By Guillaume Tournand
Worldline
As the world continues to embrace the digital age, Türkiye stands out as a trailblazer, leading the charge toward becoming a fully digital society. For ecommerce retailers, this presents an exciting prospect of tapping into a dynamic and rapidly growing market where they can deliver scalable services to eager consumers that are primed and ready.
Driven by a tech-savvy and expanding consumer base, Türkiye’s ecommerce market is flourishing. Turks are embracing online shopping, and consumers are digitally adept, discerning and eager to engage with brands on digital platforms. Coupled with Türkiye’s rapid digital transformation, this dynamic environment creates a vibrant ecommerce landscape, positioning Türkiye as an attractive market for global retailers.
The Turkish government has proactively supported ecommerce by creating a fantastic online marketplace that connects Turkish businesses with global buyers. This initiative has been incredibly successful, leading to a significant increase in ecommerce transactions and revenue. In fact, between 2021 and 2022, transaction volumes rose by 42 percent, and values surged by 126 percent. To put this growth in perspective, Brazil, a rapidly growing ecommerce market, only saw an 18 percent increase during the same period, per Worldline research.
According to Statista, tinyurl.com/4vvn2hpa, Türkiye’s ecommerce market is expected to continue growing and is predicted to reach an astounding $44 billion by 2025, outpacing many other markets. However, succeeding in this market requires a deep understanding of local demands.
Türkiye has unique challenges, such as a preference for card-based transactions and specific regulations surrounding local acquiring processing. Additionally, the country's currency value is subject to fluctuation. In this article, I'll delve into the factors that make Türkiye an interesting market for international ecommerce companies. Following are some things you need to consider that could help you succeed.
Türkiye’s young population, representing 46 percent of the nation’s inhabitants, holds the key to the country's thriving ecommerce industry. With an average age of 32, Türkiye boasts a tech-friendly generation that is not only comfortable with digital platforms but also influences the country’s market trends and purchasing behavior.
These digital natives are eager to explore new shopping experiences, quick to adopt emerging technologies and prefer online transactions for their buying experience. Their strong purchasing power and familiarity with the digital landscape make them a formidable force in the ecommerce sector. For international ecommerce companies seeking opportunities in this rapidly growing market, Türkiye’s youthful demographic presents an exciting prospect.
The thriving ecommerce market in Türkiye is driven by its extensive and diverse payment landscape. Turkish consumers have a strong preference for card payments, with cards being used for 64 percent of online transactions, totaling $7.42 billion in annual sales (see tinyurl.com/3pazdwh4).
From debit and credit cards to digital wallets and installment payment methods, Türkiye offers a sophisticated range of options. The popular Troy card, backed by 13 Turkish banks and supported by the government, has experienced a significant increase in usage. With 79 million credit card transactions and 139 million debit card transactions in 2020 alone, according to Worldline, the potential for growth in this market is tremendous.
This diverse payment landscape caters to a wide range of consumer preferences, making online shopping accessible and convenient. While international ecommerce companies may face initial challenges due to changes in local processing requirements, these changes also present opportunities for those willing to adapt. By embracing local payment trends, these international ecommerce companies can tap into the vast potential of the Türkiye ecommerce market.
Additionally, Turkish consumers' engagement with loyalty programs and installment payments highlights their financial engagement and knowledge, which can benefit ecommerce businesses through increased customer retention and higher transaction values. The Turkish ecommerce market is an exciting prospect for international ecommerce companies looking for growth and success.
Expanding into Türkiye's booming ecommerce market can be daunting due to Turkish currency fluctuations. However, there are effective strategies that ecommerce companies can employ to minimize these risks. One such strategy is multicurrency pricing, which allows businesses to offer their products in various currencies, including the customer's local currency and a more stable international currency such as the U.S. dollar or euro.
This flexibility gives customers the freedom to transact in a currency they feel comfortable with while ensuring consistent international revenue for businesses. Another effective approach is forging local partnerships.
By teaming up with local businesses, international ecommerce companies can reduce their exposure to currency volatility. Local partners can handle sales and distribution in the local currency, while the international partner can focus on their home currency. This allows businesses to navigate the more turbulent currency landscape in Türkiye with more confidence and stability.
Türkiye’s burgeoning ecommerce market presents a compelling opportunity for international ecommerce companies. The retail sector in Türkiye is undergoing a transformative shift, offering a promising future for international businesses. To fully capitalize on this vibrant market, companies must understand and adapt to the unique behaviors and preferences of Turkish consumers, particularly when it comes to payment methods.
Though the country's payment landscape may initially appear complex and overwhelming, it holds immense potential for those who align their business strategies with local trends. Implementing approaches like multicurrency pricing and establishing partnerships with local organizations can serve as effective tools for navigating the fluctuations of the Turkish lira, ensuring a consistent stream of revenue.
While success in Türkiye’s ecommerce sector is not without its challenges, the potential rewards make it an exhilarating venture. By gaining a deep understanding of market dynamics, adapting to local needs and implementing robust risk management strategies, businesses can establish a solid presence and thrive in the dynamic world of Turkish ecommerce. 
Guillaume Tournand is vice president of growth at Worldline Digital Commerce, where he expands the company‘s unique selling proposition through geographical expansion, Alternative payment methods (APM), and M&A. He has 20 years of experience in various positions, including IT/development, sales, marketing, product management, corporate development, and M&A/finance. Guillaume holds an MBA from ESCP Business School and two master's degrees in computer science engineering from Paris and Oxford. Contact him via LinkedIn at www.linkedin.com/in/guillaume-tournand.
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