Israeli Shoppers Face Doubled Prices on Global E-Commerce Sites
Translated & summarized from Cursorinfo by baba
Israeli shoppers are paying significantly higher prices, sometimes nearly double, for the same products on international e-commerce sites like SHEIN, ASOS, and AliExpress compared to European customers. These price differences persist despite VAT exemptions on foreign purchases, suggesting retailers are adjusting prices based on the Israeli market. The trend has led to increased online shopping and potential lost tax revenue for the state, while also disadvantaging local businesses. Consumers are urged to compare prices carefully before making purchases, especially during sales.
The story in 5 lines · by baba
- Israeli consumers face prices nearly double those in Europe on popular global e-commerce sites.
- SHEIN, ASOS, AliExpress, Next, and Temu were identified as major platforms with significant price discrepancies.
- Price differences persist despite Israel's VAT exemption for certain foreign online purchases.
- The Association of Chambers of Commerce estimates $196 million in lost VAT revenue for 2024.
- Consumers are advised to compare prices across different regional versions of websites to avoid overpaying.
Israeli consumers are encountering significantly higher prices for identical items on popular international online shopping platforms compared to European buyers, according to a report by Ice. Major retailers including SHEIN, ASOS, AliExpress, Next, and Temu are charging Israelis nearly double what customers in the UK, Germany, France, and Greece pay, even when factoring in VAT exemptions for some foreign purchases.
The most striking discrepancies were found on SHEIN, where an evening dress priced at 279 shekels for Israelis cost approximately 139.6 shekels in the UK, a nearly 100% difference. A lace dress showed a 74% price gap, and a dinnerware set was 87% more expensive for Israelis than for UK shoppers.
Similar price disparities were observed on ASOS, with a three-pack of Adidas socks costing Israelis 65 shekels versus 36.6 shekels in France and Germany (a 77% difference). A New Balance visor was 34% more expensive for Israelis, and an Adidas t-shirt was 29% more. AliExpress showed over 40% differences in sportswear, and Next had 20-22% discrepancies on footwear and apparel. Even Temu featured a portable massager priced at 92.1 shekels for Israelis compared to 75.6 shekels in France.
These price differences persist despite Israel's VAT exemption for certain overseas purchases, which was intended to lower costs for consumers. The Association of Chambers of Commerce suggests that some e-commerce sites adjust prices based on the buyer's country and tax conditions, potentially retaining savings that should benefit consumers. The volume of VAT-exempt online purchases has surged 3.2 times between 2020 and 2024, exceeding $1.16 billion annually, with estimated lost VAT revenue of $196 million for 2024.
The situation creates an uneven playing field for local Israeli businesses, which must charge VAT, while international platforms can leverage tax advantages. Consumers are advised to meticulously compare prices across different regional versions of websites, using tools like VPNs, and to consider all costs including shipping and currency conversion, especially during upcoming November sales events, to avoid overpaying.
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