Market Intelligence
eCommerce Industry Israel

eCommerce is Growing in Israel

According to a report by Statica, e-commerce revenue is expected to reach $7.6 billion and rise to $12 billion by 2027, with a compound annual growth rate of 12%. This presents a significant opportunity for U.S. companies looking to expand their reach into the Israeli markets.

The large spending power of Israeli consumers is another benefit. Israel has one of the highest per capita income levels in the region, which means that consumers have more disposable income to spend on goods and services. This makes the Israeli market an attractive target for e-commerce companies looking to generate revenue from a reliable consumer base. 

Another reason for growth of e-commerce in Israel is the country’s strong tech sector. Israel is known for its innovative startups and tech companies, many of which have developed platforms and technologies that make online shopping easier, faster, and more secure, which encourages the concept of online purchasing. 

Despite the growth of e-commerce in Israel, there are still some challenges facing the industry. One of the biggest obstacles is the high cost of shipping, which can be a major deterrent for consumers who are considering making purchases online.

Overall, while there are both opportunities and challenges involved in entering the Israeli e-commerce market, U.S. companies have the potential to succeed by leveraging their strengths—including strong name brand recognition from Israeli consumers and a favorable preference towards U.S. products—to ultimately adapt to the unique characteristics of the market.

U.S. companies interested in learning more about Israel eCommerce market or other opportunities within Israel’s IT and retail sector you may contact