Internet was perceived only as a communication tool and approached with low expectations in the past. Since the first day that Internet was offered to large masses as the key opening the door of a new era, everybody focused on the ways of earning money by using Internet.

E-commerce websites in the beginning were just for big companies since both their substructure investments were extensive and softwares for these websites were being sold for high amounts in the market. Most of those who ventured on it went bankrupt anyway. Since the profit margin was so lower in market with high initiating expenses when compared with real life, of course expenses exceeded incomes. Soon after, many e-commerce websites launched with great ambition and investments lost within Internet dumps.

While (fake) victory cheers of e-commerce were ringing in whole world, many open source e-commerce software were launced into the market soon after. Now, high software prices required for establishing an e-commerce website were disappeared. However, many e-commerce websites appeared in Internet and everbody became a dealer. There were so few buyers in Internet that everybody planning to do business over Internet was taken out of their sails.

Then it was realized that people were actually trusting products sold over Internet while they were not trusting websites which sell those products and e-commerce systems adopted auction systems instead of setting up a shop. Of course, Ebay which would enter into Turkish market later was responsible for this trend.

By means of auction concept which turned markets upside down, everyone might sell everything they had over Internet for low listing expenses. Thus, individuals might take up business at micro scale without requiring any substructure investment.

Auction system for Turkish market was certainly an attractive feature as in whole world; however, trust issue was at maximum level in Turkey. Gittigidiyor achieved an incredible success by developing trustworthy shopping concept. The method they applied show that people prefer to trust easily an institutional structure rather than a person they do not know.

Many auction websites were launched later on, however none of them became an alternative to GittiGidiyor including those having huge media support. Because the only thing they did was to imitate the same system.

Well, was the auction system able to solely meet all requirements? Did people really prefer to sell or buy products over an auction website first when they needed to sell or buy something?

Frequency Table for Shopping from Auction Websites

According to the results of a scientific research, it is found that members of auction websites made shopping 1-2 times within last year as a rate of 33.3% and those shopping 3-4 times within last year were 25% of total members. [1]

These data shows us that most of people shopping over auction websites could not make it a routine and they probably returned to traditional shopping ways after a few tries over online shopping systems.

What is the real problem? Why can not people maintain the sustainability on such systems that are working without any problem? Maybe the most important problem is the existence of active and passive sides. Does the imbalance between buyers and sellers affect these people to move away from such systems?

Takas Merkezi is an Internet project for seeking the answer of this critical question. In ages in which the money was not invented yet, people needed to produce goods and to barter these goods with those they needed to have. The invention of money removed the obligation to find someone who needed our goods in order to obtain goods we needed.

Could this obligation be removed without using money? Bartering system established long years ago committed companies to barter their excess stock with products they needed without using money. Even though it is not my job to explain how much this system was abused in Turkey, I can express that bartering system was perceived as an effort to sell products expensively by fooling the client.

We can shortly say that Takas Merkezi is a bartering system between individuals instead of companies. Though their job can be defined as bartering, they do not name it as bartering since it reminds improper associations.

In order to get a product in this market in which everybody is both seller and buyer, you should first sell a product and this process is made certainly without money. This condition establishes the first step of making all users active.

Unlike other auction websites, users do not get money in exchange for their sales. Thus, users return to the website since the income obtained from the website can only be spent on the website.

Money can be used in the website only in two cases, as 10% commission taken from buyers and secondly, in cases that members want to buy points when they do not have enough points to make a purchase. 1 point is equal to 1 TL in the website.

I did not see any website having such interactive shopping system same as the system developed by Takas Merkezi. In this respect, it is indisputable that the system has an innovative and promising structure.

Well, how much goods do people have for selling? When you examine the website, you see that there are users thar reached to numbers with many digits in transaction volumes. Surely, contests cleverly organized with beautiful presents ensuring users to be motivated have great effect on those high transaction volumes. The first hypothesis that comes to mind as “people do not have many goods to sell” is refuted when you tour the website.

It is hardly comprehended by many new users that they can not get money for goods they sell. Thus, the system continuously warns you that you can not get money for goods you sell and such warning is ethically necessary.

One of the most significant striking features of the website is well-positioned Live Support system. While even big shopping websites use impractical bots, finding a real human in 15 seconds after connecting to the live support and receiving detailed answers really impressed me.

Also I have to mention that such a project has been developed only by using owner’s equity without receiving any investment until today. Since the system managed to become almost perfect by using owner’s equity, it will maintain growing more. Investments that may be needed after this point may be used just for introduction purposes.

These innovative features and the success in creating user loyalty brought monthly 33% growth to Takas Merkezi. This means that the website may reach 10 times growth at the end of 2010 and such a growth can be obtained by only few Internet projects.

Income Models and Innovative Methods

Making an Internet project to work without any problem by only using owner’s equity is a great and praiseworthy success. Takas Merkezi built its most important income on 10% commission taken from buyer. Any listing payment is not charged for products to be sold except that commission. This will ensure the system to grow by removing the most important factor that decreases the motivation of user in the first sale in other auction websites.

Takas Merkezi also know how people afraid of using their credit cards on Internet. Thus, alternative payment methods are integrated into the system. Shopping process is shortened especially by Turkcell Mobile Payment solution (Turkcell is a GSM company in Turkey). When it is considered that users already prefer to use this mobile payment system more than transfer/EFT solution, it can be understood that it is a good choice.

Even though the Internet is accepted as the most significant source of globalism, Takas Merkezi actually preferred to be localized as the actual way of growing. They have a goal as improving their resources and accelerating to spread at the same time. Directors aim to establish a Takas Merkezi office in every city by franchising and it seems that they are quite successful in this goal.

It is possible to attend to franchising system only by paying a participation fee and there is no annual payment. These franchises are responsible to find active members from their own regions. It is planned to establish one office in small and medium populated cities and one office per district in high populated cities. Even if users are not directed by these franchises, they are registered to their sub-accounts and 30% of the 10% commission (taken by the system) is paid to franchises. As it is considered that participation fees are quite low, these franchising system applied by Takas Merkezi is a great opportunity for entrepreneurs.

The system getting “newsmongers” locally by franchises will increase its user number in a short time. Takas Merkezi planning to complete its franchise structure in 20 regions at the end of January 2010 clearly mentioned that it will raise participation fees after this structuring period.

We also heard that they give their best attention to the franchising and do not allow everyone to be in the system. Giving priority to institutional applications that are currently showing activity in their own regions shows the importance given to brand value by Takas Merkezi.

What can be done in the future?

Even though Takas Merkezi currently has a stable structure and an active system, it should not be forgotten that it is still a developing project.

The most important factor increasing member number in such markets is certainly the depth of market. Though Takas Merkezi has a rapidly deepening market, it should make a name for more people and should include people into the system who are not regular Internet users. Effective introductions and successful campaigns to be arranged are surely needed.

The most important deficiency I observed that the system does not allow multiple product sales. Thus, institutional clients can not use this system for “destocking”. Maybe different solutions can be offered for institutional members in the future. Such an initiative will definitely increase transaction volumes.

Another important initiative announced by Takas Merkezi is applying the system in foreign countries. Some interviews also made about the issue. However, this project seems to be remained on the shelf since the directors prefer to work with a partner localized and knowing the dynamics in their country well.

[1] Bengü Boyacıgil, “Auction Websites in terms of Marketing in Internet and Attitudes of Consumers about Auction Websites”, Postgraduate Thesis, Yıldız Technical University, İstanbul; January 2008