Overview of the Japanese e-commerce market

A look at the Japanese EC Market thru Charts

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.

 RakutenAmazon JapanYahoo Japan
TypePlatform (shopping type)Self-operated + platform (product type)Platform (shopping type)
Annual transaction valueJPY 3.4 TnJPY 2 TnJPY 2.6 Tn
Number of shops47,319 (June 2019)178,000 (June 2015)872,889 (2019)
Number of members98.7 million (March 2019)19.79 million (2017)2 to 3 million (Prime members)
APP users13.3 million (2017)6.17 million (2017)12.5 million (2017)
Advantage categoryFood, clothingBooks, home appliances, daily necessitiesLow price, standardized products
Initial cost60,000 yennono
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 feeCredit card payment 3.24%
Point fee0.01no2.5~16.5%
brief introductionMost 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.

Competitive Edge of Taiwan