Overview of the Japanese Ecommerce Market in 2023
Both domestic and foreign companies have invested heavily in Japan’s ecommerce market, which is still the third largest in the world after the US and China.
Many brands sell on at least one of the top three ecommerce marketplaces, Amazon, Rakuten and Yahoo! Shopping, while others also sell directly to customers through their own branded websites.
The nation’s population of high earners with significant purchasing power, coupled with the appetite for high quality and luxury brands have driven success for many US and European brands from Cole Haan to IKEA.
Key Market Considerations
- The country has an excellent logistics infrastructure with supply routes and efficient delivery services giving sellers access to thousands of households across the country’s major cities and beyond
- Expectations for quality and service standards are already incredibly high in Japan, but these are only growing as customers discover more convenience on all levels, whether it’s product availability and customisation, mobile-optimised product listings, seamless checkout processes, payments options, loyalty schemes or hassle-free delivery.
- Success in Japan is an important stepping stone for wider success in the APAC region, which is evidenced by the expansion sequence of many international brands and businesses.
- Japan’s digital infrastructure is highly developed and consumers are voracious consumers of online content (offering brands endless touchpoints for capturing audience attention, albeit within an extremely complex and competitive landscape of channels)
Forecasted Ecommerce Growth
Year Revenue in million US$ 2021 164.81 2022 154.17 2023 180.72 2024 206.25 2025 235.72
Source: Statista
If you want to learn more about Japanese consumer preferences, consider reading our post: Marketing in Japan? 10 Important things You Need to Know About Japanese Consumers
What Types of Ecommerce Platforms Do Japanese Shoppers Enjoy?
As well as traditional marketplaces like Amazon and Rakuten, Japanese customers also enjoy shopping in several other online spaces too.
Shopping Malls (Amazon, Rakuten etc.) 94.2% Manufacturer’s Brand Websites 40.9% Home Electronic Stores 33.1% Online Auction Sites 27.3% Flea Market Websites and Applications 24.9% Supermarkets 11.4% Retails Stores 11.3% Department Stores 7.9% Convenience Stores 5.6% None of the Above 3.1%
Source: Statista
Japanese Ecommerce Users — Age Breakdown
In Japan’s traditional seniority system, salaries are increased according to years of service (kinzoku nensu) and age, with promotions also rewarded on this basis rather than purely based on performance of competence.
One of the effects of this is that older Japanese people naturally hold more disposable income, making Japan’s age breakdown an incredibly important factor for brands hoping to tap into the Japanese market.
Age Market Share 18-24 11.4% 25-34 18.9% 35-44 23.6% 45-54 25.6% 55-64 20.5%
Source: Statista
HB Pro Tip: You must be cautious when targeting only younger consumers with expensive products. Many international brands have been forced to adjust their target demographics heavily to give their operations in Japan more viability, such as making innovative and modern products appeal to older users as well.
What Do Consumers Buy Online?
Product Type % of Shoppers Groceries 31 Electronics 24 Beauty & personal care 19 Clothing/shoes 18 Household products 14 Luxury 12 Alcohol 10 Home & furniture 10 Medicine & healthcare 9 Financial products 9
Source: GWI
Top Ecommerce Platforms By Visitors
Amazon 626.2 Million Rakuten 535.5 Million Mercari 143.2 Million Yahoo! Shopping 118.2 Million Kakaku 106 Million
Source: SimilarWeb 2023
1. Amazon Japan
Amazon Japan is our recommended platform of choice for brands that are entering the Japanese market for the first time.
As well as having the largest share of the market, it is also the easiest to navigate for companies that don’t have extensive Japanese language capabilities, which are needed to truly maximise your potential on many of the other options in this list.
The platform also gives business a sense of security through the familiar interface of the Amazon brand, as well as overall UX. Much of the terminology surrounding processes and features is the same, which makes it much easier for your team to draw from its existing experience.
Combined with the general support the platform provides in the way of fulfilment and customer services support, it’s a no-brainer for many businesses making their first steps in a complex market like Japan.
Traffic Data
Country Traffic Rank 6 Global Traffic Rank 50 Total Monthly Visits 626.2M Category Rank (Japanese Ecommerce & Shopping) 1
Source: SimilarWeb January 2023
Key Features
- Several advanced paid advertising options including Amazon Sponsored Products (ASP) to help drive greater traffic and sales
- A reliable Fulfilment by Amazon (FBA) option that most merchants will already be familiar with, offering customer service support in Japanese
- Options for gift wrapping to help brands capitalise on holiday periods and events where online purchasing spikes
- The Amazon Points loyalty system that incentivises customers to keep coming back
- The ability to consolidate your product listings with the ‘Build International Listings’ feature — adding offers and synchronising pricing across multiple marketplaces
The effective Amazon Vine program for sellers is also a great tool for developing social proof if you are new to the market and don’t have any reviews from local customers yet. We’ve seen this contribute to a surge of 0 to 17 quality, verified product reviews in only one month for one of our retail clients.
HB Pro Tip: Using Amazon Japan, you may find yourself in a bidding war when appearing alongside competitors in search results. This requires you to have a strong brand that will entice users despite your higher price tag. Going lower in price is also an option, but be careful your pricing strategy doesn’t cut into your profits — local sipping and storage costs can quickly add up.