Israel’s potential as an e-commerce export market for European businesses* is being strengthened by several economic factors, indicating the opportunities it holds for those able to capitalise.

The country is a free-market economy, with only the U.S. and China boasting more Nasdaq-listed companies.¹ The digital technology sector is particularly strong, with many of the world’s best-known companies having opened R&D facilities in the country. So, it’s unsurprising that the percentage of Israelis who use the internet is above both the global and Middle Eastern average, at 89% in 2021. Plus, more than three-quarters (77%) of the population in 2020 were using a smartphone.²

What’s more, its e-commerce market is seeing promising growth, accelerated by changing consumer habits during the pandemic.¹ While only 44% of Israel’s internet users bought at least one product online in 2020¹, e-commerce grew 24% between 2020 and 2021, far outpacing the global average of 15%.³

Israeli online shoppers want to understand exactly what they’re getting

In one survey, 65% of Israel’s online shoppers said they carried out research before placing an order and 54% said they found viewing customer reviews useful.¹ In both cases, this is a higher percentage than in the UK (55% and 50%, respectively)⁴ and in the U.S. (55% and 52%, respectively).⁵

Meanwhile, 38% of Israelis said they like to see items prior to purchase – a higher proportion than in comparable advanced economies.¹ To gain customers in the market, it could be beneficial to look for ways to reassure them, for example by ensuring that you have high-quality and up-to-date product imagery on your website. You could also consider using video of products: two thirds of Israeli e-commerce shoppers believe it’s important to see a video of a product before they buy.⁶

They’re willing to buy from retailers overseas to get what they want

Israeli e-commerce shoppers are used to buying from international online businesses. In a global survey, 9 in 10 (92%) Israelis said they had made a cross-border purchase – well above the average of 71%.⁶ Some experts attribute this to the comparatively high cost of consumer goods in Israel versus other markets. That suggests that European retailers able to meet this demand for high-quality, competitively priced goods could find an enthusiastic market in the country.

They expect a high quality e-commerce experience

Israeli consumers are used to hearing about the benefits of frictionless, reliable and efficient online experiences – and they expect similar qualities from their own online experiences, particularly when it comes to e-commerce. Cross-border retailers who are able to fulfil the demand for higher quality goods and offer additional benefits such as fast, well-tracked shipping are well-placed to thrive.¹

Percentage figures are shown to the nearest whole number.

Israelis are less likely to be influenced by free shipping

When it comes to e-commerce delivery, just over one quarter (27%) of Israeli consumers said that free or discounted shipping would influence their purchase decision – well below the global, European Union and UK averages which hover around the 40% mark.⁶ Meanwhile, half said they would be swayed by the speed of the delivery – roughly on par with consumers elsewhere in the world.⁶ So if you’re selling to consumers in this market, it could be beneficial to highlight speed over cost when it comes to delivery.

Consider a mobile-first strategy if you sell everyday goods

Mobile devices were used in 35% of e-commerce purchases in 2021.⁶ Plus, around three in 10 (29%) Israelis say they “usually manage habitual/recurring orders directly via their smartphone or tablet” – higher than in comparable markets.¹ With this in mind, it could be worth making sure your website has a strong mobile experience if you are targeting consumers in this market.

There are peak season opportunities, but consumers still look beyond price

Israelis spent 22% more between 8am and 2pm on Black Friday in 2021 than they did during the same period the year before.⁸ However, they are prepared to do their research – 81% of Israeli consumers in a global survey said they still want information about a brand before making their Black Friday purchases.⁶ When planning peak season offers, don’t forget to include localised information about your products to help win over consumers.