How to Sell in Japan Online: A Practical Guide

Japan's e-commerce market is a fantastic opportunity if you're considering expanding internationally. With its tech-savvy population, high internet use, and growing interest in international products, it's a promising market for online sellers to sell in Japan.

This guide will give you key insights into market dynamics, major selling channels, essential localization strategies, and efficient logistics solutions.

Sell in Japan: Understanding the Market and Key Strategies

Size and Growth Trends

Did you know that Japan's e-commerce market has been steadily growing over the past decade? It's now the fourth-largest e-commerce market in the world, following China, the United States, and the United Kingdom.

By 2028, it's expected to reach a value of approximately $257 billion, growing at a rate of 6.5% annually between 2024 and 2028. This growth is driven by improved delivery infrastructure, increased consumer trust in online shopping, and the expansion of cross-border e-commerce.

Consumer Behavior Insights

In Japan, consumers have distinct preferences and behaviors that make them stand out from other markets:

1. Japanese shoppers value high-quality products and are willing to invest in artisanal and handcrafted goods, even at premium prices.
2. Fast and dependable delivery is crucial for their purchasing decisions, and they're increasingly drawn to same-day and next-day delivery options.
3. They also appreciate detailed product information, such as specifications, materials, care instructions, and sustainability credentials.

Brand Loyalty and Trust

Building trust is super important to sell in Japan market. Consumers really value brands they can trust, and we can build this trust by:

1. Making sure our products always have top-notch quality and are rigorously checked
2. Providing excellent customer service, including support across different channels
3. Encouraging positive reviews and ratings, especially from users
4. Communicating clearly and honestly, including being transparent about prices and shipping policies
5. Creating content and marketing materials that are tailored to the local culture and reflect Japanese aesthetics

Major Selling Channels in Japan Market

To succeed in Japan's e-commerce landscape, it's essential to choose the right platforms for your products. Here's an overview of the major selling channels you can choose from:

Localization Strategies to Sell in Japan

To successfully enter the Japanese market, it's important to fully embrace localization. Japanese consumers highly value customization and products tailored to their local preferences.

Language Localization

Whenever you're ready to expand your business into the Japanese market, consider investing in high-quality Japanese translation services for your product descriptions, marketing materials, and website content.

It's important to pay attention to the little details, like using the appropriate level of formality and industry-specific language. Also, you should be sure to set up a content localization process that involves native Japanese speakers for that extra level of quality assurance.

Cultural Adaptation

When shaping your brand message, it's important to embrace Japanese cultural values such as harmony, respect, and attention to detail. It's also valuable to adapt your visual design to resonate with Japanese aesthetic preferences, which emphasize simplicity and balance. Lastly, it's crucial to be sensitive to color symbolism in Japanese culture to sell in Japan when creating your website and product packaging.

Website and User Interface Design

When working on your website, it's important to keep in mind that Japanese web design often includes vertical writing and right-to-left text flow. Another thing to consider is optimizing for mobile browsing, as many people in Japan shop online using their smartphones.

You might also want to consider including familiar UI elements like hamburger menus and card-based layouts, as they're popular in Japanese web design.

Payment Methods

When setting up your payment options, it would be great to offer some popular local choices like credit cards (JCB, Visa, Mastercard), e-wallets (PayPay, LINE Pay, Rakuten Pay), konbini payments (convenience store payments), and bank transfers (Furikomi).

Also, it's a good idea to display prices in Japanese Yen (¥) and consider including tax in the displayed price, as is common in Japan.

Customer Support

The first thing coming to customer support in Japan is always to remember to provide compassionate Japanese-language customer support during Japanese business hours. You can show understanding and care across support channels like LINE, phone, email, chat, and social media platforms popular in Japan.

Additionally, it's crucial to train your support team on Japanese etiquette and communication styles to ensure empathetic and culturally sensitive interactions.

Sell in Japan: Logistics and Fulfillment

Efficient logistics and fulfillment are critical to success in the Japanese e-commerce market, where customers have high expectations for delivery speed and reliability.

Shipping Options and Costs

When it comes to shipping, you can get to know the main Japanese shipping companies such as Japan Post, Yamato Transport (also known as Kuroneko), and Sagawa Express. They provide a variety of shipping choices to sell in Japan, including:

• Regular delivery (2-3 days)
• Express delivery (next-day or same-day in big cities)
• Scheduled delivery (so customers can select specific time slots)

You might think about providing free shipping for orders over a certain amount to encourage larger orders.

International Shipping and Customs

I understand that navigating Japanese import regulations and customs procedures for your product categories can be challenging. It's important to provide transparent information on potential customs duties and taxes to prevent any surprises for your customers.

You can consider partnering with a customs broker to make the importation process smoother to expand market to Japan. Also, implementing real-time tracking for international shipments is a great idea to help keep your customers informed every step of the way.

Fulfillment Strategies

Choosing the right fulfillment strategy is crucial for success in Japan's competitive e-commerce landscape. While several options exist, we strongly recommend considering either Japanese warehousing or partnering with a third-party logistics (3PL) provider to import to Japan. These approaches offer significant advantages in terms of speed, cost-effectiveness, and customer satisfaction.

Let's explore these options in more detail:

1. Cross-border shipping: Ship directly from your home country to Japanese customers.

• Pros: Lower initial investment, easier inventory management.
• Cons: Longer delivery times, higher shipping costs, potential customs delays.

2. Japanese warehousing: Store inventory in Japan for faster domestic fulfillment.

• Pros: Faster delivery, lower domestic shipping costs, easier returns handling.
• Cons: Higher upfront costs, more complex inventory management.

3. Third-party logistics (3PL): Partner with a Japanese 3PL provider for warehousing and fulfillment.

• Pros: Leverage local expertise, scalable operations, potential cost savings.
• Cons: Less direct control, need for careful provider selection and management.

👉 We understand the complexities of the Japanese market and know how important it is to address the specific needs of businesses selling in Japan. That's why we recommend considering Japanese warehousing and 3PL services. We offer both Japanese warehousing and comprehensive 3PL solutions to give you the flexibility to choose the best option with your business model and growth strategy.

Returns and Exchanges

It's essential to create a returns policy that puts the customer first and aligns with the expectations of Japanese consumers. You can offer free returns to help build trust and make customers feel more confident about purchasing.

Simplifying the returns process with easy-to-print return labels and clear instructions in Japanese will also make the experience more convenient for the customers. Also, to sell in Japan, you can partner with a reverse logistics provider that can help us efficiently handle returns and exchanges, ensuring a smooth experience for our customers in Japan.

Partnering with a Fulfillment & Express Provider: EFEX

Navigating the complexities of international logistics, especially in a market as demanding as Japan, can be a significant hurdle for foreign businesses. That's where we, EFEX, come in. With over ten years of experience and a dedicated focus on the Japanese market, we provide comprehensive logistics and fulfillment solutions to empower your success.

Why should you choose EFEX for your Japan expansion?

• Our team of Japanese logistics specialists ensures a smooth experience in the Japanese market.
• Our warehouses optimize delivery speed and minimize shipping costs.
• We maintain strict security and quality control measures and offer a FREE Order Management System for real-time visibility and efficient order processing.

Let EFEX be your trusted partner in navigating the complexities of logistics and fulfillment in Japan.

FAQs for Selling in Japan

How to sell your product in Japan?

To sell products in Japan, thoroughly research the market, adapt your product and marketing to Japanese language and culture, choose online or offline sales channels, establish reliable logistics, ensure compliance with Japanese regulations, and provide excellent customer service in Japanese.

What products sell well in Japan?

Japan offers great opportunities for businesses in consumer electronics and beauty & personal care. The consumer electronics market is projected to reach $85.80 billion by 2025, while the Beauty & Personal Care market revenue is expected to reach $24.70 billion in 2023.

Do I need to establish a local entity to sell online in Japan?

For some e-commerce models, having a local presence can simplify operations, especially for tax compliance, banking, and customer support. Many sellers begin with cross-border e-commerce and then create a local entity as they grow.

How do Japanese consumers typically evaluate online sellers?

Japanese consumers often consider the following factors when making purchasing decisions: product reviews and ratings, seller reputation and historical performance, customer service quality and responsiveness, delivery speed and reliability, and website design and ease of use.

Learn more: 

• Sell in USA: A Guide for Expanding Your Business to the US!
• Sell in Vietnam: A detailed guidance for every business

Final Words

Selling in Japan's thriving e-commerce market can be a fantastic opportunity for your business to grow and succeed. However, it's important to plan and execute your strategy carefully to sell in Japan. By getting to know the special characteristics of the Japanese market, such as consumer behavior and logistical challenges, you can set your business up for success.

When selling in Japan, remember to: 

• Prioritize localization in every aspect of your e-commerce presence
• Choose the right platforms for your products
• Invest in efficient logistics to meet the high expectations of Japanese consumers for fast and reliable delivery.

To succeed in selling in Japan, you need patience, attention to detail, and an openness to adapt. Research your target market thoroughly and consider partnering with local experts or agencies to navigate the complexities of the Japanese market.

Happy selling!