Full Breakdown
Amazon’s Struggle to Gain E-commerce Traction in Israel
8/25/2026, 2:04:29 AM
Amazon’s Limited Share in Israel’s E-commerce Landscape
Shop Analytics data for June 2026 shows that Amazon holds only about a 6 % share of online orders in Israel, while Chinese platforms AliExpress, Temu and Shein together account for roughly 75 % of Israeli shoppers’ purchases. The low penetration persists despite Amazon’s 2019 invitation to Israeli sellers to join its Local Delivery program, which required sellers to manage inventory and delivery themselves rather than relying on an Amazon-run logistics hub.
Local Competitors and Logistics Advantages
AliExpress has built a notable local presence, launching its Parcel Home logistics arm in 2024 and operating around 45 distribution points by April 2026. Its local warehouses can deliver within 7–10 days and offer pickup options near customers’ homes. In contrast, Amazon never established a dedicated logistics center in Israel, limiting its ability to provide the fast, low-cost delivery that Israeli consumers expect in a “very small and crowded market,” according to e-commerce expert Nir Zigdon, CEO of ECommunity.
Structural Challenges for Marketplace Models
Industry analysts note that successful marketplaces depend on economies of scale: more buyers attract more sellers, which expands selection and justifies commissions, logistics services, and advertising revenue. In Israel, large-scale investments are required to generate sufficient traffic. The failure of local marketplace trials by Azrieli, Melisron and Shufersal in December 2023—each incurring losses of NIS 300 million, NIS 100 million and undisclosed amounts respectively—illustrates the difficulty of achieving a viable turnover without substantial advertising and field presence.
Data Highlights
- Amazon market share: ~6 % (Shop Analytics, June 2026)
- Combined share of AliExpress, Temu, Shein: ~75 % (Shop Analytics, June 2026)
- AliExpress logistics network: ~45 distribution points (April 2026)
- KSP’s share of top-20 local sites: 18 % (Shop Analytics, June 2026)
Verbatim Quote
“The thing that hinders e-commerce the most is presence in the field and advertising,” — Nir Zigdon, ecommunity CEO
