Once lagging Israeli eCommerce is now heating up


The Israeli culture was slow to embrace eCommerce during the early days of the pandemic. However, that is changing as more entrepreneurs are going online and heating up the industry.

The pandemic has changed the way we live and work, and it has also profoundly affected the economy, with businesses of all sizes struggling to survive. The retail sector has been hit particularly hard, with many stores forced to close their doors.

It caused a dramatic shift in consumer behavior, with more people turning to online shopping. But this has created opportunities for entrepreneurs who can adapt and capitalize on the changing market.

In Israel, the adjustment was slow at first, but as the pandemic progressed and the restrictions continued, more and more Israelis began to embrace eCommerce.

This change created a boom in online businesses, particularly eCommerce, with entrepreneurs of all backgrounds finding success.

Slow But Steady Rise Amidst the Pandemic

The pandemic has been difficult for many businesses, but it has also created new opportunities. For entrepreneurs in Israel, the shift to eCommerce provides a chance to thrive in the global market.

Popularly known as the startup nation, Israel is well-positioned to capitalize on this trend and continue its reputation as a hotbed of innovation.

The country has a long history of entrepreneurship and a culture that encourages risk-taking. This is evident in the high number of startups per capita, as well as the willingness of Israelis to embrace new technologies.

During the early days of the pandemic, however, Israelis were slow to adopt eCommerce for two main reasons: they like to go to physical stores when buying, and the unreliable postal service.

But as the pandemic progressed, and it became clear that the restrictions were here to stay, Israelis increasingly turned to eCommerce.

This shift was partly driven by necessity, as many stores were forced to close their doors. But it was also driven by a desire for convenience, as online shopping offers an easy way to get the products you need without leaving your home.

The rise of eCommerce in Israel has been slow but steady, showing no signs of slowing down. With a revenue of US$6 billion in 2021, Israel is the 36th largest market for eCommerce, placing ahead of Pakistan and Malaysia.

The Israeli eCommerce market is expected to grow significantly in the coming years as more businesses move online and consumers continue to embrace this convenient way of shopping.

In fact, according to Statista, Israel’s revenue in the eCommerce market is projected to reach US$7.84 billion in 2022, an annual growth rate of 15.38% from 2022-2025.

As the eCommerce market in Israel continues to thrive, there is a great opportunity for entrepreneurs to start and grow their own businesses.

A Boom in Online Businesses

The shift to eCommerce has created a boom in online businesses in Israel. These businesses range from small startups to large companies, and they cater to a variety of needs.

The growth of online business is being driven by a number of factors, including the high level of internet penetration in Israel, which stood at 88.0% in January 2021. This translates to 7.68 million internet users out of the country’s total population of 8.72 million.

Knowing the suitable careers and businesses to pursue during and after the pandemic is the key to success. Aside from eCommerce, there is also a great opportunity in online education, digital marketing, digital collaboration tools, health and fitness, stock market investing, and freelancing.

This evidently shows how technology has completely disrupted almost every industry, providing a level playing field for startups to compete with large enterprises.

The Future of eCommerce and Economy in Israel

Ecommerce in Israel is looking bright, and the country is well-positioned to capitalize on this trend. With a strong culture of entrepreneurship and a high level of internet penetration, Israel is primed for continued growth in the eCommerce market.

And as the COVID-19 pandemic grinds to, if not an end, at least a face-off, it is clear that the eCommerce market in Israel is poised to become a formidable force. But what else can we expect in the future as we move to the new normal?

If this is the first time you hear the phrase low carbon economy, it won’t be the last. Environmentalists and civil society activists are aiming for a greener and cleaner post-pandemic economy. A favorite saying is, “There is no vaccine for climate change.” The pandemic has created an opening for the environmentalist industry to create a focus on how we produce and consume and how to change that if, in fact, we need to.

With more countries embracing the importance of investing in sustainable energy, we could be watching the start of a global race towards a low carbon future and maybe a game-changer for the environment and the economy.

Regardless of what opinion you hold towards environmentalism, it presents a great opportunity for Israeli startups working on green technologies and solutions to thrive on what is already a booming business and will only continue to grow.

The Bottom Line

For all the reasons just mentioned, expect the eCommerce scene  to continue to grow and evolve into the new normal. And this won’t be confined to Israel. This is one of those growing phenomena that change the course of history, or at least retail shopping history. 

There was the telephone, the automobile, television, the internet, and now online shopping. Jetsons future, here we come.

About the Author
Bernard Brode is a nanotechnology product researcher and believes that it might end up being the biggest tech story of all time.
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