Exploring Top 8 Japanese Ecommerce Platforms For Business

With the Japanese e-commerce market rapidly expanding, both local and international businesses are eager to capitalize on its potential. To succeed, understanding the platforms that dominate the market is key. In this blog, we will explore the top 8 Japanese ecommerce platforms, analyze market trends, and provide answers to frequently asked questions to guide you in making the best choices for your business in Japan.

1. What Is The Ecommerce Platform?

An e-commerce platform is where transactions are carried out online. It enables businesses to oversee their sales, website, and overall functions. Retailers use it to showcase their offerings. Depending on the platform, the costs, customization options, features, and integrations can vary significantly.

E-commerce platforms usually fall into one of three categories: open-source (offering complete control and customization over the site), SaaS (Software as a Service - where the site is pre-built and you essentially rent the platform for your business), and headless ecommerce (where the frontend and backend are decoupled for more flexibility in creating a tailored user experience).

Depending on the platform, features such as SEO optimization, website development, inbuilt functions, and mobile optimization can differ.

Is an e-commerce platform the same as an e-commerce marketplace?

An e-commerce marketplace is a platform where different businesses sell their products in one place. Popular examples include Amazon, PayPay Mall, and Yahoo! Shopping. These marketplaces are particularly helpful for foreign sellers because they are localized, already trusted by consumers, and offer customer service and other forms of assistance.

2. Overview of E-commerce in Japan

In a rapidly expanding market like this, it's important  to stay updated on the current state of the Japanese e-commerce market, its platforms, and upcoming trends

The Japan cross-border import e-commerce market size was valued at 5 Billion USD in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 7.5% from 2023 to 2030.  In 2030 Japan's cross-border market size is expected to be 9 Billion USD.

Value of e-commerce consumer expenditure in Japan in 2022, by category 

(in billion U.S. dollars)

Interestingly, in the fashion industry ranked in the top 1 with 47%, Japanese men shop more than women via e-commerce platforms. Ranked behind in the top 2 is Electronics with 30%, top 3 furniture with 25% and personal household care in the top 4 with 23%. 

GMV of famous Japanese Ecommerce websites in 2021

Amazon Japan ranked top 1 in GMV around 5500B Yen (38 Billion USD), ranked right behind is Rakuten with a GMV difference not much of about 5000B yen ( 35.3 Billion USD). Both Amazon Japan and Rakuten account for 71% market share, defeating all the others platforms.

The report shows that Japanese Ecommerce platform is still growing around 7-8% each year.

Ranking traffic market shares

According to Similar web, top 3 Japanese ecommerce platforms by month visitors are:

• Top 1: Amazon - 601.7 million 
• Top 2: Rakuten - 507.7 million
• Top 3: DMM.com - 185.3 million

These statistics highlight the significant online shopping presence of these platforms in the Japanese market. Businesses looking to establish a presence or expand in the Japanese e-commerce market should consider these platforms' popularity and reach when formulating their strategies.

>>> Read more: Ezbuy Japan - Optimal eCommerce enabler for foreign SMEs in Japan

3. Top 8 Japanese Ecommerce Platforms/ Marketplaces

Let’s delve into the top 8 Japan e-commerce platforms/ marketplaces, providing insights into their features, target audience, and the products they offer.

3.1. Rakuten - The all-in-one eCommerce powerhouse

Rakuten, often called the "Amazon of Japan", is one of the country's e-commerce giants. Established in 1997, Rakuten has expanded its global footprint, offering a diverse array of products and services including online shopping, streaming, and financial services. With its user-friendly interface and a rewarding loyalty program, Rakuten has amassed a vast customer base, solidifying its position as a dominant player in Japan's e-commerce landscape.

Strengths:

• Diverse Ecosystem: Rakuten offers a wide array of products and services, making it a one-stop-shop for consumers.
• Loyalty Program: The Rakuten Rewards program incentivizes customers with cashback and discounts, fostering customer loyalty.

Weaknesses:

• Limited international accessibility may hinder non-Japanese customers from fully enjoying Rakuten's offerings.
• The Rakuten loyalty program, while rewarding, might not provide as immediate benefits as those offered by some competitors.

3.2. Amazon Japan - The global giant's arm  in Japan

Amazon's influence in Japan is undeniable. Leveraging its global brand recognition, Amazon Japan provides customers with an extensive product selection, efficient delivery options, and robust customer support. The Prime membership program, offering perks like free shipping and access to streaming services, has cemented Amazon Japan as a preferred choice for Japanese consumers.

Strengths:

• Global Brand: Amazon's global recognition ensures trust and reliability.
• Prime Membership: Prime offers a host of benefits, making Amazon Japan a top choice for convenience and value.

Weaknesses:

• International customers may face challenges with import restrictions and shipping fees when ordering from Amazon Japan, leading to potential cost and logistics issues.

3.3. Yahoo! Japan Shopping - The trusted portal integration

Yahoo! Japan Shopping is another heavyweight in Japan's e-commerce industry. Seamlessly integrated with the popular Yahoo! Japan portal, this platform offers a wide range of products and services. It has earned trust among shoppers, especially for its auction feature and comprehensive search functionality. Yahoo! Japan Shopping caters to both individual sellers and businesses, creating a diverse and dynamic marketplace.

Strengths:

• Yahoo search is the second most popular search engine in Japan, right after Google. This means it gets a lot of visitors and understands user behavior for online shopping.

Weaknesses:

• User interface complexity: The platform's user interface can be challenging for non-Japanese speakers to navigate, potentially leading to difficulties in finding products, reading product descriptions, and completing purchases.

3.4. ZOZOTOWN - The fashion enthusiast's paradise

ZOZOTOWN is a fashion-centric e-commerce platform that has garnered a strong following among fashion enthusiasts. Through collaborations with various brands and designers, ZOZOTOWN offers an extensive range of clothing and accessories. Its unique sizing technology, ZOZO Measurement, ensures customers find the perfect fit, enhancing the overall shopping experience.

Strengths:

• Fashion focus: ZOZOTOWN's fashion-forward approach and exclusive collaborations attract a niche customer base.
• Sizing innovation: The ZOZO Measurement technology enhances the shopping experience.

Weaknesses:

• Limited product range: While strong in fashion, ZOZOTOWN may not cater to diverse shopping needs as comprehensively.

3.5. Mercari - Japan's mobile marketplace

Mercari is Japan's premier mobile marketplace, facilitating transactions between buyers and sellers of both used and new items. The user-friendly app interface and secure payment system have contributed to its rapid growth. Mercari shines particularly in categories such as second-hand fashion, electronics, and collectibles, making it an ideal platform for both decluttering sellers and bargain-hunting buyers.

Strengths:

• Mobile convenience: Mercari's mobile app is tailored for on-the-go transactions.
• Diverse categories: It excels in various categories, making it a versatile marketplace.

Weaknesses:

• Limited international shipping options: Mercari primarily operates in Japan and the United States, which can limit its appeal to customers outside of these regions who may have difficulty accessing products or selling items on the platform.
• Inconsistent product quality: Since Mercari allows individual sellers to list and sell items, there can be variations in product quality, accuracy of product descriptions, and customer service, which may lead to subpar experiences for some users.

3.6. Y! Auction (Yahoo! Japan Auctions) - The treasure trove for collectors

Y! Auction, also known as Yahoo! Japan Auctions, is a thriving online auction platform that attracts collectors and bargain hunters alike. With a vast array of unique and rare items available for bidding, Y! Auction provides an exciting shopping experience that caters to those seeking one-of-a-kind treasures.

Strengths:

• Unique finds: Y! Auction offers a wide selection of rare and collectible items.
• Auction excitement: The auction format adds an element of thrill to the shopping experience.

Weaknesses:

• Limited international accessibility: International users may face barriers when accessing and bidding on the platform.

3.7. Rakuma - The rising star of second-hand shopping

Rakuma is an emerging player in Japan's e-commerce scene, offering a user-friendly platform for buying and selling second-hand items. Its streamlined approach and emphasis on convenience have made it a popular choice for those looking to part with pre-loved possessions or find budget-friendly deals.

Strengths:

• Second-hand focus: Rakuma's specialization in second-hand items caters to a specific market.
• User-friendly interface: Its easy-to-use platform appeals to both sellers and buyers.

Weaknesses:

• Limited customer support: Rakuma may have limited customer support options, making it difficult for customers to resolve issues or get assistance when needed.
• Quality control concerns: Some customers may have experienced issues with the quality of products sold on Rakuma, as the platform may not have stringent quality control measures in place.

3.8. DMM 

DMM.com has created a unique space in the ecommerce sector by focusing on digital goods. It offers a broad range of products, including online games, eBooks, educational services, and video-on-demand content. Over time, the platform has expanded its offerings to include solar panel technology, 3D printing, and even entered the finance sector with services like DMM.com Securities and charity auctions.

Strengths:

• Specialization in digital products: This targeted approach allows DMM.com to appeal to a specific customer demographic while offering a wide array of products.
• Reputation for quality: Through its focus on high-quality digital offerings, DMM.com has gained a strong reputation for reliability and user satisfaction, leading to greater consumer trust and encouraging repeat transactions.

Weaknesses:

• Limited global reach: While DMM.com is one of the key players in the Japanese market, it has not yet matched the international reach of some of its larger global competitors.
• Regulatory challenges: As DMM.com branches out into financial services and charity auctions, it may be exposed to increased regulatory supervision.

>>> Read more: How to Use the Ezbuy Japan App to Send Goods Internationally from Japan

4. 8 Key Considerations When Choosing The Best Japanese E-Commerce Platform

Let’s discover key factors to consider when selecting the best Japanese e-commerce platform for your business, ensuring a successful online presence.

4.1. Clarity Of Language

Language is a fundamental factor in e-commerce in Japan, where nearly the entire population speaks only Japanese. Translating a website is not enough; for successful transactions, Japanese ecommerce platforms must ensure that the content, including technical specifications, is culturally and linguistically tailored to meet the expectations of Japanese consumers.

4.2. Economical Price Range

Japanese online stores often feature goods at more budget-friendly prices. Many retailers are conveniently located in urban areas, allowing customers to shop directly rather than waiting for home deliveries.

In turn, Japanese customers generally expect to find online stores that offer lower prices. To remain competitive, most Japanese e commerce platforms offer attractive discounts. It’s important to seek out websites that not only offer budget-friendly products but also provide excellent customer support.

4.3. Mobile-Friendly

In Japan, mobile phones are commonly used by consumers for research, shopping, and payments, leading to a mobile penetration rate that exceeds 136%. As a result, mobile commerce generated $12.8 billion in revenue last year. For instance, mobile devices accounted for 40% of ZOZO Town's sales, and Rakuten  indicates that more than 30% of its total sales come from mobile transactions.

4.4. Various Payment Methods

Providing customers with a variety of payment choices is key. Credit cards are the most popular payment option in Japan (60%), but there are also payment methods used in online transactions that aren't as common in the United States. Make sure the platform you select offers these payment modes: Cash-on-delivery, Bank transfer, and Convenience store payments.

4.5. Delivery Speed

Fast delivery is the norm for Japanese consumers. For this reason, it’s important to consider Japanese ecommerce platforms that have established partnerships with local courier services. Kuroneko Yamato and Sagawa are the main carriers providing same-day delivery in Japan. Since most people expect their orders to arrive the next day, any shipping that takes longer than two days can negatively influence the conversion rate.

4.6. Transparent User Experience

At the purchase stage of online shopping, it’s important to prioritize transparency, reliability, and a good user experience. Japanese ecommerce platforms differ from those in India or the US by emphasizing data, reviews, and statistics on their landing pages to build customer trust.

Whether shopping on a desktop, tablet or mobile device, Japanese customers expect a smooth and straightforward experience where product availability and delivery scheduling are easy to understand and control.

4.7. After-Sales Assistance

Japanese ecommerce platforms tend to prioritize customer support and experience far more than eCommerce companies elsewhere. Therefore, it’s essential to choose a Japanese e-commerce platform that matches or exceeds these standards of customer care. Additionally, answering customer questions in their native language would be ideal.

4.8. Security

Given the risks of entering credit card information on dubious sites, consumer security has become a major focus for Japan ecommerce websites. While most modern software includes robust security measures, be sure the website you select is equipped with HTTPS/SSL encryption to ensure a secure and trustworthy checkout experience.

5. Buying From Top 8 Japanese E-Commerce Sites Just On A Single Platform

If you find yourself unsure about which Japanese ecommerce platforms to choose for your online shopping journey, look no further than Ezbuy Japan. We take pride in being a specialized platform that provides online shopping and business services in Japan for international customers.

Ezbuy Japan integrates renowned platforms of ecommerce in Japanese market into a single platform - Janbox, making it convenient for you to access millions of products from the land of the rising sun with just a click. Customers can easily compare product prices across platforms, add favorite products, bid, auction, track orders from start to finish. You won't need to manage multiple accounts on separate platforms; we've simplified everything for you.

Furthermore, Ezbuy Japan also supports international businesses looking to sell in Japan. You don't need to be fluent in Japanese or deal with the complexities of setting up an online store in the Japanese market. We'll walk alongside you, helping you quickly and easily establish an online presence and reach potential customers in this country.

With Ezbuy Japan, we're committed to providing you with an easy and convenient online shopping and business experience in Japan. Let us help you explore countless opportunities in Japan's promising e-commerce mark                 

6. FAQs

6.1. How Popular Is E-Commerce In Japan?

The Japanese eCommerce market ranks third in the world, generating $241 billion in online sales. The growth is largely fueled by the dominant presence of eCommerce giants such as Amazon, Mercari, and Rakuten.

6.2. What Products Do People In Japan Typically Shop For Online?

Statista's data shows that clothing and books/games/music/movies (excluding downloads) are the most favored online shopping categories in Japan, chosen by 30% and 22% of consumers. The third spot goes to food and beverage purchases, which make up 21% of the total online market.

6.3. What Payment Methods Do Japanese E-Commerce Companies Mostly Use?

When shopping online, Japanese consumers generally prefer using their credit cards. Many Japanese ecommerce platforms also provide payment options through prepaid wallets or partner with delivery services to offer a cash-on-delivery method for customers.

7. Conclusion

In conclusion, Japan’s e-commerce landscape is full of potential, with many platforms ready to support businesses looking to engage with Japanese consumers. By choosing the right Japanese ecommerce platforms, staying ahead of market trends, and addressing consumer needs, you can carve a successful path in this dynamic market. Make sure to utilize Janbox, a standout service from Ezbuy, to explore and shop across different Japanese e-commerce platforms effortlessly.      

Website: https://ezbuy.jp/