Insights into the growth of Israeli eCommerce


Israel is home to 8.55 million people with a total GDP of 317.75 billion USD and GDP per capita of 39,978 USD, which is expected to reach 43,916 USD by 2022.

Digital User Insights

There are currently 4.36 million eCommerce users in Israel, with an additional 2.02 million users expected to be shopping online by 2022. Four years from now, these 5.38 million eCommerce users will spend an average of 723.51 USD online.

Internet usage

Dividing internet usage into age groups gives a better picture of the Israeli eCommerce market – 98% of 16-24 year olds, 93% of 25-34 year-olds and 97% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing a 92% and 86% daily penetration rate, respectively.

Product Categories

Total Israeli eCommerce revenue across all product categories is 2.99 billion USD, and is expected to grow to 3.89 billion USD by 2022. Electronics & Media is currently the leading product category in Israel, accounting for 970.2 million USD market share, followed by Fashion, which generates 822.7 million USD in sales.

By 2022, Fashion will become be the most purchased online category, with an estimated value of 1.22 billion USD, and second favorite, Electronics & Media will have an expected worth of 1.13 billion USD.


In 2016, Israel was ranked 28th in the World Bank Logistics ranking.

Preferred Online Payments

37% of Israeli shoppers like to pay with Visa when shopping online.

Where does Israel buy from?

The US supplies Israel with 13.2 billion USD in imports – ranging from cars to diamonds. Israel’s other key import partners are China ($8.17 billion), Germany ($4.58 billion), Turkey ($2.96 billion) and India ($2.91 billion).

Internet and Device Usage

Internet penetration in Israel is currently 71.4%, and should reach 75.8% by 2022. Smartphone penetration is a little less (71%), but is projected to grow to 73.6% in the next four years.

86% of online shoppers in Israel buy via desktop, a stark contrast to the amount of smartphone (8%) and tablet (3%) shoppers.


In 2015, 138 million USD of Israel’s digital ad spend was spent on search advertising.

Social Media

59.52% of people in Israel are active social network users, thanks to Facebook, YouTube, Pinterest and Twitter, which are the leading social networks.

For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.

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