Amazon struggles to capture online retail foothold in Israel
Amazon is struggling to gain significant market share in Israel's e-commerce sector, currently holding only 6% compared to Chinese competitors like AliExpress, Temu, and Shein. Experts attribute this to Amazon's lack of a local logistics center and the competitive nature of the small, price-sensitive Israeli market.
Why it matters
This case study illustrates the challenges global tech giants face when entering smaller, highly competitive international markets without localized infrastructure.
While Amazon goes from strength to strength worldwide, the US giant has struggled to gain a foothold in Israel in terms of online retail sales. Shop Analytics data in June 2026 shows that the three Chinese platforms AliExpress, Temu and Shein accounted for about 75% of Israelis’ online orders, while Amazon only had a 6% market share.
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