UPS’s franchisee in Israel conducted a comprehensive survey on online purchases and consumer preferences of Israelis, examining consumer behavior and the differences between online and physical purchases, between Israeli and international websites, and between different population groups.
The survey, conducted as part of activities to mark 30 years of operation in Israel, found that 85% of Israelis made online purchases this year, with the average Israeli consumer making 20 online purchases per year.
Additionally, the survey revealed that women purchase more from overseas websites, with 81% compared to 72% of men. This is despite respondents noting that products from local websites typically take about 5 days to arrive, compared to 14-30 days for international shipping. Furthermore, 45% of consumers aged 16-39 prefer Israeli products, compared to 52% of those aged 40-55 and 62% of those aged 56 and above.
Locally, the two leading websites for orders are KSP with 14% and Terminal X with 12%, according to the survey, while many other websites compete for consumer attention with purchase rates of 2%-6%, including Super-Pharm, Walla Shops, and fashion chains such as Castro, Fox, and Delta.
However, in the international arena, there is a clear gap – AliExpress leads by far with 56% of Israeli consumers, with Shein and Amazon ranking much lower at 11% each, and TEMU – which entered the Israeli market only in recent years – already reaching the fourth spot with 10%.
Traditional vs. New Habits
Despite the clear trend toward online purchases, there are still product categories that Israelis prefer to buy in physical stores. Clothing and footwear are the most purchased categories online, according to the survey, significantly ahead of the following categories, with 67% of respondents having purchased clothing and footwear online in the past year. Interestingly, the clothing and footwear category also leads among the categories that respondents prefer to buy in a physical store (34%), second only to furniture, which 36% would prefer to see, feel, and try in a store at the time of purchase. Drugs, jewelry, and mobile devices are also preferred by about 28%-32% of respondents to be purchased in a physical store. As for online purchases, in addition to clothes, Israelis also buy mobile phone accessories, home products, dietary supplements, hobby products, cosmetics, and perfumes. Half of online shoppers mentioned that there are products they prefer to buy made in Israel, mainly medicines (18% of respondents), dietary supplements (14%), flowers (12%), and coffee products (12%).
Regarding expenses, the survey indicates a significant gap between spending on Israeli websites, where 76% of respondents stated they spend hundreds to thousands of shekels on a single purchase, compared to those ordering from international websites, where 85% stated they spend no more than a few dozen dollars on each order.
75% of Israelis prefer to purchase on a website with free shipping, but only 45% add products to reach the free shipping threshold. In contrast, 84% try to avoid reaching the amount that requires tax payment when ordering from international websites. Interestingly, although only 4% of respondents were unaware of the tax-free amount (usually $75), 90% of those with higher education stated they try to avoid paying taxes by limiting the purchase amount, compared to only 78% of those with average or lower education. According to UPS, greater awareness and attention to this issue could save consumers unnecessary tax payments.
Israelis prefer to receive the delivery at home (43%) or at a pickup point – stores or lockers (42%). Only 6% of Israelis prefer to have their packages delivered to their workplace. Interestingly, women prefer to receive their deliveries at home, with 51% (compared to 36% who prefer a pickup point), while men clearly prefer to collect their packages from a nearby pickup point, with 50% compared to 35% who prefer home delivery.
Additionally, the survey found that online shopping is more common among those aged 55 and younger and among those with higher education. 89% of those aged 16-55 report making online purchases, while 75% of those aged 55 and older do so. Interestingly, there is almost no difference in order percentages between secular Jews (87%) and religious or traditional Jews (83%), as well as between those with average or higher income (89%) and those with lower income (84%). Similarly, the difference between women (85%) and men (86%) is negligible.
The survey was conducted in collaboration with the Brandman Institute, with the participation of 501 women and men aged 16+ in February 2025.
