E-Marketplace Platforms Industry Review Report

E-commerce appeals to a wide market all over the world today. It is possible to obtain almost every product that can be purchased in the physical environment from online channels. The spread of e-commerce has also led to the development of the logistics industry and payment systems. In this respect, online marketplace platforms act as a locomotive for the economy.

It can be said that the first e-commerce activities in Turkey started in the early 2000s. On the other hand, E-Marketplace platforms have gained momentum since 2010. Especially in the second half of the 2010s, it can be said that domestic e-commerce sites have a large share of the market. During the pandemic period, the interest and need for online shopping have increased in Turkey as well as in the whole world.

The spread of online marketplace platforms necessitated the making of various regulations in this area. The report prepared by the Competition Authority aims to ensure that the platforms operating in the said field service in a fair and equitable environment. In this article we have prepared for you, you can read the details of the industry review report prepared for E-Marketplace platforms.

What is E-Marketplace Platforms Industry Review Report?

Online shopping platforms, like other commercial businesses, are subject to various laws. The main objectives of these laws are; To create a fair competition environment in e-commerce and to ensure that customers receive qualified service. The aforementioned report aims to provide the necessary regulations for retail e-commerce companies to operate in accordance with this framework. In the report, the general situation of the companies and the sector operating in Turkey is analyzed and some suggestions are made to improve the competitive conditions.

In the study prepared with detailed data, it is aimed to eliminate the uncertainty in the application of competition law rules among E-Marketplace sites. The decision required for the preparation of this report was published in the Official Gazette in June 2020. Based on this decision, the Preliminary Report published on May 7, 2021, includes general market problems and solutions. The main study was published on April 14, 2022, and in this context, it is aimed to finalize the findings. The report examines platforms that provide environments to different vendors. What is a marketplace? You can get detailed information about these platforms by reading our article titled.

How is the E-Marketplace Platforms Industry Review Report Prepared?

The study is mainly based on the collection and interpretation of data on e-commerce marketplace platforms. The said data is collected by the rapporteurs assigned by the Competition Authority. The main data on the volume and general situation of the e-commerce market are provided by the Turkish Informatics Industry Association (TÜBİSAD) and the Ministry of Commerce. This information provides a framework for the overall functioning of the marketplace platforms in the country and the competitive situation between them. Firms with 85% of the market were selected among these channels and information was requested from them. You can find the platforms that are the subject of the research and request information in the following parts of our article.

Analysis and results on consumer behavior are also included in the report. The data on this subject was obtained through a survey conducted by the Akademetre company. The survey results obtained on 18.03.2021 were analyzed in detail by the reporters and used to determine consumer motivation and company-customer relationship.

It is also important to know the nature of logistics services in order to obtain detailed information about the e-commerce market. In this regard, information was also requested from cargo companies that provide services to E-Marketplace platforms. Information provided by PTT, Aras Cargo, MNG, Yurtiçi, Sürat Cargo, and UPS is also included in the study.

What Does the E-Marketplace Platforms Industry Review Report Include?

The report consists of six sections in total. The scope of the study is the marketplace platforms serving as retail. In the first part of the study, the size and development of the e-commerce sector in Turkey is discussed. In this section, a general description of e-commerce activities is made by focusing on the market situation after the Covid-19 outbreak. The development of marketplace platforms operating in the global arena is also explained in detail in this section.

In the second part, there is a business model analysis through Amazon and Alibaba companies. In this section, the position of these platforms in the international market is analyzed. Models of companies that have established themselves in the global market are analyzed in order to comparatively analyze the development of marketplace platforms in Turkey.

In the third part, the current situation of the sector in Turkey is explained. Consumer behavior and E-Marketplace survey results are mainly used in this section. Customers’ attitudes toward E-Marketplace platforms are discussed in detail here. Another subject explored in the third part is consumer and seller profiles. The market shares of the companies and the development of concentration are also included in this section.

In the fourth part of the report, the general economic features of E-Marketplace platforms are given. The process that contributes to market power is described in detail here. The fourth chapter also deals with the disruptions that create the risk of monopolization. Identified problems are presented in this section.

These problems are dealt with in more detail in the fifth chapter. Here, possible problems that may hinder the competition between the marketplace channels and disrupt the market balance are included. Concerns for consumers are also examined in this section. In the sixth and final section, there is a revision of the policy recommendations mentioned in the preliminary report.

What is the Purpose of Preparing the E-Marketplace Platforms Report?

The primary purpose of preparing the report is to determine the current situation. In the study, “What is an E-Marketplace?” By giving a comprehensive answer to the question, companies operating in this field are examined. The competitive relationship between platforms is among the issues that are given importance in the research. The place and volume of the sector in the Turkish economy are also discussed within the scope of the report.

Suggestions for the improvement of platforms and the industry are also included in the report. In this context, the factors causing disruption in the competitive environment are determined. The measures required to eliminate the said deficiencies are also included in the report. The risks of monopolization and unfair competition are discussed and the necessary issues to prevent them are mentioned.

Studies aimed at improving the relations between the marketplace, the customer, and the seller are also included in the scope of the report. The quality of service received by customers is examined in this study. Considering the issues that cause problems in service quality, solutions are produced to eliminate them.

What Are The Leading E-Marketplace Platforms In Turkey?

In the report, eight big market places that hold 80% of the e-commerce sector volume in Turkey have been researched. These platforms are known as companies that determine the operation of the industry in general. The sales volumes, sizes, and service scopes of these channels are included in the report in detail.

Amazon Turkey

Amazon, one of the leading e-commerce platforms in the international market, started its activities in Turkey in 2017. The first Amazon store in our country was opened on 19 September 2018. This platform sells physical and digital products. There are thousands of different categories on the site.

Amazon has a structure that allows third-party sellers to bring their products to customers. This company also has its own logistics network. The cargo service within the platform has been operational in Turkey since September 26, 2019. Amazon also provides free use of the video platform and discounts to customers who purchase a Prime subscription.

Flower basket

Çiçek Sepeti is one of Turkey’s leading marketplace platforms. The company, which started its activities in 2005; In the first place, it sold flowers, fruits, and arrangements. After 2010, you can see that the company offers a wide range of retail products to its customers. Flowers, bunny food, and arrangements are the main products sold on the site. The souvenir category occupies a large place in this medium. Electronics and clothing products are also included in the Flower Basket categories.

Go Go Go

GittiGidiyor, one of Turkey’s well-established e-commerce platforms, started its operations in 2001. International e-commerce company eBay bought a large share in 2007 and became a partner in GittiGidiyor. eBay, which bought all of the remaining shares in 2011, completely incorporated the company into its structure. GittiGidiyor still operates under this company. GittiGidiyor, one of the country’s leading e-commerce platforms, has over 4000 different categories from electronics to clothing, personal care to hobby items.

All Here

In the first place, Hepsiburada started its activities as a platform that only sells its own products. The platform, which has been open to third-party vendors since 2015, is among Turkey’s leading marketplace sites today. Hepsiburada is a company that delivers products with its logistics company. In addition, the company has a special payment system called HepsiPay. HepsiExpress, which was established for grocery shopping, has gained popularity since the pandemic period.

N11

N11, which started its operations in 2012, was established as a joint venture between Doğuş Holding and South Korean SK Group. N11 is known as one of the marketplace platforms that determines the e-commerce sector in Turkey. The firm mainly provides retail services; however, wholesale is also available on the platform. Subsidiaries within N11 are as follows;

  • Garaj11 (Vehicle sale)
  • Moda11 (Textile and clothing products)
  • Market11 (Supermarket products)

N11 was awarded the bronze award in the category of “Marketing Campaign of the Year” by The International Business Awards in 2013.

Trendyol

Trendyol, one of the first E-Marketplace platforms that come to mind when it comes to e-commerce, started its operations in 2009. Trendyol is a platform that serves a wide range of products. On-site; There is a rich variety of products under different categories such as electronics, fashion, home and furniture, food, and mother-child. International e-commerce company Alibaba bought 86% of Trendyol shares in 2021.

Trendyol Lojistik A.Ş. , which started its operations in 2018 . provides services within the company as a cargo subsidiary. Trendyol GO, which was implemented during the Covid-19 pandemic period, focused on food and market orders. Trendyol occupies a large place in the marketplace sector in Turkey with its e-commerce site and its subsidiaries.

Morhipo

Morhipo started its operations in 2010 as an e-commerce site mainly focused on fashion and cosmetics. Today, the company sells in many different categories. In the Europe500 survey conducted in 2014, Morhipo was selected as “Europe’s fastest-growing trading site”. The company acquired by Boyner is among the most popular E-Marketplace platforms today.

PTT Mall

Founded as a PTT subsidiary, this platform became operational in 2012. This channel allows sellers to operate in B2B (business-oriented) and B2C (direct-user-oriented). 40% of the company shares belong to PTT and 60% to PTTEM Teknoloji ve Elektronik Hizmetleri . EPTTAVM serves a wide range of products. There are many categories on the site and in the app, from books to electronics. The company works with the logistics service of PTT, of which it is a subsidiary. In this way, there is an advanced cargo network.

What are the Suggestions Given After the E-Marketplace Platforms Industry Review Report?

According to the report, it is estimated that the e-commerce volume in Turkey will grow between 2021 and 2025 at an unprecedented rate. In this respect, it can be said that e-commerce is a sector that has just started to develop in our country. In the study, solutions are presented to take the necessary measures for the development and growth of the sector.

The main recommendations of the research are as follows:

  • Examining the entry of BigTech (big technology) companies into the Turkish e-commerce market and paying attention to the unfair competition conditions that this will create
  • Making arrangements in accordance with the principles of objectivity, transparency, openness, and predictability
  • Taking measures to prevent unfair commercial practices
  • Making necessary legal arrangements to ensure customer satisfaction

The study shows that the Turkish e-commerce market is more competitive than Europe. It is also among the suggestions offered for a solution that it is possible to organize this structure in an objective way by preventing monopolization.

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