Overview of the Japanese e-commerce market
Japan has a population 5.5 times as much as Taiwan and twice the GDP per capita of Taiwan. Even under a conservative estimate, Japan has an EC market 6-8 times bigger than Taiwan.
Scale of Japanese B2C EC Market
Early as 2018, the Japanese EC market has a scale surpassing USD 16Bn (B2C retail only, not incl. online services etc.), with 2020 estimate at over USD 20 Bn
Online Shopping Population in Japan
Japanese are usually slow-to-warm-up, plus, with the complete model of offline business, the development of online shopping develops at a relatively slower pace. However, through the transition of generations, the population engaged in online shopping increases to over 10 million people as of now.
Japanese EC Revenue (by Category)
Fast consumables, electronics, toy, DIY handicrafts, etc. have a higher proportion of orders, while Japanese place fewer orders on food and groceries online (following the traditional shopping habits by purchasing offline)
Permeation of Internet in Japan (by Age)
Way before the invention of smartphones, Japnese cellphones usually allow users to go online, therefore contributing a high permeation of internet at all ages.
Frequency of Japnese EC Website Visits
Among the three major EC players in Japan (Rakuten, Amazon, Yahoo), users of Rakuten have the highest rate for revisits, followed by Amazon and Yahoo.
Market Shareof Japanese EC Websites
Among the three major EC players in Japan (Rakuten, Amazon, Yahoo), Rakuten has the highest market share (55%), followed by Amazon (32.8%) and Yahoo.
Rakuten Market
Most renowned EC platform. Rakuten has a high permeation rate, especially among the female demographics aged between 20 to 40. This is the only platform among the three charging initial fees, with higher shop opening fee and processing fees upon a deal. It yields higher profitability and sets higher threshold for shop opening, which requires the identity as Japanese corporate.
Amazon Japan
Has edge over others in logistics. It has a lower threshold for opening a shop and does not require “decor” on shop page. Through FBA, a shop can delegate its order handling, shipment, customer service, etc. to Amazon, saving labors for shops. Amazon only charges processing fees upon deal(s) and does not charge service fees for system use and payments. It features a simpler processing fee computation.
Yahoo Japan
Since its lift on shop opening fee in 2013, the number of shops on this platform surged, hence causing the shops to fall into price wars. As the shop opening cost is saved, shops may offer prices lower than those on the other two platforms, however, costs on advertising and marketing is a must to gain great exposure and sales. Qualification as a corporate in Japan is required.
| Rakuten | Amazon Japan | Yahoo Japan | |
|---|---|---|---|
| Type | Platform (shopping type) | Self-operated + platform (product type) | Platform (shopping type) |
| Annual transaction value | JPY 3.4 Tn | JPY 2 Tn | JPY 2.6 Tn |
| Number of shops | 47,319 (June 2019) | 178,000 (June 2015) | 872,889 (2019) |
| Number of members | 98.7 million (March 2019) | 19.79 million (2017) | 2 to 3 million (Prime members) |
| APP users | 13.3 million (2017) | 6.17 million (2017) | 12.5 million (2017) |
| Advantage category | Food, clothing | Books, home appliances, daily necessities | Low price, standardized products |
| Initial cost | 60,000 yen | no | no |
| Monthly opening fee | ● Light Plan JPY 39,800 ● Good Luck! Plan JPY 19,500 ● Standard Plan JPY 50,000 ● Mega Shop Plan JPY 100,000 | Individual Plan: JPY 0 Professional Plan: JPY 4,900 | no |
| Transaction fee | ●Light plan 3.5%-5.5% ● Do your best! Plan 3.5%-7.0% ●Standard plan 2.0%-4.5% ● Mega Shop Plan 2.0%-4.5% | 8%～20% ※Each piece of small mouth will be charged an additional 100 yen | 3.5％〜 |
| pay processing fees | ● Credit Card (JPY 3000/Month+2.65％～+ Processing Fee) ● Rakuten Bank Pay JPY 155/PC ● Rakten Pay 2.5%～3.5% | Included in the transaction fee | Credit card payment 3.24% |
| Point fee | 0.01 | no | 2.5～16.5％ |
| brief introduction | Most renowned EC platform. Rakuten has a high permeation rate, especially among the female demographics aged between 20 to 40. This is the only platform among the three charging initial fees, with higher shop opening fee and processing fees upon a deal. It yields higher profitability and sets higher threshold for shop opening, which requires the identity as Japanese corporate. | Has edge over others in logistics. It has a lower threshold for opening a shop and does not require "decor" on shop page. Through FBA, a shop can delegate its order handling, shipment, customer service, etc. to Amazon, saving labors for shops. Amazon only charges processing fees upon deal(s) and does not charge service fees for system use and payments. It features a simpler processing fee computation. | Since its lift on shop opening fee in 2013, the number of shops on this platform surged, hence causing the shops to fall into price wars. As the shop opening cost is saved, shops may offer prices lower than those on the other two platforms, however, costs on advertising and marketing is a must to gain great exposure and sales. Qualification as a corporate in Japan is required. |
Have your product(s) released on our established shops on the three major platforms.
Value of Japanese EC Market
The value of Japnese EC market is not only based on its market size and room for growth, but also due to its high stability. Plus, compared to other countries, Taiwanese firms have a better competitive edge.
Market Size
As per statistics by relevant institution, the market scale of Japanese B2C EC (not incl. online services) reached JPY 6.8 tn (USD 78 bn), second to China and the US and six-fold to that of Taiwan.
Room for Growth
Japanese usually are slow-to-warm-up, and its E-Commerce market remains in growing stage, accounting for 5.8% of overall retail sales which far lower than the US and Taiwan. Doubled market scale can be expected if the prevalence rate reaches US level.
Mature & Stable
Japanese firms tend to observe and obey all relevant laws and eye one self facilitation instead of defeating competitors through vicious competitions. Without profiteering, Japanese EC market features sustainability with healthy condition which contribute to everlasting businesses.