Amazon rents 3,000 m2. As revealed "Globes", Amazon has had talks with a number of Israeli delivery companies, including Boxit (which belongs to FedEx's Flying Cargo), a company that delivers parcels to lockers located across the country. Amazon has apparently been discussing improving and streamlining its delivery system in Israel. Another delivery company whose name was linked to Amazon was buzzr. It is reasonable to badume that Amazon's current shopping campaign aimed to evaluate the efficiency and timeliness of delivery.
The sources added that another problem is the attitude of Israeli consumers towards purchases to which the tax adds. The tax exemption for orders abroad currently applies up to $ 75 (NIS 275). The Amazon market applied to an order of more than $ 80, above the exemption threshold, and the Israelis were therefore forced to pay VAT. Many consumers complained about this and wondered if Amazon was aware of the tax threshold in Israel. The information obtained by "Globes", however, indicates that Amazon has deliberately set the threshold for its free delivery offer above the VAT threshold because it was trying to determine whether the addition of VAT would deter Israelis from buying, since local activity with a logistics warehouse in Israel would mean that customers were paying VAT on all purchases, regardless of their size. It is believed that Amazon was actually trying to find out if the Israelis would be willing to buy it even if they had to pay VAT.
Potential of earthquake market
The Amazon currently has activity in 11 of the world's major economies, including the United States, France, the United States, and the United States. Germany, the United Kingdom, India, Canada, China, Australia and Japan. It is sold to customers in 180 countries worldwide through 109 delivery warehouses in over 30 categories of business.
At this point, Amazon plans to enter Israel in non-food sectors, such as fashion and textiles. , multimedia equipment and electronic products. These products have a long shelf life and do not have expiry dates. Such a move by one of the international online giants is a potential earthquake in the Israeli retail market. The power of Amazon, listed on Wall Street with a market capitalization of $ 880 billion, far exceeds anything that is perceived in the domestic market and threatens to disrupt local enforcement, and market players Local are following the evolution with concern. from its intention to enter the retail business in Israel, Amazon currently has hundreds of employees in Israel in several areas: development of chips for its cloud servers based on the business of Israel. Annapurna Labs acquired and commercial activity related to cloud computing (Amazon Web Services – AWS); improved technology for ordering products through the Alexa Voice app; the development of technology for the Go Store of Amazon, which runs without cash counters; and computer vision
Published by Globes [online] Israel business news – www.globes-online.com – 15 July 2018
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