eCommerce market in Israel

Israel is the 38th largest market for eCommerce with a predicted revenue of US$7,996.3 million by 2024, placing it ahead of Peru. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 13.3%, resulting in a projected market volume of US$13,170.6 million by 2028. With an expected increase of 17.2% in 2024, the Israeli eCommerce market contributed to the worldwide growth rate of 10.4% 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%.

Market development

eCommerce revenue development in Israel

Israel is the 38th largest market for eCommerce with a predicted revenue of US$7,996.3 million by 2024, placing it ahead of Peru. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 13.3%, resulting in a projected market volume of US$13,170.6 million by 2028. With an expected increase of 17.2% in 2024, the Israeli eCommerce market contributed to the worldwide growth rate of 10.4% 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%.

eCommerce revenue development in Israel

in million US$

eCommerce revenue growth in Israel

in %

Net eCommerce revenue split by sub-category

in %
2020 2021 2022 2023 2024 2025 2026 2027
Revenue (in mUS$) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Growth (in %) 50.4 73.8 63.6 50.4 55.6 50.3 84.6 51.0

Online share

eCommerce online share in Israel

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.

eCommerce online share in Israel

in %
2020 2021 2022 2023 2024 2025 2026 2027
Online share (in %) 42.6% 13.0% 79.6% 10.1% 48.8% 51.8% 58.6% 40.2%

Top stores

Top five online stores in Israel by net sales 2023

The biggest player in the Israeli eCommerce market is shufersal.co.il. The store had a revenue of US$824.0 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.

eCommerce net sales generated in Israel in 2023

in million US$
Filtered revenue / share
Global revenue
Growth
US$900.0m
20.7%
US$8,300.0m 8.3%
US$550.0m
12.0%
US$4,600.0m 12.4%
US$470.0m
3.9%
US$1,190.0m 33.6%
US$430.0m
20.6%
US$2,122.0m 18.0%
US$370.0m
20.7%
US$1,814.0m 12.6%

Payment Methods

Top 5 offered payment methods in the Israeli eCommerce market

With 89.3% 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 85.7%, American Express with a share of 68.8%, and Diners Club with a share of 33.9% the payment type Cards is the most common used by online retailers in in the Israeli eCommerce market in 2023. With a share 65.2% PayPal is the most common used payment method offered to the clients of type E-wallets.

Top 5 offered payment methods in the Israeli eCommerce market

in %

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