E-commerce in Japan: A Complete Guide [Updated for 2025]
- ulpa
- Jul 19
- 13 min read
Updated: Jul 20
Japan is not just the world’s third-largest economy. It’s one of the most demanding and digitally mature e-commerce markets anywhere. With over 92% internet penetration and a highly mobile consumer base, Japan offers both scale and sophistication. In 2024, the country’s e-commerce sector surpassed ¥27.4 trillion (approximately US$245 billion), driven by a combination of local loyalty, global platforms, and an increasing expectation for speed, service, and precision. Consumers shop on their phones, expect same-day delivery, and prefer platforms that reward repeat business with real value. But the rules of success here are different. Brands must blend deep localisation with world-class logistics and culturally attuned marketing to win attention and trust. This guide has been fully updated for 2025 to help you navigate this unique landscape and capitalise on the opportunities available in one of Asia’s most competitive digital markets.
Table of Contents
Overview of E-commerce in Japan
Market Size and Growth
Japan's e-commerce market continued its upward trend in 2024, reaching approximately ¥27.4 trillion (US$245 billion) in B2C transactions, growing around 8% year-over-year. According to METI and eMarketer, this growth was driven by widespread smartphone usage, platform expansion, and rising consumer demand for convenience and speed. B2B e-commerce in Japan now exceeds ¥465 trillion, underscoring the country’s digital commerce maturity.
Projected Growth
Extrapolating from current trends and considering Japan's high internet penetration and consumer behaviour, the e-commerce market is forecast to reach approximately ¥40 trillion (US$295 billion) by 2029. Mordor Intelligence projects the combined Japanese e-commerce market (B2C + B2B) will grow at a CAGR of 11.9%, surpassing US$504 billion by 2030. This growth will be driven by continued digital transformation, increased mobile commerce, and expanding cross-border e-commerce activities.
Top 10 E-commerce Platforms in Japan: Visitor Rankings by Platform
1. Amazon Japan
Monthly Visitors: 601.7 million
Strengths: Wide product range, strong logistics network, customer trust.
Key Features: Product-centric shopping, Amazon Prime, third-party merchant support.
2. Rakuten Ichiba
Monthly Visitors: 507.7 million
Strengths: Virtual shopping mall experience, largest points loyalty program in Japan.
Key Features: Customizable storefronts, extensive merchant support, diverse product categories.
3. DMM.com
Monthly Visitors: 185.3 million
Strengths: Focus on digital products and a variety of services.
Key Features: E-books, online games, educational services, video-on-demand.
4. Mercari
Monthly Visitors: 136.8 million
Strengths: Mobile-centric, seamless seller experience, Bitcoin payments.
Key Features: Peer-to-peer marketplace, innovative shipping methods, diverse product range.
5. Yahoo! Shopping Japan
Monthly Visitors: 105.4 million
Strengths: Variety of products integrated with Yahoo! Auctions.
Key Features: Marketplace model, second-hand deals, strong brand presence.
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6. Yahoo! Auctions Japan
Monthly Visitors: 87.3 million
Strengths: Largest online auction platform, unique items.
Key Features: Auction and quick-sell options, integration with Yahoo! Shopping.
7. Zozotown
Monthly Visitors: 50.5 million
Strengths: Fashion and footwear focus, custom-fit clothing.
Key Features: Wide range of brands and innovative services like Zozosuit.
8. Rakuma
Monthly Visitors: 21.2 million
Strengths: Fashion and beauty focus, peer-to-peer trading.
Key Features: Minimal fees, mobile accessibility, easy-to-use platform.
9. Wowma
Monthly Visitors: 14.8 million
Strengths: Extensive product catalogue, mobile advertising.
Key Features: Trend-conscious shopping, connection with AU Mobile.
10. LINE Shopping
Monthly Visitors: 14.8 million
Strengths: Integration with popular messaging app LINE, strong mobile presence
Key Features: Easy-to-use interface, various product categories, seamless integration with LINE Pay
Honourable Mentions (New Entrants, 2024–2025):
Temu Japan: Entered Japan in late 2023, attracting Gen Z and price-conscious users with ultra-low prices and viral TikTok ads.
SHEIN Japan: Continued to grow via local shipping hubs and pop-up stores in Tokyo and Osaka, cementing its position among fast fashion shoppers.
Top E-commerce Groups in Japan: Visitor Rankings by Holding Group
1. Amazon Japan KK
Total Monthly Visitors: 615 million
Amazon Japan
2. Rakuten Group Inc.
Total Monthly Visitors: 540 million
Rakuten Ichiba
Rakuma
3. SoftBank Group Corp.
Total Monthly Visitors: 260 million
Yahoo! Shopping Japan
Yahoo! Auctions Japan
Zozotown
LINE Shopping
4. DMM.com LLC
Total Monthly Visitors: 185.3 million
5. Mercari Inc.
Total Monthly Visitors: 136.8 million
Mercari
6. KDDI Group
Total Monthly Visitors: 14.8 million
Wowma
Contact ULPA for expert help with
Launching your E-commerce Business in Japan
E-Commerce Market Entry Strategies in Japan
Understanding Consumer Preferences
Japanese consumers have high expectations for product quality and service. They value detailed product information, reliable customer service, and fast delivery times. The top categories for online purchases include clothing, books, movies, music, and games. Understanding these preferences is crucial for tailoring your offerings to the Japanese market.
Choosing the Right Platform
Selecting the appropriate e-commerce platform is vital for success in Japan. Each platform has its strengths and caters to different segments of the market. For example, Amazon Japan is ideal for a wide range of products and leveraging its logistics network, while Rakuten Ichiba offers a more personalised shopping experience with its customizable storefronts.
Navigating Legal and Regulatory Requirements
Japan has specific regulations for e-commerce, including product restrictions, import procedures, and tax obligations. Understanding these regulations and ensuring compliance is essential to avoid legal issues and build consumer trust. For instance, certain categories like dietary supplements, drugs, and alcohol have strict regulations that must be adhered to.
Establishing a Local Presence
While it is possible to operate an e-commerce business in Japan from abroad, having a local presence can significantly enhance customer trust and operational efficiency. This can involve setting up a local entity, partnering with local logistics providers, and offering customer support in Japanese.
Preferred Payment Methods
In 2025, over 50% of Japanese e-commerce payments are processed through digital wallets, particularly PayPay, LINE Pay, and Rakuten Pay. PayPay alone has surpassed 55 million users, and konbini cash payments remain popular among older demographics and unbanked users (15% of transactions).
E-Commerce Market Trends in Japan
Mobile Commerce
Mobile commerce, or m-commerce, is a significant trend in Japan, with a large portion of online shopping conducted via smartphones and tablets. In 2024, mobile commerce accounted for approximately 65% of total e-commerce transactions in Japan, driven by mobile-optimised platforms, digital wallets, and one-click checkout adoption. This trend is expected to continue, driven by the increasing use of mobile devices and advancements in mobile payment technologies.
Cross-border E-commerce
Cross-border e-commerce is gaining traction in Japan, with Japanese consumers showing a growing interest in purchasing products from overseas. The EU-Japan Economic Partnership Agreement (EPA) has facilitated more straightforward trade between Europe and Japan, contributing to the growth of cross-border e-commerce. Popular categories for cross-border purchases include fashion, electronics, and health supplements. The cross-border e-commerce segment is growing at a 13% CAGR, with domestic-to-overseas and overseas-to-Japan purchases now comprising around 3.6% of the total market. Popular import categories include fashion, cosmetics, and health supplements. Recent trade frameworks like the EU–Japan EPA have further facilitated frictionless imports.
Social Commerce
Social commerce, using social media platforms to facilitate online shopping, is rising in Japan. Platforms like Instagram, Twitter, and LINE are popular for discovering and purchasing products. Influencer marketing and social media campaigns effectively tap into this trend and reach a wider audience. TikTok Shop officially launched in Japan in 2024 and gained quick traction among fashion, cosmetics, and trending gadget sellers. The integrated shopping and checkout experience within short videos makes it a go-to platform for younger shoppers and impulse purchases.
Sustainability
Sustainability is becoming an essential consideration for Japanese consumers. There is a growing demand for eco-friendly products and sustainable business practices. E-commerce businesses prioritising sustainability, such as using eco-friendly packaging and promoting ethical sourcing, can appeal to environmentally conscious consumers and gain a competitive edge. In April 2025, revisions to Japan’s Packaging Recycling Act came into force, requiring clearer recyclability labelling and reduced plastic use. E-commerce companies must now disclose packaging materials and offer eco-packaging options to avoid regulatory penalties and build trust with eco-conscious shoppers.
Logistics and Fulfilment in Japan
Shipping and Delivery
Efficient logistics and fast delivery are crucial in Japan. Consumers expect quick and reliable shipping services, with same-day or next-day delivery being the standard. Utilising local warehouses and partnering with reliable shipping companies can help meet these expectations. In 2025, same-day or next-day delivery is now expected by over 70% of online shoppers. For international sellers, designating a local Importer of Record is mandatory to ensure legal customs clearance and product compliance.
Import Procedures
When importing goods into Japan, understanding customs regulations and duties is essential. An Importer of Record (IOR) is required, and sellers must comply with local laws and regulations. This includes obtaining necessary permits and ensuring that products meet Japanese standards.
Return Policies
A clear and customer-friendly return policy is important to build trust and encourage purchases. Japanese consumers value transparency and ease of returns. Offering convenient return options and clear communication about the return process can enhance customer satisfaction.
Fulfillment Options
E-commerce businesses in Japan have several fulfilment options to meet the market’s expectations for speed, reliability, and flexibility:
Rakuten Super Logistics: Offers comprehensive logistics services, including warehousing, inventory management, and order fulfilment for Rakuten merchants.
Fulfilment by Amazon (FBA): Amazon handles storage, packaging, and shipping, providing a seamless fulfilment solution across Japan.
Local Warehouses: Partnering with third-party logistics (3PL) providers allows brands to shorten delivery times and reduce shipping costs while maintaining control over inventory and packaging.
Ship&Co: A shipping management platform built in Japan that integrates with major marketplaces like Shopify, Amazon Japan, Rakuten, and Yahoo! Shopping. It connects to local and international carriers, including Yamato, Japan Post, Sagawa, DHL, and FedEx, streamlining label printing, customs forms, and centralised order handling across channels.
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Marketing Strategies for E-Commerce in Japan
Leveraging Social Media
Social media platforms like Twitter, Instagram, and LINE are popular in Japan and can be effective channels for reaching consumers. Engaging content, influencer collaborations, and social media campaigns can help build brand awareness and drive traffic to your e-commerce store.
Utilising Loyalty Programs
Japanese consumers highly value loyalty programs. Platforms like Rakuten Ichiba leverage their Super Points program to retain customers and encourage repeat purchases. Implementing a similar loyalty program can help boost customer retention and increase sales.
SEO and Content Marketing
Optimising your e-commerce site for search engines is crucial for visibility in Japan. Using relevant keywords, creating high-quality content, and ensuring a user-friendly website design can improve your search rankings. Additionally, providing detailed product descriptions, reviews, and FAQs can help address consumer queries and improve conversion rates.
Email Marketing
Email marketing remains an effective tool for engaging with customers in Japan. Regular newsletters, personalised offers, and promotional campaigns can keep your audience informed and encourage repeat purchases. Ensure that your email content is relevant and provides value to the recipients.
Extrapolating Future Trends
E-commerce Growth Projections
Based on current growth rates and market trends, Japan's e-commerce market is expected to continue its upward trajectory. By 2028, the market size is projected to reach ¥35 trillion ($320 billion). Factors contributing to this growth include technological advancements, increased internet and smartphone penetration, and evolving consumer behaviours.
Technological Innovations
Advancements in technology, such as artificial intelligence, augmented reality, and blockchain, are set to revolutionise e-commerce in Japan. AI can enhance customer service through chatbots and personalised recommendations, while AR can provide immersive shopping experiences. Blockchain technology can improve supply chain transparency and security. In 2025, platforms like Amazon Japan and Rakuten began using generative AI to auto-create product titles, write SEO-friendly descriptions, and power virtual product assistants. These tools improve conversion rates and reduce manual content production for merchants.
Evolving Consumer Behaviours
Japanese consumers are becoming more discerning and value-conscious. There is a growing preference for personalised shopping experiences, eco-friendly products, and seamless omnichannel retail experiences. E-commerce businesses that adapt to these evolving consumer preferences will be well-positioned for success.
Government Initiatives
The Japanese government is actively supporting the growth of e-commerce through various initiatives. The Ministry of Economy, Trade, and Industry (METI) has been promoting digital transformation and adopting advanced technologies. Initiatives such as the Digital Agency, established in 2021, aim to improve digital infrastructure and support businesses' digitalisation efforts. These initiatives are expected to further boost the e-commerce sector by enhancing digital literacy, streamlining regulations, and encouraging innovation.
Contact ULPA for expert help with
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Case Studies
Amazon Japan
Amazon Japan has established itself as the leading e-commerce platform in Japan, significantly impacting the market with its extensive product range, robust logistics, and superior customer service.
Key Statistics and Data Points
Monthly Visitors: 601.7 million (2023)
Market Share: Amazon holds a significant share of the Japanese e-commerce market, accounting for approximately 25%.
Product Range: Over 200 million products, including Japanese and foreign books, electronics, fashion, home goods, and more.
Customer Demographics: Diverse customer base ranging from tech enthusiasts to general consumers looking for convenience.
Prime Membership: Amazon Prime is a significant driver of customer loyalty, offering benefits like free shipping, access to Prime Video, and exclusive deals. Prime membership in Japan has been growing steadily, with millions of active subscribers.
Logistics Network: Amazon has invested heavily in its logistics infrastructure in Japan, including multiple fulfilment centres nationwide, ensuring quick and efficient delivery.
Success Factors
Product Variety: Amazon Japan's extensive product catalogue caters to diverse consumer needs, making it a one-stop shop for many.
Logistics: The robust logistics network enables fast delivery, often same-day or next-day, meeting Japanese consumers' high expectations for speed and reliability.
Customer Trust: Amazon’s strong brand reputation and focus on customer service build trust and encourage repeat purchases.
Innovation: Continuous service innovation, such as Amazon Fresh and Amazon Echo, keeps the platform relevant and appealing to tech-savvy consumers.
Rakuten Ichiba
Rakuten Ichiba, Japan's largest online marketplace, offers a unique shopping experience through its virtual shopping mall model, loyalty programs, and extensive merchant support.
Key Statistics and Data Points
Monthly Visitors: 507.7 million (2023)
Market Share: Rakuten Ichiba holds about 26.8% of Japan’s e-commerce market, making it the most significant player in the country by a hair.
Number of Merchants: Over 55,000 stores operate on Rakuten Ichiba.
Customer Base: Approximately 120 million registered members, with 18 million daily active users.
Loyalty Program: The Super Points loyalty program is highly popular, with 68% of Japanese people having Rakuten points. This program drives customer retention and repeat purchases.
Product Range: Diverse product categories, including electronics, fashion, cosmetics, food, and more.
Success Factors
Customizable Storefronts: Rakuten’s platform allows merchants to create highly personalised storefronts, enhancing the shopping experience.
Loyalty Program: The Super Points program incentivises purchases and increases customer loyalty.
Support for Merchants: Rakuten provides extensive support for merchants, including onboarding assistance, marketing support, and logistics services.
Diverse Services: Besides the marketplace, Rakuten offers services like Rakuten Pay, Rakuten Bank, and Rakuten Insurance, creating an integrated ecosystem.
Mercari
Mercari, a leading peer-to-peer marketplace in Japan, has revolutionised how consumers buy and sell used goods through its mobile-first approach and innovative features.
Key Statistics and Data Points
Monthly Visitors: 136.8 million (2023)
Market Share: Mercari is a dominant player in Japan's C2C market.
User Base: Over 100 million users, a significant portion being active monthly users.
Revenue: In 2023, Mercari’s revenue reached approximately ¥172 billion ($1.2 billion).
Mobile-Centric: Most transactions are conducted via the mobile app, reflecting the platform’s focus on mobile commerce.
Innovative Features: Features like anonymous shipping and Bitcoin payments set Mercari apart from traditional e-commerce platforms.
Success Factors
Mobile-First Approach: Mercari’s intuitive mobile app design caters to the increasing number of mobile shoppers in Japan.
Seamless Selling Experience: Mercari makes it easy for individuals to list and sell items, lowering the barrier to entry for casual sellers.
Innovative Payment Methods: Acceptance of Bitcoin payments and other innovative payment solutions appeals to tech-savvy users.
Community and Trust: Mercari has built a strong community of users who trust the platform for buying and selling second-hand goods.
FAQ Section
What is the current size of Japan's e-commerce market?
As of 2024, Japan's B2C e-commerce market reached approximately ¥27.4 trillion (US$245 billion), with a steady growth rate of around 8% annually. The broader digital commerce landscape, including B2B transactions, exceeds ¥465 trillion, making Japan one of the most mature e-commerce markets globally.
What are the top e-commerce platforms in Japan?
The leading e-commerce platforms in Japan (by monthly traffic) are:
Amazon Japan – strong in logistics, product range, and customer service
Rakuten Ichiba – known for its Super Points loyalty program and virtual mall model
DMM.com – popular for digital goods and entertainment
Mercari – dominant in C2C, mobile-first transactions
Yahoo! Shopping Japan – integrated with Yahoo! Auctions and PayPay
New challengers like Temu and SHEIN have also entered the market, rapidly gaining users through price competitiveness and influencer marketing.
What is driving the growth of mobile commerce in Japan?
Mobile commerce (m-commerce) now accounts for approximately 65% of Japan's e-commerce sales, up from 57% in 2023. This growth is driven by:
Widespread smartphone use
Seamless mobile payment systems like PayPay and LINE Pay
Mobile-first platforms (e.g., Mercari, TikTok Shop)
Improved UX/UI across mobile storefronts
The convenience and speed of mobile shopping continue to shift consumer behaviour away from desktops.
What are the legal and regulatory requirements for e-commerce in Japan?
E-commerce businesses must comply with:
Consumer Protection Laws (Act on Specified Commercial Transactions)
Import Regulations (including designating an Importer of Record (IOR) for overseas brands)
Labelling laws for food, cosmetics, electronics, and supplements
Packaging Recycling Act updates (from April 2025), requiring recyclability disclosure and plastic reduction
Proper localisation, tax compliance, and clear return/refund policies are also essential for trust-building and legal adherence.
What strategies are effective for entering the Japanese e-commerce market?
Key success strategies include:
Platform Fit: Choose based on target demographic and product category (e.g., Rakuten for loyalty-driven consumers, Mercari for casual sellers, Amazon for mass distribution)
Localisation: Product descriptions, customer support, and payment systems should be in native Japanese
Mobile Optimisation: Ensure sites and campaigns are mobile-first
Cultural Sensitivity: Align brand tone with Japanese values—politeness, trust, detail
Digital Payments: Offer PayPay, LINE Pay, and credit card options
Loyalty Programs: Implement point systems or tiered memberships, inspired by Rakuten or Amazon Prime
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