The Israeli economy is thriving, with some key sectors experiencing high growth. The high-tech industry has seen strong development in the last decade and today accounts for about 45% of total industrial exports while employing only nine percent of the workforce. Nevertheless, this rapid technological growth is not expected to abate any time soon. Even though the country still faces serious security threats from its neighbors, it’s large military spending relative to GDP ensures that it remains a global leader in defense technology.
Israel’s political scene, on the other hand, has undergone some changes due to recent elections that brought more right-wing parties into power. With recently elected Prime Minister Benjamin Netanyahu calling for early elections again after his coalition collapsed after only 55 days, it remains to be seen whether the government’s policies will shift even further to the right.
One industry that is expected to continue its strong growth in Israel is online shopping. With over 63% of Israeli households having regular access to the internet, the country has one of the highest penetration rates in Asia-Pacific (APAC) and should continue this expansion as more users acquire smart devices. In particular, eCommerce spending per capita is expected to surge from USD 303.5 last year to USD 362 by 2020 – a compound annual growth rate of about five percent – as online shopping becomes more popular with consumers from different income brackets.
Here is the list of top-selling products in Israel online 2022
Table of Contents
1. Mobile devices
The mobile phone market in Israel is growing at a rapid speed and has become one of the most important and developed markets in the region. Currently, there are about 8 million digital cellphones in use, 77% of which are smartphones. Mobile broadband penetration continues to grow at a steady rate; as it stands currently, users have an average connection speed of over two Mbps. Furthermore, 3G has reached almost 100% coverage, with 4G connectivity expected to reach 50% by 2020 and 5G by 2021. With such figures indicating that tech consumers have access to fast internet connections through both fixed and mobile mediums, online shopping is likely to become even more popular than it already is.
2. Women’s Clothing
Tel Aviv and Haifa together take 39% of all online fashion sales and account for the country’s highest number of shopping websites and fashion blogs. Nazareth, Rishon Letzion, and Jerusalem take up most of the remaining cities in Israel where fashion eCommerce is popular. In fact, the entire top ten Israeli cities with high conversion rates are urban areas. Furthermore, about 40% of consumers who shop for clothing online already own at least one item from a designer brand and spend an average amount close to USD 1,000 per year on women’s apparel.
With the growing popularity of online fashion stores among tech-savvy users across different income brackets comes an increase in demand for innovative payment methods in order to make purchases easier. This not only includes traditional credit or debit card transactions but also includes alternative or innovative payment methods such as e-wallets, mobile payment services, and more.
3. Jewelry & Watches
As an international hub for diamond trading, Israel has experienced significant growth in the retail jewelry market over the last few decades. After being hit hard by the recession in 2009, spending in this industry is said to have recovered in 2014. This trend continued in 2015 when there was a 10% increase year-on-year in total revenue for this industry as well as a 14% rise in the export of polished diamonds and gemstones. Furthermore, experts expect that online sales will be an important contributor to revenue for this industry going forward – figures indicate that about 80% of Israeli households currently research diamonds online before making a purchase.
4. Musical Instruments & Accessories
The most important retail channel for musical instrument sales in Israel is offline – this includes the sale of both new and second-hand instruments through brand stores, music shops, and department stores such as Tower Records and NMC Music. However, it seems that the popularity of websites to sell used musical gear is increasing at an exponential rate – about 4 out of 10 users look for their preferred brands or products on these websites before buying them offline. Users who shop online also tend to buy more than those who shop offline – last year alone, Israelis bought close to USD 25 million worth of merchandise over the internet. Furthermore, 61% of buyers are between 21-40 years old, making the target market for online musical instrument retailers very young and active.
5. Smart Watches
Although not as popular as other smart devices such as smartphones, this is a niche product category with the potential to grow even further over time – especially considering that more and more people are looking to use their mundane wristwatches for different kinds of functions. In fact, it is estimated that by 2021 there will be close to 300 million users of Android Wear OS smartwatches in the world, translating to a huge demand for accessories such as bands and chargers. Furthermore, across the globe, Apple Watch holds a market share of 40% – meaning that Israelis who shop for these products online represent an important demographic that brands should not miss out on.
6. Computer and Laptops
In spite of the high penetration of laptops and computers in different segments of society, the market for these products remains fragmented with many users preferring to buy their devices offline. However, experts agree that an increasing number of people are turning to online retail platforms as a more convenient way of buying their preferred items – this reflects an overall global trend. Furthermore, retailers specializing in computer parts have experienced tremendous growth over the last few years thanks to the increased popularity of gaming among Israelis. It is estimated that 50% of gamers are aged between 15-34, who often prefer shopping on eCommerce websites rather than seeking out stores down their local streets.
7. Cosmetics
Although Israelis prefer shopping for cosmetics and toiletries offline at branded stores like Sephora and HyperCacher, they also spend a lot on products such as shampoo, deodorant, and soap through eCommerce websites. In fact, according to reports, 743 million was spent online last year alone by people purchasing such items. The main reason why brands should take advantage of this trend is that men represent an extremely large percentage of these consumers – between 30-40%. Furthermore, the average order for men’s toiletries is USD 20 – which means that brands targeting this demographic stand to gain a lot of revenue by making the right kind of impression online.
8. Home Appliances
Although Israelis tend to prefer shopping for household appliances such as washing machines and microwaves offline, they also buy smaller items such as utensils and kitchenware through eCommerce websites. These products are mostly purchased on impulse since customers do not require expert advice before taking home these kinds of commodities. Furthermore, people in Israel use different platforms for different kinds of purchases – according to reports, about 50% make their home appliance-related purchases through Amazon while close to 30% opts for other websites like iHerb and Souq. Although there might be a risk involved when it comes to purchasing these kinds of goods online, people are also able to find products that they would normally not come across offline – for instance, cult brands like Joseph Joseph are available on Amazon whereas cheaper alternatives with similar specifications are found through Souq.
9. Sports Equipment
Thanks to the increasing popularity of sports within Israel, many eCommerce websites have cropped up over the last few years with the sole aim of helping people buy all kinds of equipment and accessories associated with sport and outdoor activities. For instance, websites such as Y & Y and Moalem Weitemeyer stock everything from yoga mats and rollers to nutrition supplements and footwear – making it extremely convenient for people to keep themselves fit inside their homes. Furthermore, given that Israelis enjoy spending time outdoors, the market for outdoor equipment has also grown exponentially online. For instance, brands like Geiger, Deuter, and The North Face are widely popular among consumers owing to their excellent quality.
10. Air Conditioner
According to reports, about 6 million people in Israel currently own an air conditioner. This is of course a very large market, which has led many businessmen to establish online stores with the specific aim of selling these appliances. As expected, some prefer choosing their products offline at big retailers while others are comfortable making purchases on smaller websites. However, regardless of where they purchase their air conditioners from, it is clear that the industry stands to benefit immensely from eCommerce. According to experts, at least 25% of those who buy an air conditioner usually browse for other items as well – which means that if you can make a good impression and offer competitive prices, you stand to generate higher revenues than ever before.
