Google and Israchart conducted the most comprehensive study ever on the online shopping habits of Israelis - over a decade./ShutterStock
The main points of the study:
Online trading has jumped fivefold in the last decade from 4% to 20% of the turnover;
In the ultra-orthodox sector it jumped to 14%
The number of online businesses increased 19.5 times in a decade, 70% of online businesses are less than six years old
Blue and white buyers: 77% of Israelis prefer to shop on Israeli websites;
In 2023, 64% of online transactions were on Israeli websites, compared to only 47% in 2017
Buyers on the home front: with iron swords, while the total online trading market decreased by 6% and the volume of purchases from abroad decreased by 26% during the war, purchases from Israeli websites increased by 4%
Buy on whim: 43% of online shopping is spontaneous;
70% of spontaneous purchases - following ads;
42% buy more than they planned with each purchase
Compare and buy: 84% of Israelis compare prices before buying - 90% of men compared to 77% of women;
The record of comparisons - in the purchase of electrical and electronic products (96%)
Buy without measuring: 68% of Israelis buy clothes online;
Among members of Generation Z, a rate of 88%
We all shop online
About a decade after online commerce began to establish itself in Israel, it can be clearly said that the absolute majority of Israelis (93%) shop online.
More than half of Israelis reported that the last purchase they made was online.
As the years go by, the Israeli consumer increases his online shopping basket and correspondingly the business owners establish more online stores.
In the last decade, the number of businesses that operate online has increased almost 20-fold and sales have jumped five-fold, led by the fashion, beauty, electronics and food categories, where sales have jumped between 2 and 3 times. 4.5 compared to the rate a decade ago and among the Arab sector amounts to about 15%, compared to 2% a decade ago.
The Israelis are no longer afraid like they used to be
In the early years of online commerce, every purchase was accompanied by apprehension.
Even today, 75% testify that they still have uncertainty about the suitability of the product for them, mainly in the category of clothing and footwear, home furniture and pharmaceutical products.
It seems that non-acceptance is not a barrier for the ultra-orthodox sector to shop online.
While in the general sector about 56% buy shoes online, in the ultra-orthodox sector the rate of purchasing shoes online is about 76%.
It is clear that the uncertainty bothers Generation Z less.
88% of all young people order clothes online, while among their parents, members of the X generation, the rate is 66%.
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We undoubtedly love and love to shop online.
77% of online shoppers believe that smarter shopping can be done online;
65% believe that shopping online saves money and 73% believe that it saves time;
84% do market research and compare prices.
The study also proves that Israelis are not fans of brands as is usually assumed, with 74% testifying that they look for a product before a brand.
84% of Israelis compare prices before making a purchase decision;
Among men the rate is 90%, among women only 77% and in the ultra-Orthodox sector only 74% compare.
The peak of comparisons is in electrical and electronic products, where 96% of the buyers of these products - compare prices.
So when is the right time to buy?
50% of consumers state that they usually plan the important purchases and postpone them until November sales, but 82% of us think that every given moment is a time to shop and maybe that's why 43% of our purchases are spontaneous.
In other words, although the Israeli consumer likes to plan and compare, it is difficult for him to resist temptation, and 42% of Israelis even state that they are tempted to buy more than they planned.
The drive to purchase comes mostly from advertisements (60%) and sales (50%).
Separation Anxiety?
Tell the retailers about it
Despite the dramatic increase in online purchases in the last decade, there is no doubt that this is a less binding shopping experience.
90% of Israelis abandon strollers during the purchase process, especially among young people (94%) and women (92%).
The most common reason for stopping the purchase is the price.
59% will abandon the purchase if the final price does not suit them.
40% will try a new service or product if the price is worthwhile for them.
50% take several hours to complete the purchase, 55% stop the process at least once in the middle, especially in the clothing and shoes categories.
Buy blue and white - not only in war
Businesses also believe in the network.
More than 50% of online businesses do not have a physical store at all.
This rate jumps to 65% in young businesses less than three years old.
Over a third (36%) of the online businesses in Israel were established in the last 3 years.
The Israelis, for their part, express trust and a lot of support for the local online businesses.
77% testify that they prefer to buy blue and white and accordingly, 64% of online transactions are carried out on Israeli websites.
60% of online searches are for Israeli brands.
The Israeli online strengthens the home front and makes it possible to survive difficult times and crises, both as consumers and as business owners.
Since the Corona period, 68% of Israelis testified that they buy more online.
Even today, in the midst of the "Iron Swords" war, the Israeli online is proving its resilience: while the total online trading market decreased by 6% and the volume of purchases from abroad decreased by 26% during the war, purchases from Israeli websites increased by 4%. Fashion recorded a 36% increase in online shopping compared to the same period last year (fourth quarter 2023 compared to fourth quarter 2022).
Barak Regev, CEO of Google Israel
: "For a decade we have been accompanying Israeli businesses and consumers with the aim of strengthening the local economy, helping more businesses sell online and offer consumers a better shopping experience. The recent period has proven that online shopping from local businesses is stronger than ever and is an integral part of national resilience. With more businesses and more consumers coming to shop online, the research proves that our industry still has a lot of room to grow and grow and that we are just at the beginning of the journey."
Ran Oz, CEO of Isracard:
"In the last decade, a new trading arena has emerged, and it seems that Israelis are more than happy to embrace it.
The proportion of Israelis who shop online in 2023 would have sounded imaginary a decade ago.
At the same time, more and more Israeli businesses recognized the potential and the number of online businesses continues to grow dramatically, especially in the last three years.
We have no doubt that this ecosystem will continue to develop in the coming decade as well, due to the multitude of opportunities it holds for both consumers and businesses.
We will continue to accompany the small businesses and give them advanced tools that will help them adopt the innovation that is vital to their development and the development of the industry."
The research is based on a combination of several sources: buyer research among over 1,000 Israelis, Google search data, Isracard credit transaction data, A survey of over 200 e-commerce businesses from the ShoppingIL business community and Google's Smart Shopper study of over 2,000 respondents based on a global survey model.
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