Amazon is not yet in Israel but Israelis are running to Amazon.
The truth of the matter is that Amazon is planning a big branch in Israel and I think that this would be great for Israeli consumers. All kinds of products, no matter whether toilet paper or cheese, are really expensive in this country. Israeli manufacturers and import companies as well as supermarket chains divide their monopoly. They stipulate the prices and we consumers pay for overpriced goods.
More competition from abroad would influence the Israeli market in a positive way, as there would be far more competition. I wish we had Amazon and Wallmart!
Thousands of Israelis love to buy online. Mostly from abroad, as products there are much cheaper. Local business owners lose profits. Sometimes only elderly people come into the store because they don’t know too much about the online market.
Supermarket chains such as Shufersal have reacted and offer online shopping and delivery. Other stores have closed or are about to close just like stores located in US shopping malls.
On the other hand, Israeli businessmen don’t want to reduce prices in order to keep their customers but are even considering raising prices. I think that in five years from now, most shops all over the world will be online.
Even Israel’s haredi society is offering courses how to enter the Amazon FBA. They learn how to sell their own products via Amazon. Yaakov, the guy running the course, explained that he got married at the age of 19, studied in a Kollel but, eventually, had to earn a living. Thus he launched his own online business with Amazon.
However, it is not clear to me what he actually sells. 🙂 One can be successful joining the Amazon FBA programme but still, it takes time, hard work and lots of patience.