Israel, e-commerce and logistics
Israel's e-commerce market is poised for rapid growth. Read on to learn more about entering this flourishing market.
Why Israel?
Israel is a developed country experiencing positive growth and boasting a thriving tech sector. Despite its geopolitical challenges, strong trade relationships with countries outside of the Middle East help buffer its economy. Young people in Israel are increasingly tech savvy and consumers are more and more eager to buy online. This makes Israel a smart choice for e-commerce and logistics businesses who understand the risks.
- 8.8 million
- Population circa
- 87%
- Projected market volume by 2027
- Fashion
- Most purchased
The e-commerce landscape
The number of Israeli e-commerce users is predicted to rise from nearly 4 million in 2023 to 5.2 million by 2025. Total e-commerce revenues are expected to rise 48.3% to $12bn in 2025.1
In addition to its relatively high wages, low unemployment, and the fact that 73% of shoppers prefer to buy online with their disposable income, Israel presents a very promising outlook for e-commerce retailers overseas.
Opportunities
While Israeli businesses do complete, they are subject to high VAT, so international retailers are able to offer lower prices for the same quality items.3
Most popular e-commerce sectors in Israel
Sectors Israel consumers are most interested in...
Logistics
Shipping e-commerce products to Israel can be a complex process. Besides packing the goods appropriately to avoid damage, it's helpful to learn the customs regulations and select a reliable shipping provider to ensure an efficient and smooth process.
Before the shipment arrives with the consumer, e-tailers will need to consider a few operating procedures, such as method of shipping, weight and size of goods, customs clearance and insurance.
The essentials
| Transit Times | 3 to 6 working days |
| Maximum Dimensions | 100*80*60*cm |
| Maximum Weight | 20kg |
| Maximum Container Value | N/A |
| Low-Value Limit | 75 USD |
| DDP Available | Yes |
| Duty | Variable based on product; Applicable on orders over 75 USD |
Good to know
For security and economic reasons, a number of shipping restrictions to Israel are in place. See a full list of prohibited goods here: www.trade.gov/country-commercial-guides/israel-prohibited-restricted-imports.
Many items, such as mobile devices, computers, watches, jewellery and luggage, are free of import duties, though fashion items and health and beauty products are face import duties of six and 12 percent, respectively.
What our experts say:
“Israelis are teach savvy and open to buying from international business, while also confident English-speakers with a strong presence on many of the social and e-commerce platforms. It makes sense to do business there.”
Simon Perkins, Commercial Director, SAMOS.