With Pesach, one of Israel’s major holidays, fast approaching, international and domestic e-tailers are gearing up to meet Israeli e-commerce demand. When it comes to online shopping, cross-border e-commerce is big business in Israel. Between 2009 and 2014, e-commerce showed a compound annual growth rate (CAGR) of close to 25% which was more than double the global growth rate. E-commerce revenue in Israel was forecasted to USD 3.6 billion in 2016 and is expected to rise to USD 4.9 billion in 2020.
What makes the country attractive to e-tailers despite its modest population of 8.2 million is that nearly 80% of Israeli online shoppers have bought products from abroad, predominantly from China, the UK and the US. The dominant e-commerce categories in Israel are Home Electronics, Fashion & Footwear and Media Products. Housewares and groceries are also popular to buy online.
Additionally, although Israel’s official languages are Hebrew and Arabic, a majority of the population speaks English, and thus, for cross-border e-tailers communicating in Hebrew or Arabic is not always necessary.
Another factor which aids cross-border e-commerce is that a majority of Israeli online consumers prefer to pay for their purchases by internationally-accepted credit or debit cards. Also, even e-wallet services such as PayPal are popular and commonly used by consumers.
Thus, when it comes to the Israeli market, it’s time for cross-border merchants to prepare for growing demand.
Olof Källgren, Market Information Manager, Direct Link
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