Xin Ou
Research expert covering Greater China
E-commerce in Israel - statistics & facts
Almost half of Israeli internet users engaged in e-commerce activity on a weekly basis. This was according to a survey conducted in the third quarter of 2024 regarding online shopping activities. Estimates predict that the revenue from e-commerce is projected to exceed 10 billion U.S. dollars by 2028. From apparel and electronics to groceries and restaurant delivery services, the e-commerce market in Israel is diverse and competitive. Advanced payment methods further strengthen the relationship between businesses and their customers, facilitating the growth in this dynamic sector.
In a rapidly evolving market, Israeli retailers are adapting to the digital landscape to meet the growing demand for online shopping. With the e-commerce industry projected to continue its upward trajectory, the future of retail in Israel will certainly continue to move online.
A fashionable lead
Fashion plays a significant role in driving the growth of online retail in Israel. In 2024, online expenditure on fashion reached just under 1.4 billion U.S. dollars. This made fashion one of the most lucrative segments in Israel's e-commerce industry, followed by consumer electronics. The role of e-commerce in retail is becoming increasingly central, with numerous traditional brick-and-mortar players now offering complementary online services. As the online fashion industry continues to grow, it is projected to generate over two billion U.S. dollars in annual e-commerce revenue by 2028.The rise of online retailers
In keeping with global trends, many traditional Israeli retailers are migrating to online platforms, with some even becoming primarily online sellers. A case in point is KSP, which transformed from a conventional computer retailer to one of the largest e-commerce sites specializing in consumer electronics. Shufersal, Israel's largest FMCG retailer, has also emerged as one of the country's leading online retailers, with online revenues making up over 15 percent of its total revenue. As of November 2024, AliExpress was the most popular cross-boarder e-commerce platform in Israel, followed by SHEIN by a significant gap.In a rapidly evolving market, Israeli retailers are adapting to the digital landscape to meet the growing demand for online shopping. With the e-commerce industry projected to continue its upward trajectory, the future of retail in Israel will certainly continue to move online.
