Amazon struggles to capture online retail foothold in Israel

Amazon holds only a 6% market share of Israeli online orders, while Chinese platforms AliExpress, Temu, and Shein account for about 75%, according to Shop Analytics data from June 2026. Experts attribute Amazon's struggle to its lack of local logistics and the small, crowded Israeli market.

Amazon, the US e-commerce giant, holds only a 6% market share of Israeli online orders, according to Shop Analytics data from June 2026. In contrast, Chinese platforms AliExpress, Temu, and Shein together account for about 75% of orders. E-commerce expert and ECommunity CEO Nir Zigdon explains that Amazon's partial approach—launching a Local Delivery program in April 2019 without setting up its own logistics center—left sellers to handle inventory and delivery themselves, undermining the marketplace model. In a small, price-sensitive market, additional commissions from marketplace sales drive consumers to buy directly from importers. Meanwhile, AliExpress invested in a local presence, launching its Parcel Home logistics arm in 2024 with about 45 distribution points and local warehouses that shorten shipping times to 7-10 days. The article also notes the failure of local marketplace attempts by Azrieli, Melisron, and Shufersal, which closed in December 2023 after significant losses. KSP, a retailer that buys and sells, leads Israeli sites with 18% of orders, suggesting the local market may not support a general marketplace in the classic model.