July 24, 2019

Amazon Israel Has Not Yet Been Launched, But the Complementary Services Are Already Here

Yediyoth Aharonot – 07/24/19

Electra Consumer Products has establishedWEFORCE which will set up and run Amazon stores for small businesses that are apprehensiveof dealing with the retail giant. It expects that the activity will have aturnover of hundreds of millions of shekels within two years

[Photo:  Zvika Schwimmer.  “The platform will turn a small or mediumlocal business to a large and global one”

Cost of the Service – 15% ofthe annual turnover (in addition to the 15% charged by Amazon) -

plus NIS 49-490 monthlysubscription fees

 

 Amazon Israel Has Not Yet Been Launched, But the ComplementaryServices Are Already Here

By Nevit Sommer

The Amazon Craze: The onlineretail giant has not yet officially inaugurated its Israeli venture, but asecondary industry has already been established around it: not only logisticsand transportation services are offered, but also local consultants and expertsare offering to Israeli merchants their services to set up Amazon stores andoperate them.

The latest to join this trend isElectra Consumer Products, Israel's largest retail company, which takesadvantage of the situation and concern of Israeli merchants, especially in thesmall room, to follow Amazon's strict rules, offering them to open a store forthem in Amazon and also manage it. The cost: a 15% commission - in addition toa 15% commission charged by Amazon - as well as a monthly subscription feeranging from NIS 490-49, according to the amount of products presented by themerchant on the site.

To that end, she founded, with aninvestment of NIS 3 million, the Wifors company, which will allow small andmedium-sized business owners to bypass all barriers to entry - includinglanguage, technology control, understanding of advertising and promotion of thestore, conducting with Amazon, and of course managing the store. The Israelimerchant, with the exception of preparing the required inventory, will not haveto deal with the difficulties of the system.

Although the company has so farbeen engaged in importing, marketing and manufacturing electrical appliancesand air conditioners, CEO of Electra Consumer Products, Zvika Schwima, definesthe new service activity as a "significant growth engine" and expectsit to raise hundreds of millions of shekels within two years.

Electra recruited Yuval Ater asVP of Innovation and Growth for the new venture, and Eli Ventura has beenappointed head of the eCommerce division this week.

Ventura has so far been an expertand independent consultant to Amazon's dealers.

Schwimmer said Electra brings tothe project its knowledge and capabilities in logistics, shipping, import andexport, customer service and marketing and advertising. She also has advancedcontacts with Bank Hapoalim regarding a dedicated financing solution for smalland medium-sized businesses that will join the service and start trading on theglobal trading platform.

Schwimmer told Yedioth Ahronoth:"We have identified a need among business owners for a professional tooperate and run a comprehensive marketplace activity in the global tradingarenas, primarily Amazon. The purpose of this platform is to transform a local,small or medium business into a large and global business in Amazon."Eater said:

"We will set up a Amazonstore that will concentrate on all the products of stores that will go with us.We will invest in promoting and meeting Amazon's high standards."

Yesterday, Yedioth Ahronothrevealed that Amazon would launch its Israeli version in September, instructingIsraeli sellers to open a store on the site to be ready within a month. InAugust, Amazon will embark on a big campaign to encourage Israelis to buy it,especially from Israeli merchants.

Skin has been revealed thatcontrary to expectations, Amazon will not open a dedicated Hebrew site, and notsure that will happen later.

Everything will be managed on theregular site, amazon.com, but when you identify a sign-in system from anIsraeli IP address, you will be "jumped" to the Israeli merchantsclient in the same category.

 

Despite its efforts, the companyhas not yet managed to recruit 100 Israeli merchants to sell through it.

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