Online shopping

Online shopping in Turkey took off in 2021

E-commerce grew significantly in Turkey last year, according to a recent report.

E-commerce volume, which is short for e-commerce, grew by 79% in Turkey in 2021. Total e-commerce transactions accounted for almost 18% of trade in Turkey. Around 70% of transactions were made on mobile phone apps. The most popular industries for online shopping were fashion and electronics, the official Anadolu Agency reported on April 16.

The Turkish Competition Authority released a lengthy report on the state of e-commerce this month.

Why is this important: The rise in online shopping comes as Turkey’s overall digital economy is growing. Turkey’s financial technology (fintech) sector has grown exponentially in recent years in terms of investment.

At the same time, Turkey is currently experiencing major economic problems. Inflation continues to weigh on 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.

The Central Bank of Turkey again refused to raise interest rates last week.

Know more: E-commerce revenue in Turkey jumped 42% in 2018 and 31% in 2019, according to a 2020 report by US bank JP Morgan. The financial powerhouse also noted some potential obstacles to the growth of Turkish e-commerce.

“Availability of physical, digital and banking infrastructure to handle increasing levels of e-commerce is an ongoing issue in Turkey,” JP Morgan said in the report.

E-commerce is on the rise across the Middle East. The sector grew by 24% in Israel last year. In the United Arab Emirates, e-commerce sales increased by 53% in 2020.