eCommerce Market in Japan: The Next Big Thing

The eCommerce Market in Japan grows rapidly. In 2022 the market was worth $180.7 billion. Expectations are that $267.4 billion market worth will be reached by 2027 (source Statista ). Several factors drive this growth, including a growing online population, a rising middle class, and a growing preference for convenience.

eCommerce Market in Japan

As discussed in the blog post about marketing in Japan, a large part of the Japanese population owns either a smartphone or a laptop. A significant portion of the population has access to the internet and engages in online shopping. Especially since CoVid online services and purchases are becoming more and more important. From 2019 to 2020, there will be a 25% increase in revenue in the eCommerce market. MCommerce takes about a quarter of the eCommerce market.

Top eCommerce websites in Japan

The eCommerce Market in Japan is highly competitive. The top four players in the market are Amazon Japan, Rakuten, ZOZOTOWN and Yahoo! Shopping. These companies account for a combined market share of over 70%. However, several smaller eCommerce businesses are also successfully competing in the market.

The 7 most used eCommerce platforms in Japan are:

Amazon Japan

Amazon Japan is the Japan-based arm of the world’s leading e-commerce platform, Amazon.com. Established in 2000, Amazon Japan focuses on providing online retail services to the Japanese market with a range of products including books, electronics, apparel, and home appliances. As of 2021, Amazon Japan has grown to become one of the largest eCommerce firms in Japan with more than 110 million products listed on the platform.

One of Amazon Japan’s key strengths is its delivery service, which offers customers a fast and reliable way to receive their orders. The platform offers same-day delivery service to over 50 cities across Japan, allowing customers to receive their orders within hours of placing them. Furthermore, Amazon Prime, an annual subscription service for Amazon customers, offers free and fast delivery options for eligible items as well as access to exclusive content such as movies, TV shows, and music. With a reputation as one of the most convenient and trustworthy eCommerce platforms in Japan, Amazon Japan has been able to compete successfully against local rivals such as Rakuten and Yahoo Shopping.

Selling on Amazon Japan

Selling on Amazon Japan can be beneficial for businesses looking to expand their reach in the Japanese market. However, it is important to understand Japan’s cultural differences and consumer behavior. Researching and adjusting the products, packaging, and marketing strategies is recommended. Additionally, Amazon Japan has its own set of requirements and rules that must be followed, such as having a local address, phone number, and bank account. Language can also be a barrier, so having a native speaker by your side is necessary.

Rakuten

Rakuten is a Japanese eCommerce and online retailing company that was founded in 1997 by Hiroshi Mikitani. The company has its headquarters in Tokyo, Japan. It has become one of the largest e-commerce platforms in the country. Rakuten operates in various industries like an ecosystem, including e-commerce, finance, digital content, and communications. The company has over 105 million registered users globally and operates in over 29 countries and regions around the world. Rakuten gained further popularity locally by sponsoring the Rakuten Eagles, a professional baseball team based in Sendai, and the winning team of the 2013 Japan Series.

Selling on Rakuten in Japan

Selling on Rakuten is another great opportunity for businesses to expand their reach in Japan. Businesses can set up a storefront on the platform and sell their products directly to consumers. However, it is essential to note that the registration process to sell on Rakuten can be quite lengthy, and businesses are required to provide extensive paperwork and documentation for verification. Additionally, the platform has strict rules and regulations regarding product quality and customer service. It is essential for businesses to provide high-quality products and excellent customer service to maintain a good reputation on the platform. Despite these requirements, selling on Rakuten can be a great way for businesses to tap into the Japanese market and increase their sales.

ZOZOTOWN Japan

ZOZOTOWN is the largest fashion eCommerce website in Japan, known for its wide array of trendy clothing options and its popularity among fashion enthusiasts. Founded in 2004 by Yusaku Maezawa, ZOZOTOWN has grown to become one of the largest online fashion platforms in the country. With over 800 brands and more than 10 million registered users, ZOZOTOWN offers a diverse range of clothing, shoes, accessories, and cosmetics for both men and women. ZOZOTOWN Japan is known for its innovative features, such as its ZozoSuit body scanner, which allows users to create a 3D model of their body and find clothes that fit perfectly.

Selling on ZOZOTOWN

For sellers looking to tap into the Japanese fashion market, ZOZOTOWN provides a great opportunity. The platform allows retailers and designers to sell their products directly to millions of fashion-conscious customers nationwide. By creating an official store on ZOZOTOWN, sellers can showcase their merchandise, gain exposure, and reach a massive customer base. ZOZOTOWN also offers various marketing and promotional tools to help sellers increase visibility and boost sales. ZOZOTOWN Japan is a well-respected brand with a reputation for quality. This can help to boost the credibility of your business and its products. Additionally, ZOZOTOWN provides support for overseas sellers, making it accessible for international brands to reach the Japanese market. With its user-friendly interface and strong focus on fashion, ZOZOTOWN offers a convenient and effective platform for sellers to connect with Japanese shoppers and establish their presence in the Japanese fashion scene.

Yahoo! Shopping

Yahoo! Shopping is a popular online marketplace in Japan that allows shoppers to browse through an extensive range of products from various sellers across the country. This eCommerce platform is owned by Yahoo Japan, which is a subsidiary of SoftBank Group. Yahoo! Shopping offers a wide range of products, from international and domestic brands to handmade crafts and local goods. This platform is a convenient option for shoppers looking for affordable prices, free shipping, multiple payment options, and easy returns.

Selling on Yahoo! Shopping in Japan

For sellers, Yahoo! Shopping offers an excellent opportunity to reach a large customer base and expand their business. Sellers can create a store on Yahoo! Shopping and list their products, offering competitive prices and attractive discounts to attract customers. Selling on Yahoo! Shopping requires a seller account, which can be easily created by registering on the platform. The seller account permits sellers to manage their inventory, set prices, and monitor sales performance. Yahoo! Shopping also has a feature called “Yahoo! Auctions,” which allows sellers to auction off their products to buyers who bid for them. With its wide range of products and affordable prices, Yahoo! Shopping is a popular eCommerce destination in Japan, attracting millions of shoppers from all over the country.

Mercari

Mercari is a leading online marketplace in Japan that was established in 2013. The platform has gained immense popularity in Japan for its simple and convenient system that allows individuals to buy and sell second-hand items. The platform provides an opportunity for buyers to find good deals on a variety of products including clothing, electronics, books, home appliances, and toys. Mercari has expanded its services beyond Japan to the United States and the United Kingdom. The platform allows sellers to set prices for their products, and buyers can negotiate prices through a messaging system. As of 2021, Mercari had more than 20 million registered users in Japan, making it one of the most popular online shopping destinations in the country.

Selling on Mercari in Japan

Selling on Mercari is a straightforward process as it does not require any complicated registration procedures. The platform allows individuals and also businesses to easily sell their products through a few simple steps. Businesses can use Mercari to sell overstocked items and discontinued products at discounted prices. The platform also provides businesses with an opportunity to reach new customers and expand their customer base. Mercari charges a fee of 10% of the item price for each transaction, which is comparatively lower than other e-commerce platforms. Additionally, the platform takes care of logistics, including shipping and payment processing, making it a convenient option for businesses that do not have the resources to manage these processes themselves. Overall, Mercari is an excellent platform for businesses and individuals that are looking for a simple and easy way to sell their products online.

Kakaku

Kakaku is a popular price comparison website in Japan that was established in 1997. The word “kakaku” means “price” in Japanese. It is a one-stop-shop for consumers to compare prices and read reviews of products before making a purchase decision. The platform covers a wide range of products including electronics, appliances, travel, fashion, beauty, and more. Kakaku offers a variety of services such as price tracking, product notifications, and a shopping cart for users. They also have a mobile app that makes it easy for customers to shop on the go. Kakaku is known for its reliable and accurate product information, making it a go-to platform for Japanese consumers.

Selling on Kakaku in Japan

Selling on Kakaku can be beneficial for businesses as it allows them to reach a large customer base. Companies can list their products on the website and provide detailed product information and images. This makes it easier for customers to find products and make informed purchasing decisions. Kakaku offers various advertising opportunities for businesses to increase visibility, such as sponsored listings and banner ads. They also have a rating system where customers can leave reviews, providing valuable feedback for businesses. Overall, kakaku is a great platform for businesses to reach customers and increase their sales in Japan.

Rakuma

Rakuma, also known as “Raku,” is a popular online marketplace in Japan that connects buyers and sellers of secondhand goods. Rakuten Rakuma was launched in February 2018. It was created when Frill, the first consumer commerce app in Japan, merged with the Rakuten Group-operated service Rakuma. It quickly gained momentum and has become one of the leading platforms for buying and selling pre-owned, imported and outlet/sale items in the country. It is part of the Rakuten Ecosystem. With its user-friendly interface and wide range of product categories, Rakuma caters to a diverse audience, attracting both individuals looking to declutter their homes and businesses seeking to expand their reach.

Selling on Rakuma

Selling on Rakuma, the popular online marketplace in Japan, can be advantageous for businesses looking to expand their reach and increase sales. To start, businesses must first create an account on the platform and provide accurate information about their products or services. Setting up a Rakuma store allows businesses to showcase their offerings with appealing descriptions, high-quality images, and competitive pricing. It is crucial to offer excellent customer service and promptly respond to inquiries to build trust and enhance the shopping experience. Leveraging Rakuma’s advertising features can also help businesses gain visibility and attract potential customers. Additionally, periodic promotions and discounts can drive sales and encourage repeat business. By strategically utilizing Rakuma’s features and actively engaging with customers, businesses can effectively sell their products or services and tap into the vast Japanese market.

Not to forget: Shopify & Google Shopping

Shopify

Shopify is not included in the table above because it is not a platform that users visit directly. Instead, Shopify is a platform that businesses use to create their own eCommerce stores. As a result, it is difficult to estimate the number of monthly visitors that Shopify stores receive. However, we do know that there are over 100,000 Shopify stores in Japan, so it is likely that Shopify stores receive a significant number of visitors each month. Therefore Shopify is a platform that is worth talking about when discussing eCommerce in Japan.

Shopify is a popular eCommerce platform in Japan, which enables businesses to create their own online store and sell their products. The Canadian-based company has been expanding its reach in Japan since 2013 and has established itself as a reliable platform for businesses of all sizes. The platform offers a variety of features that are catered to the Japanese market, including support for multiple languages and currencies, easy integration with popular Japanese payment gateways, and access to local shipping providers. Furthermore, Shopify also offers a range of tools and resources to help businesses optimize their online presence and grow their sales, such as analytics and reporting tools, email marketing, and SEO features.

Selling with Shopify in Japan

For businesses looking to sell on Shopify in Japan, the platform offers a range of benefits and opportunities. Firstly, Shopify is easy to use and requires no coding or technical experience, making it accessible to businesses of all kinds. Secondly, the platform offers a range of customization options, enabling businesses to create a unique online store that reflects their brand and products. Thirdly, Shopify offers a range of integrated tools and resources to help businesses reach new customers and increase sales, such as social media integration, email marketing campaigns and SEO features. Finally, Shopify offers a range of pricing plans, making it affordable for businesses of all sizes to get started and scale their operations as they grow. All these factors make Shopify an attractive option for businesses looking to sell online in Japan and beyond.

Google Shopping

Google Shopping, launched in Japan in 2011, has emerged as a popular e-commerce platform that offers a convenient way for users to discover and purchase products online. As one of the largest search engines in the country, Google utilizes its vast reach and user base to provide a comprehensive online shopping experience. By integrating search results with product listings, Google Shopping allows users to find relevant products and compare prices from various online retailers.

In comparison to other e-commerce platforms in Japan, such as Amazon and Rakuten, Google Shopping offers a distinct advantage with its search engine capabilities. Users can make use of specific search queries and filters to find products according to their preferences. The platform also provides a user-friendly interface with detailed product information, images, and user reviews to aid in decision-making. Furthermore, Google Shopping facilitates price comparisons across multiple retailers, ensuring that users can find the best deals on the desired products.

Selling on Google Shopping Japan

For businesses in Japan, selling products on Google Shopping can be highly advantageous. The platform allows retailers to target a wide audience base, leveraging Google’s extensive user traffic. An efficient advertising system enables businesses to showcase their products to potential customers who search for relevant keywords or browse through product categories. Moreover, incorporating a local inventory feed, businesses can highlight product availability and provide accurate delivery timelines, enhancing customer satisfaction.

Google Shopping’s advertising system operates on a pay-per-click (PPC) model, ensuring that businesses only pay for actual clicks received on their product advertisements. This cost-effective approach allows businesses to optimize their marketing budget and focus on driving qualified traffic to their online stores. With advanced analytics and reporting tools, sellers can gain valuable insights into their campaign performance, enabling them to refine their strategies and maximize the return on investment.

Which eCommerce market should you use?

When choosing an eCommerce website to sell in Japan, it is important to consider the following factors to be successful:

The target audience: Who are you trying to sell to? If you are targeting Japanese consumers, you will need to choose an eCommerce website that is popular in Japan.
The product: What type of product are you selling? Some eCommerce websites are better suited for certain types of products than others. For example, Amazon Japan is a good choice for selling a wide range of products, while Mercari is a good choice for selling secondhand goods or specialized products.
The language: Is your website available in Japanese? If not, you will need to choose an eCommerce website that allows you to sell in Japanese.
The shipping: How will you ship your products to Japan? Some eCommerce websites offer international shipping, while others do not.
The customer service: How will you provide customer service to Japanese customers? Some eCommerce websites have good customer service in Japanese, while others do not.

Once you have considered these factors, you can choose the eCommerce website that is right for you. We are always happy to help you choose the right option for your business.

Additional tips for eCommerce Market in Japan

Here are some additional tips for selling in Japan:

Localize your website: Make sure your website is available in Japanese and that it is tailored to the Japanese market.
Use Japanese payment methods: Accept Japanese payment methods, such as credit cards and PayPal.
Provide good customer service: Offer good customer service in Japanese.
Promote your website: Promote your website on Japanese social media and search engines.

The Japanese eCommerce market is a growing opportunity for businesses. By following the tips above, you can increase your chances of success in this market. If you need further assistance please contact us at Tokyomarketing.

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eCommerce Market in Japan: The Next Big Thing

Published by Nadine Ibarguen on June 28, 2023June 28, 2023