E-Commerce Logistics in Turkey: Current Scenario and the Road Ahead: Ken Research

Interview with Coskun Soyer, Consultant – Retail/E-Commerce-After-Sales-Logistics-Customer Relations-Value Added Services

I, Himanshu Gupta, on behalf of Ken Research, am grateful to you for taking out time and participating in the series as an esteemed veteran.

How did you get associated with the sector and how has your experience been so far?

My first experience with e-commerce was at the beginning of the 2000s with the spare parts and accessories sales website which we developed for the automotive company I worked with. This project was a little early and was canceled before it started. Later, I took part in the establishment of the e-commerce department of the electronic retail company. This gave me a great experience for management of storage – shipment – returns – refurbishment-after sales services-sales of value added services-call center etc. in details. The site continues successfully. Since 2014, I have started consultancy services for the establishment and efficiency of various e commerce sites. In particular, I advise the establishment of sites in the B2B and B2C.

How has the e-commerce sector changed over your tenure? What has its growth story been?

Since the 2000s, e commerce is developing very rapidly. Accessing the product without going to the store is an important reason for choice. Rapid development in technological infrastructure, increase in internet usage and widely use of mobile devices provide significant improvement for e-commerce. In addition, logistics infrastructures are rapidly improving. I want to draw attention to two important issues here. Firstly, e-commerce is one of the sectors that need human labor most especially in logistics. Second one is, the winner of the competition in store-e commerce competition will always be the companies that give more importance to customer service. I use the concept of “customer service” as terms of logistics-after-sales-call center-CRM.

Amazon, Alibaba being the newest entrants in the market, how is the market shaping up?

The entry of large enterprises into a country market always has good results in terms of competition and services. However, respecting the country specific conditions should be the most important priorities. They should pay attention to the local companies that do this job in the country before them. The market is open to everyone, but the companies who know and care about the conditions of the country are always the winners. This company can be domestic or international company. I can give examples of the electronic retail competition in Turkey between the years 2006 and 2012. The world’s biggest four firms came to Turkey and they compete with domestic rivals in the market. The winning companies became the best local and foreign companies which adapt to the conditions of the country. As a result, the new comers are very powerful but market reacts as in above conditions.

Are there any international players who command a size able share in the e-commerce logistics market in Turkey?

Currently, there are no international companies of this size among the major players, but there are foreign investors which have shares in some Turkish firms.

Why is the cost of e-commerce logistics expected to increase in the short term?

This is purely related to cost management and demand. Currently, Turkey is a continuous increase in cargo transportation. However, there is also a continuous increase for costs (gasoline – warehouse rents – labor costs – etc…). Therefore, expectation for prices to trend up in the short-mid terms due to economic conditions.

Which are the upcoming regions in Turkey for spread of e-commerce?

We can mention that, 50% of the economy and the majority of distribution companies are located in Istanbul and around. It is not a healthy model. However, reaching products in and around Istanbul is always a priority for other regions. Therefore, the spread of e commerce will always be fast in the regions outside Istanbul.

How much E-commerce shipments are fulfilled by Third Party Logistics Companies in Turkey?

While it is difficult to give an exact number, it would not be wrong to say that the number of orders delivered per day is more than 1,000,000 and that it goes right to 1,500,000.

What are the strategies taken by companies in Turkey to be relevant in the highly competitive market?

For logistics companies, it is very important that the promises given to the customer are true promises. Companies that do this will be the winners in the midterm. In addition, investments in the high-volume cargo transportation sector (white goods etc…) will provide a short-term return. Finally, the supervision of the franchise branches of cargo companies (which are preferred by the majority of the sector) must cover KPI management-training’s of human resource-productivity etc.

In one word if you had to describe the E-Commerce Logistics Market in Turkey, what would it be?

Competition!

For any queries or feedback, reach out to the author at himanshu@kenresearch.com

For More Information On The Turkey Logistics and Warehousing Market Research Report, Refer To Below Link:-

Turkey Logistics and Warehousing Market Outlook to 2025 –Market Segmentation by Service Mix (Freight Forwarding, Warehousing, Courier Express & Parcel Activities, E-Commerce Market and Value Added Services)

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