Amazon Lowers Shekel Conversion Fees for Online Purchases

The commission went down to as low as 2.2% of the total purchase sum, a significantly lower rate than that offered by most Israeli credit card companies

Meirav Crystal 17:0009.12.19

As part of its efforts to win over Israeli consumers, Amazon has recently reduced its commission fees for converting foreign currency into shekels. Last month, the rates went down from between 6% and 7% of the total purchase sum to between 2.2% and 2.5% for customers choosing to pay using Israeli currency on Amazon’s U.S., U.K., and European sites. This is a significantly lower rate than that offered by most Israeli credit card companies, which typically stands at around 3%.


Despite its relatively small population of 9 million, Israel is considered a significant market for e-commerce. In 2017 alone, 61 million packages weighing over 10,800 tonnes were ordered by Israelis from retailers abroad, a 15% increase from the year before, according to a report by Israel Postal Company Ltd.


The same year, the average Israeli made 36 online purchases from overseas, according to a report published by Israel’s state comptroller. By 2020, the scope of online shopping in the country is expected to double, amounting to 12% of its retail market, the state comptroller’s report said.


Amazon launched an Israeli website in September, adding a Hebrew version last month.


Amazon packages. Photo: AP Amazon packages. Photo: AP