Half the Sale Goes to Commissions: E‑Commerce's Burden on Small Merchants

In Turkey, e‑commerce platforms are siphoning 50% of product prices into commissions and service fees, leaving shopkeepers at a competitive disadvantage.

The Rise of E‑Commerce: Small‑Business Losses

■E‑commerce volume accounts for 20% of total trade in Turkey.

■Shopkeepers’ revenues shrink by 50% due to platform commissions.

■Sectors such as food, textiles, and cosmetics see high commission costs.

Commission Structure: 10‑35% + 10‑20% Service Fees

■Product prices lose 10‑35% to platform commissions.

■Additional service fees range between 10‑20%.

■Overall, 50% of the product’s value goes to commissions.

Inflationary Impact

■Commissions accelerate price hikes from producer to consumer.

■Margins shrink for shopkeepers while consumer prices rise.

■Potential contribution to a 2‑3 point increase in inflation.

Regulatory Gaps: Toward Sustainable Solutions

■Existing legislation does not cap or floor commission rates.

■E‑commerce platforms boost PR value at the cost of shopkeepers’ livelihoods.

■New regulations are needed to curb unfair competition.

Future Outlook: Platform Sustainability

■Digital presence is unavoidable for shopkeepers, but costs are high.

■Product diversity and customer reach increase, yet price competition stiffens.

■Platforms could reduce service fees to support small businesses.

With e‑commerce expanding, a 50% commission rate presents a significant barrier to a sustainable competitive environment for small firms. The regulatory vacuum is harming both merchants and consumers, and in the long run could stifle economic growth. A government‑led intervention to limit unfair competition would help establish a more balanced market structure.