Inflation blues: Israelis are ordering less from abroad

Israelis are coping with rising inflation and cost of living by cutting back on online purchases, especially from abroad, according to multiple surveys published today (Tuesday) by Globes.

According to an expanded survey conducted by Shopanalytics and published by Globes, Chinese online retailers continue to dominate the online market - both international and local - with 76% of orders going to Temu and Shein, and Ali Express, though Ali Express receives almost 60% of online international orders. Nevertheless, there has been a greater relative decline in international sales (13%) compared to local online sales (7%).

Among local online vendors, Supersol is king, while Rami Levi remains behind in fourth place. "Social" vendors" including the Histadrut's "social supermarket" also control about 3% of the overall online market.

Another sign of the pinch of increased prices involves the Wolt delivery service. A popular Israeli form of the American DoorDash, Wolt recently increased delivery fees substantially, leading to significant public backlash. Shopanalytics discovered that there has been a 15% decline in orders and a 20% decline in the overall number of those who purchase orders through Wolt.

A survey conducted for Globes by the Panel View company showed that 42% of cellphone owners ordered something through Wolt in the last three months. 88% of them were aware of the higher delivery charges. When asked about their response, fully 66% said they would reduce the number of orders they made, 25% said they would stop ordering altogether, and just 9% said they would go on as normal.

Israel has had to contend with trying to both finance an increasingly expensive war, along with increasing local weapons production to bypass potential boycotts, while getting the economy back on track. Inflation remains about the same level, as have the interest rates, and the state of the economy is becoming an increasing talking point among opposition parties hoping to win the next election.