Cross-border online retail market size in Japan FY 2016-2023
In fiscal year 2023, the cross-border e-commerce market in Japan with the United States and China was valued at around 420.8 billion Japanese yen. The two trade partners were the main markets for cross-border business-to-consumer (B2C) transactions from Japan.
In contrast, the domestic B2C e-commerce market was valued at over 24 trillion yen.
Where do Japanese order?
Major Chinese and American e-commerce platforms such as Alibaba and Amazon are heading the cross-border market. Although the online trade with overseas market showed continuous growth in the past years, domestic trade takes precedence. Untransparent order processes and return policies, as well as the risk of counterfeits, are troubles making shoppers hesitate to order from overseas. Around five thousand cases of troubles with cross-border retail are reported annually to the Cross-border Consumer Center Japan, which offers consultations and help to consumers encountering trouble in this e-commerce segment.
What do Japanese order?
Despite the high internet penetration rate and a large variety of purchase options in Japan, consumers are reluctant to shift all transactions to the online market. While leisure products and services, such as books, and electronics, were popular consumer goods purchased online, food and daily necessities remained the strongholds of store-based and multichannel retail strategies.