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Why Trendyol's Business Model is so successful?

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Trendyol’s Company Overview


Trendyol is a leading Turkish e-commerce platform that offers a vast range of products across categories such as fashion, home, beauty, electronics, and more. Founded in 2010, the company has grown rapidly due to its commitment to providing a seamless online shopping experience to its customers. With a mission to serve its customers anywhere, anytime with the best quality service, Trendyol has become a trusted and preferred shopping destination for millions of users. The company leverages advanced technology and data analytics to understand customer preferences and deliver personalized shopping experiences. Trendyol's commitment to innovation and customer satisfaction has positioned it as a leader in the Turkish e-commerce market.

Business Model:

Trendyol operates on a hybrid business model, combining the aspects of both B2C (Business-to-Consumer) and B2B (Business-to-Business). The company sources products from various vendors, manufacturers, and suppliers and sells them directly to the consumers through its platform. In addition, it also provides a platform for other businesses to sell their products, acting as a marketplace. Trendyol uses data-driven decision-making to manage its inventory and ensure the availability of products as per the demand. The company also invests in logistics and delivery infrastructure to provide fast and reliable delivery services, enhancing customer satisfaction and retention.

Revenue Model:

Trendyol's primary source of revenue is the commission it earns on each sale made through its platform. This commission varies based on the product category and the agreement with the seller. In addition to this, the company also generates revenue through advertising. Businesses can pay to advertise their products on Trendyol's platform, gaining increased visibility and potential sales. Furthermore, Trendyol offers premium services such as Trendyol Express for faster delivery, for which it charges an additional fee. The company's diversified revenue streams have contributed to its robust financial performance and growth.

https://www.trendyol.com/en

Headquater: Istanbul, Turkey, Middle East

Foundations date: 2010

Company Type: Private

Sector: Consumer Services

Category: eCommerce

Digital Maturity: Fashionista


Trendyol’s Related Competitors



Trendyol’s Business Model Canvas


Trendyol’s Key Partners
  • Private investors (Tiger, Kleiner Perkins, Dragoneer, Sequoia, and Burda Digital)
  • Shipping companies
Trendyol’s Key Activities
  • Brand Marketing
  • Communication
  • Customer Service
  • Advertising
  • Technology Development
  • Network Management
  • Campaigning
  • Logistics
  • Legal
  • Recommendations-based sales
  • Personalization
  • Vendor management
  • Sale channels
  • Product curation
  • Data mining
  • Business Intelligence
  • Analysis
  • New businesses
Trendyol’s Key Resources
  • A huge and untapped market opportunity
  • Over 500 employees
  • Big data and technology
  • IT infrastructure
  • Data set
  • Trendyol has established a wide supplier network throughout the world gaining over 1000 supplier partners and over 10 million members
  • Trendyol is managed by a very strong experienced and ambitious team
  • Trendyol is the only Turkish company to enter in the "E-Commerce Europe Top 500" list which consist of the best 500 E-commerce companies in Europe (12th rank in Fashion/ Clothing industry and the 2nd Turkish company in all categories)
Trendyol’s Value Propositions
  • To bring together an e-commerce website with social media and personal sales-consultancy services phase by phase
  • To make it easier for more businesses to access e-commerce opportunities
  • To become one of the most effective e-commerce platforms in the world
  • To make internet shopping more enjoyable and more social
  • Their mission is to be an innovative company that constantly improves Internet and Mobile technologies to provide the best service experience to the 1.5 billion customers we reach in the region with a unique business model that operates with 3 thousand consulting companies in a win-win strategy
Trendyol’s Customer Relationships
  • Convenience
  • Business model innovation
  • Brand
  • Quality
  • Product assortment
  • Popularity
  • Price
  • Self service
  • Automation
  • Community
  • Co-creation
  • Paradigm shift customer journey
Trendyol’s Customer Segments
  • Stylish entrepreneurial young women (24-35)
  • Women 18-24
  • Men's fashion lovers
  • Brands
Trendyol’s Channels
  • Website
  • Mobile website
  • Mobile app
  • Apple Store
  • Android Market
  • Social networks
  • Online and offline ads
  • Newsletter
  • Press coverage
Trendyol’s Cost Structure
  • Logistics
  • Storage and distribution costs
  • Technology Development and Maintenance
  • Legal
  • Customer Service
  • Salaries
  • Marketing
  • Taxes
  • Platform development
  • Acquisition
  • Data Center costs
  • Servers cost
  • IT y Hardware
  • IT Services
  • Content generation
  • Payment processing
  • Training
  • Communication
  • Base of Resellers
  • Reseller Incentives
  • Third Party Services
  • Business Development
Trendyol’s Revenue Streams
  • Commission on sales (between 10% and 25% of the purchase price)
  • Trendyol manages the delivery process itself by operating its own courier network and warehouses
  • It sells its products to its users at a discounted price
  • Pop-up stores

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Trendyol’s Revenue Model


Trendyol makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • eCommerce
  • Reseller
  • Direct selling
  • Two-sided market
  • Brokerage
  • Subscription
  • Advertising
  • Curated retail
  • Niche retail
  • Cross-selling
  • Customer loyalty
  • Affiliation
  • Membership club
  • Digital
  • Channel aggregation
  • Experience selling
  • Ingredient branding
  • Fast fashion
  • Fashion sense
  • Long tail
  • Mobile first behavior
  • Discount club
  • Credits
  • Low cost
  • Sponsorship
  • Online marketplace
  • On-demand economy
  • Orchestrator
  • Open business
  • Technology trends
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

Trendyol’s Case Study


Trendyol's CASE STUDY

When we imagine the landscape of modern e-commerce, Trendyol inevitably emerges as a standout player. Born in the vibrant city of Istanbul in 2010, Trendyol operates in a highly competitive environment yet manages to continuously impress and thrive. This blog post dives deep into the origins, growth trajectory, unique strategic maneuvers, and the heightened digital sophistication that makes Trendyol a true pioneer in the world of online shopping.

Genesis and Early Days

In 2010, a visionary entrepreneur, Demet Mutlu, embarked on a mission to address a latent gap in the Turkish e-commerce market. She founded Trendyol with the vision to serve customers with a seamless and enjoyable online shopping experience. Initially, the e-commerce platform started as a niche fashion retailer, capitalizing on the under-served market of fashionable young women aged 24-35. However, it wasn't long before Trendyol expanded its offerings to include diverse categories such as home, beauty, and electronics, thereby capturing a larger demographic.

Business Model: A Hybrid Approach

Trendyol's success can largely be attributed to its ingenious hybrid business model, which combines B2C (Business-to-Consumer) and B2B (Business-to-Business) paradigms. The company sources products from a vast array of vendors, manufacturers, and suppliers. These products are then sold directly to consumers via Trendyol’s user-friendly platform. This dual-sided model enhances customer value by ensuring that a wide variety of products are always at hand while simultaneously offering businesses a viable platform to reach millions of consumers. What makes this model particularly compelling is its reliance on data-driven decision-making for inventory management. Using advanced data analytics, Trendyol is able to predict customer preferences, manage stock levels, and curate a personalized shopping experience. According to McKinsey & Company, data-driven companies are 23 times more likely to acquire customers (McKinsey Insights, 2022).

Revenue Streams: Diversification as a Growth Catalyst

Trendyol's financial model is a blueprint of diversification. The company's primary revenue stream is a commission fee that ranges between 10% and 25% per sale, depending on the product category. Furthermore, Trendyol capitalizes on advertising revenue. Brands and individual sellers pay to promote their products on Trendyol’s platform, benefitting from enhanced visibility and consumer engagement. Another lucrative revenue segment is Trendyol Express, a premium service offering expedited delivery for an additional fee. This service not only generates direct revenue but also builds customer loyalty by significantly improving the shopping experience. These diversified revenue streams have led to the company's robust financial performance and continuous growth. In a recent report, Trendyol's revenue grew by 48% year-over-year, underlining the efficacy of its multifaceted revenue model (Statista, 2023).

The Heartbeat of Trendyol: Technological Innovation

One might wonder, what truly sets Trendyol apart in an industry teeming with heavyweights like Amazon and Alibaba? The answer lies in its unwavering commitment to technology and innovation. Trendyol’s IT infrastructure is designed to support its scale, enabling seamless operations. With over 500 employees dedicated to technology and data analytics, the company thrives on leveraging big data to personalize the shopper's journey. Personalization, in particular, is Trendyol's secret sauce. By harnessing user data, the company tailors product recommendations, promotional offers, and even homepage layout to individual preferences. According to Harvard Business Review, personalized marketing can reduce customer acquisition costs by as much as 50%, lift revenues by 5-15%, and increase the efficiency of marketing spend by 10-30% (HBR, 2021).

Mastering Logistics and Delivery

No e-commerce giant can succeed without an efficient logistics and delivery backbone. Trendyol understands this, which is why it has heavily invested in logistics infrastructure. Trendyol Express serves as the nucleus of their delivery system, ensuring swift and reliable deliveries. The company operates its own courier network and warehouses, cutting down on reliance on third-party services. Investment in logistics has not only improved delivery times but has also enhanced customer satisfaction and retention rates. According to a survey conducted by PwC, 41% of consumers are willing to pay an additional charge for same-day delivery (PwC, 2022). Trendyol’s logistics framework allows it to tap into this market efficiently.

Social Impact and Customer Needs

Trendyol goes beyond just facilitating transactions; it aims to fulfill a spectrum of customer needs ranging from social to functional. The platform aims to simplify the shopping experience, provide access to a variety of quality products, and enhance social belonging through fashion and design. According to a study by Deloitte, customer experience is the differentiator for 88% of consumers (Deloitte, 2023). Trendyol excels in this domain by interweaving social and emotional aspects into the shopping journey. Their commitment to social impact is not only about customer engagement but also involves corporate responsibility. Trendyol has set itself apart as a socially responsible enterprise that maintains strong ethical principles.

Conclusion: A Blueprint for E-commerce Success

Trendyol's trajectory is nothing short of inspiring. By blending a hybrid business model with diversified revenue streams and an unswerving focus on technology and logistics, Trendyol has carved out a unique niche in the e-commerce world. Their strategy is underpinned by data analytics and personalization, offering key insights for companies looking to build similar success stories. In an era where digital presence determines success, Trendyol stands as a testament to what robust strategy, technological prowess, and customer-centricity can achieve. For businesses aspiring to make their mark in the e-commerce arena, Trendyol's journey offers invaluable lessons in innovation, efficiency, and market adaptation.


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