The Turkish eCommerce market is currently the 18th largest globally, with experts projecting more than $22 billion in sales this year. Throughout the next four years, this growth is expected to continue at a compound annual growth rate (CAGR) of 14.5%, fueled by a continuing shift from in-store shopping to eCommerce since the pandemic’s onset.
This growth makes the country an exciting market for international retailers, but these merchants must first understand Turkish consumers’ shopping preferences. At 62%, free shipping is the most important consideration for Turkish consumers when choosing an eCommerce merchant, followed by price, at 48%, and speedy delivery, at 47%. Eighty-nine percent of Turkish consumers shopped online via smartphone in the past year, and 67% purchased goods online and had them shipped via a third-party courier.
The “Global Commerce Tracker®” examines the benefits and challenges of foreign merchants exploring business opportunities in Türkiye, including those related to digital payment methods, impending regulation and a roller coaster of an economy.
Retail sales in Türkiye are seeing a mild renaissance, growing 34% year over year this January, the fastest pace since 2021. This growth varied across sectors, with nonfood sales jumping 42% and food, drink and tobacco sales growing by 24%. 
The earthquake that impacted the country earlier this year somewhat hampered this growth, resulting in an economic fallout of approximately $100 billion.
The Turkish tech scene is a gold mine for startups, with six different tech companies hitting $1 billion in value in the last three years. FinTechs are some of the primary beneficiaries of this thriving scene, with 2022 seeing $90 million in FinTech funding across 34 different deals — a significant increase from the $69 million raised in 2021.
For more on these and other stories, visit the Tracker’s News and Trends section.
The Turkish economy is a unique blend of old and new, where legacy payment methods butt against modern eCommerce and digital conveniences. International retailers are leaping at the opportunity to capitalize on this growth, but they must reckon with the unique characteristics of the Turkish market to make the most out of this opening.
To get the Insider POV, we spoke with Worldline’s Guillaume Tournand and Michael Bilotta about why local payment methods are necessary for foreign merchants looking to do business in Türkiye.
Türkiye represents an enticing opportunity for foreign merchants, especially as eCommerce quickly gains popularity in the region. It has never been easier to gain an entirely new customer base from anywhere in the world, as the need for brick-and-mortar stores and warehouses in the country has been dramatically reduced in favor of online fulfillment. This change will not necessarily be smooth sailing, however: Merchants need a detailed understanding of the Turkish market and economy before dipping their toes in the water.
To learn more about the potential benefits and challenges of doing business in Türkiye, read the Tracker’s PYMNTS Intelligence.
The “Global Commerce Tracker®,” a collaboration with Worldline, examines the benefits and challenges of foreign merchants exploring business opportunities in Türkiye, including those related to digital payment methods, impending regulation and a roller coaster of an economy.
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