Over the past two decades, the ecommerce industry has seen tremendous growth and has become an integral part of the global economy, thanks to the increasing number of internet users and the proliferation of mobile devices. Today, people can purchase anything from groceries to electronics with the click of a button. Consumers are increasingly turning to ecommerce as it offers convenience, flexibility, and a wide range of choices to fulfill their needs.

The growing demand for ecommerce has been driven by several real-life events over the years. One example is the COVID-19 pandemic, which caused many physical stores to close, leading to a surge in online shopping. Another example is the increasing adoption of mobile devices, which has made it easier for people to shop online from anywhere, at any time. As more people become comfortable with online shopping, the demand for ecommerce is likely to continue to grow.

The global ecommerce market is valued at $3.37 trillion in 2022, according to Statista. This number is projected to reach $4 trillion by 2023, representing a significant increase. This growth is driven by several factors, including the increasing number of internet users, the growing popularity of mobile devices, and the rising demand for online shopping enabling people to shop online from anywhere, at any time. As the ecommerce industry continues to grow, it is expected to have a significant impact on the global economy.

Turkey and Iraq are two countries where the ecommerce industry is also rapidly growing. In Turkey, the ecommerce market size was valued at $17.8 billion in 2022, with a growth rate of around 30%. In Iraq, the ecommerce industry is still in its early stages, but it is rapidly growing due to the increasing internet penetration rate, which was valued at $4.15 billion in 2022 and currently stands at 25% growth rate. As more people in these countries gain access to the internet, the demand for ecommerce is expected to increase.

As the ecommerce industry continues to grow, many traditional retail companies are starting to scale their businesses electronically to take advantage of the growing demand for online shopping. This trend is expected to continue, with more and more businesses transitioning to online sales in the coming years. This transition can be challenging, but it is also necessary to remain competitive in the ecommerce space.

One of the key benefits of ecommerce companies is the ability to achieve a global market positioning across more than one market. By selling products online, businesses can reach customers in different regions of the world, providing access to new markets and new revenue streams. This can also help to mitigate risks associated with being overly reliant on a single market. With the right approach, ecommerce companies can establish themselves as key players in multiple markets.

However, there are also many challenges that ecommerce companies face. One of the most significant challenges is the risk associated with being fully virtual, which can leave them vulnerable to cyber threats and fraud. To mitigate these risks, businesses must invest in robust cybersecurity measures and implement best practices for fraud prevention. This requires a significant investment in resources and technology, but it is necessary to protect against potential threats.

Looking to the future, the ecommerce industry is likely to see continued growth as more and more consumers turn to online shopping. Key players in the industry will need to keep up with emerging trends and technologies, such as AI and machine learning, to remain competitive. The industry is also expected to see more consolidation and strategic partnerships, as companies look to expand their reach and market share.

For ecommerce companies looking to succeed in Turkey and Iraq, it is important to focus on building a strong online presence and providing a seamless customer experience. This can be achieved by investing in a user-friendly website, optimizing for mobile devices, and providing fast and reliable delivery options. It is also important to understand local customs and regulations and to tailor marketing strategies to specific cultural nuances.

Another recommendation for ecommerce companies looking to succeed in Turkey and Iraq is to build strong relationships with local partners. This can include working with local logistics providers, payment processors, and other service providers to ensure a smooth and efficient operation. It is also important to invest in marketing and advertising to reach the local target audience.

Also, ecommerce companies should prioritize customer service and make it easy for customers to contact the business with any questions or concerns. This can help to build trust and loyalty, which are crucial for long-term success in the ecommerce industry.

Turkey’s e-commerce: Industry

The Turkish e-commerce market is one of the fastest-growing e-commerce markets in Europe, with a projected growth rate of 21%. The market is dominated by a few key players. However, there are also opportunities for new players to enter the market and carve out a niche for themselves.

Leading Players in the Turkish E-Commerce Market

The Turkish e-commerce market is dominated by a few major players. According to recent market reports, the top three e-commerce platforms in Turkey are Hepsiburada, Trendyol, and n11, which together make up more than 80% of the market share. Hepsiburada, a marketplace that offers a wide variety of products, including electronics, fashion, and home appliances, has been the market leader for several years. Trendyol, an e-commerce platform that started as a fashion marketplace, has expanded its offerings to include electronics, cosmetics, and groceries, among other things. n11, an e-commerce platform that operates as both a marketplace and a direct seller, offers a wide range of products, including electronics, fashion, home appliances, and more.

Barriers to Entry and New Entrants

While the Turkish e-commerce market offers opportunities for growth and expansion, there are also significant barriers to entry. Some of the major challenges that new entrants face include the high cost of customer acquisition, the need for significant investment in logistics and infrastructure, and the need to build a brand and establish a reputation in a crowded market.

Despite these challenges, new entrants are still entering the Turkish e-commerce market. For example, Amazon launched in Turkey in 2018, and more recently, Turkish retailer LC Waikiki has also launched its own e-commerce platform. However, these companies face a difficult task in establishing themselves and competing with the dominant players in the market.

Continuous Innovation and Diversification of Customer Segments

To stay competitive in the Turkish e-commerce market, players need to continuously innovate and diversify their offerings to cater to the diverse needs of customers. This includes expanding the range of products and services offered, providing a seamless user experience, and offering additional services such as fast and reliable delivery, flexible payment options, and customer support.

Players also need to focus on diversifying their customer segments. While the Turkish e-commerce market is growing rapidly, it is still relatively young, and there is significant room for growth in reaching new customer segments, such as rural customers, older customers, and customers with limited internet access.

Improving Market Share and Turnover

To improve their market share and turnover, e-commerce players in Turkey need to focus on a few key areas. First, they need to invest in logistics and infrastructure to ensure fast and reliable delivery. This is especially important in a country with a large and diverse geography, where shipping can be challenging. Second, they need to focus on building a strong brand and reputation, which can be achieved through marketing and customer support. Finally, they need to continuously innovate and expand their offerings to stay ahead of the competition.

Turkey’s e-commerce: Further areas of improvement

One area for improvement in the Turkish e-commerce market is the development of cross-border e-commerce. While Turkish consumers are increasingly shopping online, many still prefer to shop from domestic e-commerce platforms. The development of cross-border e-commerce could help to expand the market and provide Turkish consumers with a wider range of products and services.

Another area for improvement in the Turkish e-commerce market is the development of online payment options. While credit cards are the dominant payment method in Turkey, there is a growing demand for alternative payment options, such as digital wallets and mobile payments. E-commerce companies that can offer a range of payment options to their customers can provide a more convenient and seamless online shopping experience.

Logistics infrastructure is also an area for improvement in the Turkish e-commerce market. Turkey has a large and growing population, and the delivery of products to customers in a timely and cost-effective manner is a key challenge for e-commerce companies. The development of logistics infrastructure, including better roads and more efficient delivery systems, could help to reduce the costs and improve the reliability of e-commerce operations in Turkey.

The development of innovative technologies, such as artificial intelligence and augmented reality, could help to improve the online shopping experience for Turkish consumers. These technologies could be used to personalize the shopping experience, provide more accurate product recommendations, and improve the overall user experience.

Turkey’s e-commerce: promise in expansion

Diversifying customer segments is a crucial step for e-commerce players looking to expand their market share and achieve sustained growth. While Turkey has a sizable domestic market, e-commerce players can significantly enhance their growth prospects by expanding to other markets, particularly neighboring markets like Iraq, Iran, and the Gulf countries.

The benefit of expanding to neighboring markets is that these markets share many cultural and economic similarities with Turkey, making it easier for e-commerce players to adapt their business models and product offerings to these markets. Furthermore, neighboring markets have sizable populations with growing purchasing power, creating ample opportunities for e-commerce players to expand their customer base.

For instance, the Iraqi market is a prime example of a market that Turkish e-commerce players can explore to expand their customer base. With a population of around 40 million and a rapidly growing middle class, Iraq presents a significant market opportunity for e-commerce players looking to tap into the country's rising demand for goods and services.

However, expanding to neighboring markets is not without its challenges. E-commerce players need to be aware of the unique legal, regulatory, and cultural environments of these markets, which may differ significantly from those in Turkey. This requires careful planning and strategy, including tailoring marketing and advertising messages to the local market and ensuring that logistics and payment methods are adapted to meet the unique requirements of these markets.

Turkey’s e-commerce: local currency

The Turkish Lira has been subject to significant inflation in recent years, which has had a significant impact on the Turkish e-commerce market. The inflation has made it more difficult for e-commerce companies to manage their costs and maintain profitability, as the cost of goods, logistics, and other expenses have increased.

To mitigate the impact of the Turkish Lira inflation, e-commerce companies in Turkey have been looking at new areas to reduce costs and improve efficiency. One approach has been to develop more sophisticated inventory management systems to reduce waste and optimize stock levels. By minimizing the amount of inventory that needs to be held, e-commerce companies can reduce the impact of currency fluctuations on their operations.

Another approach that e-commerce companies in Turkey have been exploring is to develop more efficient supply chains. This can include working with local suppliers to reduce transportation costs and sourcing materials and products from countries that have stable currencies. By reducing supply chain costs, e-commerce companies can reduce the impact of currency fluctuations on their overall costs.

E-commerce companies in Turkey have also been looking at ways to increase their revenue streams to offset the impact of currency fluctuations. This can include expanding their product lines, developing new services, and entering new markets. By diversifying their revenue streams, e-commerce companies can reduce their exposure to currency risk and create a more stable revenue base.

Finally, some e-commerce companies in Turkey have been looking at new payment options to reduce the impact of currency fluctuations on their revenues. For example, some companies have started to accept payments in cryptocurrencies such as Bitcoin, which promotes a new segment of millennial consumers, yet the uncertainty of this digital currency is still known as unstable, variable and toxic to most.

Iraq’s e-commerce: Industry

The Iraqi e-commerce market is relatively new and is still in the early stages of development, it presents a significant opportunity for e-commerce companies looking to bring foreign goods at reasonable pricing. Iraq has a population of over 40 million people, with a growing middle class and a high demand for consumer goods. The retail market in Iraq is still relatively underdeveloped, with limited options for consumers to access a wide range of products, in addition to a lack of infrastructure, limited internet access, and low levels of consumer trust have been major barriers to the growth of the e-commerce market in Iraq. Yet with the increasing availability of technology and the growing young population, the market is starting to show signs of growth. This presents a significant opportunity for e-commerce companies to enter the market and offer Iraqi consumers access to a wider range of goods at competitive prices.

What has contributed to the rising trend in Iraq’s e-commerce is the significant increase in the use of smartphones, social media, and mobile applications. As more and more Iraqis gain access to mobile devices and the internet, the potential for growth and development in the country's tech sector is enormous.

The Rise of Smartphones in Iraq

According to a report by GSMA Intelligence, Iraq had a mobile penetration rate of 90% in 2020, with 25 million unique mobile subscribers. The country has one of the highest mobile penetration rates in the region, driven largely by the rise of affordable smartphones. As the price of mobile devices continues to drop, more and more Iraqis are gaining access to the internet and social media.

The Impact of Social Media

Social media platforms such as Facebook, Instagram, and Twitter have become extremely popular in Iraq, with millions of users using these platforms to connect with friends and family, share news and information, and engage with businesses. In fact, social media has become an essential tool for businesses looking to reach customers in Iraq, with many companies using social media platforms to market their products and services. As of January 2022, there were an estimated 28.35 million social media users in Iraq.

The Rise of Mobile Applications

As more Iraqis gain access to smartphones and the internet, the demand for mobile applications has skyrocketed. From food delivery apps to ride-sharing services, mobile applications are changing the way Iraqis live, work, and play. Many companies are now developing mobile applications specifically for the Iraqi market, and the potential for growth in this area is enormous.

The Growth of E-commerce Platforms

The rise of smartphones, social media, and mobile applications has also led to an increase in e-commerce platforms in Iraq. Online shopping is still a relatively new concept in the country, but it is rapidly gaining popularity as more Iraqis gain access to the internet and become comfortable with online transactions. The potential for growth in the e-commerce sector is enormous, and many businesses are now looking to expand their online presence in Iraq.

Positive Expectations for the Future

With the rising use of smartphones, social media, mobile applications, and e-commerce platforms, the potential for growth and development in Iraq's tech sector as a whole is substantial. The country has a large and growing population of tech-savvy young people who are eager to embrace new technologies and digital innovations. As the infrastructure for these technologies continues to improve, we can expect to see even more growth in this area in the coming years.

What This Means for Businesses Looking to Expand into Iraq

For businesses looking to expand into Iraq, the rise of smartphones, social media, and mobile applications presents a tremendous opportunity. By leveraging these technologies, companies can reach a large and growing audience of tech-savvy Iraqis and establish a strong presence in the country's tech, online retail and e-commerce sector. However, it is important to keep in mind that the Iraqi market is still in its early stages of development, and businesses will need to be patient and persistent in order to succeed.

Iraq’s e-commerce: Geographical segmentation

Iraq is a country with a population of over 40 million people, divided into 18 provinces or governorates. While the e-commerce market in Iraq is still in its early stages, there has been a noticeable increase in the adoption of online shopping and e-commerce platforms across the different provinces in recent years.

In the northern province of Kurdistan, for example, there has been a significant growth in the number of e-commerce platforms and online marketplaces, with companies like Shopi, Otlobna, and Arzaq all reporting strong growth in the region. In addition, the availability of mobile internet and the widespread use of smartphones in the region has made it easier for customers to shop online.

In the central provinces of Baghdad, Diyala, and Salahuddin, there has also been a growing interest in e-commerce, with many local retailers and small businesses starting to sell their products through online marketplaces like Facebook and Instagram. This has been facilitated by the increasing availability of internet access and the growing number of mobile phone users in these provinces.

In the southern provinces of Basra and Dhi Qar, there has also been a noticeable increase in e-commerce activity, with many small businesses and online marketplaces starting to offer products and services to customers in these regions. The widespread use of social media and the high levels of mobile phone penetration in these provinces has helped to drive this growth.

Iraq’s e-commerce: Customers

Iraq is a country that has undergone significant economic and social changes over the past few decades, including the war, political instability, and the recent COVID-19 pandemic. Despite these challenges, the spending habits of Iraqi customers have evolved, reflecting the changing nature of the country's economy and the aspirations of its people.

In general, Iraqi customers are known to be price-sensitive, with a preference for economic goods over luxury products. However, there has been a growing demand for luxury goods in recent years, particularly among the growing middle and upper classes. This is due to a rise in disposable income, urbanization, and the influence of social media on consumer behavior.

The typical customer basket in Iraq consists of basic necessities, such as food, clothing, and household items. However, there has been a growing demand for consumer electronics, such as smartphones and laptops, as well as home appliances and beauty products.

The purchase power of Iraqi customers in general is relatively low compared to the country's GDP per capita and the cost price index. According to the World Bank, Iraq's GDP per capita was $5,656 in 2020, while the cost of living index was 31.3. This means that the average Iraqi consumer has limited purchasing power and is highly price-sensitive.

However, the future economics of the Iraqi consumer look promising, with a growing middle class and an increasing number of young, educated consumers who are well-connected to the world through social media and the internet. The current reforms and investment plans that are being undertaken by the Iraqi government, as well as the increasing stability in the country, could also contribute to a positive outlook for the future.

In terms of the willingness to pay, Iraqi customers are generally willing to pay for quality products and services, provided that they are affordable and meet their needs. However, there are still challenges related to the availability of goods, the quality of products, and the reliability of the retail sector in Iraq.

In general, the spending habits of Iraqi customers are shaped by a combination of economic, social, and cultural factors. While the current purchasing power of Iraqi customers may be limited, there is potential for growth and expansion in the future. The retail sector in Iraq needs to focus on providing affordable, high-quality products that meet the needs of Iraqi customers and leverage the opportunities presented by social media and digital platforms to expand their reach and enhance the customer experience.

Iraq’s e-commerce: Payment gateways and methods

In Iraq, online payment methods are still in the early stages of adoption, and cash on delivery is still the most common payment method for e-commerce transactions. However, with the rise of e-commerce and the growing use of smartphones, social media, and mobile applications, there is an increasing demand for electronic payment methods in the country.

Some of the most commonly used online payment methods in Iraq include:

1. Credit/debit cards: As the use of credit and debit cards increases in Iraq, more e-commerce platforms are starting to accept payments through this method.
2. Mobile payments: Mobile payments are becoming more popular in Iraq, with services like ZainCash and AsiaHawala allowing users to make payments and transfer money through their mobile phones.
3. E-wallets: E-wallets like PayMe and QiCard are also starting to gain popularity in Iraq, allowing users to store funds and make payments online.
4. Bank transfers: Bank transfers are another common payment method in Iraq, with many customers choosing to transfer funds directly from their bank accounts to the merchant's account.
5. Cash on delivery: While not strictly an online payment method, cash on delivery remains the most popular way for Iraqi customers to pay for goods purchased online.

As the e-commerce industry continues to grow in Iraq, it is expected that electronic payment methods will become more widely adopted, making it easier and more convenient for customers to make online purchases.

Iraq’s e-commerce: Areas for growth

One area for growth in the Iraqi e-commerce market is the development of mobile commerce. Mobile phones are the primary means of accessing the internet in Iraq, with the majority of users accessing the internet via mobile devices. This presents a significant opportunity for e-commerce companies to develop mobile applications that are easy to use and provide a seamless online shopping experience.

Another area for growth in the Iraqi e-commerce market is the expansion of online payment options. Cash on delivery is still the dominant payment method in Iraq due to low levels of credit card penetration and limited access to digital payment services. The introduction of new payment options, such as mobile money and digital wallets, could help to increase trust in online transactions and drive adoption of e-commerce.

The logistics infrastructure is also an area for growth in the Iraqi e-commerce market. Limited road infrastructure and a lack of reliable transportation options make it challenging for e-commerce companies to deliver products efficiently and cost-effectively if they are unaware of the market’s roads and zoning from the outset. The development of a provincial specific logistics infrastructure, including preferred roads and more tailored delivery systems, besides working with local partners, could help to reduce the costs and improve the reliability of e-commerce operations in Iraq.

The development of a local e-commerce platforms and marketplaces could also help to drive growth in the Iraqi e-commerce market. These platforms could offer a range of products and services that are tailored to the local market’s demands, providing an alternative to global e-commerce platforms. By building trust and offering a seamless online shopping experience, these platforms could help to expand the e-commerce market in Iraq, establish both commercial and domestically oriented cultural trust, and support the customer demand around the clock.

Iraqi demand for foreign products

The Iraqi market has significant potential for foreign, especially Turkish, e-commerce companies. Iraq has a population of over 40 million people, with a growing middle class and a high demand for consumer goods. Despite the challenges of operating in Iraq, including political instability and security concerns, there are significant opportunities for e-commerce companies that are able to navigate the market and establish a presence.

The Iraqi market has high demand for foreign goods. Many Iraqi consumers are interested in purchasing foreign products, but have limited options for doing so in the local market. This provides an opportunity for e-commerce companies to bring in a wide range of foreign goods, including consumer electronics, fashion, and home goods, and offer them at competitive prices.

The Iraqi market has relatively low competition from local retailers when it comes to e-commerce. While there are a number of traditional retail stores in Iraq, many of these stores have limited selections of products and are not able to offer competitive prices. E-commerce companies can capitalize on this by offering a wider range of products and pricing them competitively.

Turkish players active in Iraq

There are many Turkish companies that are exporting goods into Iraq. Some of the notable Turkish companies that are active in Iraq and exporting goods into the country include:

1. Anadolu Group: Anadolu Group is a diversified Turkish conglomerate that operates in several industries, including food and beverages, automotive, retail, and energy. The group has a strong presence in Iraq and exports a range of products, including food and beverages, to the country.
2. Koç Holding: Koç Holding is one of the largest conglomerates in Turkey and operates in several industries, including automotive, energy, and retail. The company has a presence in Iraq and exports a range of products, including automotive parts and products.
3. Çalık Holding: Çalık Holding is a Turkish conglomerate that operates in several industries, including energy, textiles, and construction. The company has a strong presence in Iraq and is involved in several large-scale construction projects in the country.
4. Türk Telekom: Türk Telekom is the largest telecommunications company in Turkey and has a presence in Iraq. The company provides a range of telecommunications services to customers in Iraq, including mobile and fixed-line services.
5. Turkish Airlines: Turkish Airlines is the national airline of Turkey and operates flights to several destinations in Iraq, including Baghdad, Erbil, and Basra. The airline plays an important role in facilitating trade and business between Turkey and Iraq.

These are just a few examples of the many Turkish companies that are active in Iraq and exporting goods into the country. The strong trade relationship between Turkey and Iraq has led to the development of a large and diverse trade network that benefits both countries.

Local brick and mortar players offering Turkish products in Iraq

When it comes to purchasing authentic Turkish products in Iraq, there are a number of local companies that specialize in sourcing and selling these products to customers. These companies offer a range of Turkish products, from food and beverages to household goods, textiles, and more. Here are a few examples of local companies that sell authentic Turkish products in Iraq, and an overview of their pricing.

1. Kafayat Al-Khaleej: This Iraqi-based company specializes in importing and distributing Turkish food products, including sweets, snacks, and spices. They offer a range of popular Turkish brands such as Ulker, Eti, and Gulluoglu, as well as their own private label products. The pricing for their products is generally competitive with local market prices and is reflective of the quality of the product.
2. Halabja Trading Company: Based in the Kurdish region of Iraq, Halabja Trading Company is a well-known supplier of Turkish textiles, especially in the carpet industry. The company has been importing Turkish textiles since the early 2000s and has a wide range of customers across Iraq. The pricing for their products is varied, depending on the material used, size and design of the product.
3. Ozkar: Ozkar is an Iraqi company that specializes in importing and distributing Turkish household goods, including kitchenware and home décor items. They offer a range of popular Turkish brands such as Arzum and Beko. Their pricing is generally affordable and is seen as a cost-effective alternative to the higher priced international brands available in the market.
4. Ziyad Brothers Importing: Ziyad Brothers Importing is a U.S.-based company with a branch in Iraq that specializes in importing and distributing Mediterranean and Middle Eastern food products, including Turkish products. Their pricing is generally competitive and similar to local market prices.
5. Madar Trading Co: Based in Baghdad, Madar Trading Co specializes in importing and distributing a range of Turkish products including dairy products, dried fruits and nuts, olive oil, and other packaged goods. The pricing for their products is generally competitive and is considered affordable to the average Iraqi consumer.

Even though they’re delivering Turkish products in Iraq, there are several limitations to their capacity, delivery capabilities across the country, and meeting the exact needs of customers for which e-commerce opens up.

Iraq and Turkey: e-commerce

According to the United Nations COMTRADE, Turkey's exports to Iraq in 2022 amounted to approximately $13.75 billion, making Iraq one of Turkey's largest export market. Turkish exports to Iraq include a wide range of products, such as jewelry, construction materials, textiles, furniture, food products, and electrical appliances.

Furthermore, according to a report by the Iraq Business News, Turkish products are popular in Iraq due to their quality and reasonable prices. In recent years, Turkish businesses have been investing in Iraq, setting up shops, and building commercial centers to cater to the growing demand for Turkish products.

One advantage that Turkish e-commerce have in the Iraqi market is their cultural and historical ties with Iraq. Turkey and Iraq share many cultural and linguistic similarities, which can help Turkish e-commerce companies to better understand the needs and preferences of Iraqi consumers. Additionally, many Turkish companies have already established a presence in Iraq through other industries, such as construction and energy, which can provide a foundation for e-commerce operations.

Another advantage that Turkish e-commerce have in the Iraqi market is their experience in operating in emerging markets. Many Turkish e-commerce companies have already expanded to other emerging markets in the Middle East and Africa, and have developed the expertise and infrastructure necessary to succeed in these environments.

One area of potential growth in the Iraqi market is cross-border e-commerce. As the Iraqi e-commerce market is still relatively undeveloped, many Iraqi consumers are turning to foreign e-commerce platforms to purchase goods and services. Turkish e-commerce could leverage their expertise in cross-border e-commerce to provide Iraqi consumers with a wider range of products and services.

E-commerce of Iraq and Turkey: Iraqi consumers

Iraqi customers are known to be price-sensitive, and they place a premium on affordable and good quality products. Turkish products, in particular, are favored by Iraqi consumers due to their high quality and economic pricing. The close cultural and historical ties between the two countries also play a significant role in driving demand for Turkish products in Iraq.

Turkish products are considered standardized in quality, which means that Iraqi customers can rely on them to be of consistent quality, regardless of where they purchase them. This consistency in quality is a key factor driving demand for Turkish products, as Iraqi customers place a high value on reliability and trust when it comes to their purchases.

In addition to quality, Turkish products are also perceived as affordable and offer good value for money. This is an important consideration for Iraqi customers, who are generally price-sensitive due to the lower purchasing power of their currency.

Another factor driving demand for Turkish products in Iraq is the wide variety of products on offer. From food and household items to consumer electronics and clothing, Turkish products cater to a broad range of customer needs, making them a popular choice for Iraqi consumers.

Finally, the Turkish retail sector's extensive marketing and advertising efforts have helped raise the profile of Turkish products in Iraq, making them more accessible and visible to Iraqi consumers. This has helped to increase the popularity of Turkish products in Iraq and has driven up demand for them.

In summary, the Iraqi customers' interest in Turkish products is driven by a combination of factors, including consistent quality, affordability, variety, and extensive marketing efforts. As long as Turkish manufacturers continue to offer high-quality, affordable products that cater to the needs and preferences of Iraqi consumers, the demand for Turkish products in Iraq is likely to remain strong.

E-commerce of Iraq and Turkey: Channels

When it comes to purchasing and importing Turkish products, Iraqi customers typically have a few channels to choose from. These channels can vary depending on the type of product being purchased and the location of the customer, but generally fall into a few common categories.

One common channel for purchasing Turkish products in Iraq is through brick-and-mortar Turkish stores. There are a variety of Turkish retail chains with physical locations in Iraq, offering a range of products from food and household items to consumer electronics and clothing. Many of these stores are located in larger cities like Baghdad and Erbil, where there is a higher demand for Turkish products.

Another channel for importing Turkish products into Iraq is through traders and middlemen who specialize in importing and distributing Turkish products. These traders can help customers navigate the complex process of importing goods into Iraq and can often offer competitive pricing and bulk discounts.

Besides the above common channels, Iraqi customers in the recent years have been typically resorting to indirect channels to purchase these products, which can have disadvantages.

One of the most common indirect channels is through local brick and mortar shops in Iraq that specialize in importing and selling Turkish products. These shops usually have agents or intermediaries in Turkey who purchase the products on their behalf and then ship them to Iraq. This adds an additional layer of cost to the final price, which can make the products more expensive for customers.

Another indirect channel is through online marketplaces, such as Amazon or eBay, where Turkish sellers offer their products to customers in Iraq. While this can provide more access to a wider range of products, it can also be risky as there are many fake or counterfeit products being sold online, and customers, typically, may not receive the exact product they were expecting.

Some customers also resort to purchasing products directly from Turkish online stores and shipping them to Iraq using package forwarding services. These services provide customers with a virtual address in Turkey, which they can use to order and receive their packages, and then the package forwarding service will ship the package to the customer's actual address in Iraq. However, this has demonstrated several problems including, but not limited to:

• These service providers often retain underpaid, unqualified, unmonitored, and shoddy at-home personnel who are often outsourced at their homes.
• Personnel are often tasked in physically opening up delivered goods for examination without control on their hygiene/cleanliness, equipment, and methods for control and repackaging using less costly/cheaper bulk repackaging material.
• Questions regarding the professional qualifications of these personnel for the proper handling of consumer products.
• Troubles retaining the products intact and within their original seal/package, especially when it comes to expensive authentic items.
• Troubles concerning warranty/replacement/exchange/returns if any.
• Can be expensive due to the high shipping/handling/repackaging fees and customs duties that need to be paid, which would significantly increase the final price.

In summary, while there is a high demand for authentic Turkish products in Iraq, the lack of end-to-end direct channels with streamlined processes can make it challenging and expensive for customers to purchase goods. Customers must carefully consider the advantages and disadvantages of each indirect channel and be aware of the potential additional costs and risks involved. It is important for Turkish companies to work towards establishing direct channels to the Iraqi market to provide customers with easier, proficient and better access to their products.

Overall, the channels that Iraqi customers use to purchase and import Turkish products depend on a variety of factors, including the type of product, location, and personal preferences. However, with the increasing popularity of e-commerce and the growing demand for Turkish products in Iraq, we can expect to see more and more customers turning to online channels and international imports to get the products they want.

E-commerce of Iraq and Turkey: shipping companies

There are several regional or domestic cargo companies in Turkey that can ship e-commerce products to Iraq. These companies typically have a strong network within Turkey and neighboring countries and can provide reliable and cost-effective shipping solutions, over other more expensive international brands, for e-commerce businesses.

PTT Cargo - PTT Cargo is the shipping service of the Turkish Post Office, well known for its cost effectiveness, and operates in several countries worldwide including Iraq.

Sürat Kargo - Sürat Kargo is a Turkish courier company that operates in Turkey and has recently expanded its operations to several countries in the region, including Iraq. They have established partnerships with local shipping companies in Iraq to ensure timely delivery. They are known for their competitive pricing and may be a cost-effective option for e-commerce companies shipping to Iraq.

MNG Kargo - MNG Kargo is a Turkish shipping company that offers international shipping services to many countries worldwide, including Iraq. They may be a cost-effective option for e-commerce companies due to their competitive pricing.

Yurtiçi Kargo - Yurtiçi Kargo is a domestic courier service in Turkey that also offers international shipping services, including to Iraq. They are known for their cost-effective shipping options and may be a good choice for e-commerce companies shipping to Iraq.

Entering the Iraqi market

Entering the Iraq e-commerce market can be challenging, but with the right approach, it can be a profitable venture. Here are some factors that can contribute to success:

1. Market Research: Companies that take the time to understand the local market, culture, and customer preferences are more likely to succeed. Conducting market research and studying consumer behavior can help identify gaps in the market and customer needs.
2. Partnerships: Having international and local partners with extensive knowledge of the sector and network in the region can help navigate the legal and regulatory landscape, build relationships with suppliers and customers, optimize delivery of products and services, and gain insights into the local market.
3. Quality Products: Providing high-quality products and services is important for building brand trust and gaining repeat customers.
4. Competitive Pricing: Iraqi customers are generally price-sensitive, so offering competitive prices is crucial for gaining market share.
5. Reliable Logistics: Efficient and reliable logistics are essential for customer satisfaction. Companies need to ensure that their products are delivered on time and in good condition.
6. Customer Support: Offering excellent customer support and addressing any concerns promptly can help build a loyal customer base.
7. Online Security: As e-commerce continues to grow in Iraq, so does the threat of online fraud. Providing secure payment options and protecting customer data are important for gaining customer trust.
8. Adaptability: Companies that can adapt to changing market trends and customer preferences are more likely to succeed in the long run.

Success in the Iraq e-commerce market requires a combination of local knowledge, quality products, competitive pricing, reliable logistics, and excellent customer service.

In conclusion, the ecommerce industry has seen significant growth in the past two decades and is expected to continue to grow in the coming years. The industry provides convenience, flexibility, and a wide range of choices for consumers, driving demand for online shopping. Companies that can successfully navigate the challenges of the industry, such as cybersecurity risks and competition, and take advantage of emerging trends and technologies, can establish themselves as key players in the market. For companies looking to succeed in Turkey and Iraq, despite all challenges, the potential of the Iraqi market for e-commerce companies is significant. With a growing middle class and a high demand for foreign goods, e-commerce companies that are able to navigate the market and offer competitive pricing are likely to succeed. The key to success will be investing in infrastructure, building a strong online presence, understanding local customs and regulations, logistics, and payment processing, building relationships with local partners, and prioritizing customer service to ensure that products can be delivered quickly and efficiently.