Setting up an e-commerce business in Türkiye

Setting up an e-commerce business in Türkiye is an exciting and potentially lucrative venture, given the country’s rapid growth in the digital market. As of 2024, Türkiye’s e-commerce sector is experiencing unprecedented growth, with the volume projected to double by the end of the year. This surge is driven by increased internet penetration, higher smartphone usage, and a shift towards online shopping, particularly post-pandemic.

Government initiatives fostering growth

The Turkish government has been instrumental in fostering this growth through initiatives aimed at improving digital infrastructure and promoting e-commerce. These efforts have created a conducive environment for online businesses to thrive. For instance, the government’s support for digital transformation and the integration of advanced technologies such as AI and data analytics into e-commerce platforms have significantly enhanced user experiences and operational efficiencies.

Steps to establish your business

To set up an e-commerce business in Türkiye, several key steps must be taken:

• Registration: It is essential to register your business with the Trade Register. This process can be handled by a lawyer or accountant in Türkiye, ensuring that your business is legally recognized and compliant with local regulations. Foreign nationals can also establish companies in Türkiye and engage in e-commerce activities, enjoying the same rights as domestic investors.
• Legal address: Determining the legal address of the company is crucial. While a physical workplace can be rented, a virtual office address is also a viable and legal option in Türkiye. This flexibility is particularly beneficial for businesses that do not require a physical presence for their e-commerce activities.
• Costs: The total cost of establishing an e-commerce company in Türkiye is relatively affordable, starting from $450 to $500 for a limited company with one partner. However, the cost can vary depending on factors such as the number of partners and the company’s founding capital.
• Documentation and banking: The founder needs to provide their passport, and other necessary documents can be prepared by a CPA firm experienced in handling foreign investors. It is possible to establish an e-commerce company in Türkiye without physically being present in the country, but the authorized person of the company must visit Turkey personally to open a bank account for the company, as banks in Türkiye do not open accounts with a power of attorney.

Competitive landscape and regulatory changes

The e-commerce market in Türkiye is highly competitive, with several major players dominating the landscape. Trendyol, for example, leads the market with over 20 million monthly visitors, known for its frequent discounts and diverse product offerings. Other significant players include Amazon Turkey and Hepsiburada, each offering unique features and benefits that attract a large customer base.

When operating an e-commerce business in Türkiye, it is important to be aware of the recent regulatory changes. Starting August 21, 2024, Turkey’s Revenue Administration (TRA) has implemented new mandatory fields for e-Arşiv invoices, and there have been significant changes in import duties and tax regulations. For instance, import duties on European packages have increased to 30% from 18%, and duties on packages from outside the EU have doubled to 60%. The exemption threshold has also been reduced from 150 euros to 30 euros, meaning more online orders from abroad will be taxed. Additionally, an extra fixed tax of 20% will apply to luxury products under the Special Consumption Tax Law.

Future trends and concluding thoughts

The future of e-commerce in Türkiye looks promising, with continuous improvements in digital infrastructure and increased consumer adoption. Mobile commerce, omnichannel retailing, and personalization are among the top trends shaping the e-commerce landscape. In conclusion, setting up an e-commerce business in Türkiye offers a wealth of opportunities, driven by the country’s young, tech-savvy population, government support for digital initiatives, and rising disposable income. However, it is essential to navigate the regulatory landscape carefully, address logistical and payment security challenges, and leverage advanced technologies to stay competitive.

For those looking to capitalize on this growth, integrating with top Turkish marketplaces such as Trendyol, Amazon Turkey, and Hepsiburada can be a strategic move. These platforms offer extensive reach and user-friendly interfaces that can significantly boost sales and customer engagement. Additionally, staying informed about the latest market trends and regulatory updates is crucial for maintaining a competitive edge in this dynamic environment.

Overall, the potential for e-commerce in Türkiye is vast, and with the right approach, businesses can tap into this burgeoning market and achieve significant success.