E-commerce grew substantially in Turkey last year, according to a recent report.
The volume of e-commerce, which is short for electronic commerce, increased 79% in Turkey in 2021. E-commerce transactions in total amounted to nearly 18% of trade in Turkey. Approximately 70% of the transactions were performed on cell phone applications. The most popular industries for online shopping were fashion and electronics, the official Anadolu Agency reported April 16.
Turkey’s Competition Authority released a lengthy report on the state of e-commerce this month.
Why it matters: The increase in online purchases comes as Turkey’s overall digital economy is growing. Turkey’s financial technology (fintech) sector has expanded exponentially in recent years in terms of investments.
At the same time, Turkey is experiencing major economic problems at present. Inflation continues to plague the country. Recent increases in inflation have been driven by the commodity crisis resulting from the war in Ukraine. Turkish farmers are also warning of a food crisis in the country.
Turkey’s Central Bank again declined to raise interest rates last week.
Know more: E-commerce revenues in Turkey jumped 42% in 2018 and 31% in 2019, per a 2020 report from the US bank JP Morgan. The financial powerhouse also noted some potential obstacles to Turkish e-commerce growth.
“The availability of physical, digital and banking infrastructure to handle rising levels of e-commerce is an ongoing issue in Turkey,” JP Morgan said in the report.