Overview of Japan’s e-commerce market and analysis of entry points

Japan is not only the third largest economy in the world, but also the second largest e-commerce market in Asia and the fourth largest in the world. In 2021, Japan’s e-commerce sales reached US$112 billion, accounting for 36.8% of its GDP. In 2020, the census shows that Japan’s total population is 125.8 million, of which 82% are online shopping consumers, and the Internet penetration rate is as high as 93%.

Japanese e-commerce market characteristics

In Japan, consumers tend to choose major e-commerce platforms such as Amazon, Rakuten and Yahoo for shopping. These three platforms provide services to more than 100 million users in Japan and are important channels for European and American sellers to enter the market. The Rakuten platform is particularly popular for its rich store displays and strong fashion and food products. Mobile shopping has become mainstream, with credit cards and online banking transactions being the main payment methods.

Due to the aging phenomenon in Japan, the number of consumers over 55 years old is gradually increasing, and 58% of the elderly group participate in online shopping activities. For older consumers, convenience is an important factor in choosing online shopping. In addition, 87% of Japanese consumers are willing to pay higher prices for products with a long service life. The Japanese market also has high requirements for product quality, so sellers need to pay special attention to product quality and details. Affected by seasonal and climate changes, there is also a significant demand for related products, such as rain gear and disaster prevention supplies.

Things to note when entering the Japanese market

Although the Japanese e-commerce market is full of opportunities, sellers also need to pay attention to the following points when entering:

1. Main sales platforms: More than half of Japan’s online retail transactions occur on three platforms: Rakuten, Amazon and Yahoo. The low risk and broad user base of these platforms are particularly useful for European and American sellers.

2. Category Selection: Clothing is the most popular category in the Japanese market, followed by rapid growth in food and beverage products.

3. Consumption Trends: Every summer, companies pay bonuses to employees, prompting Japanese consumers to significantly increase their spending on leisure, travel and luxury goods. The average summer bonus is about 35,000 yen.

4. Cross-border shopping: Japan’s cross-border shopping rate is relatively low, with only 10% of Japanese buyers choosing to shop overseas. This means market competition is relatively low, giving sellers good opportunities.

5. Consumer Credit and Loyalty: Since Japanese buyers are highly loyal to purchasing platforms, sellers need to build trust through detailed product information and store displays. This is an important strategy for increasing brand awareness.

Through an in-depth understanding of the characteristics of the Japanese e-commerce market and key points of entry, sellers can formulate efficient market strategies and successfully expand their business.