Temu and Shein Redefine Turkish E-commerce After Regulatory Changes

The e-commerce landscape in Turkey is undergoing a significant transformation with the partial withdrawal of Chinese giants Temu and Shein, driven by new fiscal and regulatory measures.This change promises to rebalance competition and direct an estimated turnover of US$ 1.5 billion to domestic marketplaces, although there are concerns about potential inflationary effects.

The Impact of Withdrawal

Chinese platforms Temu and Shein, known for their aggressive pricing strategies and rapid growth, have dramatically reduced their cross-border operations in Turkey. Shein has temporarily suspended its sales in the country, while Temu has ended international deliveries, now focusing only on products from local suppliers. This decision is seen as a “rebalancing of the” competition by some, but others warn of the end of the era of low-cost shopping for many consumers, especially the younger and budget-bound.

Seyhun Ozkara, a member of the e-commerce board of the Turkish Chambers and Commodity Exchanges Union (TOBB), highlighted the mixed consequences.“Iporters of low-cost products will now sell through domestic platforms.However, some price increases are likely as the disappearance of direct price competition creates room for higher margins, which may have inflationary effects”, he explained.

Detailed Regulatory Changes

The new regulations that led to this change began to be implemented on August 21, 2024, with the reduction of the tax exemption for individual purchases from abroad from 150 euros to 30 euros. On December 27, 2024, shipping costs were included in this limit of 30 euros. Finally, on January 7, 2026, a decree published in the Official Gazette completely abolished duty-free shopping exemptions, effective from February 6, 2026.

Temu's decision to limit its sales to products from local warehouses comes amid growing scrutiny over cross-border e-commerce operations in Turkey. On January 21, the Turkish Competition Authority conducted an inspection at its office in Turkey. The official said the action was part of a routine preliminary review and did not constitute the launch of a formal investigation.There were conflicting reports about the seizure of digital equipment during the inspection, with the Competition Authority denying the confiscation, while a Temu spokesman reported that laptops and computers were taken.

Market Projections

Temu's transaction volume in Turkey reached 43 billion Turkish lira in 2024 and increased 40% to 60 billion lira in 2025. With the new restrictions, it is expected that around US$ 1.5 billion in sales will be transferred to companies that import and sell through local platforms, while demand for domestic alternatives may also increase. Industry observers suggest that the combination of higher import costs and stricter enforcement may lead other foreign platforms to reconsider their direct-to-consumer shipments to Turkey.

Global GWI Study, Jun 2024

• Temu, Shein retreat altert Turkish e-commerce market & HIrriyet Daily News.
• Chinese e-commerce platform Temu halts overseas orders for Turkey & Turkish Minute.