Israel has long been called a “start-up nation”, but a lesser-known high-tech niche is e-commerce, online stores, as well as various services and applications that facilitate the process of marketing and sales.
In the midst of the coronavirus pandemic in April, eBay saw a 40% increase in the number of Israeli sellers from the previous month and a 46% increase in sales of products sold by Israelis, eBay told the Israeli business daily Globes.
Already in 2017, Israel was the world’s second-largest e-commerce buyer per capita, only behind China, according to eBay. In 2017, Israelis were buying products on eBay every two seconds on average and were selling items every three seconds, according to the company.
“It’s no secret that e-commerce is growing around the world and that every business owner – big or small – understands that it is impossible to run a business without an online presence“Mordechai Arba, 29, founder and CEO of Ecomhunt, told JNS.
“The Israelis are certainly important players in the world of e-commerce, but especially as lone sellersArba says. His website receives over half a million visitors per month and hundreds of thousands of people around the world use it to develop their own stores.
Arba notes that “most of the big tech companies are focused on payment solutions, sales analysis, etc., which relate to the world of e-commerce but are more behind the scenes.”
He predicts that a growing number of Israeli e-commerce companies will become major players in an industry that continues to do well.
With this in mind, as the coronavirus rages on, many offline businesses have gone out of business, while technology in general and e-commerce businesses in particular, led by global giant Amazon, flourished. Amazon’s share price has jumped 73% so far this year.
According to Globes, the Israeli platform of independent services Fiverr has seen its share price rise more than 200% since its IPO less than a year ago and has raised at least $ 120 million in its secondary offering on the New York Stock Exchange.
High-tech companies and other industries that can easily operate with employees working remotely were able to continue to operate almost normally during the crisis.
“The world was already online and this pandemic just made it move quickly,” says Arba.
The company provides trending products and other training to e-merchants so that they can be successful with their e-commerce.
Drop-shipping is a popular online retailing method, that allows stores to sell products by asking the seller to send them directly to the buyer without having to keep inventory. In this model, the online point of sale plays a marketing and sales role for the supplier, many of whom are based in China.
These are the online sellers who are flocking to Ecomhunt to find the winning products to sell in their stores. The website is about to launch a new online course for anyone who wants to start their own online store; it also has a blog and a YouTube channel.
Arba, who moved to Israel from France as a child, worked as a designer and web developer before launching online stores using drop-shipping and print-on-demand models. After some success, he launched Ecomhunt, which finally took off.
“After unsuccessful attempts, I finally figured out how to sell online and saw the need to help people quickly understand how to be successful,” he says, insisting that “now is the best time to start selling online“.
More tailor-made and personalized products
David Popovich, North Africa and Middle East e-commerce specialist for Colgate-Palmolive, began his e-commerce journey in 2016 after working as a Marketing Director for 17 years at large companies such as SodaStream, Pelephone and Club Med.
In 2016, Mr. Popovich recognized a trend in e-commerce, and in particular private labels – small products launched by platforms such as Shopify and WooCommerce, and then he used social media to build a community around them. Logistics methods revolve around drop-shipping or wholesale orders from China to warehouses in the United States.
Popovich targeted his brand Wolvestuff.com on a specific interested audience by wolves and Native American culture ; it has grown rapidly, bringing it seven-figure sales in the first year. The resident of Petach Tikvah and father of three recently sold the business.
Like Arba, he sees e-commerce booming since the start of the coronavirus epidemic (and even before), which has led many new players to take their businesses online.
According to Mr. Popovich, “we will see more and more consumers buying online.” For example, people over 55 who typically shop less online have started buying more since the pandemic, and there has been growth in other demographics as well.
While he still foresees opportunities in e-commerce for new businesses, he believes the focus could be on more personalized and bespoke products that “cannot be found in local physical stores such as Walmart.” .
“All the processes that are happening all over the world are also happening in Israel“, he said.” Israelis like to shop online, and they want to be able to receive their orders quickly. “
He adds that “e-commerce in Israel is still young, and there is a lot to do. If you have a great product and you ship it quickly, you can target a specific audience with a product that will solve a problem or have an interesting feature.
Already during the pandemic, Popovich created in two months a new brand that sells dolls and knitted figurines on bubot.co.il and which sells in branches of the computer store KSP in Israel.
He doesn’t think he has a secret to his success he declares “if i can do it, anyone can do it!