Amazon Starts Up Local Delivery in Israel

Amazon began local delivery operations in Israel on Sunday, though the opening was done quietly and analysts were quoted as saying that it may not have a dramatic impact on the market, at least not at first.

The website will enable Israeli retailers to sell directly to customers in Israel using its online platform. The launch was not accompanied by the usual fanfare, however. For the time being, Amazon only sent out an email which said it’s “currently working with sellers in Israel to help them sell worldwide with Amazon Global Selling.”

The site will start off hosting such companies as Crazy Line, 911 Fashion, Style River, Adika, Dynamica, Newpan and Electra.

“The initial impact won’t be dramatic; there won’t be a booming impact,” Ilanit Sherf, head of research at Psagot Brokerage, told Times of Israel. “But it will grow with time, also offering Israeli manufacturers a way to reach global audiences.” The platform will also give a wider marketing scope to local stores that cannot afford to set up branches within malls, she said.

Some retailers will be hurt by competition from the online giant, Sherf said, but much will depend on the scope of products offered. “If the products on offer are limited, the impact will be limited as well.”

Amazon’s entry into the Israeli market is part of a trend, including in the local market, of greater online activities, which will only grow in the future, she said.

“This is where the technology is going. The service will be more convenient, products more easily available and delivery times shorter. There is a natural transition from offline to online, and you can see it happening. Amazon’s local presence will strengthen this trend.”

Initially, the online service will be in English, but Hebrew will be available in time as well.