2019 Marketplace Expansion Index

The ecommerce and sharing economies are booming. Thousands of fast-growth marketplaces are emerging all around the world.
This index examines the top 36 countries for ecommerce and sharing economy platforms to expand.

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Israel

2019 Rank # | 2018 Rank #

Big Mover

New

emerging

Israel

A digital economy fueled by Israeli innovation but hampered by availability of freelancer workforce.

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#24

Marketplace Expansion Index Rank

Down 1 Spots from 2018 Index Rank of #23

Pros

  • Hotbed of activity for startups and sharing economy pilot projects
  • Success of Israeli founded startups is also making global marketplaces pay attention to this country
  • High levels of entrepreneurism and innovation

Cons

  • Middle East geopolitical climate can be unstable at times
  • Not enough freelancer workforce for growth of service-oriented marketplaces
  • Ease of doing business is not high as compared to other countries

Facts You Can't Forget

1

Your Cart is Full. There are currently 4.36 million eCommerce users in Israel, with an additional 2.02 million users expected to be shopping online by 2022.

2

The Cradle of Entrepreneurism. Israel has earned the moniker of “Startup Nation” mostly because it has the largest number of startups per capita in the world, around 1 startup for every 1,400 people.

3

Work work work work work. The unemployment rate in Israel fell to a historic low level of 3.7% in January of 2018, partially due to the number of people working part-time and temporary jobs.

Ranking Highlights

For our full explanation, visit our methodology page

Infrastructure

7

The fundamentals of any society and enterprise, including: payment infrastructure, ease of doing business, and Logistics Performance Index.

Workforce

8

You’re only as good as your people. Factors in this category include: levels of English proficiency and participation in freelance employment.

Ecommerce Activity

6

This category assessed ecommerce opportunity size, retail ecommerce growth and ecommerce as a percentage of retail transactions.

Competition

5

The fate of foreign entrants, based on the volume of cross-border transactions and if a global marketplace dominates that geography.

Essential Reading

"Israel ranks first in the world for its attitude toward entrepreneurial risk and for the growth of innovative companies, and second, after the US, in venture capital availability."

"Turo joins a host of international startups using this model that have launched business in Israel, mainly in Tel Aviv. Others include US motorized scooter companies Bird and Lime, which is arriving here soon."

"From 2019, there will be a limit on cash transactions to businesses of NIS11,000 ($3,100), and this may be further reduced to NIS6,000 in 2020. Cash transactions between individuals will be limited to NIS50,000, and this may reduce to NIS15,000 in 2020."