Firms unhappy with fees online marketplaces charge

ISTANBUL

Companies selling products online single out the commission fees marketplaces charge as the biggest problem they face, a study has found.

Shipping costs, excessive competition and logistics-related problems are other main issues companies complain about, according to a survey the Istanbul Chamber of Commerce (İTO) commissioned.

Some 513 companies based in Istanbul participated in the survey investigating how e-commerce and e-exports are transforming the companies operating in the real sector.

More than 56 percent of the companies complained about high commission fees online marketplace charge, while 45.5 percent mentioned cargo costs as their major problem, the study showed.

Some 37.8 percent of the respondents said excessive competition on those platforms is the main difficulty they face, while high logistics costs ranked fourth with 30.9 percent.

Around 48 percent of the companies conduct e-commerce operations via their own websites, mobile applications and e-commerce platforms, according to the survey.

More than 39 percent of the companies that took part in the survey said they have been involved in e-commerce for three to five years, while only 9.4 percent said that they had been in the e-commerce market for 10 years or more.

The survey found that 35.8 percent of the companies engage in e-export through e-commerce platforms.

Türkiye ranked 57th in the UNCTAD’s B2C E-commerce Index in 2020, sliding from its 54th spot in 2019, the report said.

The B2C e-commerce index measures an economy’s preparedness to support online shopping. Switzerland ranked first on the 2020 list, followed by the Netherlands and Denmark.

Per capita e-commerce spending was 3,300 Turkish Liras in Istanbul in 2020, but it increased to 9,857 liras ($362) in the first six months of 2023, said Şekib Avdagiç, the president of İTO.

Türkiye, which stands out with its close proximity to Europe, Asia and the Middle East and ever-increasing trade with Africa, has the potential to become a key player in the global e-commerce ecosystem, Avdagiç said.

The report said that Türkiye can easily adapt to e-commerce thanks to its tech-savvy and young population, robust domestic demand and dynamic real sector.

Turkish consumers quickly embrace new consumption patterns, while the wide use of the internet creates conditions for e-commerce to flourish, it added.

The report stressed that particularly small and medium-sized companies (SMEs) should invest more in e-exports by digitalizing their businesses, which will help them find new markets and boost export revenues.

The e-commerce volume in Türkiye rose from 136 billion liras in 2019 to nearly 801 billion liras in 2022, while the share of e-commerce in total commerce volume climbed from 9.7 percent in 2019 to 17.7 percent in 2021, rising more than 74 percent over this period.