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Shopify’s New Venture into the Israeli Market
Last modified: January 2, 2024
Shopify, a global e-commerce platform with a market cap of $100 billion, is making significant strides in the Israeli market. This move comes at a time when major local e-commerce platforms are shutting down, highlighting the challenging yet high-potential nature of this market.
Shopify’s decision to establish a Shopify Plus agency in Israel, spearheaded by BOA Ideas, marks a strategic expansion aimed at leveraging the unexpectedly high revenue from online stores and surfer traffic in the country.
Shopify's Strategic Move
Shopify’s expansion into Israel is a calculated step, driven by the high volume of e-commerce relative to the market size. The company’s decision to open a Shopify Plus agency in Israel, in collaboration with BOA Ideas, is a response to the closure of several local e-commerce platforms.
This move signifies Shopify’s recognition of the potential in the Israeli market, despite its small size. Amos Shacham, CEO of BOA Ideas, explains that the Israeli market’s growth in e-commerce has surpassed other global markets in recent years.
This growth is attributed to the high number of online stores and significant surfer traffic, leading to revenues exceeding initial expectations.
Challenges and Opportunities
The Israeli e-commerce landscape has faced challenges, with major players like Azrieli Group and Shufersal closing their platforms. However, this has not deterred Shopify from investing in the market.
The company sees an opportunity to fill the gap left by these closures, offering advanced strategies and technological tools specifically tailored for Israeli businesses. Shacham points out that the failure of local marketplaces was not due to consumer behavior but technology issues.
He emphasizes that platforms that developed their solutions in-house faced high costs in software development and maintenance, which could have been avoided with ready-made solutions like Shopify.
Shopify Plus: a Breakthrough for E-Commerce
Shopify Plus, aimed at businesses with significant monthly sales, offers a range of features including multi-currency payment services, sophisticated sales and checkout options, and warehouse management solutions.
This program is particularly beneficial for mid-size and large Israeli brands looking to sell directly to consumers online. BOA Ideas, founded in 2007 and specializing in website and app development for major brands, will play a crucial role in implementing Shopify Plus in Israel.
Their expertise will be instrumental in helping local businesses leverage Shopify’s advanced e-commerce tools for growth and expansion.
Conclusion: Shopify’s New Venture into the Israeli Market
The introduction of Shopify Plus in Israel, through the partnership with BOA Ideas, is set to revolutionize the Israeli e-commerce landscape. This development not only provides a robust platform for local businesses to thrive but also facilitates their expansion into global markets.
With advanced features and tailored solutions, Shopify is poised to significantly impact how Israeli companies engage in e-commerce, offering them a competitive edge in the global marketplace.