eCommerce market in Israel

Israel is the 39th largest market for eCommerce with a predicted revenue of US$7,103.9 million by 2024, placing it ahead of the United Arab Emirates. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 13.3%, resulting in a projected market volume of US$11,700.7 million by 2028. With an expected increase of 17.2% in 2024, the Israeli eCommerce market contributed to the worldwide growth rate of 10.1% in 2024. Like in Israel, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Israeli eCommerce market. Hobby & Leisure is the largest market and accounts for 25.6% of the Israeli eCommerce revenue. It is followed by Electronics with 21.4%, Fashion with 17.1%, Furniture & Homeware with 11.8%, Care Products with 9.2%, DIY with 8.4%, and Grocery with the remaining 6.6%.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Israeli retail market, the online share is 9.8% and will increase by an average of 7.4% to 13.0% by 2028.

The biggest player in the Israeli eCommerce market is shufersal.co.il. The store had a revenue of US$720.1 million in 2023. Store rankings include every store that generates revenue in Israel. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in Israel was considered.

With 89.1% VISA the most commonly offered payment method of all online stores in the Israeli eCommerce market in 2023. Like VISA Mastercard with a penetration of 86.4%, American Express with a share of 69.1%, and Diners Club with a share of 34.5% the payment type Cards is the most common used by online retailers in in the Israeli eCommerce market in 2023. With a share 65.5% PayPal is the most common used payment method offered to the clients of type E-wallets.

Despite Israel Post's dominant position with 32.8% of online stores opting for its services, the Israeli eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including UPS (United Parcel Service), Cheetah, Tapuz delivery, and DHL, hold smaller but significant shares, contributing to a dynamic and fragmented market.

Although WooCommerce holds a commanding lead with 31.1% of online stores using the shop software solution, the Israeli eCommerce market in 2023 remains vibrant and competitive. This is due to the presence of several other shop software solutions, including Magento, Shopify, Konimbo, and e-Shop Israel, which collectively hold a significant share of the market.