receive merchant-sponsored perks, and take advantage of interest-free installment payments.
While the use of internationally payment cards for online purchases is prevalent, bank transfers, COD, and eMoney schemes are also used to complete purchases.
Credit Card Installment Payments
Some Turkish sites offer the Installment Payment option: shoppers can spread their payments for online card purchases over a certain period of time (e.g. 3, 6 or 12 months time period).
Cash on Delivery (COD)
Cash on delivery (COD) is a popular payment method that allows the purchaser to pay at the time of delivery (generally to the shipping company), rather than paying at the time of purchase. There is a preference for COD because goods can be quality assured by the receiver prior to payment.
Payment Gateways Turkey
Payment gateways or Payment Service Providers are the 'hub' for eCommerce merchants to various payment methods. By linking online shoppers and stores through online payment solutions, these gateways play a critical role.
PayU | iYZi Payments | NestPay | WorldPay | GlobalCollect |
Merchant Acquirers Turkey
Merchant Acquirers are the financial institutions that authorize and settle payments into the merchants' bank account. Payment Gateways are connected to these merchant acquirers. Below the Merchant Acquirers that are licensed to operate on the Turkish Market.
Akbank | Anadolubank | CardPlus | Citibank | Halkbank | ING Bank | ?? Bank | Turk Ekonomi Bank (BNP Group)
Industry Bodies and Useful Links Turkey
Turkish Market Research & Publications (yStats.com)
UPDATED: 23 November 2012