How To Start Dropshipping In Israel In 2025
Why start dropshipping
Are you ready to take control of your financial future?
Dropshipping offers a unique pathway to entrepreneurship that requires minimal upfront investment.
Imagine launching a business that allows you to work from anywhere, giving you the freedom to design your own schedule.
With the ability to test various products without the risk of unsold inventory, you can discover what truly resonates with your audience.
This is more than just a side hustle; it’s an opportunity to create a brand that reflects your vision. Keep reading to learn how to start your dropshipping adventure!
How dropshipping works
Why start dropshipping in Israel
Dropshipping in Israel presents a compelling opportunity for entrepreneurs looking to tap into the thriving ecommerce market. With projected revenues expected to soar to approximately $8.4 billion by 2025, driven by a robust compound annual growth rate of 11.44%, the landscape is ripe for new ventures.
Here’s why starting your dropshipping business in Israel can be an excellent decision:
First, Israel is renowned for its thriving tech industry and startup culture. Known as the “Startup Nation,” the country boasts a highly educated and entrepreneurial population. This environment provides a strong foundation for ecommerce ventures, as you can tap into a deep talent pool and leverage the country’s technological advancements.
Second, Israel has one of the highest internet penetration rates globally, with a significant portion of the population actively engaging in online shopping. The ecommerce market in Israel is rapidly expanding, driven by a tech-savvy population and a growing preference for online retail. This presents a vast opportunity for dropshippers to reach a large and digitally-inclined customer base.
Third, Israel’s strategic location at the crossroads of Europe, Asia, and Africa facilitates efficient shipping and logistics. The country has well-developed transportation infrastructure and reliable courier services, ensuring timely delivery of products to customers. This is crucial for maintaining customer satisfaction and building a positive reputation for your dropshipping business.
All in all, Israel’s dynamic economy, tech-savvy population, and supportive business environment make it an attractive destination for dropshipping. By leveraging the country’s strengths, you can establish a successful online business and tap into both local and international markets.
Advantages and disadvantages of dropshipping in Israel
Advantages of dropshipping in Israel
1. Low startup costs
One of the most significant advantages of dropshipping in Israel is the low barrier to entry. Entrepreneurs can start their online stores without the need for substantial investment in inventory. This model allows them to allocate resources to marketing and customer acquisition instead, making it easier for new businesses to enter the ecommerce market.
2. No inventory management
Since dropshippers do not hold inventory, they can focus on marketing and customer service rather than managing stock levels, warehousing, and logistics.
3. Diverse product range
Israel boasts a variety of suppliers and manufacturers, which enables dropshippers to offer a wide range of products. This diversity allows entrepreneurs to cater to niche markets and adapt quickly to changing consumer preferences, enhancing their competitive edge.
4. High consumer spending
The ecommerce market in Israel is thriving, with spending per capita among the highest globally. According to recent statistics, ecommerce revenues in Israel are projected to reach approximately $8.4 billion by 2025, indicating a robust market for dropshipping businesses. This high consumer spending is a promising sign for potential dropshippers.
5. Tech-savvy population
Israel is known for its technological advancements and high internet penetration rates. This tech-savvy population is comfortable with online shopping, providing a ready customer base for dropshipping ventures. Additionally, the presence of reliable payment gateways ensures secure transactions, further encouraging online shopping.
6. Scalability
Dropshipping allows businesses to scale operations without the complexities associated with inventory management. As demand increases, entrepreneurs can easily add new products or expand their marketing efforts without the burden of managing stock levels.
7. Access to global markets
Dropshipping allows Israeli entrepreneurs to reach international customers without the need for significant investment in logistics and shipping infrastructure. By partnering with suppliers who can ship globally, dropshippers can tap into larger markets beyond Israel, increasing their potential customer base and sales opportunities.
Disadvantages of dropshipping in Israel
1. Intense competition
While dropshipping offers numerous advantages, it also comes with significant competition. Many entrepreneurs are drawn to this low-cost model, leading to saturated markets in popular niches. Standing out requires effective marketing strategies and unique product offerings, which can be challenging.
2. Limited control over supply chain
Dropshippers rely heavily on suppliers for product quality, stock availability, and shipping times. This lack of control can lead to issues such as delayed shipments or subpar product quality, which can negatively impact customer satisfaction and brand reputation.
3. Profit margins
The profit margins in dropshipping can be relatively low due to high competition and the costs associated with sourcing products. As many dropshippers compete for the same customers, they may be forced to lower prices, which can further squeeze profit margins.
4. Customer service challenges
Handling customer service can be more complex in a dropshipping model. Since the retailer does not handle the products directly, resolving issues like returns or exchanges can be cumbersome. This can lead to dissatisfaction among customers if their concerns are not addressed promptly.
5. Market size limitations
Compared to larger countries, Israel’s population is relatively small, which can limit the potential customer base for dropshipping businesses. While the spending per capita is high, the overall market size may not be sufficient for some entrepreneurs to achieve their desired revenue goals.
6. Shipping challenges
While dropshipping offers the advantage of low inventory costs, it can also lead to shipping challenges. Depending on the supplier’s location, shipping times may vary significantly, which can result in delays that frustrate customers. Additionally, international shipping can incur higher costs and customs duties, which may deter potential buyers from making purchases.
While some may argue that dropshipping has its challenges, the ability to start a business with minimal upfront investment and the flexibility to operate from anywhere makes it a compelling choice for aspiring entrepreneurs ready to embrace the digital marketplace.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Israel?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
