Insights into the growth of Israel ecommerce profiling payment methods, target audiences, marketing, social media, economy and logistics
Economy
The World Bank ranks Israel in its top 40 richest countries according to its GDP per capita rankings. Home to 8.2 million people with a total GDP of US$394 billion, GDP per capita is currently US$41,947.
Find more exciting opportunities in these markets: Kuwait, Qatar, United Arab Emirates.
Digital User Insights
There are currently 4.2 million ecommerce users in Israel, with growth projected that will see an additional 1 million users shopping online by 2025. The average user spends US$1311 online, which will reach US$1619 by 2025.
Product Categories
Total ecommerce revenue across all product categories is US$5.4 billion, expected to reach US$8.4 billion by 2020. Fashion is currently the leading product category, accounting for just over US$1.5 billion market share. Electronics & Media are second, worth US$1.3 billion.
By 2025, Fashion will still be the leading product category, valued at US$2.3 billion. Electronics & Media will be the second leading product category and should reach US$2 billion.

Logistics
Israel is ranked 37th in the World Bank Logistics ranking, however this ranking includes rural areas that are not densely populated. Israel is 93% urbanized and so international retailers should look to the cities, where state of the art logistics makes cross border trade easy.
Preferred Online Payments
84% of online shoppers have made online payments in Israel using credit cards, with 14% making payments using eWallets. Prepaid Cards and bank transfers are also used as alternate payment types online.
Where does Israel buy from?
Israel imports from United States ($13.4B), China ($9.92B), Germany ($5.21B), Turkey ($4.43B), and Italy ($2.98B).

Internet and Device Usage
Internet penetration in Israel is currently at 86%, and should reach 92% by 2025. Smartphone penetration is 78% and is projected to grow to 82% by 2025.

Marketing
Online advertising is quite common and highly effective in Israel. Internet advertising sector amounts to $543.7 million with search advertising accounting for more than half of the total expenditure at $284.1 million.

Social Media
Israel’s Social Media Penetration has grown consistently in recent years, reaching 63% in 2021, with further growth projected by 2025. Popular networks include Facebook, Twitter, StumbleUpon, Pinterest and Tumblr.

For more market insights, check out the ESW series of blogs covering a range of emerging ecommerce markets.
*Insights derived from ESW data, Statista, WorldBank, OECD and other industry sources.