The Japanese Ecommerce Market – Size, Growth and Opportunities

Port receiving goods from Japanese ecommerce market

As well as being one of the largest and most developed economies in the world, Japan has the fourth largest ecommerce market globally, after only the US, China and Germany.

Excellent logistics infrastructure, an affluent population and a strong demand for products and services of all kinds have been core to the nation’s huge and growing ecommerce sector. And as with Japan’s oldest (and wealthiest) demographic groups taking up online shopping more readily, the market is set to keep growing.

Forecasted Ecommerce Growth

YearRevenue in million USD (US$)
2021112,465
2022120,292
2023128,054
2024135,666
2025143,279

Source: Statista

The maturity of the Japanese ecommerce market has been supported by high internet penetration rates, a desire for convenience and the fact that over 90% of the country’s population reside in urban areas—making next day deliveries and easy returns possible for most. In fact, over one third reside in and around Tokyo which benefits from several nearby fulfillment centers from both Amazon and Rakuten.

Other key drivers of continued growth include:

  • A high GDP per capita of $39K+
  • High mobile penetration with 85% owning a smartphone
  • Fast average internet connection speeds (fixed – 93.26 Mbps & mobile – 40.89 Mbps)
  • Increased confidence in shopping online and on mobiles
  • The convenience and dominance of ecommerce giants like Amazon and Rakuten
  • An increased range of payment options

Over one third reside in and around Tokyo which benefits from several nearby fulfillment centers from both Amazon and Rakuten.

Most Visited Ecommerce Platforms By Monthly Visitors

Amazon fulfillment center in Japanese ecommerce market

Rakuten is Japan’s homegrown ecommerce giant hosts over 49K brands and virtual shops and is the country’s second largest ecommerce platform. However, Amazon has remained the market leader since overtaking Rakuten several years ago after sustained investment and brand building in Japan.

Interestingly, Yahoo, despite its diminished global presence, is still thriving in Japan and is now the fourth most popular platform by monthly visits. And more recently, we’ve seen C2C platforms like Mercari pull in a huge amount of attention from the local population — offering people a new way to shop.

As well as functionality, product availability and pricing, loyalty schemes and community engagement are a huge factor in whether shoppers frequent various platforms. For instance, a large portion of Japanese shoppers choose Rakuten for their ability to rack up rewards with the Rakuten Super Points, which is connected to the already popular credit card product.

Amazon JP592M
Rakuten519M
Mercari131.9M
Yahoo Shopping97.8M
Zozotown47.5M
Au Pay Market (Wowma)27.1M
Paypal Mall27.8M
Qoo10 Japan17.9M

Sourced: SimilarWeb’s November 2022 domain overview

Japan Loyalty Program Market Size Growth Projections

YearValue in Trillion JPY
20192.01
20202.07
20212.1
20222.15
20232.24
20242.33
20252.43

Source: Statista

The Japanese B2B Ecommerce Market

Inventory team managing stock for japan b2b ecommerce market

Japan’s B2B ecommerce industry is massive and exceeds 370 trillion yen, with wholesale accounting for the largest share of the market at around 101 trillion Japanese yen. Experts predict continued growth in this area as Japan’s largest corporations set up new digital-first processes to carry out sourcing, supply chain management and B2B transactions. A growing number of businesses now purchase raw materials through digital portals or marketplaces.

Market SegmentTrillion (JPY)
Wholesale100.61
Transport Machinery Manufacturing54.22
Electrical and Information-Related Equipment Manufacturing39.11
Textile, daily necessities and Chemicals Manufacturing37.65
Food Manufacturing27.1
Ferrous and Nonferrous Metals Manufacturing25.25
Construction and Real Estate20.86
Industrial Machinery and Precision Equipment Manufacturing18.12
Telecommunications16.7
Finance14.12

Source: Statista

Experts predict continued growth in this area as Japan’s largest corporations set up new digital-first processes to carry out sourcing, supply chain management and B2B transactions.

Most Popular Online Shopping Segments in Japan

female-customer receiving goods from Japanese ecommerce market

The concern for many Western brands is the domestic preference for Japanese-made products in addition to the very high expectations for quality. Yet, we’ve already seen a strong appetite for the right kind of products from abroad, especially in the luxury products segments.

Market Share of Leading Ecommerce Segments

Airlines and Hotels22%
Food and Drink18%
Electrical Goods12%
Clothing and Footwear11%
Health and Beauty7%

Source: Statista

Most Commonly Offered Shipping Providers By Ecommerce Platforms in Japan

Short delivery times, with next day options expected by most consumers, are the default in Japan. As well as being a relatively small and well connected country, there are countless courier services for sellers and customers to choose from.

Yamato57.0%
Sagawa Express45.0%
Japan Post23.0%

Source: EcommerceDB

Learn More About Japan’s Logistics and Fulfillment Landscape

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