Israel

Israel

General Information

  • Population 9.3m
  • Population 15 + 6.7m
  • Online Population 8.2m
  • Area 22,145 km2
  • Currency ILS
  • GDP 402.6bn USD
  • GDP per Capita 43,689 USD
  • Card-based payments
  • Bank transfers
  • Wallets
[{"label":"Card-based payments","value":"75"},{"label":"Bank transfers","value":"1"},{"label":"Wallets","value":"24"}]
Banked population
  • Israel 93%
  • Middle East & Africa 48%
  • World 67%
Credit card penetration
  • Israel 75%
  • Middle East & Africa 12%
  • World 19%
Internet penetration
  • Israel 88%
  • Middle East & Africa 45%
  • World 62%
Smartphone penetration
  • Israel 80%
  • Middle East & Africa 65%
  • World 70%

Prior to 2020 Israeli e-commerce, for such a technologically driven country, was fairly immature. Israelis prefer to shop in brick-and-mortar shops, being able to touch their purchases. The pandemic changed that and Israelis discovered the benefits to shopping online.

When Israelis did shop online prior to 2020 it tended to be from big international companies such as Amazon. COVID-19 changed that, with Israelis choosing to forgo overseas websites by 37% and instead shop from local e-commerce sites, up by 10%.

Israel is in discussion about removing the tax cap for personal cross-border online shopping. At present Israelis can make individual purchases up to 75 $US without incurring tax. This would help local e-merchants while making international purchases more expensive.

Israel’s economy is set to grow by 5% in 2021 according to the IMF, and 4.3% in 2022. Meanwhile inflation is set to remain reasonably steady with a slight rise of 0.3% in 2021 and 0.6 % in 2022.

Future e-commerce trends (2021-2025)

E-Commerce market size forecast ($US billion)
2021 12.5
2022 14.1
2023 16.3
2024 18.7
E-Commerce spending per capita ($US)
2021 1332
2022 1478
2023 1684
2024 1908
E-Commerce spending as % of GDP
2021 2.9
2022 3.1
2023 3.4
2024 3.7

Israel

The E-Commerce Market

Top e-commerce segments 2019 | 2020

  1. Airlines & Hotels: NA | 23%
  2. Health & Beauty: NA | 16%
  3. Electrical Goods: NA | 15%
  4. Food & drink: NA | 10%
  5. Homeware & Furniture: NA | 7%

Cross-border e-commerce

  1. Cross-border proportion of total e-commerce – NA
  2. Value of cross-border e-commerce ($US billion) – NA
  3. % of online shoppers who have shopped cross-border – 82%

Top 3 cross-border shopping origin markets

  1. China
  2. UK
  3. USA
E-commerce % of total retail
  • Israel 9%
  • Middle East & Africa 3.0%
  • World 20%
E-commerce completed on a mobile device
  • Israel 42%
  • Middle East & Africa 53%
  • World 53%

The Credit Card Split

  • Visa
  • Mastercard
  • American Express
  • Local Schemes
  • other
[{"label":"Visa","value":"44"},{"label":"Mastercard","value":"28"},{"label":"American Express","value":"6"},{"label":"Local Schemes","value":"17"},{"label":"other","value":"5"}]
  • E-commerce market size ($US billion) 11.3bn USD
  • E-Commerce spending per capita ($US) 1,231 USD
  • E-commerce spending as % of GDP 2.7%

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