PayPal VP: "We have 430 million customers who would be happy to buy from Israelis."
PayPal VP: "We have 430 million customers who would be happy to buy from Israelis."
Efi Dahan, Vice President, General Manager Central Eastern Europe & Israel at PayPal, was speaking at the Google and Calcalist e-commerce conference. According to him, a third of the Israeli businesses that sell abroad started doing so in the last year.
"56% of the small and medium-sized businesses told us that their online sales helped them survive during the last months. This is not a small thing; it is significant, a lifeline in times of crisis," said Efi Dahan, Vice President, General Manager Central Eastern Europe & Israel at PayPal, at the Google and Calcalist e-commerce conference.
Dahan spoke about e-commerce as an anchor for small and medium-sized businesses and presented global and local trends based on a survey conducted by the company among small and medium-sized businesses in May, during the war. "I think we should be very proud of what has happened in the last 10 years in e-commerce in Israel," said Dahan. "We started with almost nothing, and we managed to close gaps in a very impressive way."
Dahan referred to a survey that PayPal recently conducted among small and medium-sized businesses and explained the need for it: "Big businesses will manage; they have deep pockets. On the other hand, small businesses are hit hard by every missile. A business of ten employees, three of whom are in the IDF reserves, will have a hard time surviving. Most people in Israel work in one way or another in small businesses, and we all need to help them and open up business opportunities to strengthen them."
According to Dahan, from the survey conducted by the company, 61% of small and medium-sized businesses were affected by the events of October 7 in one way or another: "This is a difficult figure, but a business must prepare itself for times of crisis. There will always be crises; we don't know exactly when, and we need to prepare. E-commerce as a platform can be very helpful and allow the business to grow in a time of crisis."
According to the survey, 42% of small and medium-sized businesses sell online. Dahan said, "If a few years ago it was ‘nice to have,’ today everyone understands after the pandemic that they ‘must have’ an internet presence. Some businesses are sold completely online and some both. This is a 10% increase from last year. Businesses in Israel continue to grow, and the trend is positive. Relative to European countries, this figure in Israel is high and it is increasing."
Dahan focused on small Israeli businesses that sell online abroad: "We used to think that selling abroad was impossible. We asked businesses what their barrier was in this matter, and they replied that they lacked manpower, money to invest in it, and knowledge of how to do it right."
According to him, 28% of the businesses that sell abroad started doing so in the last year: "People understand that it is possible to increase the pie, and almost a third of the business owners discovered this in the last year. I would ask everyone to open their eyes and see how it is done. It's not a simple business; we need to learn, focus on the markets where we have a competitive advantage, and connect with partners who will help us grow."
Dahan explained that the ability to transform a local business into a global one is a significant challenge: "It's a big business made up of many small details. My recommendation is to connect with large entities that know how to do it and bring value; otherwise, we will just pour money and not succeed."
According to him, the survey conducted by PayPal shows that 50% of the businesses that sell online abroad would have difficulty surviving financially in the current reality if it were not for sales abroad: "Internet sales abroad can save businesses from destruction. A business of one or two people only needs to get on the wave, and the sky's the limit."
However, he emphasized that "it is very important to understand that when you sell to certain markets, you have to give the buyer an experience that they are used to. If you are in Israel and want to sell to international markets during a war, you must give them the feeling that you are reliable, that you will deliver the goods, and if something goes wrong, they can turn to you. It's important to give customers a sense of security because people are afraid they won't get the goods."
Dahan concluded: "E-commerce exists in Israel, the pie is growing, and businesses have made the transition to online sales. It is very important that buyers in Israel buy blue and white, and sellers mainly go abroad. There is a lot of money abroad, and it would be a shame to miss it. PayPal has 430 million customers who would be happy to buy from Israelis."
