Online Retailers Charge Israelis Up to 100% More for Same Products
A study by the Israel Chamber of Commerce and Industry found that international e-commerce sites charge Israeli consumers up to 100% more for the same products compared to European shoppers. Prices for items on platforms like SHEIN, ASOS, and Temu were significantly higher in Israel, even before VAT is added. The research suggests these companies may be exploiting Israel's VAT exemption policy, leading to increased profits for retailers and unfair competition for local businesses. The number of VAT-exempt packages has more than tripled since 2020.
הידיעה ב-6 שורות · תקציר של baba
- International online retailers are charging Israelis up to 100% more for identical products compared to European consumers.
- A study by the Israel Chamber of Commerce and Industry revealed significant price hikes on popular sites like SHEIN, ASOS, and Temu.
- Examples include a dress costing double in Israel versus the UK, and socks being 77% more expensive.
- The research suggests companies may be exploiting Israel's VAT exemption, increasing their profits.
- VAT-exempt package imports have more than tripled since 2020, exceeding $1.16 billion annually.
- Local businesses face unfair competition due to these pricing practices, according to the Chamber.
A comprehensive study by the Israel Chamber of Commerce and Industry has revealed significant price discrepancies for Israeli consumers purchasing goods from international e-commerce platforms. During the November shopping season, leading global online retailers are charging Israelis substantially higher prices, sometimes double, for identical products compared to consumers in European countries. The research examined popular sites like ASOS, SHEIN, AliExpress, Next, and Temu, comparing prices accessed via VPN and incognito browsing from the UK, Germany, France, and Greece.
Examples of the price gouging include a beaded evening dress on SHEIN priced at NIS 279 for Israelis, which was 100% more expensive than the approximately NIS 139.6 charged in the UK. Another lace dress cost NIS 329 in Israel versus about NIS 188.9 in the UK, a 74% difference. A set of tableware was NIS 252.9 in Israel compared to NIS 135.3 in the UK (an 87% gap), and a three-pack of Adidas socks on ASOS was NIS 65 in Israel versus about NIS 36.6 in France and Germany (a 77% increase).
Further examples show a New Balance cap at NIS 120 in Israel compared to about NIS 89.6 in France and Germany (33.9% higher), and an Adidas t-shirt at NIS 150 in Israel versus about NIS 116 in the UK (29% higher). AliExpress showed over 40% price differences for sports sets and pants, while Next had consistent 20-22% higher prices for shoes and branded apparel. A portable massager on Temu was NIS 92.1 for Israelis, compared to about NIS 75.6 in France (22% higher).
The study highlights concerns that the VAT exemption for purchases under a certain threshold is not benefiting Israeli consumers but rather increasing the profit margins of these large e-commerce companies. The number of VAT-exempt packages imported into Israel has surged by 3.2 times between 2020 and 2024, with annual purchases exceeding $1.16 billion. The potential loss of state revenue from VAT in 2024 alone was estimated at $196 million.
The Chamber of Commerce warns that this pricing strategy harms both consumers, who do not truly benefit from the tax break, and local businesses, which face unfair competition from foreign entities not subject to the same VAT obligations. They advise consumers to carefully verify discounts during November sales events, as inflated prices may be disguised as savings.
מוזכרים