Top 10 eCommerce Companies in Japan

Overview

The ecommerce companies in Japan are leading the sector in terms of technology. As a result, Japan has become synonymous with technological advancement.

For decades, the country has been recognized as a leading force in producing high-quality electronic products, resulting in a population of tech-savvy citizens with a thirst for innovation.

With that as a precursor, it's not surprising that Japan is the world's fourth-largest e-commerce market, following China, the United States, and the United Kingdom.

However, it differs from many other parts of the world in terms of customer behaviour, usage and platforms. Many Japanese customers prefer to shop from trustworthy local eCommerce companies, with just 10.2% purchasing from international sellers. 

Japanese customers have unique trends that are uncommon elsewhere globally. According to J.P. Morgan's 2019 Payment Trends – Global Insights Report, the most popular retail categories online are travel, consumer electronics, furniture, and household items.

Fashion is also one of the most popular product categories, and many foreign label companies have successfully appealed to the Japanese mindset. 

Top 10 eCommerce Companies in Japan [2024 Updated List]

Japan does have a few international giants, and some local ecommerce platforms and marketplaces compete fiercely with these companies. Let us assist you as you explore the top ecommerce companies in Japan. 

1) Amazon Japan

Amazon was founded in the United States as an online bookstore and eventually expanded into movies, electronics, fashion, furniture, food, toys, and jewellery. Amazon has become the undeniable global leader in e-commerce. Amazon has expanded in many countries since its inception, including Japan.

In 2000, Amazon.co.jp was launched to serve Japanese and Japanese-language speakers worldwide. Previously, Japan was Amazon.com's largest export market, with 193,000 customers and around $34 million in yearly sales.

Amazon Japan is the country's fifth-largest ecommerce platform and the world's fifth-largest e-commerce site. Locally, Japanese consumers mostly use the site for news and e-commerce retail services, including the target demographic viewership for products such as electronics, fashion, furniture, toys, jewellery, media, and more.

2) Rakuten 

The next website on our list is a highly successful local eCommerce platform. Rakuten is a Japanese e-commerce giant that lets retailers sell directly to consumers in various categories, including electronics, clothing, accessories, home equipment, cosmetics, and more.

Rakuten has grown significantly since its establishment in 1997. In 2014, it established the phenomenally popular brand Rakuma, an e-commerce flea marketplace that mostly operates through a mobile platform and has since led the peer-to-peer marketplace industry in Japan. In 2018, it acquired a former competitor, Fril.

3) Yahoo! Auctions

Yahoo! Auctions Japan is the country's largest online auction and flea market app, allowing users to find products not found on the standard Yahoo! Shopping site. While it is well known for its auction function, it also offers a fast-selling option for vendors that allows buyers to make speedy purchases.

Yahoo! Auctions Japan is a subcategory of Yahoo! Japan's larger internet platform. Computers, home appliances, music, books, video games, antique collections, fashion, beauty, and much more are among the categories available on the site.

4) Yahoo!

Yahoo! Shopping Japan is another popular trade e-commerce website in Japan. Alibaba, a Chinese company, and Soft Bank Group jointly operate Yahoo! Shopping. It is the 34th largest e-commerce website in Japan and the 5th largest e-commerce website globally.

Similar to Rakuten, it offers a diverse range of products, including accessories, appliances, baby items, clothing, computer & technology products, electronics,  gift items, food essentials, health & beauty products, home & garden products, jewellery, office supplies, toys, and other goods.

5) Mercari

Mercari is another extremely popular peer-to-peer marketplace. The platform connects those in need of a product with others who want to sell products that are no longer useful. In 2013, an app was released to facilitate the exchange of goods for Japanese customers, allowing them to browse products of multiple brands. 

The ecommerce platform deals in various categories including Fashion, toys, athletic goods, and electronics, among other items.

The application is well-known in Japan for its simplicity and innovative shipping mechanism that allows users to send products anonymously from local convenience stores via Yamato Transport and Japan Post agreements.

Following its success in Japan, Mercari expanded its operations to the United States in 2014 and the United Kingdom in 2016. A live streaming feature and the Mercari Now service, which allows vendors to receive money instantaneously, are two of the app's standout features.

6) DMN.com

DMM.com is a Japan-based electronic commerce and Internet company that offers various services, including online shopping and video on demand.

DMM's e-commerce division focuses on digital items such as ebooks, online games, education services, video on demand, as well as traditional DVD releases, mail orders, and online renting.

DMM has expanded its services since its foundation, including the solar panel sector, 3D printing industry, and even charity auctions and currency services through DMM.com Securities.

7) Zozo town

Zozo Town is a Japanese fashion and footwear e-commerce platform established in 2004. Start Today was already successful as a mail order company in Japan. Since its introduction, Zozo Town has rapidly grown to become Japan's most popular fashion-specific e-commerce site.  

Zozo Town owns several brands that it sells in over 70 countries. The list includes Zozo, a custom-fit apparel brand, and Zozo Suit, an at-home measuring device. They offer their clients a wide range of items from both domestic and international companies.

8) Wowma

Wowma is a Japanese online marketplace developed by KDDI. KDDI is the parent company of AU mobile, one of the country's leading mobile phone operators.

Wowma benefits from being a member of the KDDI because it is highly advertised to mobile customers in Japan.

The site offers a catalogue of regularly updated and updated things to guarantee that customers keep up to speed with trends, totalling more than 20 million products.

9) Rakuma 

Next up on our list is Rakuma. Fril was recently acquired by Rakuten and merged with their flea market app forming Rakuma. Rakuma is Japan's first mobile marketplace app focusing on beauty and fashion.

It has become a popular destination for customers and sellers who wish to trade peer-to-peer products quickly and easily. While the Fril site garners most traffic, the revenue goes to Rakuma.

The platform has become one of Japan's most famous flea markets, thanks to minimal fees and a platform that can be accessed on desktop and mobile devices.

10) Qoo10 

Qoo10, formerly GMarket, is a Singaporean e-commerce platform with localized online marketplaces in several countries, including Japan. It has a wide range of products, including mobile, sports, fashion, home living, books, and e-tickets. eBay runs the site in partnership.

Qoo10 Japan acquired Gmarket a few years ago. Since then, Qoo10 Japan has developed dramatically, increasing its presence across Japan and other Asian nations. The company has partnered with several businesses to provide advertising, promotion, event, payment, and shipping services.

8 Key Factors to Consider While Selecting the Best eCommerce Company in Japan

With that in mind, we will look at the main considerations that pop up when selecting the best eCommerce companies in Japan. The eCommerce industry in Japan is incredibly efficient. The variety of products and services made accessible is astounding.

The excellent infrastructural networks, widespread internet penetration, and dense populations of urban customers with an appetite for new trends are the primary catalysts of the country's eCommerce industry growth.

With that in mind, we will look at the primary considerations that pop up when selecting the best eCommerce companies in Japan.

1) Linguistic clarity in content

In Japan, language plays a crucial role in eCommerce. As 99 per cent of the population speaks only Japanese, translating the website will not be enough. When it comes to purchasing in Japan, a high level of certainty and trust is crucial.

This means that eCommerce sites must list the information and technical specifications should be linguistically and culturally understandable to the Japanese buyers.  

2) Lower price range

Are you allured by websites that offer goods at a lower price range? Japanese online retailers often sell goods at lower costs. Most shops in Japan are located in urban areas and are easily accessible by customers. It is more efficient than waiting for products to be delivered to their homes.

As a result, Japanese customers expect to purchase goods at a lower cost online. Most eCommerce also compete, providing attractive discount rates to their customers. Look for websites that offer products at a lower price while also providing the best customer service.

3) Mobile eCommerce

Many consumers in Japan use cell phones to do research, purchase, and pay for goods and services online, resulting in a mobile penetration rate of over 136 per cent.

It's no wonder, therefore, that mobile commerce brought in $12.8 billion in revenue last year. Last year, mobile devices accounted for 40% of ZOZO Town's sales. According to Rakuten, mobile transactions account for more than 30% of overall sales.

4) Payment modes

It's critical to provide customers with their choice of payment method. Although credit cards are the most popular mode of payment in Japan (60 per cent), online transactions also include payment methods not usually available in the United States. Ensure that the platform you pick has the following payment modes:

• Cash-on-delivery –(This requires an account with local shipping carriers like Yamato or Sagawa)
• Bank transfer
• Convenience store payments

5) Shipping speed

Japanese clients are used to speedy delivery. That should not come as a surprise as the country is smaller than the size of Montana. That's why lookout for eCommerce sites that have tie-up with local courier companies.

Sagawa and Kuroneko Yamato are the two major shipping companies that can deliver on the same day. The majority of people expect to receive their orders the very next day. A delivery time of more than two days can impact the conversion rate.

6) Transparency in user experience

When it comes to the actual purchase stage of the online shopping journey, transparency, dependability, and a great user experience are essential. E-commerce website design in Japan is different from what we find in U.S or India. Data, testimonials, and statistics are prioritized to build user trust on landing pages.

Whether on mobile, tablet, or desktop, Japanese customers expect a seamless process in which everything from product availability to potential delivery slots is easy to understand and manage.

7) Post-Purchase support

Japanese brands tend to focus on the customer experience and support a lot more than eCommerce companies outside Japan. As a result, be sure that the eCommerce website you pick equals if not exceeds, that level of customer care. It would also be preferable to answer client questions in their native language.

8) Security

No one wants to input their credit card information on a suspicious website, which is why consumer security is becoming one of the top priorities for eCommerce companies in Japan. While most software nowadays comes with solid security as standard, ensure that the website you choose is HTTPS/SSL for a safe and secure checkout for your consumers.

Final thoughts

To summarise, these are the top 10 eCommerce companies in Japan that have effectively assisted merchants, wholesalers, and resellers in distributing their products online over the years.

Domestic brands have an edge in Japan. One key factor is that international businesses must decide whether to put up their e-commerce website or use an existing online marketplace.

As the industry expands, there will undoubtedly be opportunities for new platforms that allow for greater innovation; yet, the simplicity of conducting business on an existing platform such as Rakuten has its benefits.

FAQs

1) Which is the top ecommerce platform in Japan?

Currently, the Rakuten Ichiba platform outperforms all the other ecommerce platforms in the country. The platform is a local ecommerce platform that deals in a variety of goods from consumer electronics to fashion apparel. International giants like Amazon Japan and Yahoo! come behind Rakuten in the list of top ecommerce companies in Japan. 

2) What is the most popular payment method in Japan for ecommerce companies?

Japanese customers prefer to use their credit cards for shopping online. The ecommerce platforms in the country also tend to accept payments through prepaid wallets or use their courier partners to enable a payment-on-delivery option for their customers.