Expanding into Japan’s E-commerce Market: Platforms for Foreign Companies

Japan’s e-commerce market is one of the largest in the world, offering significant opportunities for foreign companies looking to expand their reach. However, navigating the diverse landscape of Japanese e-commerce platforms can be a challenge. This article outlines two popular platforms foreign businesses should consider when establishing an e-commerce presence in Japan.

1. Amazon Japan

Amazon is a major force in the Japanese e-commerce market. It offers a massive product selection, competitive prices, and the convenience of services like Fulfilment by Amazon (FBA) which handles logistics and shipping. Amazon’s brand recognition can be a powerful advantage for foreign companies.

2. Rakuten

Rakuten is Japan’s domestic e-commerce powerhouse. It boasts a vast marketplace with a wide array of products and a strong loyalty program that drives customer retention. Rakuten’s platform offers a blend of traditional online retail and a vibrant auction atmosphere.

Considerations for Foreign Companies

When choosing the right e-commerce platform in Japan, foreign companies should consider these factors:

• Market fit: Does the platform’s target audience align with your products or services?
• Logistics and fulfilment: Explore options like FBA (Amazon) or Rakuten’s fulfilment services to handle shipping and storage.
• Translation and localisation: Invest in professional Japanese translation and ensure the platform supports proper display of Japanese characters.
• Customer preferences: Understand Japanese consumers’ preferences for payment methods, customer support, and user interface design.

Don’t Overlook Your Own Website

While existing marketplaces offer quick access to a large customer base, establishing a fully localised e-commerce website for your brand can provide more control over your customer experience, branding, and data insights. A combined strategy utilising both marketplaces and a dedicated website can be a powerful approach.

The Japanese e-commerce market holds immense potential for foreign companies with the right approach and platform selection. Thorough research and careful consideration of the factors mentioned above will help you find the platforms best suited to your expansion goals.