Auction Israel was founded in 2006 and first went online in early 2007. The early version lacked the means for buyers and sellers to instantly make and receive payments in the fashion the public has come to expect. In December of 2009 AuctionIsrael was completely redesigned and rolled out. Auction Israel provides a full auction experience very much like Ebay but with more options and a local touch. Buyers and Sellers with AuctionIsrael can Sell through auctions, dutch auctions, trade/swap, reverse auctions and post for items or services wanted.

Everything is automated, and buyers and sellers have the ability to instantly settle transactions via Credit Card and Paypal. It is possible for the seller to have the auction end with the successful payment of the auction to him online through PayPal which is now available to everyone with a bank account in Israel. The funds are handled by PayPal in a secure environment and money is instantly deposited in the sellers account.