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Lack of know-how key barrier to exporting via e-com in Turkiye: Survey

05 Jun '23
2 min read
Pic: Amazon
Pic: Amazon

Insights

  • The penetration rate of exporting via online channels among Turkish small and medium enterprises (SMEs) is at a modest level, but e-commerce is poised to take off in the country, according to the Amazon Turkiye SME E-Commerce Outlook 2023 report.
  • Lack of know-how is the most significant barrier to e-exporting and social commerce is rising, the survey found.
Even though e-commerce is currently nascent across Turkiye compared to more mature channels, it is poised to take off, driven by growing internet penetration and increased availability of quality online products, according to the Amazon Turkiye Small and Medium Enterprises (SME) E-Commerce Outlook 2023 report.

The penetration rate of e-exporting among Turkish SMEs is at a modest level and lack of know-how is the most significant barrier to e-exporting, with 76.8 per cent of respondents stating they do not have enough knowledge of what e-exporting is and how to engage in it, and only 23.2 per cent saying they are acquainted with e-exporting terms, it found.

The report, published by PwC Türkiye and released in Istanbul recently, surveyed over 2,000 SMEs across Türkiye to better understand the needs and challenges they face regarding entry into both domestic and foreign markets via online channels.

In line with countrywide business statistics regarding e-commerce, 25.3 per cent of SME respondents stated they are engaging in e-commerce activities, while 19 per cent are planning to start engaging in e-commerce in the upcoming period.

There has been a gradual yet small increase in cross-border interactions in the country. A modest level of SMEs there has engaged in e-exports, with only 4.1 per cent of respondents stating they have incorporated e-exporting into their businesses.

The penetration rate of e-exporting among Turkish SMEs is low now, while signalling that there are further opportunities for engagement in this regard.

Turkish SMEs who are familiar with e-exporting are still hesitant to engage in e-commerce and e-exporting due to information asymmetry regarding sectors and markets abroad, as well as inadequate technical infrastructure.

Fifty-five per cent of respondents said the lack of market and sector knowledge is the biggest challenge that restricts their ability to conduct cross-border e-commerce.

Forty-three per cent of these same participants believe they have insufficient customer service processes that are unable to cater to an international audience, especially with regard to after-sales, while 30 per cent abstain due to lack of access to adequate logistics.

The overwhelming majority (71 per cent) of Turkish SMEs opt to use marketplaces and marketplace operators to conduct their e-commerce and e-exporting activities in order to leverage the benefits they provide.

In line with global trends, social commerce is significantly on the rise in Turkiye, particularly among the Gen Z population.

Fibre2Fashion News Desk (DS)

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