Amazon changed the rules. Local businesses need to change their playbook.
Amazon's growing presence in the Israeli market isn't a future scenario — it's happening now. For local retailers, the question isn't whether Amazon will affect them, but how to build digital capabilities that Amazon can't easily replicate.
Where local businesses can win
Customer relationships. Israeli consumers value personal service. A local brand with a strong app and personalized experience creates emotional connection that commodity marketplaces can't match. Our work with Israeli retailers shows that branded apps consistently outperform marketplace listings on customer lifetime value.
Same-day delivery. If you have stores or warehouses, you can offer instant pickup and same-day delivery that Amazon can't match in Israel. Build the digital layer that connects your physical advantage to customers' phones.
Specialized expertise. Amazon's recommendations are algorithmic. A specialty retailer's recommendations are backed by actual expertise. Embed this in your digital experience through personalized guidance and AI-assisted product selection.
The digital capabilities you need
Mobile-first commerce. Over 60% of online shopping in Israel happens on phones. If your mobile experience is just a responsive website, you're losing to competitors with dedicated apps.
Loyalty and repeat purchase systems. Amazon makes it easy to buy once from anyone. Your advantage is making it easy to buy repeatedly from you.
Data-driven personalization. Use purchase history and browsing behavior to surface the right products at the right time.
Frequently asked questions
Should small Israeli businesses worry about Amazon? If you sell commodity products at commodity prices, yes. If you offer specialized products or expert service, you have defensible advantages — but you need to digitize them.
Ready to build competitive digital capabilities? Let's discuss your specific market position.