e-Commerce Market Analytics

The eCommerce market in Israel

Israel is the 36th largest market for eCommerce with a revenue of US$6 billion in 2021, placing it ahead of Pakistan and behind Malaysia.

With an increase of 24%, the Israeli eCommerce market contributed to the worldwide growth rate of 15% in 2021. Just like in Israel, global eCommerce sales are expected to increase over the next years. As new markets are emerging, global growth will continue over the next years. This development will be propelled by East and Southeast Asia with their growing middle class and their lagging offline infrastructure.

With a yearly growth rate of 11% between 2021 and 2025, Israel is even expected to outperform the global average of 6%.

The eCommerce market in Israel

Top online stores

The biggest player in the Israeli eCommerce market is shufersal.co.il. The store had a revenue of US$902 million in 2021. shufersal.co.il is followed by shein.com and next.co.il as the second- and third largest stores with US$244 million and US$178 million, respectively. Altogether, the top three stores account for 20% of online revenue in Israel.

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.

One of the fastest-growing stores in the Israeli market is wildberries.co.il. The store achieved online net sales of about US$1.1 million in 2021. Its revenue growth amounted to 121% in the previous year.

More information on the top 100 online stores in Israel can be found in our ecommerceDB Country Report.

Growth champions:
Editorial tips:

Top online eCommerce stores in Israel by eCommerce net sales 2021 in million US$

# Store
1. shufersal.co.il
2. next.co.il
3. amazon.com
4. ksp.co.il
5. iherb.com

The eCommerce market in Israel

Market size and growth rate

Revenue in 2021
CAGR 2021-2025
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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The eCommerce market in Israel is expected to increase over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate for the next four years (CAGR 21-25) will be 11%. Compared to the year-over-year growth of 24% between 2020 and 2021, this decrease in yearly growth suggests a moderately flooded market. However, an indicator of growth potential is the online penetration of 44% in Israel; in other words, 44% of the Israeli population have bought at least one product online in 2021.

Five categories are considered by ecommerceDB. Fashion is the largest segment in Israel and accounts for 29% of the eCommerce revenue in Israel. It is followed by Electronics & Media with 25%, Toys, Hobby & DIY with 18%, Food & Personal Care with 15%, and Furniture & Appliances with the remaining 12%.

The eCommerce market in Israel

Top shipping service providers

In Israel, Israel Post is the most frequently offered delivery service provider among online stores. Of those stores indicating which service they use to transport their goods, 34% cited Israel Post as one of their providers. Moreover, E-Post and UPS are among the top three shipping service companies offered by online retailers in Israel, at rates of 11% and 9%.

Shipping information is based on orders from the store's main country, which is defined as the one where the store generates most of its online revenue. As a result, only stores that generate more net sales in Israel than in any other country are taken into account. Furthermore, only stores that provide information about their shipping providers can be considered.

Competitor analysis of shipping service providers in Israel

# Shipping service provider
1. Israel Post
2. E-Post
3. UPS