Turkey is quickly becoming one of the most attractive sourcing destinations for e-commerce brands, especially for companies looking to optimize their supply chains. With its strategic location, diverse manufacturing base, competitive labor costs, and strong trade agreements, Turkey is stepping into the spotlight as a key player in global sourcing.
In this article, we’ll explore why Turkey is emerging as a new sourcing hub, what industries thrive in Turkey, the challenges you should be aware of.
Turkey's growing importance in global trade can be attributed to several key strengths that make it a perfect fit for e-commerce brands seeking new suppliers.
Turkey's geographic location at the intersection of Europe, Asia, and the Middle East offers significant advantages for companies needing fast access to European, Middle Eastern, and North African markets. Shipping times from Turkey to Europe are considerably shorter than from East Asia, which has traditionally been a manufacturing hub. For example, shipping from Istanbul to major European cities can take as little as 2–3 days, while shipments from China can take weeks.
This geographical advantage allows brands to respond more quickly to market changes and consumer demand. Turkey is well-positioned to serve European markets due to its proximity, especially as supply chains become more regionalized in response to geopolitical risks and rising shipping costs.
Turkey is also a crucial hub for markets in the Middle East and North Africa (MENA). For e-commerce brands looking to expand their customer base in these regions, sourcing from Turkey means faster delivery times and reduced logistics costs compared to East Asian manufacturers.
Turkey’s infrastructure is one of its most significant strengths. Over the past two decades, the government has made substantial investments in industrial infrastructure, enhancing the country’s capacity to serve as a global manufacturing hub. These investments have focused on improving transportation networks, energy infrastructure, and technological advancements, helping to establish Turkey as a key logistics and manufacturing center.
The country boasts one of the most extensive transportation networks, including highways, airports, and seaports, allowing for smooth domestic and international movement of goods. Istanbul’s new airport, one of the largest in the world, and the Port of Mersin, a key gateway to Europe and the Middle East, offer seamless connectivity to global markets.
Turkey is also a crucial link in the Middle Corridor, a rail route connecting China to Europe via Turkey, bypassing Russia. This route takes approximately 10 to 12 days to reach Europe, compared to the 15 to 20 days it takes via the Northern Corridor, which runs through Russia and Belarus. The Middle Corridor’s shorter transit time is especially advantageous for e-commerce brands seeking faster shipping options for their goods.
The Turkish government has also upgraded rail connectivity, which benefits not only regional trade but also global supply chains, making Turkey an essential player in the "New Silk Road" strategy.
Turkey’s manufacturing sector is highly diversified, covering a broad range of industries from textiles and apparel to electronics and automotive parts. This versatility makes it easier for e-commerce brands to source products across different categories, helping them maintain a flexible and resilient supply chain.
Turkish manufacturers have an established reputation for producing high-quality goods, particularly in textiles, electronics, and automotive parts. With modern facilities, cutting-edge technologies, and decades of expertise, Turkish manufacturers are well-equipped to meet the high standards demanded by global e-commerce brands.
Turkey has secured numerous Free Trade Agreements (FTAs), which significantly reduce tariffs and ease trade with various countries. These agreements make Turkey an attractive sourcing destination, especially for brands that want to minimize import duties and shipping costs. Below is a list of some of Turkey’s most notable trade agreements:
These trade agreements help reduce the overall cost of importing goods from Turkey, making it a cost-effective sourcing destination for e-commerce brands worldwide.
Turkey is a global leader in the textile and apparel industries. The total value of apparel and clothing accessories, knitted or crocheted exported from Turkey added up to nearly 10.3 billion U.S. dollars in 2023. Turkish textiles are highly regarded for their quality, sustainability, and variety, making them a popular choice for brands looking to source fashion and home textiles. Turkey’s well-developed textile industry can meet the demand for large orders quickly, making it an ideal sourcing destination for fashion brands operating in fast-paced e-commerce markets.
Turkey’s industrial clusters for textiles are concentrated in major cities like:
Several global fashion brands manufacture clothing in Turkey, including:
Additionally, Turkey has embraced sustainable and eco-friendly manufacturing practices, making it an attractive destination for brands focusing on meeting ESG (Environmental, Social, and Governance) standards.
Turkey is a major player in the automotive and electronics industries, producing parts and components for global brands. Its automotive sector reaching $29.3 billion USD in 2021, accounting for 13% of the country’s exports and includes parts and components for European automakers like BMW, Ford, and Fiat. Turkish manufacturers have earned a reputation for their ability to produce reliable, high-quality automotive parts at competitive prices.
Key cities for automotive and electronics production include:
Turkey’s electronics sector is also growing rapidly, with the production of household appliances and electronic components for global brands. Factories in Kocaeli, for example, produce electronic components and appliances for brands such as Beko and Arçelik.
For e-commerce brands looking to source electronics, household goods, or automotive components, Turkey’s well-established industrial clusters provide access to top-tier manufacturers.
Turkey is a significant exporter of raw materials, including steel, aluminum, and refined oil products. Additionally, it exports minerals like copper, chromium, and lead, which are critical for the construction, heavy industries, and electronics sectors.
Key cities for raw materials and semi-manufactured goods production include:
While raw materials and minerals account for a smaller percentage of Turkey’s overall exports, they play a vital role in its trade with major markets like China and the U.S. For brands in the construction, industrial, or electronics sectors, Turkey offers an abundant supply of essential raw materials and semi-manufactured goods.
While Turkey remains competitive compared to many European countries, its labor costs have risen significantly in recent years due to inflation and economic instability. Over the past five years, wages in Turkey have increased by 49% in local currency terms. Although the depreciation of the Turkish lira has offset some of this rise, labor costs are still higher than those in Southeast Asia and North Africa.
Turkey’s labor cost inflation is expected to continue at around 9.8% annually, which may impact long-term sourcing strategies for labor-intensive industries such as textiles. Brands should evaluate whether the benefits of higher quality and proximity to key markets outweigh the rising labor costs.
Despite Turkey’s strong logistics infrastructure, global supply chain disruptions have affected shipping reliability. The ongoing war in Ukraine and trade restrictions in the Red Sea have caused delays in shipments from Turkey, which are expected to continue through 2024. Brands relying on just-in-time delivery systems may need to adjust their logistics plans and build additional buffer time into their schedules when sourcing from Turkey.
Collaborating closely with logistics partners and using platforms like ShipBob can help e-commerce brands navigate these challenges and ensure more reliable shipping solutions.
Although political risks in Turkey are lower compared to other regions, the country’s regulatory environment can be complex. Turkey’s close relationships with NATO and Russia, its reliance on natural gas imports from Central Asia, and its strategic geopolitical role in global affairs add layers of uncertainty for foreign businesses.
Turkey's economic challenges have limited its appeal as a reshoring destination, as demonstrated by foreign direct investment (FDI) of just $4.4 billion in the 12 months leading up to June 2024. Excluding financial sector investments, this figure places Turkey well behind other major reshoring hubs such as Vietnam and Mexico. In the short term, Turkey's manufacturing sector has been in decline, with the S&P Global Purchasing Managers' Index (PMI) falling to 48.2 in July 2024, marking the fifth consecutive month of contraction. This decline has been driven by a slowdown in new export orders, which have been decreasing consistently since June 2023.
Turkey is rapidly emerging as a top sourcing destination for e-commerce brands, thanks to its strategic location, diverse manufacturing base, competitive labor costs, and robust trade agreements. Whether you’re looking for textiles, electronics, or automotive components, Turkey’s industrial clusters offer high-quality products at competitive prices, making it a viable alternative to traditional sourcing hubs in East Asia. However, challenges such as rising labor costs, global supply chain disruptions, and political uncertainties should not be ignored. To fully capitalize on Turkey’s strengths, businesses need to partner with reliable suppliers and use platforms like SourceReady, which can provide tools for supplier verification, tariff calculations, and logistics management. For e-commerce brands ready to explore new sourcing opportunities, Turkey is well worth considering—but it’s important to approach with a clear understanding of both the benefits and potential hurdles.
1. Why is Turkey an attractive sourcing destination for e-commerce brands?
Turkey offers a strategic location close to Europe, a diverse manufacturing base, competitive labor costs, and strong trade agreements, making it ideal for e-commerce brands looking to optimize supply chains and reduce shipping times.
2. How do I decide whether to source from Turkey or China?
Deciding between Turkey and China depends on several factors, including shipping time, product category, and cost. Turkey’s proximity to Europe offers shorter delivery times and may be more cost-effective for brands targeting European markets. In contrast, China often provides a wider range of suppliers, especially for electronics and large-scale production. Consider your target market, product needs, and logistics priorities when making this choice.
3. What quality standards do Turkish manufacturers typically follow?
Turkish manufacturers often adhere to international quality standards, especially in sectors like textiles, automotive, and electronics. Many have certifications such as ISO, which ensures high-quality production processes and compliance with global standards.
