Market share analysis and top 7 Japanese e-commerce platforms
By Macy -12/09/2023 UTC.
Japan's e-commerce landscape is a dynamic and rapidly evolving market. With a strong emphasis on quality, innovation, and customer satisfaction, Japan has become a hub for e-commerce platforms that cater to both local and global audiences. In this article, we will delve into the top 7 Japanese e-commerce platforms, shedding light on their features, popularity, and why they stand out in the competitive online marketplace.
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.
(Source: Grand View Research)
Value of e-commerce consumer expenditure in Japan in 2022, by category
(in billion U.S. dollars)
(source: Statista 2023)
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
(source: statista )
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 - 626.2 Million
Top 2: Rakuten - 535.5 Million
Top 3: Mercari - 143.2 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.
Top 7 Japan E-commerce Platform
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.
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. 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.
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.
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.
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.
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.
Conclusion
Japan's e-commerce landscape is a rich tapestry of platforms catering to diverse needs and preferences. Whether you're a fashion enthusiast, tech aficionado, or entrepreneur looking to establish an online presence, these top 7 e-commerce platforms—Rakuten, Amazon Japan, Yahoo! Japan Shopping, ZOZOTOWN, Mercari, Y! Auction, and Rakuma—have something unique to offer. They exemplify Japan's commitment to innovation and customer satisfaction in the digital shopping realm.
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