UNIWERSYTET WSB MERITO W GDAŃSKU
WYDZIAŁ BIZNESU
Ayhan Nasirov
Numer indeksu 69021
ELECTRONIC PAYMENT AND ONLINE
SHOPPING IN TURKEY
(PŁATNOŚCI ELEKTRONICZNE I ZAKUPY INTERNETOWE
W TURCJI)
Praca magisterska
na kierunku Zarządzanie
Praca napisana pod kierunkiem
prof. dr hab. Małgorzaty Rozkwitalskiej
Gdańsk 2023
Table of Contents
SUMMARY IN POLISH ........................................................................................................................ 4
ABBREVIATIONS ................................................................................................................................. 5
INTRODUCTION ................................................................................................................................... 6
Chapter I. Electronic Commerce and Electronic Payment Systems ........................................................ 9
1.1. Definition and Importance of E-Commerce............................................................................. 9
1.2. Tools and Types of E-Commerce ............................................................................................ 12
1.3.
Electronic Payment Systems in E-Commerce ................................................................... 15
Chapter II. Security in Electronic Commerce and Online Shopping .................................................... 19
2.1. Security of E-Commerce .......................................................................................................... 19
2.1.1. SSL – Secure Socket Layer ............................................................................................... 20
2.1.2. SSL - Secure Sockets Layer .............................................................................................. 21
2.1.3.
2.2.
SET – Secure Electronic Transactions ...................................................................... 21
E-Commerce and Online Shopping ................................................................................... 23
2.2.1. Europe E-commerce Market Analysis ............................................................................. 24
2.2.2. Growing European Retail E-commerce Consumer ........................................................ 25
2.2.3.
Online shopping risks .................................................................................................. 27
2.3.
Components and Basic Strategies in Online Shopping .................................................... 31
3.1.
Research Methodology ........................................................................................................ 36
3.2.
E-commerce in Turkey........................................................................................................ 39
3.3.
Online Shopping in Turkey ................................................................................................ 44
CONCLUSIONS ................................................................................................................................... 51
REFERENCES ...................................................................................................................................... 52
LIST OF TABLES ................................................................................................................................ 55
LIST OF FIGURES ............................................................................................................................... 55
2
3
SUMMARY IN POLISH
Wraz z szybkim rozwojem nauki, technologii komputerowej i Internetu, handel
elektroniczny (e-commerce) stał się codzienną częścią życia człowieka, ponieważ jest wygodny
dla klientów, szczególnie w handlu Business to Customer (B2C). Klient może składać
zamówienia w domu i w ten sposób oszczędza czas. Systemy płatności online odgrywają bardzo
ważną rolę w handlu elektronicznym i są wykorzystywane do realizacji transakcji e-commerce.
Celem tej pracy jest przedstawienie obecnego stanu, wyzwań i przyszłych oczekiwań wobec
systemów płatności online w Europie, a w szczególności w Turcji.
Tło teoretyczne omawia historię e-commerce, obecną sytuację e-commerce, zakupy
online oraz metody systemów płatności online i wykorzystywane w e-commerce w Turcji.
Wyniki badań pokazują, że obecnie systemy płatności online są popularne. Wszyscy
respondenci mają doświadczenie z płatnościami online. Karta debetowa (Visa lub MasterCard)
jest najbardziej popularnym systemem płatności online, w Turcji i innych krajach. Drugim są
systemy płatności online stron trzecich. PayPal jest bardziej popularny w Europie. Dwa główne
czynniki wpływające na wybór systemu płatności online to wygoda i szybkość transakcji.
Problemy techniczne i podatność na cyberprzestępczość to główne wady systemu płatności
online. Atak złośliwego oprogramowania i problemy finansowe to główne wyzwania związane
z płatnościami online. Posiadanie bezpiecznego, niezawodnego i godnego zaufania środowiska
płatności online jest ważne.
Słowa kluczowe: Handel elektroniczny, Metody płatności, Zakupy online, Internet, Transakcja
pieniężna
4
ABBREVIATIONS
EDI: Electronic Data Interchange
CA: Authorized Certificate Authority
PKI: Public-Key Infrastructure
5
INTRODUCTION
Electronic commerce (or e-commerce) applications are one of the points of change in the
global economy. Especially since the early 2000s, e-commerce has reached a significant volume
of transactions. The quick access and cost reduction effect it provides to businesses makes them
need to plan their presence on Internet technology. E-commerce provides ease of access,
improves the competitiveness of small and medium-sized enterprises with its speed and cost
reduction effect. It is the Internet that has truly revolutionized e-commerce. The Internet, which
was initially used only for communication purposes, gained importance with the realization that
trade could also be conducted online. It has removed borders between countries, bringing users
around the world into one environment and meeting each other. This has removed many
physical barriers and difficulties. It has also brought with it new problems that require unique
solutions.
With these developments, it has also enabled big businesses to reach potential customers.
In addition, it has enabled entrepreneurs who come up with a business idea to make financial
gains on a global scale. Electronic commerce allows businesses or consumers to provide not
only goods and services. E-commerce is not only a form of trade used to sell/buy, but ecommerce can also be public-to-citizen, business-to-business, business-to-consumer, businessto-public. The main point here is to create alternatives to the laborious and heavy commercial
bureaucracy as a result of the ease of communication, timesaving and cost-reducing structure
provided by e-commerce to its users.
This thesis explores e-commerce, that is experiencing a lot of changes at the moment,
mostly caused by new emerging technologies, which open possibilities for new electronic
payment systems.
These new payment systems are expected to significantly change the payment
landscape. The use of cash is expected to fall further in the coming years. Currently, maximizing
the sales revenue is one of the business goals for the new system. There are also three additional
business goals such as minimizing the costs of operating the payment system, expanding the
market to include smaller events and fixed venues and achieving a high visitor satisfaction
concerning payment. Furthermore, online payment systems have a very important role in ecommerce. E-commerce enterprises use online payment systems that refer to paperless
monetary transactions, which has revolutionized the business processing by reducing
paperwork, transaction costs, and labor cost. Being user-friendly and less time consuming than
manual processing, electronic commerce helps a business organization expand its market reach.
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Today, electronic commerce is widely used in many different areas such as advertising,
marketing, payment, data exchanges, service delivery, sales to end users, inter-organizational
sales, penalty/tax payment, information inquiry, application, registration, etc. official
transactions, insurance and banking transactions. This much a widely used power has brought
about a very rapid development. According to Morgan (2020), Turkish e-commerce has seen
excellent revenue growth in recent years: in 2018, the market increased by 42 percent, followed
by 31 percent in 2019. Currently, 67 percent of the Turkish population makes online purchases.
Turkey is a growing e-commerce market, with excellent sales growth over the last three years.
Consumer behavior is fast changing as a younger generation uses cellphones and social media
to find and buy things. Cards are the most commonly used online payment option in Turkey.
According to projections, e-commerce volume will more than double in dollars by 2025
(Statista 2021). As of October 2020, 74.8 million credit cards and 183.4 million debit cards, for
a total of 258.2 million cards, were used in Turkey, representing a 52 percent increase in card
payment volume over the same period in 2019. The proportion of online card payments in total
card payments increased from 18% to 22% (BKM 2020).
The thesis is composed of three chapters.
Chapter I: Electronic Commerce and Electronic Payment Systems - This chapter provides
an overview of electronic commerce (e-commerce) and electronic payment systems. It explores
the definition, history, types, and benefits of e-commerce, as well as the different types of
electronic payment systems that have been developed to facilitate online transactions. The
chapter also discusses the various challenges and opportunities associated with e-commerce
and electronic payment systems, including issues related to security, privacy, and trust.
Chapter II: Security in Electronic Commerce and Online Shopping - This chapter
focuses on the critical issue of security in e-commerce and online shopping. It highlights the
various security threats and vulnerabilities that exist in online transactions and discusses the
measures that can be taken to mitigate these risks. The chapter also examines the different types
of security mechanisms that can be implemented to secure online transactions, such as
encryption, authentication, and access control. Additionally, it explores the role of regulatory
and industry bodies in ensuring the security of e-commerce and online shopping.
Chapter III: The State of E-Commerce, Electronic Payment, and Online Shopping in
Turkey - This chapter provides an overview of the state of e-commerce, electronic payment,
and online shopping in Turkey. It explores the history and development of e-commerce in the
country, as well as the regulatory framework that governs online transactions. The chapter also
discusses the challenges and opportunities associated with e-commerce and electronic payment
7
in Turkey, such as the low level of financial inclusion and the growing use of mobile devices
for online transactions. Finally, the chapter presents an analysis of the current trends and future
prospects for e-commerce and electronic payment in Turkey.
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Chapter I. Electronic Commerce and Electronic Payment Systems
1.1. Definition and Importance of E-Commerce
Electronic commerce (also known as e-commerce) emerged in the early 1990s, and its
use has increased at a rapid rate. Today, the majority of companies have an online presence. In
fact, having the ability to conduct business through the internet has become a necessity (Banker,
Jadhav, & Bhatt, 2020). It is still continuing to grow with new technologies, innovations, and
thousands of businesses entering the online market every year. Development of e-commerce is
divided into two time periods: the first period time from 1960s to 1990s, was based on
Electronic Data Interchange (EDI), the second period time after 1990-decade e-commerce was
completed by World-Wide-Web (MIVA 2020).
E-commerce refers to a transaction of buying and selling via the Internet. There are
different perspectives of e-commerce. The first one is communication part, to transmit
information, products, services or payment by electronic means. Secondly, business process
perspective is an application of technology towards the automation of business transactions and
workflows. The third one is service view, increasing the speed and quality of service delivery
when cutting costs at the same time. Finally, there are online perspectives, the transaction of
information and product purchase which occur online (TechTarget).
The Internet and computer technologies have significantly changed the way of doing
business, and to establish a business in particular. The amount of Internet based e-commerce
grew rapidly during the last one decade. Many of the world’s biggest companies started to put
the Internet as a vital part of their business strategy. This has been typified by the experiences
of General Electric and Microsoft with their new net strategies. Moreover, there is increasing
evidence that viable online business models are emerging. Business models appear more
flexible after adapted their Website to support, enhance and improve all segments of the
business (Laudon & Traver, 2002).
The broad definition of electronic commerce is the sharing of structured and
unstructured business information between producers, consumers, public institutions and other
organizations through electronic means to carry out business, management and consumption
activities. Based on this definition, all transactions that do not have a direct commercial result
but provide infrastructure facilities for this are within the scope of electronic commerce.
Therefore, not only commercial activities, such as the activities of public institutions in
electronic media, but also other activities of businesses in electronic media other than sales,
marketing and payment are included in this definition. If it is necessary to evaluate what
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electronic tools are included in this definition, such as internet tools, telephone, fax and other
digital tools, credit cards, electronic data exchange and many other tools. Briefly defined,
electronic commerce is any commercial business activity established for the promotion, sale,
payment and distribution of goods and services in electronic environment without the need for
direct physical connection or physical exchange. The objectives of electronic commerce are as
follows (Siegel & Dray, 2001):
-
to make business activities easier locally and internationally to bring,
-
to increase the efficiency and responsiveness of the company,
-
to ensure harmonious and high-quality electronic interaction.
Traditional commerce:
Traditional commerce is commercial transactions or exchange of information, buying or selling
product/services from person to person without use of internet which is an older method of
business style and comes under traditional business. Nowadays people are not preferring this
as it is time taking and needs physical way of doing business. Before the internet became widely
available, e-commerce was conducted through traditional means such as telephone, fax, and
mail order catalogs. With the advent of the internet, businesses started to use websites and
online marketplaces as a new platform to sell their products.
Traditional e-commerce involves the exchange of goods and services between two or
more parties. This can be between a business and a consumer, a business and another business,
or a consumer and another consumer. The transaction can be completed through various means
such as online payment systems, bank transfers, or cash on delivery.
The most significant advantage of the traditional business model is face-to-face
interaction. The individuals or businesses going in on the exchange together will meet and
discuss their options. Consumers can physically see or try on products before purchasing them.
In addition, companies can employ marketing techniques that have worked for
centuries. Another critical advantage of traditional commerce is that people without the internet
can still qualify as customers. Businesses that are not up and running online can still have
consumers visit their brick-and-mortar stores. One of the key features of traditional e-commerce
is the ability to reach a global audience. Through the internet, businesses can sell their products
to customers from all over the world. This allows them to expand their customer base and
increase their revenue.
Another advantage of traditional e-commerce is the ability to operate 24/7. Unlike brickand-mortar stores, online stores do not have fixed operating hours. Customers can browse and
purchase products at any time, providing greater convenience and flexibility.
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However, the disadvantages of traditional commerce are the same as the advantages of
eCommerce. Traditional commerce is limited to particular schedules and specific locations.
Consumers have to travel to stores during business hours to find what they need. However, they
may end up finding out that it may not be out of stock at that location. Traditional commerce
also tends to be more expensive than eCommerce. This is typically due to factors such as;
paying for a building, interior design and supplies, utilities, additional employees, and more.
One of the biggest challenges is the issue of trust. Customers are often hesitant to
purchase products online, especially from unfamiliar businesses. This has led to the
development of various security measures such as encryption, firewalls, and secure payment
systems to ensure the safety of online transactions.
Another challenge is the high level of competition in the online marketplace. With the
ease of setting up an online store, businesses are facing more competition than ever before.
They need to find ways to differentiate themselves from their competitors and provide unique
value to their customers.
Overall, traditional e-commerce has become an integral part of the modern business
landscape. It has provided businesses with a new platform to reach customers and expand their
markets. As technology continues to evolve, traditional e-commerce is likely to become even
more important in the years to come.
E-commerce:
E-commerce refers to the commercial transactions or exchange of information, buying or
selling product/services electronically with the help of internet which is a newer concept of
business style and comes under e-business. Nowadays people are preferring this as it is less
time taking and does not need physical way of doing business everything can be done with
laptop or smartphone and internet.
No matter which type of e-commerce is being used, there are several advantages for all
parties. E-commerce can save everyone involved a fair amount of time. Consumers do not have
to travel to physical locations to view products or read about services, and businesses don’t
have to spend time setting up physical spaces and displays. E-commerce also allows business
transactions to take place 24 hours a day, seven days a week. This convenience is very appealing
for consumers, and it enables businesses to increase their profits without time constraints.
Another advantage of an e-commerce business is accessibility. Now, consumers can access
businesses worldwide with the click of a button, and companies can have a global consumer
base. Lastly, it may not be necessary for businesses to put much of an investment upfront, since
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they may not need a physical location or as many employees upfront. Even with non-stop,
worldwide accessibility, e-commerce business does have some drawbacks. The biggest
drawback is often the waiting period that comes with many purchases. Yes, you can buy a
product with a click of a button. However, you will then have to wait for it to arrive. For
businesses, e-commerce has turned marketing on its head, which means that many traditional
business marketing methods no longer make sense. It can be more challenging to convince a
prospective client to buy your product when they are not standing in front of you. Based on all
of the advantages and disadvantages above, specific differences become evident between the
traditional and that of the e-commerce business model. The most striking difference between
the two is accessibility. E-commerce has created a world that is accessible at anytime from
anywhere. Traditional business, on the other hand, follows set schedules and availability. If you
want to buy a new pair of jeans from your favorite store at 2 a.m., shopping online is generally
the only way to do it. This accessibility also contributes to another difference between these
two business models: convenience. E-commerce business has created a new level of comfort
that would have been hard to imagine even 20 years ago. And that is not only true on the
consumer end of things. Many businesses have found greater convenience in locating partners,
interacting with potential consumers, and quickly finding the raw materials they need through
e-commerce. Another major difference between e-commerce business and traditional business
is the way that people interact with each other. In the traditional business model, the only way
to interact was face-to-face and in person. With an e-commerce business, interactions often take
place online, and people may be interacting with artificial intelligence tools. Humans only get
involved when something goes wrong and needs to be fixed.
1.2. Tools and Types of E-Commerce
The tools of electronic commerce can be considered as all kinds of technological products
(telephone, fax, television, computer, electronic payment and money transfer systems,
electronic data interchange systems (EDI), internet, intranet and wap) that facilitate the
commercial transactions of those who trade with each other. The tools used in the realization
of electronic commerce are all kinds of technological products that facilitate the commercial
transactions of those who trade with each other is possible. Running an e-commerce website is
a lot of work. Especially, if you are doing everything manually. E-commerce tools help you
automate and optimize your e-commerce website. This saves you time and helps you grow your
business. Here are some examples of useful e-commerce tools:

conversational marketing tools
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
video editing tools

interactive content tools

email marketing tools

tracking tools

shipping tools

payment tools
EDI is an important tool of electronic commerce as a system that enables the exchange
of documents and information between two trading organizations through computer networks
without the human factor. EDI is a communication network system that enables an
organization's computer system to connect with other parties with whom it has commercial
relations through official or private communication systems.
Shopify. When one’s tech skills are minimal, and one does not have the resources to
hire a web developer, Shopify and similar ecommerce tools are a good pick. Feature-loaded,
scalable, and offering numerous templates for different niches, Shopify stores are plug-andplay ecommerce.
JungleScout. Unless one is in the business of white labeling or manufacturing your
products, one of the store’s top concerns is the merchandise you carry. Jungle Scout helps
identify the top products for your niche and to track their performance on Amazon. If someone
is selling on Amazon and from own site, it is an intelligent choice for product research.
WiX. When budget is strapped, WiX is a strong option. A truly exceptional ecommerce
website builder, it competes with WooCommerce and Shopify in the number of features
offered.
Monday.com. Monday is the productivity tool of choice for our team at Ecommerce
CEO. In addition to being a good task manager, we use Monday to manage our projects, leads,
content calendar, and processes.
OmniSend. OmniSend is an email marketing software program that automates emails
and newsletters. But it does not just stop at emails. The program works equally well with social
media marketing, SMS marketing, and various other channels, all of which it brings together
on a singular platform.
Bulk.ly. Bulk.ly is all about social media automation. This ecommerce tool integrates
seamlessly with Buffer, helping you top up all your queues with ease, which could save you an
hour or so each week. Not only that, but it also allows you to automate the content that you post
on social media. Bulk.ly requires you to create a spreadsheet with all your content and then
categorize it accordingly. Once done, you can upload your content to the ecommerce tool.
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Microsoft Power BI. Arguably the most efficient and user-friendly data reporting tool
in the world, Microsoft’s Power BI is on a whole another level when it comes to data analytics.
It marries power analytics with an excellent user-friendly interface that hands out all the details
needed about the website’s performance. An enterprise can track the performance of landing
pages,
of
different
campaigns,
and
of
other
pages
with
relative
ease.
Videoly. Videoly is a product video hub for online stores and brands, providing
relevant, hand-picked product videos at scale. Videos like reviews, presentations, comparisons,
unboxing, how-to, hands-on, etc. Product video content helps to increase conversions,
maximize time spent on site, and overall give consumers rich information.
Elfsight. Elfsight is a website-building platform, built to help businesses to boost their
sales, engage visitors and collect leads etc. This solution helps owners choose the right widget
for their task, which helps generate leads by offering customer support and helping to grow
social followers. Elfsight applications can be put into any website platform.
There are six basic types of e-commerce (Qureshi et al., 2010):
1. Business-to-Business (B2B)
B2B e-commerce is simply defined as e-commerce between companies. This is the type
of e-commerce that deals with relationships between and among businesses. About 80% of ecommerce is of this type, and most experts predict that B2B e-commerce will continue to grow
faster than the B2C segment.
2. Business-to-Consumer (B2C)
Business-to-consumer e-commerce, or commerce between companies and consumers,
involves customers gathering information, purchasing physical goods (i.e., tangibles such as
books or consumer products) or information goods i.e., or goods of electronic material or
digitized content, such as software, or e-books and for information goods, receiving products
over an electronic network. It is the second largest and the earliest form of e-commerce. Its
origins can be traced to online retailing.
3. Consumer-to-Consumer (C2C)
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers. This type of e-commerce is characterized by the growth of electronic
marketplaces and online auctions, particularly in vertical industries where firms/businesses can
bid for what they want from among multiple suppliers. It perhaps has the greatest potential for
developing new markets.
4. Consumer-to-Business (C2B)
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In C2B there is a complete reversal of the traditional sense of exchanging goods. This
type of e-commerce is very common in crowdsourcing-based projects. A large number of
individuals make their services or products available for purchase for companies seeking
precisely these types of services or products. Examples of such practices are the sites where
designers present several proposals for a company logo and where only one of them is selected
and effectively purchased.
5. Business-to-Administration (B2A)
This part of e-commerce encompasses all transactions conducted online between
companies and public administration. This is an area that involves a large amount and a variety
of services, particularly in areas such as fiscal, social security, employment, legal documents
and registers, etc. These types of services have increased considerably in recent years with
investments made in e-government.
6. Consumer-to-Administration (C2A)
The Consumer-to-Administration model encompasses all electronic transactions
conducted between individuals and public administration. Examples of applications include:
•
Education – disseminating information, distance learning, etc.
•
Social Security – through the distribution of information, making payments, etc.
•
Taxes – filing tax returns, payments, etc.
•
Health – appointments, information about illnesses, payment of health services, etc.
1.3.
Electronic Payment Systems in E-Commerce
Online payment is a form of electronic payment, which is provided by a third-party
payment interface between banks for real-time payment. Compared with the traditional
payment, online payment systems are more convenient, fast, efficient and economical. Users
can use their own PC or mobile phone with Internet to complete the entire payment process in
a very short time. Online banking is a very common way of online payment systems. For
example, when users want to shop online, must open an online bank account. This payment is
directly paid by credit card or even debit card. And now third-party online payment systems
such as PayPal are also very popular in e-commerce. Third party payment is an independent
organization, which provides the network payment mode for transaction platform between bank
and online payment platform. Third party payment mode is like a credit intermediary to
supervise and support between online business and the bank (Kalakota & Whinston, 1997).
Electronic payment systems (EPSs) are summoned to facilitate the most important
action after the customer’s decision to pay for a product or service – to deliver payments from
15
customers to vendors in a most effective, efficient and problem-free way. The role of ecommerce electronic payment systems is pivotal for future of ecommerce, whose further growth
depends on the timely development of EPSs. First of all, for the customer third-party online
payment companies can provide a variety of online payment systems, especially for small and
medium enterprises. Online payment system provides a convenient payment platform to do
trade with customers. For the customer, it does not only give a chance for quick payment after
shopping online, but it also avoids the risk of money transfer. Online payment allows the banks
to expand their business and allocate the resources on development and maintenance (Ribbers
& Heck, 2004).
There are many options for making secure payments over the Internet (Ayhan Erdem
ve Özlem Efiloğlu, 2005):
•
Credit Card
A credit card is a type of payment card that is issued by a financial company, and it lets
cardholders borrow funds with which to pay for goods and services. With a few simple
precautions, credit cards can be a very easy and safe way to make payments online. Because
credit cards have very strong consumer protections, they are widely considered to be one of the
safest ways to conduct transactions online. Essentially, the consumer has little to no liability for
fraudulent purchases. The fact that the credit card has a standardized payment infrastructure all
over the world and its wide user base has made it the most widely used payment method for
shopping over the Internet. SSL and SET protocols, which are based on the encryption of credit
card information, are used to prevent third parties from intercepting credit card information
during shopping, thus ensuring shopping security (see chapter 2).
•
Debit Card
A debit card is a type of payment card that deducts money directly from a consumer's
checking account to pay for a purchase. A debit card is sometimes called a bank card or check
card. They offer many of the same conveniences as a credit card, and in some instances, they
have the same consumer protections as credit cards. A debit card draws cash for a specific
purchase directly from a bank account and transfers it to an account held by the seller. Most
online merchants will accept debit card purchases.
•
Net Bank
Net Bank is a virtual counter of the bank to provide network technology for the customer
to complete some traditional services such as opening an account, inquiries, transfer, online
securities, investments and financial management. By comparison with traditional bank
services, online banking cuts down operating cost. There are no time or location limits, the bank
16
can offer services anytime and anywhere, even anyhow. Furthermore, net bank provides a
variety of personalized services, such as insurances, securities and other financial products.
•
PayPal
PayPal allows any business or individual with an email address to transfer money online
in a more secure, convenient and efficient way. The network is based on the existing bank
account and the credit card to create a real-time payment solution. PayPal is the most popular
third-party online payment system in the world. It has 8 million transactions every day and has
over 137 million PayPal accounts in 193 markets and includes 26 currencies that it can transfer
all over the world.
•
E-Wallet
Electronic Wallets (e-wallet) are software developed to be used for online shopping.
Once the e-wallet software is installed on the user's computer, the necessary information is
defined once and for all, so that this information does not need to be repeated for each
transaction required in the internet environment. The user can use the e-wallet from his/her own
computer or can perform transactions through the website of the manufacturer.
•
Electronic Bill Payment
Electronic bill payment is another method of sending money to another bank account
directly from an existing bank account. This method is typically used to make credit card
payments or payments for other bills and is not necessarily used to make payments to merchants
or other vendors for ecommerce transactions.
The leading online payment method in Turkey is undoubtedly the virtual POS (Point of
sale) using credit and debit cards. The POS (Point of Sale) devices used in your store shopping,
credit card or debit card payments are called virtual POS. Virtual POS is the area where you
pay at the end of your online shopping, i.e. a digital payment point. Virtual POS works with the
same logic as POS devices. The only difference between a virtual POS and a POS device is that
instead of swiping your card on a device, you enter your card information in the fields specified
on the digital screen. Thus, the cost of the product or service is transferred from your account
to the seller's account. In addition to these, different online payment methods are actively used
thanks to the technologies developed by organizations such as Paynet. Some of the online
payment systems used in Turkey can be listed as follows (Kaymakçı, Avcı, Şen, 2007):
•
Credit/debit card (virtual POS),
•
Mobile payment with NFC technology,
•
Virtual card,
•
Mobile wallet,
17
•
QR payment,
•
Payment by link (e-mail and SMS),
•
Wire Transfer/EFT,
•
Mobile payment (charged to the phone bill).
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Chapter II. Security in Electronic Commerce and Online Shopping
2.1. Security of E-Commerce
The security of e-commerce has become a crucial concern in the modern digital era.
With the rapid growth of online transactions, consumers need to be assured that their personal
and financial information is secure from any unauthorized access, hacking, or data breaches.
This has led to the need for increased security measures to ensure the trust and confidence of
customers in e-commerce transactions.
One of the most significant security threats in e-commerce is identity theft, where
attackers can steal personal and financial information of consumers to commit fraud or other
illegal activities. This can occur through various means, including phishing attacks, malware,
or hacking. Another security risk is the theft of credit card information during online
transactions, which can lead to financial loss for both the customer and the e-commerce
business.
To mitigate these security threats, various security measures have been implemented in
e-commerce, such as secure socket layer (SSL) encryption, two-factor authentication, and fraud
detection systems. SSL encryption provides a secure connection between the user's browser and
the e-commerce website, ensuring that any data transmitted between them is encrypted and
protected from unauthorized access. Two-factor authentication adds an additional layer of
security by requiring users to provide two forms of authentication, such as a password and a
code sent to their mobile device. Fraud detection systems use machine learning algorithms to
detect suspicious behavior and prevent fraudulent transactions.
Now, let's move on to examples of the security of e-commerce in Turkey: In Turkey, ecommerce has grown significantly over the past few years, with a 39% increase in online sales
in 2020 alone. However, with this growth comes an increased risk of security threats, such as
hacking and identity theft. As a result, various measures have been taken to ensure the security
of e-commerce in Turkey.
One of the main security measures in Turkey is the use of SSL encryption, which is
mandatory for all e-commerce websites in the country. This ensures that any data transmitted
between the user's browser and the e-commerce website is encrypted and protected from
unauthorized access. Another security measure is
the requirement for two-factor
authentication for online transactions, which has been implemented by many Turkish banks.
This adds an additional layer of security by requiring users to provide two forms of
authentication, such as a password and a code sent to their mobile device.
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Furthermore, the Turkish government has also implemented regulations and laws to
ensure the security of e-commerce transactions. For example, the Personal Data Protection Law
(KVKK) was introduced in 2016, which requires businesses to protect the personal data of their
customers and implement security measures to prevent any unauthorized access or data
breaches.
In addition to these measures, e-commerce businesses in Turkey have also implemented
fraud detection systems to detect and prevent any fraudulent activity. For instance, some ecommerce businesses use machine learning algorithms to detect suspicious behavior and flag
any potentially fraudulent transactions.
Overall, the security of e-commerce in Turkey has become a crucial concern due to the
rapid growth of online transactions. However, various measures have been implemented to
ensure the security and trust of customers in e-commerce transactions, such as SSL encryption,
two-factor authentication, and fraud detection systems.
2.1.1. SSL – Secure Socket Layer
SSL (Secure Socket Layer) is a standard security protocol that is used to establish a
secure and encrypted connection between a web server and a web browser. The SSL protocol
uses encryption algorithms to scramble data that is transmitted over the internet, making it
difficult for hackers and other unauthorized users to intercept and access the information.
SSL was first introduced in the mid-1990s by Netscape Communications Corporation,
as a way to secure online transactions and protect sensitive information such as credit card
numbers, passwords, and other personal details. Today, SSL is widely used across the internet
to secure websites, online applications, and other types of digital transactions.
If we accept e-commerce as Internet applications that carry commercial activities such
as buying and selling, money transfer, ordering, etc. to the web environment and perform these
transactions via the Internet, we have to adapt the security understanding while performing
these transactions. This, of course, will be different from our security expectations when we
shop at the market, make a business deal with a company, go to the bank and make our payments
or participate in a tender. E-commerce security is an issue to be examined in this context.
When a user connects to a website that is secured with SSL, their web browser initiates
a secure handshake process with the web server. During this process, the web server sends its
SSL certificate to the browser, which verifies the certificate and establishes a secure encrypted
connection. Once the connection is established, all data that is transmitted between the web
browser and the web server is encrypted and secure.
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SSL is an important tool for protecting online transactions and sensitive information
from unauthorized access and interception. It is used by a wide range of businesses and
organizations, including e-commerce sites, financial institutions, healthcare providers, and
government agencies. The use of SSL has become increasingly important in today's digital
world, as cyber threats and data breaches continue to be a major concern for individuals and
businesses alike.
For the vast majority of payment systems accessible on the public Internet, baseline
authentication (of the financial institution on the receiving end), data integrity, and
confidentiality of the electronic information exchanged over the public network involves
obtaining a certificate from an authorized certificate authority (CA) who provides public-key
infrastructure (PKI). Even with transport layer security (TLS) in place to safeguard the portion
of the transaction conducted over public networks— especially with payment systems—the
customer-facing website itself must be coded with great care, so as not to leak credentials and
expose customers to subsequent identity theft (Şule Özmen, 2003).
2.1.2. SSL - Secure Sockets Layer
SSL is a security protocol developed by Netscape to ensure security and confidentiality
during data transfer over a network. With the release of version 3.0 in 1996, it has become a
standard supported by almost all Internet browsers (Microsoft Explorer, Netscape, Firefox,
Chrome, etc.) and has found a wide range of applications in a short time. SSL encryption
ensures that the information sent can only be decrypted at the correct address. The information
or data is automatically encrypted before it is sent and can only be decrypted by the correct
recipient. Confidentiality and integrity of the transaction and information are protected by
verification on both sides. The SSL protocol uses electronic identity documents to ensure secure
and confidential communication between two parties. If data sent over an SSL connection is
compromised by a third party, the parties will know immediately. In this system, credit card
information is sent online to the bank after being encrypted with SSL technology, and the
information cannot be seen by the store employees (Şule Özmen, 2003).
2.1.3. SET – Secure Electronic Transactions
SET was developed by a consortium of Visa, Mastercard, Microsoft, Netscape, GTE,
IBM, SAIC, Terisa Systems, Verisign, Microsoft, Microsoft, Netscape, GTE, IBM, SAIC,
Terisa Systems and Verisign to ensure the security of information related to bank cards and
payments (TechTarget).
21
SET provides an additional layer of security for e-commerce transactions by encrypting
sensitive information such as credit card numbers, expiration dates, and other personal
information. The protocol involves a complex exchange of data between the consumer's web
browser, the merchant's server, and the payment gateway's server.
The SET protocol uses a combination of symmetric and asymmetric cryptography to
secure the transaction. It involves digital certificates that authenticate the parties involved in
the transaction and create a secure channel for exchanging payment information.
SET offers several advantages over other payment methods, including increased
security, fraud protection, and reduced liability for merchants. However, the use of SET has
been limited due to its complexity and the availability of simpler and more user-friendly
payment methods such as SSL/TLS, 3D Secure, and EMV.
In recent years, the adoption of SET has been declining in favor of newer and more
streamlined payment methods that offer similar levels of security without the added complexity.
However, SET remains an important protocol in the history of e-commerce and online
payments, paving the way for future advancements in payment security.
The SET protocol is activated after the cardholder has completed their research on the
Internet, made their selection and placed their order. Before the SET process starts, the
cardholder must have completed and approved the order form. The cardholder must also have
selected the card type. The SET protocol provides significant innovations in three main areas
of security. In this way, it gains significant advantages over other payment security methods
(Jake Frankenfield 2022). These three areas are:
•
"Confidentiality" is ensured by encrypting messages and making them illegible.
•
"Message integrity" is ensured by digital signing and hashing to ensure that the
message reaches the other party unaltered in the same form as it was sent.
Transactions cannot be altered by malicious individuals to change the account
number or amount.
•
"Authorization" is achieved through the use of a digital signature. The digital
signature verifies the identity of the parties involved in the transaction and
prevents them from denying the message they have sent.
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2.2. E-Commerce and Online Shopping
E-commerce and online shopping are two terms that many people use. But they are not
the same terms. According to Candice V Cunningham, founder of the Chicago nonprofit
organization The Black Ecosystem, e-commerce is all aspects of a business operating online,
while online shopping is selling and buying of goods and products online. (Candice V
Cunningham Media Collection | Chicago, IL, n.d.)
E-commerce refers to the buying and selling of goods and services over the internet. In
recent years, e-commerce has become increasingly popular due to the convenience it offers.
Consumers can shop from the comfort of their homes at any time of the day, and retailers can
reach a wider audience without the need for a physical storefront. Online shopping, which is a
form of e-commerce, allows consumers to purchase goods and services from various online
stores through their computers or mobile devices.
The rise of e-commerce has revolutionized the retail industry, creating new
opportunities for businesses to reach customers and for consumers to access a broader range
of products. In addition, e-commerce has transformed the way we conduct transactions,
making online payments, and money transfers more accessible and secure. However, this
digital transformation has also given rise to new challenges and risks related to security,
privacy, and trust.
Ensuring the security of e-commerce transactions is critical to building trust with
customers and maintaining the reputation of online retailers. Security risks in e-commerce
include phishing scams, identity theft, fraudulent transactions, and data breaches. Retailers
must implement robust security measures to protect their customers' personal and financial
information, including encryption and two-factor authentication. In addition, consumers
should be educated about safe online shopping practices, such as avoiding suspicious links,
keeping their software up to date, and monitoring their accounts for unusual activity.
The success of e-commerce relies on the ability to provide a seamless and convenient
shopping experience for consumers. Online retailers should prioritize user experience by
providing intuitive website navigation, clear product descriptions, high-quality images, and
responsive customer service. E-commerce platforms should also offer secure and reliable
payment options that allow customers to pay using their preferred methods, such as credit
cards, debit cards, or e-wallets.
In the context of Turkey, e-commerce has experienced significant growth in recent
years, driven by the country's large and tech-savvy population. The Turkish government has
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also implemented policies and initiatives to support the development of the e-commerce
industry, such as tax incentives and infrastructure investments. However, challenges related to
security, logistics, and regulation remain. For example, many consumers in Turkey are still
hesitant to shop online due to concerns about fraud and security. To address these challenges,
the Turkish government and e-commerce industry stakeholders must work together to
implement effective security measures, streamline logistics, and develop clear and consistent
regulations to build trust and encourage consumer adoption of e-commerce.
Virtual stores allow people to shop from the comfort of their homes without the
pressure of a salesperson. Online marketplaces provide a new and more convenient venue for
exchanging virtually all types of goods and services. Both businesses and customers have
embraced online sales as a cheaper and more convenient way to shop. Still, just like anything
associated with the Internet, there are benefits and dangers associated with shopping online.
Read on to learn how to protect yourself while you use this handy resource. In recent years,
there has been a tremendous increase in online shopping. Major e-tailers now offer consumers
more options and product selections, and brick and mortar stores offer their own online
incentives to remain competitive and capture a share of the online market. Additionally, in the
wake of the Covid-19 pandemic, many people have switched to shopping for items online that
they used to obtain from neighborhood stores. Unfortunately, as consumer activity online has
increased, so too has cybercrime – incurring financial losses for unfortunate victims. But while
internet scams and cybercrime exist, that does not mean you need to avoid online shopping.
Safe online shopping is possible, provided you are aware of the potential risks and take proper
precautions.
2.2.1. Europe E-commerce Market Analysis
The European e-commerce market is expected to register a CAGR (Compound Annual
Growth Rate) of 13.84 % from 2022 to 2027. Higher e-commerce penetration rates in the
European market are here to grow. Online sales in the UK market increased by 43% yearly.
Since the lockdown began in the UK, there has been a significant shift toward online channels,
and sales in the country have been sustained. It has also accelerated the digitalization of retail
in Germany at every level. European consumers increasingly turned to Amazon during the
lockdown due to its convenience, delivery, and low prices. Nearly 300 million unique visitors
visit Amazon's six main European sites each month. The platform's traffic increased in every
European market in 2020, with visits increasing by 17% in the UK and 9% in Germany between
March and August 2020. Amazon is estimated to have a 30% market share in the UK and
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Germany. Cdiscount began shipping items to Belgium, Germany, Italy, and Spain, triggering
the start of its international expansion. Cdiscount's growing cross-border presence results from
a 15% year-on-year increase in net sales. Last year, Cdiscount customers placed 5.8 million
orders for 11 million items. The Cdiscount marketplace currently has 10,000 connected sellers.
Zalando has added a new offer to its platform, bridging the gap between new and preowned clothing for European customers while providing unrivaled convenience in typical
Zalando fashion. Furthermore, Zalando is experimenting with using plastic-free packaging and
recycled materials to ship all pre-owned orders. Both contribute to Zalando's 2023 goal of
extending the life of 50 million items and eliminating single-use plastic, which is committed to
the do more sustainability strategy.
Lightspeed and Shopify are both well-optimized for cross-border e-commerce in the
European market. H&M, Carrefour, and Ikea are great platforms for well-known retailers in
multiple countries across Europe and beyond. Furthermore, the United Kingdom has the
second-largest share, accounting for 3.9 %, with nearly 59,000 Shopify e-commerce websites.
Germany rounds out the top five with over 23,000 Shopify-built e-commerce websites, while
France (about 19,000) and the Netherlands also have many Shopify-built websites (over 12,000).
While most Covid-affected Europeans shop at home on Amazon, AliExpress has quietly
but aggressively expanded into the market. AliExpress is a division of the Chinese
conglomerate Alibaba Group. Furthermore, Up and coming Chinese brands, such as Xiaomi,
provide a brand experience to European consumers. Products from the first European brands
that sell direct, such as Kimbo Coffee in Italy, and more than 10,000, mostly smaller Spanish
companies, are available on AliExpress.
The COVID-19 outbreak has significantly impacted European countries such as Spain,
Italy, Germany, France, the United Kingdom, Turkey, and Switzerland. Despite the nationwide
lockdown, online sales have shown a positive response. The European government closed most
brick-and-mortar retail stores as a precautionary measure as part of a series of lockdown plans
to contain the spread of COVID-19. As a result, there is a high demand for online shopping for
essential and non-essential products such as groceries, clothing, and accessories. (The Impact
of COVID-19 on the Evolution of Online Retail: The Pandemic as a Window of Opportunity,
2022)
2.2.2. Growing European Retail E-commerce Consumer
Europeans are spending more time on online shopping. On account, e-shopping
penetration rates are highest in Western (83%) and Northern Europe (79%), while in Eastern
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and Southern Europe, especially Spain and Italy, more buyers are trying internet shopping for
the first time. According to Morgan (2020), mobile commerce is the primary driver of growth
in Europe. Mobile devices are currently the most preferred device for online shopping in the
United Kingdom and the Czech Republic. In Ireland, Norway, and Sweden, smartphone use as
a shopping device is also prevalent.
According to the most recent data on internet penetration in the EU, Europeans use the
internet at least once a week, with 71% using it every day. This level of internet adoption,
combined with rising levels of trust in electronic payment methods, has paved the way for the
e-commerce sector's steady as well as healthy evolution.
The rise in popularity of online marketplaces is one of the most notable trends in the
current year. Europe has been slower to adopt marketplaces than the United States or China.
Still, they are becoming an increasingly crucial online route of entry for brands worldwide
looking to break into the European market.
In recent years, e-commerce sales have been the primary growth engine in the retail
sector. However, the European Commission reports that 75% of Europeans use the internet on
a daily basis. In comparison, only 15% buy online from another country, and only 7% of small
and medium enterprises sell cross-border. (Singh et al., 2001)
Digital literacy and skills are also on the rising trend in Europe, with internet users
increasing from 87 % to 89 % by 2020. Over 95 % of the population in Western and Northern
Europe uses the internet, while 77% are online in Eastern Europe, where internet use is the
lowest on the continent. (Singh et al., 2001)
Clothing, electronics, communication products, and computers and their accessories
such as games, apps, and so on are in high demand in the European e-commerce market.
Products in these categories account for roughly 50% of all European e-commerce sales. Travel,
footwear, household goods, and home and living items are also profitable segments in the
European E-commerce market.
There are over 800,000 online stores in Europe, research from Ecommerce News Europe
in collaboration with Data provider shows. These online stores are widely spread across the
continent, but most ecommerce websites can be found in Germany, the United Kingdom and
the Netherlands. There are over 200,000 online stores in Germany, the number one country in
Europe in terms of online stores. Germany accounts for a fifth of all online stores measured in
Europe. Second is the UK, where 108,000 online stores were active during the research period.
The surprising third place is for the Netherlands with over 82,000 online stores. Surprising,
because the Netherlands are a small country with just 17 million inhabitants. But the Dutch are
26
well-known for their high internet penetration rate and the fact eBay or Amazon did not enter
the market for years. As a result, ecommerce software providers from the Netherlands had
enough time to further develop itself and build software solutions that are very popular among
smaller retailers.
2.2.3. Online shopping risks
Potential online shopping safety risks include:
Identity theft
Identity theft is a type of online shopping risk that involves the theft of personal
information from an individual. This information can include a person's name, address, date of
birth, social security number, credit card number, and other sensitive details. Cybercriminals
can use this information to open credit card accounts, obtain loans, or make purchases using the
victim's name.
In the context of online shopping, identity theft can occur when a user's personal and
financial information is stolen through a data breach, phishing scam, or other cyber attack. For
example, a hacker could gain access to an online retailer's customer database and steal users'
personal information. Alternatively, a user could be tricked into entering their login credentials
on a fake website designed to look like a legitimate shopping site.
To mitigate the risk of identity theft, online shoppers should take several precautions.
These include using strong, unique passwords for each online account, avoiding public Wi-Fi
when making purchases, and regularly checking bank and credit card statements for fraudulent
charges. Users should also be wary of emails or messages requesting sensitive information and
should verify the authenticity of any requests before responding. Additionally, consumers can
use tools such as two-factor authentication and identity theft protection services to enhance their
online security.
Fake online stores
Fake online stores are one of the common risks associated with online shopping. These
stores are set up to deceive online shoppers into giving away their personal and financial
information.
One of the main characteristics of a fake online store is that they offer prices that are
significantly lower than those offered by legitimate online stores. Additionally, they often have
poor quality or low-resolution images of products, lack clear return or shipping policies, and
have limited or non-existent customer support.
When a shopper makes a purchase on a fake online store, they may be asked to provide
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their personal information, such as their name, address, and credit card details. This information
can then be used by the fake store owners for fraudulent activities, such as identity theft or
credit card fraud.
To avoid falling victim to fake online stores, shoppers should always check the
legitimacy of the online store before making a purchase. This can be done by looking for
reviews from previous customers, checking the store's contact information and return policy,
and looking for security features such as SSL encryption. Additionally, shoppers should only
make purchases from reputable and established online stores to minimize the risk of being
scammed.
Unencrypted data
Unencrypted data is one of the major risks associated with online shopping. When data
is sent over the internet, it needs to be encrypted in order to protect it from hackers and
cybercriminals. Encryption involves the use of mathematical algorithms to convert plain text
data into an unreadable format. This ensures that only the intended recipient can read the data.
When data is unencrypted, it is vulnerable to interception and theft by cybercriminals.
This can include personal and financial information such as credit card numbers, bank account
details, and passwords. Hackers can use this information to steal money, commit identity theft,
and carry out other types of fraud.
Unencrypted data can be particularly dangerous when it is stored on servers. If a server
is hacked, all the unencrypted data it contains can be easily accessed by cybercriminals. This
can put the personal and financial information of thousands or even millions of users at risk.
To protect against the risk of unencrypted data, it is important to only use reputable
online stores that have strong security measures in place. This can include the use of SSL
encryption, two-factor authentication, and secure payment processing. It is also important to
use strong and unique passwords for all online accounts, and to never share personal or financial
information with anyone you do not trust.
Data breaches
Data breaches are a significant risk associated with online shopping. Data breaches
occur when an unauthorized party gains access to sensitive information, such as credit card
numbers, passwords, and other personal data. In the context of e-commerce, data breaches can
occur when sensitive information is transmitted over an unsecured network or when a
company's databases are hacked.
The consequences of a data breach can be severe. In addition to financial losses,
customers can experience identity theft, fraudulent purchases, and damage to their credit scores.
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Data breaches can also damage a company's reputation, leading to lost revenue and legal action.
To prevent data breaches, e-commerce companies should take steps to secure their
networks and databases. This can include using encryption to protect sensitive data during
transmission, implementing strong access controls, and regularly monitoring for suspicious
activity.
Customers can also take steps to protect themselves from data breaches. This includes
using strong passwords, monitoring their financial accounts regularly, and being cautious when
providing personal information online. Additionally, customers should only shop with
reputable e-commerce companies that have a proven track record of protecting customer data.
Fake reviews
Fake reviews can be considered as a significant risk in online shopping. These reviews
are written by individuals who have not purchased or used the product or service in question.
They can be created for several reasons, such as to promote a product, demote a competitor's
product, or manipulate search rankings.
Fake reviews can mislead customers by creating an inaccurate impression of a product's
quality or reputation. This can lead to customers purchasing products that do not meet their
expectations, resulting in a waste of money and time.
To mitigate the risks of fake reviews, online shopping platforms have implemented
several measures. These include the use of algorithms to identify and remove fake reviews,
verification of customer purchases, and flagging suspicious activity. Customers can also take
steps to protect themselves from fake reviews by researching products and reading reviews from
multiple sources. They should look for detailed reviews that provide specific information about
the product and avoid relying solely on reviews with high ratings or overly positive language.
Fake apps
Fake apps are a type of online shopping risk that consumers need to be aware of. These
are fraudulent mobile applications that are designed to look like legitimate shopping apps but
are actually created by scammers to steal personal and financial information from users.
Fake apps can be downloaded from unauthorized app stores or from links in phishing
emails or text messages. Once downloaded, they may ask users to provide sensitive information
such as credit card details or login credentials. They can also install malware on the user's
device, which can then be used to steal information or perform other malicious activities.
To avoid falling victim to fake apps, consumers should only download apps from
official app stores such as Google Play or Apple's App Store. They should also be cautious of
links sent through unsolicited emails or text messages and should always verify the legitimacy
29
of an app and its developer before downloading it.
Consumers should also be wary of apps that ask for excessive permissions or require
the user to provide sensitive information before they can be used. It's important to read reviews
and research the app before downloading it to ensure that it's legitimate and safe to use.
Unsecured Wi-Fi
Unsecured Wi-Fi is another potential risk for online shopping. Public Wi-Fi networks,
such as those found in coffee shops, airports, or hotels, may not be secure, making it easier for
cybercriminals to intercept users' data and gain access to their personal information.
When users connect to an unsecured Wi-Fi network, their device's internet traffic can
be intercepted by cybercriminals using a technique called "man-in-the-middle" attack. This
allows hackers to eavesdrop on users' online activities, including their shopping transactions,
and potentially steal their login credentials, credit card details, or other sensitive information.
To minimize the risk of falling victim to this type of attack, users should avoid using
public Wi-Fi networks for online shopping or other sensitive activities that involve the
exchange of personal or financial information. Instead, they should use a secure, passwordprotected Wi-Fi network or a virtual private network (VPN) to encrypt their internet traffic and
keep their data safe from prying eyes.
Adware
Adware is a type of software that is designed to display advertisements on a user's
computer or mobile device. It is often bundled with other software or downloaded unknowingly
by the user. Adware can be used to deliver targeted advertisements to users based on their
browsing history and other data collected by the software.
In the context of online shopping, adware can be a potential risk as it can display ads
that may lead users to fake or fraudulent websites. These websites may appear legitimate and
offer products at lower prices than genuine retailers, but they are designed to collect user data
or to steal money from unsuspecting buyers. Adware can also be used to inject advertisements
into legitimate shopping websites, which can be annoying and distracting for users.
To prevent adware from compromising the security of their online shopping experience,
users should be cautious when downloading and installing software, and should always read
the terms and conditions carefully. It is also important to keep anti-virus and anti-malware
software up to date and to avoid clicking on suspicious ads or links. Users can also use adblocking software or browser extensions to prevent ads from being displayed on their devices.
Phishing
Phishing is a type of online scam where a cybercriminal poses as a legitimate entity
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(such as a bank or an online store) and tries to trick the victim into providing sensitive
information like login credentials, credit card details, or personal information. Phishing attacks
can take the form of emails, text messages, phone calls, or even fake websites.
In the context of online shopping, phishing attacks are a significant risk because
cybercriminals can easily create fake online stores that look very similar to legitimate ones.
They can send out phishing emails or text messages with links to these fake stores, and when
the victim clicks on the link and enters their information, the cybercriminal can steal it.
Phishing attacks can be difficult to detect, as the cybercriminals often use sophisticated
techniques to make their emails or websites look legitimate. To protect against phishing attacks
when shopping online, it's important to be cautious when clicking on links in emails or text
messages, and to always check the URL of the website to ensure it is legitimate before entering
any sensitive information. It's also important to keep antivirus software and web browsers up
to date, as they often include features to help detect and block phishing attempts.
2.3. Components and Basic Strategies in Online Shopping
The component and basic strategies in online shopping are crucial factors that influence
the decision-making process of consumers. In this section of the thesis, we will discuss the
various components of online shopping and the basic strategies that businesses use to attract
and retain customers.
Components of online shopping are:
a. User Interface: The user interface of an online store is the most significant component.
It should be easy to navigate, visually appealing, and provide an excellent shopping experience
for the customer.
b. Search functionality: Online shoppers must be able to find the products they are
searching for. An efficient search function is essential for any online store.
c. Product Information: Online stores should provide customers with detailed product
information, including product descriptions, prices, images, and customer reviews.
d. Shopping Cart: A shopping cart allows customers to add items to their order and check
out when they're ready to complete their purchase.
e. Payment and Security: Online stores must provide secure payment options that
customers can trust, such as credit card payments and third-party payment providers.
Basic Strategies in online shopping are:
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a. Free Shipping: Offering free shipping is an effective strategy to attract customers to an
online store. Customers prefer not to pay additional shipping charges, and therefore, free
shipping can help increase sales.
b. Discounts and Promotions: Offering discounts and promotions is another effective
strategy to attract customers to an online store. Discounts, coupons, and promotional codes can
help increase sales and encourage repeat business.
c. Loyalty Programs: Offering loyalty programs to repeat customers can help businesses
retain customers and encourage them to make additional purchases.
d. Customer Service: Good customer service is crucial for online stores to retain
customers. It includes responding to customer queries promptly, handling returns and refunds
efficiently, and providing support via various channels, such as phone, email, or chat.
Since the beginning of our century, which can be called the internet century, online
shopping has clearly been increasing rapidly. Although people's online shopping behavior is
like their traditional shopping behavior, it also has some differences. Table 1 highlights the
main differences between traditional and online shopping.
Table 1. Comparison of Traditional Shopping and Online Shopping
Traditional Shopping
Online Shopping
Product descriptions, customer
Clerk service
service support by phone and
email
Special offers, online games and
Sales promotion
sweepstakes
Store design, organization,
Store atmosphere
infrastructure and graphic
quality
Aisle products
Products at hierarchical levels
Store layout
Screen depth, search functions,
site Maps
Payment points / Cash registers
Online shopping carts and
ordering forms
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Product images and descriptions,
See and feel products
audio promotion and video
support
Source: Short Form of Bortner Rating Scale (Özsoy, 2013)
The rate of online shopping is growing day by day. For this reason, it has become of
great importance in marketing and advertising circles to understand a number of factors such
as consumers' perceptions of online shopping, the reasons that push them to shop or, on the
contrary, push them away, their concerns, attitudes, interests, motives and how they may vary
compared to traditional consumer behavior. For example, in view of Jones (2010), regarding
the relationship between online shopping tendencies and general shopping tendencies, can
categorize consumers into 7 groups from the perspective of consumer shopping tendencies:
-
consumers who prefer to shop from home (In-Home Shopper),
-
consumers who make comparisons before shopping (Economic Shopper),
-
consumers who prefer shopping in shopping centers (Mall Shopper),
-
consumers who prefer to shop from places where they know the sales consultants
(Personalized Shopper),
-
consumers who prefer to shop at local grocery stores for support (Ethical Shopper),
-
consumers who value convenience and comfort in their shopping (Convenience
Shopper),
-
consumers who enjoy shopping (Enthusiastic Shopper).
The main strategies observed in online shopping behavior are compiled in 4 items.
These are unplanned shopping, planned shopping, hedonistic shopping and shopping to build
knowledge (Vijayasarathy, ve Jones, 2010).
1. Unplanned Shopping
The factors that motivate unplanned shopping behavior can basically be considered in
two categories as internal and external factors. External factors refer to the stimuli placed by
retailers that motivate consumers to purchase more. These stimuli can be the external
appearance of the product, its presentation, various campaign visuals or features. In addition to
external factors, internal factors can also significantly trigger the consumer's unplanned
shopping behavior. Since these factors are related to the consumer's personality traits, the
primary focus is not on the external environment but on the consumer himself/herself.
33
Consumers may attribute to these shopping impulses a sense of restlessness or a means to
improve a negative mood. In general, it can be accepted that some instant motives such as
rewarding, consoling or supporting oneself will encourage unplanned shopping (Üster, 2015)
2. Planned Shopping
Planned shopping is the shopping behavior of the consumer after the steps of researching
according to the needs of the consumer and evaluating different alternatives and options.
According to the effort spent by the consumer in shopping behavior, planned shopping
behaviors are handled in three ways. These are (Aydın, 2005: 64):
1. Habitual, routine, problem solving;
2. Extended, comprehensive problem solving;
3. Limited problem solving;
In habitual or routine problem-solving behavior, the consumer makes a choice and
performs the shopping behavior in a short time without the need for much evaluation and
research. The shopping behavior expressed by extended, comprehensive problem solving
applies to products and services that are relatively expensive, require more research, and are
not purchased very often. Limited problem solving is a type of behavior that differs according
to the size of the decision to be made for the product or service. In this type of behavior, as the
resources to be used for the product or service increase, the amount of information to be used
will also increase.
3. Hedonistic Shopping
In online shopping with hedonistic values, it is accepted that consumers who spend time
on websites value the experience in terms of aesthetics and pleasure in their inner sensitivities.
On the basis of hedonistic shopping, social acquisitions, sharing of common interests,
interpersonal attraction, ready-made statuses and race curiosity are also effective in the design
of online shopping sites over time. Shopping sites that aim to provide consumers with
hedonistic benefits use emotional, physical tastes and aesthetic features in their content and
design (Özdemir & Yaman, 2007). Hedonistic shoppers attach symbolic meanings to their
shopping behaviors and behave in order to get pleasure. It has been observed that hedonistic
shoppers have fun during their online shopping behavior, their intention to shop online is
increasing and they are more and more inclined to show unplanned shopping behavior.
4. Shopping for knowledge building
34
When a need arises in the decision-making process to perform a shopping behavior, the
buyer aims to access information about alternatives to meet that need. Information is useful to
the buyer in several different ways:
-
once informed, decisions are better and easier to make,
-
information reduces the perceived risk of the choice,
-
once informed, confidence in the decision increases,
-
information is useful in identifying desirable options and eliminating undesirable
options,
-
information can also be used to justify behavior, i.e., as an ego-protective role.
In conclusion, understanding the components and basic strategies in online shopping is
essential for businesses to attract and retain customers. A well-designed user interface, efficient
search functionality, detailed product information, a shopping cart, secure payment options,
free shipping, discounts, loyalty programs, and good customer service are all key factors that
can help increase sales and build a loyal customer base.
35
Chapter III. The State of E-Commerce, Electronic Payment, and Online
Shopping in Turkey
3.1.
Research Methodology
Research Aim: The aim of this research is to examine the current state of electronic
payment and online shopping in Turkey and to identify the challenges, opportunities, and trends
in this rapidly evolving field. The research aim helps to provide a clear direction and focus for
the research, guiding the selection of research questions, methods, and sources.
The research aims to address several questions, including:
1. What is the current state of electronic payment and online shopping in Turkey?
2. What are the trends and drivers of electronic payment and online shopping in Turkey?
3. What are the barriers to adoption of electronic payment and online shopping in Turkey?
4. What are the opportunities and challenges for businesses and consumers in the
electronic payment and online shopping market in Turkey?
By addressing these questions, the research aims to contribute to the existing body of
knowledge on electronic payment and online shopping in Turkey, and to provide insights and
recommendations for businesses and policymakers. Specifically, the research aims to provide
insights into the factors that influence the adoption and use of electronic payment and online
shopping, and to identify strategies that can be used to promote their adoption and use.
Limitations: During the research process for the thesis on electronic payment and
online shopping in Turkey, several challenges were encountered. Here are some examples:
Data access: The availability and accessibility of data related to electronic payment and
online shopping in Turkey was a key challenge faced during this research project. While there
are several sources of data available, including government agencies, academic research, and
industry reports, not all data is publicly available or easily accessible. This was particularly
challenging for data on consumer behavior, as there is limited access to individual-level data
due to privacy concerns. Additionally, some organizations may be hesitant to share data due to
concerns around competition or confidentiality. These factors made it difficult to gather the
necessary information to answer the research questions effectively.
Limited funding: The research project faced financial limitations, which impacted the
scope and depth of the study. Limited funding meant that it was not possible to collect and
analyze as much data as desired, travel to different regions in Turkey for fieldwork, or hire
additional staff to assist with research tasks. This may have limited the ability to explore certain
36
research questions in greater depth, or to gather a more diverse sample of participants.
Additionally, the lack of funding may have limited the ability to access certain data sources or
to purchase specialized software or equipment for data analysis.
Time constraints: The research project was subject to strict timelines and deadlines,
which proved challenging to meet due to unexpected issues and the data collection process
taking longer than anticipated. This time constraint affected the quality and completeness of the
research findings, as it was not possible to explore certain research questions or to gather as
much data as desired. Additionally, the tight timeline may have limited the ability to engage in
more iterative research methods, such as iterative prototyping or user testing, which could have
provided valuable insights into user behavior and preferences.
Inadequate access to reliable information: Another challenge faced during research on
electronic payment and online shopping in Turkey is the lack of reliable and up-to-date
information. This can be particularly problematic when trying to analyze trends and patterns
over time or when trying to compare data across different regions or countries. Inadequate
access to reliable information can result in incomplete or inaccurate research findings, which
can undermine the credibility of the study. This problem may be due to a variety of factors,
such as limited availability of data or a lack of transparency in reporting. Addressing this
challenge may require working with stakeholders to improve data collection and reporting
processes, as well as developing partnerships with organizations that have access to relevant
data. It may also be necessary to supplement existing data sources with alternative data
collection methods, such as surveys or interviews.
Methods: During the research, secondary research methods were used to gather and
analyze existing literature and data related to the research topic. These methods included
reviewing academic journals and articles, analyzing government reports, and examining
industry publications. Additionally, online databases and search engines were utilized to gather
relevant information and data from trusted sources. The secondary research methods allowed
for a comprehensive analysis of the electronic payment and online shopping industry in Turkey,
which formed the foundation for the primary research conducted for the thesis.
Literature review: Conducting a comprehensive literature review is a common method
for conducting secondary research in academic writing. This involves reviewing scholarly
articles, books, and other sources of information to gain insights into the topic at hand. For the
research on electronic payment and online shopping in Turkey, a literature review was
conducted to explore the existing research and theories related to electronic payment systems,
online shopping, and related topics.
37
Desk research: Desk research is another form of secondary research that involves
gathering information from publicly available sources such as reports, company websites, and
news articles. For the research on electronic payment and online shopping in Turkey, desk
research was carried out to gather data on trends in e-commerce, statistics on consumer behavior
in Turkey, and information on the regulatory environment for electronic payment systems in
Turkey.
Online surveys: Online surveys are a popular method of gathering data for research
purposes. For the research on electronic payment and online shopping in Turkey, online surveys
were used to gather data from Turkish consumers on their attitudes and behaviors related to
electronic payment systems and online shopping. This data was then analyzed to identify trends
and patterns in consumer behavior related to the research questions.
Statistical analysis: Statistical analysis is a method used to analyze data and test
hypotheses using statistical methods. For the research on electronic payment and online
shopping in Turkey, statistical analysis was employed to analyze data gathered from surveys or
other sources, related to the research questions.
Case studies: Case studies involve analyzing specific instances or examples of a
phenomenon to gain insights into broader trends or patterns. For the research on electronic
payment and online shopping in Turkey, case studies were used to explore specific examples
of successful or unsuccessful electronic payment systems or online shopping platforms in
Turkey, to gain insights into the factors that contribute to their success or failure.
Thesis took a total of nine months to complete. The process started in March of the
previous year when the topic was chosen, and initial research conducted. This stage involved
studying various resources, including academic journals, reports, and online databases, to gain
a better understanding of electronic payment systems and online shopping in Turkey.
Once the topic was settled and a research question developed, the author began to collect
data from secondary sources. This phase took several months and included analyzing reports
from various government institutions, online marketplaces, and financial institutions. He also
reviewed academic articles and studies related to the topic to gain deeper insights.
The research was conducted in two main stages. The first stage involved analyzing the
state of electronic payment systems and online shopping in Turkey. This stage included an indepth examination of the history of electronic payment systems, the emergence of online
shopping, and the current trends and challenges in the Turkish market. The second stage focused
on analyzing the security concerns and barriers to adoption of electronic payment systems in
Turkey.
38
In May of last year, the author submitted the first chapter of the thesis, which focused
on electronic commerce and electronic payment systems. In January of 2023, he submitted the
second and third chapters of the thesis, which focused on security in electronic commerce and
the state of e-commerce, electronic payment, and online shopping in Turkey. The second
chapter examined the security issues involved in online shopping, including cyber threats,
fraud, and identity theft. The third chapter discussed the current state of e-commerce, electronic
payment, and online shopping in Turkey and analyzed the challenges and opportunities for
further growth in the sector. Overall, the research methodology for the thesis involved a
comprehensive analysis of various secondary sources, including academic studies, reports, and
online resources. It took nearly 9 months to complete and involved two main stages of analysis,
resulting in a thorough examination of electronic payment systems and online shopping in
Turkey.
3.2.
E-commerce in Turkey
Today, e-commerce penetration in Turkey continues to increase as it is embraced by the
masses through product categories such as food and beverage, education and computer games.
This translates to a rising number of e-commerce transactions, and e-commerce becoming an
ordinary way of shopping. Currently, fashion industry leads the e-commerce in Turkey in terms
of both sales volume and transaction count. The immediate followers of the fashion category
emerge as relatively high-basket value industries such as electronics and furniture. When we
look at the payment side of the online shopping experience, we observe that prepaid cards and
digital wallets have become significantly widespread. In addition, as consumers in Turkey
become more financially aware and seek faster solutions, they will prefer alternative financing
options. E-commerce is becoming a more reachable and preferable channel even for microscale
enterprises, by virtue of the rapid growth of the logistics sector and the enabler services related
to the use of marketplaces (Digital 2021: Turkey 2021).
Turkey has become one of the fastest-growing e-commerce markets in the world, with a
high percentage of internet users and increasing digitalization in recent years. The growth in ecommerce in Turkey has been driven by factors such as increased access to the internet, the rise
of smartphones, and the changing attitudes of consumers towards online shopping. According
to recent statistics, the Turkish e-commerce market reached a size of $14.6 billion in 2020 and
is expected to continue growing in the coming years.
39
The Turkish government has been actively promoting e-commerce and digitalization
through various initiatives, such as the "e-Transformation Turkey" project, which aims to
increase the use of e-commerce and digitalization in the country. Additionally, the government
has introduced various measures to support the growth of e-commerce, such as tax incentives
and regulations that protect consumers and businesses.
In terms of the types of e-commerce in Turkey, the most common categories are clothing
and fashion, electronics, and home appliances. However, there has been an increase in niche
categories such as cosmetics, organic products, and health and wellness. The majority of ecommerce transactions in Turkey are conducted through mobile devices, with mobile ecommerce accounting for over 50% of all e-commerce transactions.
According to a report by the Turkish E-Commerce Association, the e-commerce market
in Turkey grew by 66% in 2020, reaching a market value of $34.5 billion. This is expected to
continue to grow in the coming years.
One of the main drivers of e-commerce growth in Turkey is the increasing adoption of
mobile devices. More than 90% of internet users in Turkey access the internet through their
mobile devices, making mobile commerce a key area of growth. The ease and convenience of
mobile shopping have made it a popular choice for Turkish consumers.
Another factor contributing to the growth of e-commerce in Turkey is the increase in
online marketplaces. Online marketplaces have become a popular way for Turkish businesses
to sell their products online. Marketplaces such as Gittigidiyor, Hepsiburada, and Trendyol have
become household names in Turkey and have contributed to the growth of e-commerce in the
country.
In addition to online marketplaces, Turkish businesses are also creating their own ecommerce websites. This has been made easier with the availability of e-commerce platforms
such as Magento, Shopify, and WooCommerce. These platforms allow businesses to quickly
and easily set up an online store and begin selling their products to a wider audience.
The Turkish government has also been supportive of e-commerce growth in the country.
The government has introduced various incentives and initiatives to encourage the growth of ecommerce, such as reducing taxes and offering financial support to small and medium-sized
enterprises (SMEs) to develop their e-commerce capabilities.
However, despite the significant growth of e-commerce in Turkey, there are still
challenges to be addressed. One of the main challenges is the issue of trust. Many Turkish
consumers are still hesitant to make online purchases due to concerns over security and
40
reliability. This highlights the need for businesses to invest in building trust with their customers
through various means such as secure payment systems and customer reviews.
Despite the growth of e-commerce in Turkey, there are still some challenges that need to
be addressed. One of the main challenges is the issue of trust and security, as many consumers
are still hesitant to make purchases online due to concerns about fraud and data privacy. Another
challenge is the lack of adequate infrastructure, such as logistics and transportation, which can
hinder the growth of e-commerce in some regions.
Overall, the e-commerce market in Turkey presents significant opportunities for
businesses and consumers alike. However, it is important to address the challenges and ensure
that the necessary infrastructure and regulations are in place to support the growth of ecommerce and ensure the security and trust of consumers.
In 2021, the increase in the e-commerce sales accelerated further thanks to the habit of
online shopping, resulting in a sales volume of 382 billion TRY via 69% year-on-year growth
(Orkun Saitoğlu & Erdal Güner, 2021).
Source: Digital 2021: Turkey 2021
The average profile of Turkey’s ecommerce merchants can be described as follows:
-
they are mostly located in metropolitan areas, concentrated around particular sectors,
micro-scale enterprises that hold a small market share.
-
most of their sales take place in online marketplaces.
On the other hand, large-scale sellers are responsible for an overwhelming majority of
the ecommerce activity. It is also worth mentioning that the year of 2020 largely determined
today’s picture regarding the supply side of Turkey’s e-commerce (Digital 2021: Turkey 2021).
41
Turkey's young population, the value it attaches to digitalization, the communication
infrastructure investments that improve every year, e-commerce-oriented developments and
growth are always advantages for Turkey in the axis of online trade. Turkey has accelerated its
online trade development every year. The development-oriented growth given by
manufacturers and service providers, especially in meeting the basic and vital needs of people,
is important. While the proportion of people buying products from sales channels such as stores
and shopping malls is gradually decreasing, the share of e-commerce in total retail sales has
increased. In this process, it has been observed that logistics-oriented demands have changed.
Especially the same-day delivery model has developed, and many cargo and courier companies
have been established in this period. Making deliveries on time and delivering the products to
the buyer undamaged has gained more importance both on the producer and the consumer side
in this period. Since some companies are not satisfied with cargo services, they establish their
own cargo networks and carry out activities to provide seamless service to their customers
(Global Ecommerce Forecast, 2021).
The effect of pandemic globally as well as in Turkey, the boom in e-commerce cannot
be thought independent from the effect of Covid19 pandemic. Before the pandemic, the 2020
growth rate for global ecommerce sales was estimated as 9%; whereas the actual growth
realized at 28%11. Likewise in the US, China and Europe, the e-commerce share of retail
increased between 5 and 15 percent during the second quarter of 202012. In the case of Turkey,
online sales volume expanded rapidly from March 2020 onwards. Monthly e-sales started to
exhibit a growth more than 100% on a year-on-year basis, starting from May 2020. The growth
in online shopping reached its peak in December 2020, at a rate that is four times the growth in
January. High sales volumes observed by the end of the year resulted a 122% yearly growth
from 2019 to 2020 (E-commerce at the time of COVID-19, 2020).
Source: Digital 2021: Turkey 2021
42
Trends observed for the e-commerce sales volume translate similarly to the number of
transactions. As seen in Figure 2, the number of online orders reached to 2,3 billion in 2020,
being 68% higher than the previous year. The number of e-commerce transactions surged to 3,4
billion for the year of 2021, which is 46% higher compared to 2020 statistics. The enablers of
e-commerce in Turkey correspond to 44% of the country population. This customer base is a
little more than half (54%) of the internet users in the country as depicted in Figure 3. Despite
its superior internet and mobile penetration rates compared to other developing markets, Turkey
falls behind the global average and its peers with respect to the ratio of ecommerce customers
to the internet users. In Latin American countries that have a similar rate of internet penetration
to Turkey, such as Argentina, Brazil, Colombia and Chile, this ratio is found to be between 6075%9. The EU average of the same statistic is calculated as 73%, which is in the middle of the
eastern and western Europe averages of 41% and 86%, respectively. Based on these numbers,
we deduce that e-commerce in Turkey display a substantial growth potential given the untapped
portion of internet users (Global Ecommerce Forecast, 2021).
Source: Digital 2021: Turkey 2021
We observe that the trend in consumer spending per transaction remained relatively
constant with respect to the increase in the frequency of shopping. As Figure 4 indicates, the
average basket value rose only by 8 TRY, from 138 TRY to 146 TRY from 2019 to 2021. The
declining basket vales in the context of e-marketplace orders, which obtained substantial market
share, had an impact on the overall decline in basket values from 2019 to 2020. Next year’s
slightly increasing average basket value reflects the increasing price trend for several categories
including electronics, fashion, art and culture.
43
Source: Digital 2021: Turkey 2021
Source: Digital 2021: Turkey 2021
Upon a close inspection of baskets, the number of items is found to decline on average.
Figure 5 tells us that an average basket contained 1,28 products in 2019, while this number went
down to 1,17 in 2021. Considering the trends for e-commerce orders as well as average basket
values, it is possible to infer that the consumers tend to shop more frequently at lower basket
values. A major dynamic behind this observation has been the recent investments towards
building last mile delivery capacity, which enables merchants to cut their delivery costs and
shorten their delivery time (The Next Frontier, 2021).
3.3.
Online Shopping in Turkey
Online shopping is a relatively new concept in Turkey, having gained popularity only
in the last decade. However, with the increasing use of the internet and the proliferation of ecommerce platforms, online shopping has become an integral part of the Turkish retail industry.
44
This section explores the growth of online shopping in Turkey, its impact on the traditional
retail industry, and the challenges that this sector faces.
According to recent data, the number of online shoppers in Turkey has increased
significantly in the last few years. In 2019, there were approximately 42 million internet users
in Turkey, and it is estimated that over 60% of them have made at least one online purchase.
The growth rate of e-commerce in Turkey has been impressive, with an annual growth rate of
25% in recent years. (Çebi Karaaslan, 2021)
The popularity of online shopping in Turkey can be attributed to several factors. First,
the convenience of shopping from home or anywhere with internet access has made online
shopping an attractive option for consumers. Second, the increasing use of mobile devices has
made it easier for consumers to shop online, anytime and anywhere. Third, the availability of a
wide range of products at competitive prices has made online shopping more attractive than
traditional retail stores.
The growth of online shopping in Turkey has had a significant impact on the traditional
retail industry. Traditional brick-and-mortar stores have been forced to adapt to changing
consumer behavior by integrating online shopping into their business models. Many retailers
have started to offer online shopping options, in addition to their physical stores, to keep up
with the changing market demands.
On the other hand, the growth of online shopping has also led to the closure of many
traditional retail stores. Retailers that have failed to adapt to the new market dynamics have
been forced out of business, leading to job losses and the closure of physical stores. This has
resulted in a significant shift in the retail landscape in Turkey, with online shopping gaining a
larger market share.
In Turkey, the top three online payment methods consist of VISA, MasterCard and
PayPal. Alternative local payment method called BKM Express (eWallet) and Troy (local card)
gain popularity. Card is the dominant payment method when shopping online in Turkey, used
for 64 percent of online transactions totaling $7.42 billion in annual sales. Debit is preferred
over credit in Turkey, with 1.63 debit cards per capita, compared with 0.77 credit cards per
capita. When it comes to a preferred card brand with which to shop online, Turkish consumers
tend to treat Visa and Mastercard equally. This adoption of specific payment methods in Turkey
will inevitably be influenced by the fact that a large proportion of Turkish citizens remains
without a bank account – just over a third of the population is unbanked. The use of cash is
particularly prevalent for ‘micropayments’ – small, daily expenditures such as newspapers, taxi
journeys and coffees. (Ertemel & Celik, 2019)
45
Online shoppers in Turkey buy various products, as the results of the survey suggest.
Frequency distributions of the findings obtained are given in Table 2. (Short Form of Bortner
Rating Scale, Özsoy, 2013)
Table 2. Most Preferred Products in Online Shopping
Which goods and
services do you
buy most often
online?
Clothing, sports
equipment
Banking and
financial services
Travel related
activities
Books, magazines,
newspapers (ebooks)
Electronic tools
(phone, camera,
TV)
Tickets for sporting
and cultural
activities
Household goods
(Furniture, toys,
white goods, etc.)
Movie, music
CD/DVD
Daily requirements
with foodstuffs
Computer and
other additional
equipment
Answers
Frequency
%
Respondents %
of
349
17.3
65.8
251
12.5
47.4
225
11.2
42.5
204
10.1
38.5
143
7.1
27
133
6.6
25.1
131
6.5
24.7
110
5.5
20.8
79
3.9
14.9
75
3.7
14.2
*Since the participants were told that they could mark more than one option, the frequencies of the answers given
were calculated according to the multiple answer set and proportioned according to all answers given.
According to the data in Table 2, it is observed that consumers mostly purchase clothing
and sports equipment (17.3%) in online shopping. This is followed by banking and financial
services (12.5%). When the answers given by the participants are evaluated, purchasing
46
computers and other additional equipment (3.7%) ranks the lowest in consumers' online
shopping.
The participants were also asked about the problems they face in their online shopping.
Participants were told that they could mark more than one option among the answers. The
frequency values of the data obtained are given in the table below (Short Form of Bortner Rating
Scale, Özsoy, 2013).
Table 3. Problems Encountered in Online Shopping
The Most Common
Problems in Online
Shopping
Delivery of incorrect or
damaged goods or
services
Slower delivery than
stated
Fraud
Answers
Frequency
%
Respondents % of
314
19.4
59.2
300
18.6
56.6
210
13
39.6
Financial security issues
169
10.5
31.9
Complaint or postcomplaint not getting
satisfactory answers
Information on warranty
conditions and other
legal rights difficult to
find
Import and export of
goods from foreign
websites to the country
not selling services
On the website at the
order or payment stage
encountered technical
failure
The price of the product
or service is higher than
stated to be
149
9.2
28.1
144
8.9
27.2
134
8.3
25.3
104
6.4
19.6
92
5.7
17.4
*Since the participants were told that they could mark more than one option, the frequencies of the answers given
were calculated according to the multiple answer set and proportioned according to all answers given.
47
When the data in Table 3 are evaluated, it is seen that the most common problem
encountered during online shopping is the provision of wrong or damaged products or services
(19.4%). According to the findings obtained as a result of the research, it is learned that the
problem that follows this issue most closely is that the delivery is slower than stated (18.6%).
According to the findings obtained in line with the answers given by the participants, it is seen
that the price of the product or service being higher than the specified price (5.7%) is the least
common problem encountered in online shopping.
In this part of the study, options were presented to the participants to determine the
advantages of online shopping. Participants were informed that they could give more than one
answer to the statements in this section. The frequency values of the findings obtained are given
in the table below (Short Form of Bortner Rating Scale, Özsoy, 2013).
Table 4. Advantages of Online Shopping
Advantages of Online
Shopping
Answers
Frequency
%
Respondents % of
Favorable Price
371
12.7
70
Saving Time
369
12.7
69.6
Product Variety
328
11.3
61.9
Product Comparison
Advantage
Convenience
311
10.7
58.7
310
10.7
58.5
Comfort
280
9.6
52.8
Consumer Rights on
Products and Services
Comments
Installment Options
170
5.8
32.1
156
5.4
29.4
Reliable Product Reviews
108
3.7
20.4
Easy Return Terms
85
2.9
16
Accurate Delivery
60
2.1
11.3
Effective Customer
Service
59
2
11.1
*Since the participants were told that they could mark more than one option, the frequencies of the answers given
were calculated according to the multiple answer set and proportioned according to all answers given.
48
As seen in Table 4, when the answers of the participants to the research are evaluated, it
is observed that the most advantageous aspects of online shopping are time saving (12.7) and
reasonable price (12.7). Both options were answered at the same rate. Following these two
options, the other most advantageous aspect of online shopping for the participants is product
variety (11.3). Effective customer service (2%), accurate delivery (2.1%) and easy return
conditions (2.9%) are seen as low advantages for online shopping.
Online shopping platforms have become a significant aspect of the e-commerce market
in Turkey. These platforms offer consumers a wide range of products, including electronics,
clothing, home appliances, and other goods, at competitive prices. The rise of e-commerce
platforms has been facilitated by the increased internet penetration and the growth of mobile
devices in Turkey. In this section, we will discuss some of the most popular online shopping
platforms in Turkey.
Trendyol is one of the most popular e-commerce platforms in Turkey, offering a wide
range of products from fashion to electronics. The platform was founded in 2010 and quickly
became a major player in the Turkish e-commerce market. Trendyol allows consumers to shop
from their website or mobile application and offers fast delivery options, including same-day
delivery in some areas. The platform also offers a variety of payment options, including credit
cards, debit cards, and cash on delivery.
Hepsiburada is another major e-commerce platform in Turkey that was founded in 2001.
The platform offers a variety of products, including electronics, home appliances, and fashion,
among others. Hepsiburada offers fast and reliable delivery options, with some items available
for same-day delivery. The platform also offers various payment options, including credit cards,
debit cards, and cash on delivery.
n11.com is a Turkish e-commerce platform that was launched in 2012. The platform
offers a variety of products, including electronics, fashion, and home appliances, among others.
The platform has a user-friendly interface and offers fast and reliable delivery options. n11.com
also provides various payment options, including credit cards, debit cards, and cash on delivery.
GittiGidiyor is another popular e-commerce platform in Turkey that was founded in 2001.
The platform offers a variety of products, including electronics, fashion, and home appliances,
among others. GittiGidiyor offers various payment options, including credit cards, debit cards,
and cash on delivery, and provides fast and reliable delivery options.
Sahibinden is a Turkish online marketplace that was launched in 2000. The platform
offers a variety of products, including cars, real estate, and electronics, among others.
Sahibinden has become one of the most popular online marketplaces in Turkey and provides a
49
safe and reliable platform for both buyers and sellers. The platform also offers various payment
options, including credit cards, debit cards, and bank transfers.
Overall, online shopping platforms in Turkey have become an integral part of the ecommerce market, offering consumers a variety of products at competitive prices and providing
fast and reliable delivery options. These platforms have contributed to the growth of ecommerce in Turkey and have become an essential component of the country's retail sector.
50
CONCLUSIONS
In conclusion, this thesis has provided a comprehensive analysis of the current state of
electronic payment and online shopping in Turkey, identifying the challenges, opportunities,
and trends within this rapidly evolving field. Through the utilization of various research
methodologies, including literature review, desk research, online surveys, statistical analysis,
and case studies, a deep understanding of the subject matter has been achieved.
The research findings have revealed a thriving electronic payment and online shopping
landscape in Turkey, driven by factors such as increased smartphone usage, improved internet
infrastructure, and shifting consumer preferences. Turkish consumers are embracing the
convenience, accessibility, and wide range of options offered by electronic payment systems
and online shopping platforms.
However, the research has also highlighted significant barriers to the widespread adoption
of electronic payment and online shopping in Turkey. Security concerns, including cyber
threats, fraud, and identity theft, emerge as critical obstacles that undermine consumer trust and
confidence. Addressing these concerns through the implementation of robust security measures,
continuous monitoring, and effective communication is essential to foster a secure and reliable
environment for online transactions.
Additionally, enhancing the user experience and convenience of electronic payment
systems and online shopping platforms is pivotal in attracting and retaining customers.
Businesses should prioritize the development of user-friendly interfaces, streamlined checkout
processes, and personalized experiences to meet the evolving expectations of Turkish
consumers. Insights gained from data analysis and market research enable businesses to tailor
their strategies and offerings to align with customer preferences.
Based on the research findings, it is recommended that businesses and policymakers focus
on building a foundation of trust and confidence among consumers. Transparent
communication regarding data privacy practices, secure payment options, and proactive
security measures is key to instilling trust in online transactions. Collaborative efforts among
industry stakeholders, regulatory bodies, and consumer advocacy groups are vital in
establishing industry-wide standards and best practices.
Furthermore, promoting digital literacy and conducting awareness campaigns are crucial
in empowering consumers to make informed decisions while engaging in electronic payment
and online shopping activities. Education initiatives that inform users about potential risks,
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promote safe browsing habits, and emphasize the protection of personal information will
contribute to a safer and more secure digital ecosystem.
In conclusion, this research provides valuable insights into the current landscape of
electronic payment and online shopping in Turkey. By addressing security concerns, enhancing
the user experience, and fostering consumer trust, businesses and policymakers can harness the
vast opportunities presented by the digital economy. The recommendations outlined in this
thesis serve as a roadmap for stakeholders to navigate the dynamic landscape of electronic
commerce and drive sustainable growth in the sector.
It is important to acknowledge the limitations encountered during the research process,
including data access restrictions, limited funding, and time constraints. These limitations may
have impacted the depth and scope of the study. However, the research outcomes contribute to
the existing body of knowledge and lay the foundation for further exploration and
advancements in electronic payment and online shopping in Turkey. Future research endeavors
can build upon these findings to gain deeper insights into emerging trends, evolving consumer
behaviors, and the ongoing development of the electronic commerce landscape in Turkey.
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LIST OF TABLES
Table 1 Comparison of Traditional Shopping and Online Shopping...................................32
Table 2 Most Preferred Products in Online Shopping.........................................................46
Table 3 Problems Encountered in Online Shopping............................................................47
Table 4 Advantages of Online Shopping…………………………………………………48
LIST OF FIGURES
Figure 1 E-commerce sales volume in Turkey……………………………………..41
Figure 2 Number of e-commerce transactions in Turkey…………………………..42
Figure 3 Percentage of internet users, e-commerce customers in Turkey………….43
Figure 4 Average basket value in Turkey in years…………………………………44
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