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Amazon is reestablishing its operations in Israel and the company has hired a manager for its Israeli division, who has already begun assembling a team to relaunch local sales, according to a report on Sunday. Amazon has also reached out to Israeli retailers to assess the feasibility of resuming operations in the country.
The e-commerce giant first launched Amazon Israel in 2019, offering a Hebrew-language sub-site within its U.S. platform. The initiative allowed local retailers to open storefronts and provide domestic shipping, with Amazon taking an 8% commission. However, high prices, logistical challenges, and the COVID-19 pandemic led to the closure of the operation in 2021.
At the time, Amazon did not establish local warehouses in Israel, instead operating under its Fulfillment by Merchant (FBM) model, where sellers managed storage and shipping themselves. This system, common in Amazon’s early-stage markets, failed to provide competitive pricing or faster delivery times, making the platform less attractive to Israeli consumers.
Despite shutting down its local marketplace, Amazon introduced free shipping to Israel on orders over $49 from the U.S., a move that proved highly popular with Israeli shoppers—though it did little to help local retailers.
Now, Amazon is making another attempt to establish a presence in Israel. It remains unclear whether the company will sell directly to consumers this time or set up local distribution centers, but industry sources say this effort appears “more serious” than the previous one.
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Amazon, which started as an online bookstore, has grown into a global retail and tech powerhouse. The company is expected to surpass Walmart in profitability, with projected earnings of $187 billion in its latest quarter. In addition to its marketplace, Amazon develops its own consumer electronics, including the Kindle e-reader, Fire tablets, Echo smart speakers, and Alexa virtual assistant. It also operates subscription services like Amazon Prime Video and Amazon Music.
Amazon’s website is one of the most visited in the U.S., alongside major Chinese e-commerce platforms. The company runs a premium membership program, Amazon Prime, which offers fast delivery and exclusive shopping events. It operates online stores in Canada, Mexico, the U.K., Europe, Japan, and India and provides a mobile app that allows consumers to shop—and even customize products—on the go.
Beyond retail, Amazon is the world’s largest provider of cloud computing services through Amazon Web Services (AWS). The company also offers advertising, software solutions, and satellite-based internet services. Its diverse portfolio includes investments in autonomous vehicles, cloud infrastructure, and semiconductor development in Israel.
Amazon has acquired several high-profile brands, including Whole Foods Market, Ring security cameras, Twitch gaming livestreams, Audible audiobooks and podcasts, Wondery podcast network, and IMDb, the well-known film and TV database.