The e-commerce industry in Israel is continuing to grow rapidly. According to a survey
conducted in the 3rd quarter of 2023, over half of respondents were making online purchases of products or services on a weekly basis. Estimates suggested that the
is projected to exceed 10 billion U.S. dollars by 2027. Furthermore, the e-commerce landscape in Israel is diverse, spanning electronics, tourism, food and drink, and fashion.
A fashionable lead
Fashion is the one of the main pacesetter in Israel's online retail growth. In 2024,
online expenditure on fashion reached to over one billion U.S. dollars, making it the most lucrative segment among observed products, second only to consumer electronics. The role of e-commerce in retail is becoming increasingly central, with numerous traditional players now offering complementary online services for apparel items, shoes, and accessories. As the online fashion industry continues to flourish, it is projected to generate over two billion U.S. dollars In
annual e-commerce revenue by 2028.
The rise of online retailers
In keeping with global trends, many traditional Israeli retailers are migrating to online platforms, with some even becoming predominantly online sellers. A case in point is KSP, which transformed from a conventional computer retailer to
one of the largest e-commerce sites specializing in electronics. Shufersal, Israel's largest FMCG retailer, has also emerged as one of the country's leading online retailers, with
online revenues making up over 15% of its total revenue. As of November 2024, AliExpress was the
most popular e-commerce platform in Israel on the global stage, followed by SHEIN at a significant gap.
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