Know-how to counter uncertainty
According to an outlook on e-commerce amongst small and medium-sized enterprises that Amazon Türkiye published in June, almost a quarter of the country’s SMEs carry out such activities – but mostly domestically. The online giant has opened its first logistics centre in the nation. LAM Global, an established domestic player, is moving more into the field. The ITJ has learnt that it has big plans for a ‘Birdy’.
In October this year Amazon officially opened its first fulfilment centre in Turkey. It has invested about USD 100 million in the facility, located in the Tuzla district on the Asian side of Istanbul. It already started operations in September last year, and was lauded by the highest authorities in the country.
President Recep Tayyip Erdogan welcomed the move, which “deserves our full appreciation. Amazon Türkiye started doing business five years ago; it has already achieved great success, generating exports worth EUR 500 million from 45,000 entrepreneurs.”
Ahmet Burak Daglioglu, the head of Turkey’s presidential investment office, emphasised the contribution that the new facility is making to e-exports and the opportunities it opens up for Turkish suppliers to serve more and more global markets.
Taking flight
The segment still has a lot of catching up to do – and has a great potential too. PwC’s ‘SME E-Commerce Outlook 2023’, commissioned by Amazon Türkiye, surveyed about 2,000 SMEs. Only 4.1% of them have now integrated e-exports into their busi- ness processes. The main obstacle cited by 77% of the companies surveyed was inadequate knowledge of e-commerce.
Established logistics providers can also play their trumps. LAM Global, for example, established in 1944, has set up a division in Istanbul that mainly caters to Turkish e-commerce customers, firms that just want to send samples abroad or export only small quantities.
The unit – called ‘Birdy’ and based in Istanbul – will be made available to all of LAM Global’s branches, starting with the USA. Initially it will operate from one depot with three employees and three vehicles. It expects to handle 2,500 – 3,000 shipments and generate a turnover of USD 150,000 – 200,000 a year, the company told the ITJ.
Expert e-commerce advice in the mix
LAM Global has seen more customers shopping online in Turkey after the outbreak of Covid-19, and the growing market share of these activities is in line with global trends. Measures to counter Covid-19 heightened consumer interest in online shopping and accelerated the digital transformation processes in many businesses.
Said transformation has benefited large enterprises and small businesses, LAM Global has ascertained, fostering a more robust and diverse e-commerce landscape in Turkey.
The company said that “we’ve implemented a win-win policy by providing our clients with free accounting support and offering information services on customs and tax systems. We also assign a dedicated logistics representative to each customer, who supplies expert e-commerce advice and thus helps ensure seamless and efficient business.”