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Every day is Purim.

After all

The closure, the situation in the world, the rise in shipping prices and especially the closure of Ben Gurion Airport should encourage the purchase of Israeli consumers from sites in Israel this coming Purim. Is this really going to happen and why, after all, foreign trade sites are not excited?

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• Ben Gurion Airport

David Rosenthal

Monday, 08 February 2021, 11:42

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In the video: The Big complexes were opened using the takeaway method and contrary to the guidelines, the beauty salons and hairdressers returned to the activity (Photo: Shlomi Gabay, Yotam Ronen, Reuven Castro Edit: Amit Simcha)

"Unlike previous years, this year there is a very significant increase in orders for gifts from Israeli sites in preparation for Valentine's Day. The choice not to purchase products from abroad is based on two main reasons: First, the increase in shipping costs, as a result of fewer flights to Israel. Ben Gurion Airport is closed. When comparing prices abroad, including current shipping costs, in many cases it becomes clear unequivocally that buying from foreign trade sites is not worthwhile. Second, Israelis are also tired of dealing with dramatic delays when shipments arrive. "These are not just the logistical problems of the Postal Authority that create this, but the accumulation of special circumstances following the corona that cause a delay in receiving the shipment, sometimes over a period of weeks."

The speaker is Dagan Ronen, co-CEO of the Hitakzon Consumer Club, which is considered one of the most powerful ecommerce sites in Israel. According to Ronen, shipping companies regularly issue a number of weekly flights, but many operate under different dictates and some cannot increase the number of flights to Israel. "Also, he claims, small shipments usually get priority on planes over heavy cargo, as customers pay a considerable amount for shipping, but there are quite a few trade sites that choose to increase their profits at the expense of customers and opt for slower and cheaper shipping methods that do not get first priority." In fact, "he explains," in many cases, those companies prefer to concentrate a quantity of small products under one shipment and ship it at a low cost, which creates a delay in receiving the order of thousands of customers in each and every shipment. "

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"When comparing prices with overseas, while including current shipping costs, in many cases it becomes unequivocally clear that purchasing from overseas trading sites is not worthwhile."

Dagan Ronen (Photo: PR, Chen Galili)

Purim, a holiday that has dominated the shopping sites from abroad in recent years, is coming and it will be interesting to see if the Israelis trust them. It should be remembered that not only were the prices at these trade sites cheaper, you could also find costumes that are not in Israel. Burdens suppliers abroad, while at the same time Israelis have become very sophisticated in the past year and made the necessary adjustments to the spirit of the time, which may also be reflected in Purim. "The transition of many stores and suppliers to digital, and access to consumer services "All this, together with the consumer's understanding of the need to buy blue and white these days, will lead to an increase in activity and purchases. I believe that this year we will see a significant increase in the purchase of Israeli consumers from Israelis or Israelis," says Zvika Vilnai. From the local online store. "

Closing Ben Gurion Airport burdens suppliers. Zvika Vilnai (Photo: PR, Chen Gal)

Noy Kedem Madmon, VP of Communications and Public Relations at Israel Post, partially agrees: "The Israeli e-commerce sector has grown significantly in the past year, thanks in large part to Corona.

A great many small and medium-sized local businesses and of course networks that have had to close down physical activity in the last year have realized that in order to survive they have to provide digital services.

The crisis has created a huge opportunity to reach new customers throughout the country and outside Israel.

It should be noted that the field of international trade, ie personal imports, is still in a huge volume of activity vis-à-vis local trade and is able to offer a wide range of products at very competitive prices. "

One of the areas where the Israeli supplier has

greatly

improved is same day delivery. Understand that service is a major means of growth, when providing telephone and digital service in the Hebrew language, while tailoring the service to the customer can increase sales, "says Kedem." In addition, there is a shift to home delivery, some on the same day or the next day. " .

There are still huge volumes of activity for international trade.

Noy Kedem Madmon (Photo: PR, PR)

Super Pharm was the most popular website for orders from Israel in 2020, according to a study conducted by the Israel Postal Company in collaboration with the I2R Integration Institute, with 24 percent of orders.

After it one could find the sites Terminal, (18%) X Azrieli.

Com (15%), Walla Shops (13%) and Castro (11%) "Keep in mind that local online commerce is still in its infancy," says Kedem, "which means there is tremendous growth potential in the coming years."

Kedem claims that trade in Israel does not come at the expense of world trade and that these are two channels that exist in parallel.

Still, in 2020 there was a 26% decrease in orders from abroad, when 50 million packages were distributed compared to 68 million in 2019. According to estimates, in Israel itself (local deliveries) about 25 million packages were distributed during this period, an increase of about 50% An increase compared to 2019.

According to Kedem, it is not the shipping processes, which moved to Cargo flights due to the decrease in passenger flights, that reduced the number of shipments from abroad, but rather the business and economic uncertainty in the economy: "Since November 2020 we see a significant recovery in orders from abroad." And in January as a result of a return to a third closure.

It should be noted that the huge increase in demand for Israeli trade found that some businesses were unprepared at the logistical level, and therefore there were delays in domestic shipments, which sometimes arrived at longer times than international shipments.

"The expectation is that with the completion of the corona and return to routine, we will see the continuation of the trend of increasing activity in the local trade, after the public has become accustomed to buying from home."

USHOPS, which specializes in personal imports from the United States, actually claims that the future of shipments from abroad looks good.

"Personal imports from the United States have jumped significantly in the past year," says CEO Yaron Ben Eli. "We have seen a 200% increase in US purchases since the beginning of the corona and a 300% jump in the shopping holiday period compared to the previous year.

This increase is attributed to the entry of new consumers online against the background of closures and the reduction of purchase options in the physical channels.

We have seen that people who have not used to shop online in the past bought online this year, most of them over the age of 65.

“Although from the beginning of the Corona we have faced challenges in international shipping, we have been able to deliver deliveries to customers on time through creative solutions.

In addition, although the recent closure of the sky will increase the cost of flying, we have decided at this stage not to change the price to the consumer, along with spending several flights a week and maintaining fast delivery times.

If there were delays, they are marginal as a result of stopping flights for the day due to the blizzard like it was last week in the US, or "priority for flying medical equipment".

The retail giant eBay is showing a consistent increase in the world.

In each of the quarters in 2020, the company recorded an increase of more than 25 percent in sales.

As for the Israeli consumer, they know there, there is a change in perception.

"Over the years, the Israeli consumer has been characterized as planning ahead, comparing prices and looking for the right deal for him," says Ilya Kartov, eBay's CEO for emerging market countries.

"For example, in the past year, more than half of Israeli consumers on eBay have used eBay's WATCH LIST, a feature that allows you to save items we are interested in, receive notifications of price reductions for those items and receive an alert before the items run out of stock."

Marginal delays.

Yaron Ben Eli (Photo: PR, USHOPS)

This trend of price-focused consumer behavior is also reinforced in a survey conducted by eBay through the Roshnik Research Institute in September 2020. About 40% of those surveyed report that by 2020 their preference for online shopping has strengthened.

This figure stands alongside an additional 42% who testified that their preference for online shopping remained similar compared to that of 2019, so there is an overwhelming majority of over 80% who shop online.

It also showed that 64% of Israelis state that an attractive price is the main consideration for online shopping, and 88% of Israelis believe that the major online shopping sites have a responsibility to provide consumers with tools for making smart and cost-effective purchases.

International sites have a perceptual advantage as providing tools for smart shopping.

What did the Israelis buy and will the purchase categories change?

The popular shopping categories of 2019, which included jewelry, women's clothing, kitchen products, manicures and other grooming products, were replaced by car spare parts, electronics, office accessories and supplies, hygiene and cleaning products and even landscaping products.

And no wonder - after the cleanup scare that included a disinfection of disinfectants and masks, consumers were looking for products that would make their stay in the home more enjoyable, what eBay used to call the "insulation category".

And the products that became popular were those related to home decor, family board games, home fitness products and even DIY care products like nail polishes and hair dyes.

These trends are reflected in the emerging categories of eBay in recent months.

Israelis are changing their habits.

Ilya Kartov (Photo: PR, PR)

"Interesting patterns we saw this year were in the transition from convenience shopping to online, and shopping to create a comfortable work environment at home. People felt safer shopping online," Kartov concludes, "said the category of accessories and office supplies, which became necessary in light of the period.

In addition, people are taking advantage of the time to adopt new hobbies.

We see this through growth in categories such as spare parts for bicycles, playing cards for collectors, and do-it-yourself products. "

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