Amazon takes major step toward commencing Israel operations

For the first time, an Amazon Services website in both Hebrew and English offers both local and foreign vendors access to Israeli buyers.

By
August 21, 2019 18:30
1 minute read.
Amazon packages are seen at the new Amazon warehouse during its opening announcement on the outskirt

Amazon packages are seen at the new Amazon warehouse during its opening announcement on the outskirts of Mexico City. (photo credit: CARLOS JASSO/REUTERS)

E-commerce giant Amazon took another significant step toward the start of operations in Israel on Wednesday, launching a website to encourage sellers to start deliveries to Israeli customers.

For the first time, an Amazon Services website in both Hebrew and English offers local and foreign vendors access to Israeli buyers and also “reach millions of new customers” worldwide through the Amazon platform.

“Participate in the Local Delivery program to grow your business and increase sales with no additional seller fees,” Amazon encouraged potential sellers. “Local Delivery enables you to fulfill orders to customers in Israel, using inventory stored in Israel.”

To ship products locally to Israeli customers, Amazon will enable sellers to handle deliveries via their preferred carriers. The Local Delivery program will be available to professional sellers with inventory in Israel and who offer standard shopping of three to five days transit time, or faster.

To ship products to US customers, sellers will be able to use the company’s “Fulfillment by Amazon” (FBA) program or handle international shipping themselves using the carrier of their choice.

The FBA delivery service enables sellers to ship products to an Amazon fulfillment center in the US, where Amazon will store the inventory, pack and ship products to customers, and handle customer service or returns.

In an email sent to sellers who have already enrolled in the Local Delivery program, Amazon said the service “will be available on Amazon.com soon.” No date was specified.

The launch of the Amazon website immediately sent shares in Israel’s leading commerce firms tumbling on the Tel Aviv Stock Exchange. Stocks in the Azrieli Group, Big and Shufersal all registered significant drops in morning trading.

In 2018, Amazon’s annual net sales increased by 31% to $232.9 billion, with revenue from product sales reaching almost $142b. Last month, the company announced that net sales increased 20% to $63.4b. in the second quarter, compared with $52.9b. in the second quarter of 2018.

The retail giant employs almost 650,000 full-time and part-time employees worldwide, in addition to independent contractors and temporary personnel.



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