E-Export Supports Numbered 5986 for ETSY Sellers

What Are the E-Export Supports Under Decree No. 5986?

The E-Export Supports under Decree No. 5986 are among the programs implemented by the Ministry of Trade. These supports have been developed to encourage companies in Turkey to engage in e-export on digital platforms, to reduce logistics and promotion costs, and to ensure that Turkish products gain a wider presence in the global market. Sellers operating on digital marketplaces like Etsy can also benefit from these supports under certain conditions.

Who Can Benefit from the Supports?

For sellers on Etsy to benefit from these supports, they must meet certain criteria. These can be summarized as follows:

• Sole proprietorships or individuals selling as natural persons cannot benefit from the supports. You must be a company established in accordance with the Turkish Commercial Code (Limited Company, Joint Stock Company, etc.). If you do not have a company, you can also benefit from the supports by establishing a sole proprietorship company or another legal entity.

• The supports only cover products manufactured in Turkey or whose production is largely carried out in Turkey. Your products must carry the "Made in Turkey" label or their production in Turkey must be documentable.

• When sending your products abroad, it is mandatory to issue an Electronic Commerce Customs Declaration (ETGB). To benefit from the supports, your products' export transactions must be carried out in accordance with the official declaration.

Supports Offered Under Decree No. 5986

Commission fees paid on digital platforms like Etsy can represent a major cost for businesses engaged in e-export. To ease this burden, the Ministry of Trade supports up to 70% of marketplace commission fees. This support can reach up to 2,400,000 TL per year and largely offsets the platform commissions paid by sellers per sale. Support rates may vary depending on target countries. For instance, major markets like the US are among the regions where supports are offered at more advantageous rates. This advantage allows businesses selling on Etsy to offer their products at more competitive prices on a global scale.

Digital advertising expenses incurred to increase the awareness of your Etsy store and boost sales are also covered by government support. 50-70% of the budget spent on promotional tools such as Google Ads, Facebook and Instagram ads, or Etsy's own advertising platforms can be covered by the government. The support lowers sellers' advertising costs, allowing them to reach a wider target audience. For example, with Etsy's Promoted Listings feature, you can deliver your products to more customers and receive refunds for these expenses. This allows you to plan your advertising campaigns more boldly.

In sales made through the platform, logistics processes also make up a significant portion of the cost. The supports offered for storage, packaging, and shipping costs are developed to ease this burden. Especially sellers using systems like Amazon FBA (Fulfillment by Amazon) can benefit from this support. A portion of the expenses incurred in warehouse rental, secure packaging of products, and delivery processes to the customer can be recovered. Thus, it helps you increase your competitiveness and protect your profitability while delivering your products to customers worldwide.

Operating your store under a brand creates trust and recognition in global markets. The Ministry of Trade offers support that also covers trademark registration costs. This support eases the financial burden by covering some of the expenses incurred when registering your trademark abroad. For example, as an Etsy seller, if you want to register your trademark with organizations like the United States Patent and Trademark Office (USPTO) or the European Union Intellectual Property Office (EUIPO), the costs of the process can be supported. Thanks to trademark registration, you can protect the intellectual property rights of your products and achieve a more professional appearance in the eyes of global customers.

The success of your store is also closely tied to the visibility of your products. Therefore, digital services such as SEO and product listing optimization are of critical importance to increase your sales. The Ministry of Trade has also decided to support expenses made for such professional services. For example, if you work with an expert for product descriptions and keyword selection for your Etsy store, a portion of your expenses for the services you receive can be reimbursed. Additionally, by taking advantage of digital consultancy services, you can develop your Etsy store's strategy and receive professional guidance on topics such as competitive pricing and customer satisfaction. These two critical supports construct a strong financial and strategic infrastructure that supports the long-term growth of your business.

The Process to Benefit from the Supports

To benefit under the scope of e-export supports under Decree No. 5986, you can follow the steps below:

• To benefit from the Ministry of Trade supports, you must establish a company. If you have an existing Etsy account, this account may need to be transferred to your company.

• Prepare documents proving that the products you sell in your Etsy store are manufactured in Turkey. Having the "Made in Turkey" label on the products increases the approval rate of your application.

• Prepare an ETGB document when sending your products abroad. The document places your products under export status, allowing you to benefit from tax advantages.

• Become a member of exporters' associations and complete your support application through the Ministry of Trade's online platforms. During the application, it will be sufficient to present your company's certificate of activity, trademark registration documents, customs declarations, and invoices showing digital advertising expenses. 

• Regularly keep invoices and payment documents for items such as Etsy commission payments, advertising expenses, and logistics costs. You can request support with these documents on a quarterly basis.

Additional Tips for Etsy Sellers

To make your products stand out on Etsy, creating stories emphasizing that you manufacture in Turkey is a very effective method. Especially in global markets, local stories and cultural touches attract consumers' interest. Adding phrases like "handmade soap obtained from the natural essences of Anatolia" to your product descriptions both creates trust regarding the origin of your product and shows global customers that you offer a unique experience. Such stories do not just describe your products; they also establish an emotional connection with customers. In your stories, you can make a difference by including details such as natural materials used in your product's making process, traditional production techniques, and the product's social or environmental contributions. For example, a rug inspired by Turkish weaving art or a product story inspired by the natural plants of the Mediterranean can take your brand one step ahead in global competition.

One of the effective ways to increase your sales is to consider fulfillment services located in the US or Europe. These services speed up your logistics processes and increase customer satisfaction. Fulfillment services ensure that your storing, packaging, and shipping processes are managed professionally. For example, when a customer in the US places an order, the swift delivery of your product increases customer satisfaction, creating more positive feedback and repeat sales potential. Additionally, fulfillment services offer the advantages of shipping your products through a warehouse abroad. This significantly reduces shipping costs and delivery times. On Etsy, you can quickly deliver your products to customers by using Amazon's FBA (Fulfillment by Amazon) service or Etsy's own fulfillment options.

Etsy's own advertising modules are an effective method to increase the visibility of your products. Advertising options like Promoted Listings or Offsite Ads help increase your sales by placing your products in front of your target audience. Receiving 50-70% reimbursement on advertising expenses thanks to government supports makes this method more attractive. By using Etsy's advertising tools, you can showcase your products both in on-platform searches and in external ad networks. For example, in an ad campaign you launch with a certain budget, your products will appear before customers in Google search results or on social media platforms. This ensures you draw more visitors to your Etsy store as well as increase your sales. By correctly optimizing your advertising budget and shaping your campaigns according to your target audience, you can achieve maximum benefit with minimum cost alongside government support.

E-export supports under Decree No. 5986 offer great advantages to Etsy sellers. However, to benefit from these supports fully, you must fulfill official processes such as incorporating, documenting your products, and issuing a customs declaration. The relevant incentives provided by the Ministry of Trade increase your competitiveness in the global market by reducing logistics, promotion, and commission costs. To get more info on how you can benefit from the supports for your Etsy store, you can visit the official website of the Ministry of Trade. To facilitate your e-export operations and deliver your shipments smoothly to global markets, you can benefit from the practical solutions offered by Navlungo. You can both save time and increase your competitiveness by optimizing your costs.

References:

1. E-Export Supports Under Decree No. 5986 for ETSY Sellers – The Road to Global Success https://www.youtube.com/watch?v=asQJk_-vUL4 

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