E-Export: The Outstanding Opportunities Waiting for Turkey

Before the advent of the internet in the 80s, and its wider expansion in the 90s, no one would have imagined the level of global connectivity we would experience today.

Back in the days before the World Wide Web, our best resource for information was the local library. Today we’re seeing these facilities slowly and sadly dying out due to the information we now have quite literally at our fingertips. ?There is no denying that we now have instant access to information in a way we have never had before.

The first official e-commerce transaction didn’t happen until 1994 with the advent of the internet as we more or less know it today. Frankly, I don't remember my first online purchase, but when I did a quick online search, what I learned was quite interesting: In 1984, a 72-year-old British grandmother ordered groceries online; and in 1994, a man purchased a Sting CD via one of the internet’s first e-commerce sites, NetMarket. More than twenty years later, it’s ironic that e-commerce as we know it today all started with a CD, a format that e-commerce subsequently replaced with online music streaming sites. While so much has changed since that first sale in 1994,one thing the one thing that has remained the same is the desire for people to make a purchase from the comfort of their own homes rather than venture out and brave the public market.

In today’s world we see that e-commerce constitutes a valuable dimension of digital economy. Over the last two years, the service sector has been transformed ?due to the pandemic and as a result e-commerce has grown very rapidly. It was a period in which companies developed new strategies by producing new and innovative solutions every day. With individual internet penetration exceeding 70 percent and the increase in portable broadband subscriptions ?have helped pave the way for us in e-commerce, both nationally and internationally. When we consider the potential of the sector, e-commerce is a valuable aspect of the digital economy, thanks to global trade volume, the added value it creates and the new markets it has reached. At the same time, democratization of trade is spreading all over Anatolia with remote working and remote trade opportunities as well as more equitable pay regardless of geography.

According to a recent report from the Ministry of Commerce in Turkey, it has been found that Turkey's e-exports volume is US$ 1.42 billion. The countries with which Turkey has the most cross-border e-commerce are Germany, the USA and the UK. The “most sold” product categories in Turkey's e-export area are ready-made clothing, household goods, ornaments, lighting devices and automotive products. E-export volume is estimated to reach 1 trillion USD in 2021.

E-commerce and e-export not only transform traditional shopping methods, but at the same they themselves are also undergoing continuous transformation. The e-commerce and e-export ecosystem will establish a higher level of fairness among its players. I see e-export as the democratization and authentication of commerce and e-commerce. It reached its highest potential towards democratization through a horizontal decision-making mechanism. The product range for buyers is not limited only to the products and sellers in their own countries and therefore provides much more competitive and varied alternatives to them. It also provides an opportunity for sellers to reach their targeted market outside of their own country. Opening up the market from 80 million in Turkey to 8 billion people around the world increases the opportunity for ?success exponentially.

In our country, there has been a rising interest in e-export, especially in the last five years. Thanks to the completion of the legal infrastructure, both in terms of customs processes, and in matters related to revenue administration and tax refund, coupled with the support of the interest generated by success stories, very serious growth has been realized. We finished last year at a strong level of 2.5 billion USD, which represents a volume that has almost tripled in five years.

We, at UPS Turkey, are proud to support Turkish SMEs through our Women Exporters Program and Export Academy programs. We have reached over 13,500 participants through our educational programs and we’re proud to see SMEs exporting and growing their business - often in a very short time. All of which reinforces our hope for a strong future.

Global e-exports, which reached 1 trillion USD last year, are expected to grow to 2.4 trillion USD in 2025 - this represents a major opportunity for Turkey. If Turkey could capture a 1% share of this market (currently we are around 0.2%) we could potentially realize 24 billion USD. Considering where we are, we have a long way to go, but if you think about the path we have followed in the last three years, 24 billion USD is a very realistic target.

You wouldn't believe how many SMEs I've seen flourish in the last three years, starting ?from scratch to exporting more than 1 million USD today. E-export offers a great opportunity not only for medium and large-sized enterprises, but also for artisans who make handicrafts. I believe that e-export democratizes trade and helps level the playing field for all.

My sense of hope is reinforced when I see all stakeholders working in incredible harmony to realize this 24 billion USD opportunity at our doorstep. UPS’s ?investment in the Istanbul Airport in 2019 which ?connects Istanbul to Europe through our UPS aircraft, and increased capacity by 40% as of November 2021, are just some of the ways we’ve contributed towards this goal. Again, "UPS SMART", which we have named "the digital version of logistics" for the past year , has become a digital platform that we have designed using this e-export vision. When I look at everything that has been accomplished in Turkey and the progress we have made, my excitement and hopes for the future grows even more.

As we continue to invest in our logistics and infrastructure capabilities, increase the strength of the "Made in Türkiye" brand, while retaining authenticity of our local quality, we will only continue to see an acceleration in e-export. ?

The news that I was most gratifying to me personally during the pandemic period were the e-export success stories out of Turkey. Believe me, we are just getting started and we have a long and exciting journey ahead together.

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