B2C e-commerce in Japan - statistics & facts
Japan lost its position as the third-largest economy globally, but the B2C e-commerce market is still in the running for the number three worldwide. As one of the world’s largest e-commerce markets, Japan’s online shopping landscape combines the convenience of shopping from anywhere with the quality customer service known from physical store purchases. A Japanese household spent 20 thousand Japanese yen per month online in 2023, and the continuous upward trend showed that shoppers have embraced online retail.
Technological innovations like artificial intelligence and virtual reality will create opportunities to address online shoppers’ dissatisfaction with e-commerce platforms and get ahead of store-based and online competitors. Businesses with the necessary resources will be spearheading the integration of such technologies, and the primary candidates will be marketplace operators such as Amazon and Rakuten.
Online marketplaces are setting the tone
Online shopping has become a driving factor in the integration of the Japanese population into the digital economy and the digitization of the retail sector, amid intensifying competition between e-commerce companies and store retailers. Physical merchandise represents the largest B2C e-commerce segment, while service sales grew significantly from travel bookings per click. Online marketplaces like Amazon Japan, Rakuten Ichiba, and Yahoo Japan were the most visited shopping websites, favored for their large assortment and smooth order processes. They are operated by technology conglomerates that also buy and absorb emerging competitors to solidify their domestic positions and branch out to other e-commerce categories like the consumer-to-consumer market.Growth potential behind the wall
B2C e-commerce showed the greatest growth potential in Japan’s e-commerce market, due to the low share of online sales in overall retail. However, growth has slowed down, as consumers have established their preferred channels for everyday purchases. Store retail remains the favorite for foods and items for immediate use, whereas online retailing is popular for durable items. Fashion sales have benefitted from the increasing shift to mobile commerce, which combines brand and product discovery on social media with flexible and quick purchase processes on mobile applications.Technological innovations like artificial intelligence and virtual reality will create opportunities to address online shoppers’ dissatisfaction with e-commerce platforms and get ahead of store-based and online competitors. Businesses with the necessary resources will be spearheading the integration of such technologies, and the primary candidates will be marketplace operators such as Amazon and Rakuten.
