A deep-dive into domestic and cross-border
e-commerce patterns among Turkish SMEs
The meteoric rise in the usage of the internet, coupled with remarkable technological developments paving the way for the use of smartphones and tablets, have led to notable shifts in consumer habits. Online shopping practices have gained significant momentum in conjunction with the effects of the Covid-19 pandemic. Hence, the importance of e-commerce has steadily increased at a global scale, becoming a staple of daily life, as well as a driver of economic growth. As an extension of this, online channels that enable cross-border trade have come into prominence, transcending geographical limitations, improving the shopping experience, and offering ample opportunities for businesses. The increasing number of e-export transactions has led to the expansion of online shopping, with the integration of online retailers and other service providers contributing to the creation of a borderless world.
The evolution of the e-commerce industry has led to new opportunities for small and medium sized businesses (SMEs) around the globe, expediting their adaptation to digital markets and transforming their business operations. It is also a lucrative avenue for SMEs to export their goods, expanding their consumer base and increasing their market growth while promoting resilience to economic shocks and sustainability by accessing new ways of doing business.
Although the e-commerce and e-exporting channels are interlinked, there is currently limited information and data available regarding the e-export patterns of SMEs in Türkiye. In light of this, in collaboration with Amazon Türkiye, PwC Türkiye has prepared the SME E-Commerce Outlook report. The report aims to be a guide to SMEs in Türkiye, contribute to their growth, and encourage their expansion into foreign markets. Accordingly, over 2,000 SMEs were surveyed nationwide to better understand the needs and challenges they face regarding entry into both domestic and foreign markets via online channels.
Main Findings:
Our survey findings indicate that while e-commerce has experienced rapid growth in Turkey, Turkish SMEs have not been able to leverage their knowledge and experiences in e-commerce to their full potential in the field of e-exports.
25.3% of Turkish SMEs who were surveyed for this report responded that they currently conduct e-commerce activities. However, per survey results, the share of Turkish SMEs currently e-exporting is at 4.1%, suggesting that the penetration rate of e-exporting among SMEs is currently low and signaling that there are further opportunities for engagement in this regard
Among survey participants, those who conduct e-commerce and e-exporting activities through marketplaces and marketplace operators underline the ways in which they leverage the numerous benefits of doing so, including but not limited to widespread marketing and promotion opportunities, advantages related to logistics processes and costs, increased brand visibility and awareness, efficient customer communication channels and potential business growth.
Our survey found that e-exporting SMEs who do not use online marketplaces usually lack awareness regarding their services. In this vein, 55% of surveyed SMEs have indicated that they lack infrastructural and technical know-how on how marketplaces operate.
Survey findings indicate that these sellers have focused on investing in their websites (45%), on increasing their advertising spending (39%) and on reaching customers through social media platforms (37%) to achieve their goals.
Understanding major trends influencing the e-commerce and e-exporting sphere can help businesses and policy makers in Türkiye to develop productive strategies and policies to increase engagement in e-commerce.
Contact us
