E-Commerce in Turkey Harvard Case Solution & Analysis

E-Commerce in Turkey Case Study Solution

Overview of Internet Usage in Turkey

The most popular social networking websites in Turkey are Google, Facebook, twitter and Instagram whereas the most popular news and media websites are Sabah, Hurriyet, Sozku and internethaber. The most popular website and ecommerce players are Sahibinden, n 11, Hepsiburada, gittigidiyor and Arabam. (Similar Web, 2019)

Electronic media is the largest ecommerce business in Turkey as it generated $2806 million sales in 2019,(Statista, 2019) followed by online shopping as internet penetration is 72% and mobile penetration is 20%.Whereas, the preferred online payments are visa and MasterCard(Wadolowska, 2017)

Travel and vacation is another major ecommerce business in Turkey(export.gov, 2019) as it is ranked the sixth largest country in terms of number of tourists’visits each year.(Daily Sabah Tourism, 2019)Therefore it is obvious that these tourists use websites to book their tickets and hotels etc.

Unusual Aspects of E-Commerce in Turkey

Turkey has achieved 23rd position in the list of top ecommerce industries(e Shop World, 2019) due to the lack of sales in various regions of the country, caused by logistic issues.(Esiyok, 2019). If the infrastructure is improved then the country’s ecommerce industry might achieve a better rank as the customer base would grow due to increased sales in the areas affected by logistic problems.

Barriers

Lack of logistics:The lack of logistics and infrastructure in various Turkish regions  has restricted the growth of ecommerce market as goods cannot be delivered to these regions despite customers’ interest in making purchases from these areas. Therefore, in order to grow ecommerce market and economy of Turkey, its logistics should be improved.(Esiyok, 2019)

Ban on PayPal: Placing a ban on PayPal has affected the Turkish ecommerce industry as it is the most preferred payment method for online shoppers. Removing the ban will improve the customers’ experience as customers will have various options for making payments for product or service purchases.(export.gov, 2019)

Opportunities and Challenges of Implementing Ecommerce & Digital Marketing

Since millions of tourists visits Turkey each year(Daily Sabah Tourism, 2019), setting up new websites to accommodate these tourists in booking their hotels, tickets and cabs would contribute to the growth of ecommerce industry and economy of Turkey.

As the number of online shoppers are increasing with each passing year, adopting new web trends like chat boxes on the websites would improve customers’ experiences, and the Turkish ecommerce industry.

The challenges that everyone faces while implementing ecommerce is identifying how to retain the customers, which product to sell, which audience to target, what should be the modes of payment etc.

One of the major challenges of implementing digital marketing is using the right content that distinguishes one’s website from its competitors. Implementing digital marketing is costly due to the higher advertising costs..............

 

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