Israel – Silicon Valley for online trade in the Middle East
Is Israel your target market?
Retailers around the world have great opportunities to sell online in Israel.
There is a growing interest among leading online retailers in the Israeli market;
Despite its small size, the country has a high rate of technology adoption, which has led to it being called a “tiny technological titan.”.
In fact, after the US and China, Israel has the most companies listed on the Nasdaq stock exchange focusing on technology.
With high rates of eCommerce, and a 12th ranking in the world for smartphone penetration, it is not surprising that the Israeli eCommerce rates are on the rise.
An eBay study found that Israeli consumers set the record for online purchases in 2015 and thus Israel has consistently ranked as one of the most enthusiastic consumer groups when it comes to online shopping.
The total data of eCommerce in Israel in 2017 reached $ 2.7 billion, by 2023, the eCommerce market in the country is expected to rise to $ 8.11 billion.
Revenue is expected to show an annual growth rate of 14.05%, leading to a projected market volume of 12.03$ billion by 2025.
In the eCommerce market, the number of users is expected to rise up to a total 5.2 million users by 2025.
In order to service the sky-rocking online retail market in Israel, Gaash Worldwide, which was one of the first companies to handle eCommerce shipments to the country, has learned that technology needs to be customized by partners in order to handle over half a million packages per month while serving retailers worldwide.
Gaash Worldwide also provides export services, including courier exports, eCommerce exports, and returns exports.
The company provides all domestic distribution options such as home deliveries, pick up points, lockers and more to eCommerce customers.
As mentioned, eCommerce is the most dominant trade in Israel;
One of the significant categories is electronics and media ($ 921.5 million in 2017).
However, there is also a large market for toys and products for children ($ 736.4 million in 2017).
Fashion, too, is a well-established category, growing from $ 662.4 million in 2016 to $ 737.3 million in 2017 and is expected to be worth $ 1.1 billion by 2025.
The Israeli fashion market is also thriving, with consumers buying in both local boutiques and international retailers – it is estimated that the fashion market will have the largest market share by 2025.
Statistical analysis reveals that social media users in Israel increased by about 250,000 (+ 3.7 percent) between 2021 and 2022.
Revenue is expected to show an annual growth rate of 6.8% resulting in a market volume of $ 3.9 billion in 2022.
Out of the country’s population of 8.2 million, 3 million are regular online shoppers giving Israel a very healthy growth rate of eCommerce, the US is expected to show an Annual growth of 8.3% and the UK is expected to show only an annual growth rate of 5.8%.
In 2018, the average expenditure of eCommerce users in Israel was $ 684.31.
The domestic eCommerce market tends to be more expensive than the global one and monopolies further strengthen these prices.
The cost of living in Israel is one of the main reasons why Israeli consumers turn to eCommerce to make purchases.
According to the Israeli Internet Association, 75% of Israelis make online purchases regularly – mainly from the United States, China and the United Kingdom.
Although mobile commerce is relatively small, Israel is ranked 12th in the world in smartphone penetration.
74% of the people in Israel own and use smartphones, Israel has now become one of the leading countries when it comes to transactions made using smartphones.
Around 75% of shoppers say that online shopping allows them to save money in popular categories like fashion clothes and electronic devices, which is a fact that provides significant value for online shopping.
There are already about 4 million eCommerce users in Israel, with an additional 900,000 scheduled to make online purchases by 2023.
Local retailers have yet to adopt eCommerce in a similar way to retailers in other countries, despite Israeli consumers’ hunger for online shopping.
Since only a quarter of Israeli retailers sell online, there is a significant window of opportunity for global retailers.
There are many opportunities for cross-referencing and integration of eCommerce and social media as it enters the field of social media.
Facebook has the largest share of social media in Israel, reaching almost 80%.
According to Internet World Statistics, this amounts to almost 4 million Facebook subscribers, which is about half of the population.
Instagram also has almost half of the population of about 4 million users, Pinterest is the second largest social contender in Israel, with a 19% share and Twitter has 6%, while YouTube’s share is only 2%.
The most popular purchase destinations for Israeli buyers are the US, UK and China.
Israel, along with Ireland and Austria, is one of three countries with the highest shopping rates abroad and there are a number of good reasons for this;
For example, while Israel’s official languages are Hebrew and Arabic, the majority of the population speaks English, making it easier to make cross-border purchases from other English-speaking countries.
Additionally, international credit cards and e-wallet services, such as PayPal, are the most popular forms of payment for online shopping in Israel.
Therefore, there are no payment restrictions or language barriers for Israeli consumers.
Israeli consumers prefer to use credit cards and debit cards over any other type of online payment method.
In fact, 84% of online shoppers made online payments in Israel using credit cards. This is by far the most popular category – 14% used e-wallets and prepaid cards and bank transfers also served Israeli consumers on the Internet.
Gaash Worldwide handles shipments from the United States, Europe, Asia, Eastern Europe and Russia taking into account the specific processes of each country.
Thanks to a Its species and operational capability have enabled Gaash Worldwide to develop international accessibility to all of the world’s ports and maintain business relationships with local agents around the world.
The company has a regular delivery service to and from all the major ports in the world, and a large customs brokerage department.
In addition, Gaash Worldwide provides logistics solutions for warehousing and collection to its customers and knows how to provide the solution for every request; Land transportation in Israel and abroad to any destination and place in the world’s ports, shipments trans, third-party shipments, and handling of special shipments.
As the leading company in the country in logistics and eCommerce services, Gaash Worldwide strives to lead the front of the supply chain industry in the field of eCommerce and is committed to service and meeting the highest standards in order to provide its customers with the best service.
