e-Commerce Market Analysis

The eCommerce market in Israel

In Israel is the 34th largest market for eCommerce with a revenue of US$4 billion in 2019, placing it ahead of Nigeria and behind Argentina.

With an increase of 24%, the Israeli eCommerce market contributed to the worldwide growth rate of 17% in 2019. Revenues for eCommerce continue to increase. New markets are emerging, and existing markets also have the potential for further development. Global growth will continue over the next few years. This will be propelled by East and Southeast Asia, with their expanding middle class and lagging offline shopping infrastructure.

The eCommerce market includes online sales of physical goods to a private end user (B2C). Included in this definition are purchases via computer as well as mobile purchases via smartphones and tablets. Excluded from the definition of ecommerceDB are the following: digitally distributed services (e.g., travel tickets), online stores dedicated to digital media downloads or streams, online stores dedicated to B2B markets, and sales between private individuals (C2C) within the eCommerce market.

The eCommerce market in Israel

Top online stores

The biggest player in the Israeli eCommerce Market is amazon.com. The store had a revenue of US$102 million in 2019. It is followed by ksp.co.il with US$85 million revenue and next.co.il with US$55 million revenue.

Store rankings are based on every store that generates revenue in 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 in Israel was considered.

One of the fastest-growing stores in the Israeli market is zabilo.com. The store achieved sales of about US$3.8 million in 2019. Its revenue growth amounted to 145% in the previous year.

Top online The eCommerce market stores in Israel by eCommerce net sales 2020 in million US$ The table shows the stores that generate the highest revenue in the Israeli market. For this evaluation, only revenue created in in Israel was considered. Basis are all shops on eCommerceDB that operate in in Israel.

# Store
1. amazon.com US$143m
2. ksp.co.il US$111m
3. next.co.il US$58m
4. wallashops.co.il US$51m
5. azrieli.com US$49m
The eCommerce market in Israel

Market size and growth rate

Revenue in 2020
CAGR 2020-2024

Digital Market Outlook by Statista

The Digital Market Outlook presents up-to-date figures on markets of the digital economy. The comparable key figures are based on extensive analyses of relevant indicators from the areas of society, economy, and technology.
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Market expansion in in Israel is expected to continue over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate (CAGR 19-23) for the next four years will be 19%. Compared to the year-over-year growth of 24%, this decrease suggests a moderately flooded market. Another indicator of market saturation is the online penetration of 44% in in Israel; in other words, 44% of the Israeli population have bought at least one product online in 2019.

Five categories are considered by ecommerceDB. Fashion is the largest segment in in Israel and accounts for 31% of the eCommerce revenue in in Israel. This is followed by Electronics & Media with 27%, Toys, Hobby & DIY with 18%, Food & Personal Care with 14% and Furniture & Appliances with the remaining 10%.

The eCommerce market in Israel

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