E-Commerce in Japan has been rapidly growing in the last decade and is predicted to keep growing in the next decade as well. Japan indicates a significant market opportunity for e-commerce businesses due to Internet penetration estimated at 93.3% of the population. And Japan is one of the world’s fastest-growing e-commerce markets. The rapid growth includes the single language culture, developed economy, and highly urbanized population. Wondering if you have market potential through e-Commerce in Japan? Read this article “Possibilities of eCommerce in Japan” completely to find more about it.
The eCommerce Market In Japan
According to the research conducted by the Ministry of Economy in the year 2016, Trade and Industry indicate that the Japanese e-commerce (B-to-C) market amounted to $137.6 billion. And there were an estimated 82.59 million e-commerce users in Japan. It has been forecasted that this number will increase by 6.33 million users in 2021.
Ecommerce Platforms in Japan
In Japanese business, there are four different categories of e-commerce platforms where they can sell their products online. Let’s find out.
- Ecommerce Marketplaces
Under this category, the most popular eCommerce platforms are such as Amazon Japan, Rakuten and Lohaco (Yahoo! Shopping Japan) which accounts for almost 50% of e-commerce sales in Japan. Rakuten has been the clear leader but in recent years Amazon has increased its presence in the market by investing in its own network of distribution centers.
- Apparel-specific Marketplaces
When it comes to selling apparel products and jewellery japan has several unique platforms. Top online marketplaces for apparel are Zozotown and Uniqlo. And Zozotown holds the top spot for apparel online stores in Japan with a market capitalization amounting to $9.1 billion.
- Free Market Apps
One of the top free-market e-commerce platforms is Mercari, dubbed as Japan’s startup unicorn, which was valued to be over 109 billion yen in 2016.
- Handmade Product Platforms
In the handmade market place in Japan, there are about 40 major platforms. The online handmade market has achieved incredible development in Japan, indicating consumers’ interest in affordable but unique and high-quality products.
Tips to Succeed as an eCommerce Brand in Japan
Here are some tips in digital marketing that may pave the way for e-commerce success. Let’s find out.
- In-depth Translation and Localisation
It is necessary for companies to have in-depth translation and localisation in their eCommerce business because more than 99% of Japan’s population speaks Japanese. Also, if a brand failed to localize and establish itself properly in Japan then that will elicit a lack of trust and reliability from potential customers.
- SEO (Search Engine Optimization)
The search program (SEM or SEO) is considered as one of the most important marketing channels for eCommerce business. If your SEO program for the Kibocode Review is done well then that can help make a brand’s website easy to find, which can lead to success in marketing.
Programmatic advertising is another way to achieve effective and efficient targeting. It involves using software and algorithms to purchase digital display space and it is a way for businesses to reach their target audience.
I hope you liked this article “Possibilities of eCommerce in Japan” and found useful. If you have any questions about this article do leave us a comment below and we’ll try our best to answer you.