Japan is one of the world’s largest e-commerce markets, characterized by the dominance of business-to-businesses (B2B) transactions, a growing focus on business-to-consumer (B2C) sales, and an emerging consumer-to-consumer (C2C) market. In particular, the
within the last decade. As online stores are closing in on in-store retailers’ sales, businesses are shifting to a multi-channel approach to defend their market positions.
The country’s attractiveness for online retailers derives from its highly developed economy, primarily urban population, and almost nationwide access to the internet. Easy delivery and convenience are provided by a strong customer orientation of the
postal service sector in combination with the comparatively small geographical size of Japan and advanced infrastructure.
Businesses and consumers in online transactions
The Japanese e-commerce landscape maintains a shopping environment centered around a variety of trusted domestic online retail sites. Even though
cross-border e-commerce has benefitted from emerging trends like K-Pop in major overseas markets, surcharges on delivery fees due to the island nation’s geographical position limit its significance.
B2B e-commerce is built on the gradual
digital transformation of businesses in Japan, as digital processes and services are promoted by the national government to replace outdated systems. The B2C e-commerce market is dominated by online marketplaces that operate as one-stop solutions for shoppers. The mobile-based application Mercari is a key player along with the re-commerce platforms of major B2C companies like Rakuten, Yahoo Shopping, and Amazon Marketplaces.
The slow shift online
E-commerce has penetrated around one-third of B2B transactions in Japan, which represents significant progress compared to the B2C market. Promoted further by digitalization efforts during the coronavirus pandemic, a significant share of
small- and medium-sized businesses reported a shift to web-based order processing systems in recent years. As for consumer-initiated purchases in the physical goods segment, the
share of electronic orders varies by product. Non-food products, such as leisure goods, electronics, and household items have been riding the digital shift, whereas the move of groceries to the virtual shopping cart is struggling. The integration of cross-platform features, loyalty programs, and a multitude of payment options serve as incentives to bind consumers to the digital economy. However, supermarkets and
convenience stores remain the places to go for edibles and necessities that are needed on time.
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