Once the Israel-Hamas War subsides and airline operations stabilise, international e-commerce retailers are expected to regain market share in Israel. Israeli consumers, who prioritise lower prices and relatively quick shipping times, are likely to return to these platforms.
In mid-2024, AliExpress announced the opening of a new distribution centre named Parcel Home in Dizengoff Centre, Tel Aviv. Initially staffed by customer service workers, the long-term goal is to fully automate the centre, allowing customers to scan a barcode and retrieve their packages.
The Israeli government is considering removing the VAT exemption for international purchases under US$75 as part of efforts to manage the country’s growing war-related debt. If implemented, this change would make international shopping less attractive, as consumers would have to pay an additional 18% VAT on such purchases.
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Retail E-Commerce
Online sales of new and used goods to the public from a business for personal or household consumption. This figure includes those purchases made via online marketplaces, assuming it is a business-to-consumer purchase. This figure includes the purchase of mobile apps, games, in-app purchases and downloaded versions of recorded music, film, video games, books, journals and magazines. Note: The streaming versions of these media types, which are not tracked in Retailing, are captured in Streaming Services E-Commerce. Goods purchased via quick-delivery services, such as Amazon Prime, are captured here, whereas the subscription fee for such a service is captured in Other E-Commerce. Retail purchases made via hyperlocal or third-party delivery platforms are also included here, while the delivery fees associated with such services are included in Other E-Commerce. This category excludes the following industries and channels: • Specialist retailers of motor vehicles; motorcycles, vehicle parts and fuel • The rental, hire and leasing of products • Wholesalers, cash and carry outlets • Consumer-to-consumer transactions • Informal retail which is not declared to tax authorities
See all of our definitionsThis report originates from Passport, our Retail E-Commerce research and analysis database.
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