6 Best Japanese Online Marketplace For Your Business

You've come to the right place if you're starting to sell online in Japan.

Using an online marketplace is much easier and more cost-effective than setting up your own website to sell your products.

So here, we guide you on the best Japanese online marketplaces for your business.

An overview of the Japanese ecommerce market

According to the International Trade Administration, Japan is the world’s fourth-largest eCommerce market. Thus, tapping into this market can lead to a stable business adventure. 

Japanese online consumers will buy a range of products from food, electronics, personal care, clothing, and medicine, allowing you the potential to sell anything in Japan. 

But depending on your target audience, you will need to understand Japanese consumer behavior and do some Japanese market research for a successful marketing strategy.

2 things to know when selling online in Japan

1) Seller must provide their name, address, and phone number on the site where they will be selling the product

If you feel uncomfortable using your home address as your business address, consider using a virtual address like MailMate.

A virtual address as your business address

A virtual address is a cheap solution that protects your privacy and offers a professional image for your customers. 

You can receive and manage business mail using a virtual address provider like MailMate without revealing your personal address on a Japanese marketplace online. 

Compliant with legal requirements for business registration

Virtual addresses completely comply with Japanese business regulations as they act as a physical mailing for receiving mail.

Certain virtual address providers like MailMate will receive and scan your business mail for you to view online. Thus, using a virtual address is legal when registering a business in Japan. 

Mail handling for your online business

Many virtual address providers only provide the address, so you need to pick up your mail.

Instead, MailMate provides a mail scanning service where the outside content of your mail will be scanned. If you want it to be opened, click the “open” button on your dashboard.

MailMate will store your mail for you. However, MailMate will forward it to you domestically or internationally if you want to receive your physical mail.

2) Seller should submit a business opening notification

All online sellers with an online marketplace shop need to submit a business opening.

To submit a business opening notification, file a "Notification of Commencement of Business" (開業届, kaigyo todoke) with your local tax office.

This document is available at the tax office or online and must be submitted at least one month before starting your business. 

In this document, you will provide your business name, address, and activity description. If you need help, it’s best to consult with your local tax office.

The best 6 Japanese online marketplace

Japan offers a large number of online marketplaces for you to sell on. Let’s take a look at them.

1. Amazon Japan

SimilarWeb ranks Amazon Japan as Japan's number one e-commerce and online marketplace. It’s easy to see why.

Their website is in Japanese and English, easily navigable, and has over 600 million visitors per month, making it a popular online marketplace for those starting out.

Key features

• Amazon Sponsored Products (ASP): it is their paid advertising system to help increase your traffic and sales.

• Fulfillment by Amazon (FBA): an option that lets you outsource fulfillment orders to Amazon.

• Build International Listings tool (BIL): allows you to sell globally across multiple marketplaces.

• Amazon Points System: a point card system where customers can come back to earn and use points on their site.

• Gift wrapping option: to help customize your orders for special holidays or occasions.

2. Rakuten

Rakuten Ichiba, or Rakuten Marketplace, is Japan’s second most popular ecommerce marketplace and has over 500 million users each month, according to SimilarWeb. 

There are two hurdles when using Rakuten Ichiba as your online marketplace:

• Creating your storefront: you’ll need an official seller account, but that requires local partner support, which can be hard to acquire.

• Brand recognition: gaining trust from Japanese consumers is more difficult for new brands and unpolished-looking stores can damage your brand's credibility.

The good thing is that they have onboarding consultants, especially for overseas businesses to get you over these hurdles.

Key features

• Rakuten’s Super Points: a loyalty-based rewards program where members can receive benefits, such as cashback and discounts. An incentive to keep buying on Rakuten.

• Customization: Brands have control over their storefront design.

• In-country warehousing: Rakuten will allow international merchants to use their warehouse to better shipping costs in Japan.

• Cross-border management: similar to Amazon’s FBA, Rakuten offers international freight management, multichannel order fulfillment, and return management for online orders.

3. Mercari（メルカリ）

Mercari is Japan’s biggest online flea market and is ranked third for Japan’s ecommerce online marketplace according to SimilarWeb. Having strong communication in Japan is recommended for this site.

Key features

• Method of delivery: only shipping, no pick-up

• Many payment options: users can pay with their credit cards, at the convenience store, and other electronic payment options for easier payment

• Easy shipping process: when a sale is made, you can print the shipping label and ship it at the convenience store.

• Chat feature: the app has a chat feature where buyers and sellers can communicate directly to help clarify and confirm details.

4. Yahoo! Shopping Japan

Believe it or not, Yahoo! Shopping has a strong presence in Japan. People buy and sell items ranging from electronics, fashion, and home appliances. 

One of the biggest benefits of Yahoo! Shopping is that any searches on Yahoo! will redirect you to their e-commerce site. If you decide to have Yahoo! Shopping as your Japanese online marketplace, you’ll need to understand Yahoo's SEO and advertising strategy on Yahoo.

Additionally, Yahoo! Japan and PayPay Mall, another online marketplace, are integrated together which adds more to Yahoo! Shopping’s user base.

Key features

• Easy store setup: they have several basic templates to help you set up your storefront.

• Various point systems: unlike other Japanese ecommerce sites, Yahoo! Shopping offers PayPay Bonus, PayPay Bonus Lite, and T points.

• Analytics suite: you can see various analytics such as keywords users searched to reach your site, demographics, and sales.

5. Au PAY Market (Wowma)

Au PAY, formerly known as Wowma, is a growing e-commerce market in Japan. It was started by KDDI, a mobile phone company, but then later rebranded and integrated with Au PAY as a broader digital payment and shopping service.

Also, Au PAY has over 2500 physical stores in Japan allowing you to physically see some products in person.

Key features

• Large user base: being part of a mobile phone company automatically has a large user base connected with Au Pay.

• Optimized for mobile users: being part of KDDI as Au PAY prioritizes their mobile phone users.

• Online and office market: customers can make purchases through their phone online or visit one of the many Au PAY stores in Japan to view the product in person.

6. Qoo10 Japan

Qoo10, now owned by eBay, is another online marketplace in Japan for sellers. Similar to any Japanese e-commerce site, they have a wide range of categories to sell from such as beauty, fashion, sports, digital, home, living, books, food, and entertainment.

Their motto is to create a “fun, convenient, price competitive and secure shopping experience.” with a focus on customer satisfaction with their purchases.

Key features

• Photo review function: users can upload a photo of your products for better real-life impressions and credibility.

• Promotional tools: the Qoo10 platform allows discounts, coupons, and time-limited sales, to help sellers attract and retain customers.

• Direct communication: buyers and sellers can directly communicate with each other for better customer relationship-building.

How to choose the best ecommerce platform in Japan for your business

While it would be best to sell your products on all these Japanese online marketplaces to maximize your outreach, that is not practical in the long run.

Instead, think about which would be best for your business. If your business caters to foreigners, then Amazon might be the best platform for that.

However, if you are trying to reach potential Japanese consumers, then Rakuten or Yahoo! Shopping Japan would be the better option.

Look at who your target audience is, how they are searching for your products, and what platform aligns best with your brand and product offerings.

Build trust with Japanese consumers

Building trust among Japanese consumers can be difficult in a Japanese online marketplace. However, here are some tips to consider when building your audience.

a) Use reviews and testimonials

Many Japanese consumers users reviews to hear about what the average person thinks of the product. So, it would be best to have your customers leave feedback to enhance your trust in the Japanese online marketplace.

b) Have exceptional custom service

Customer service in Japan has high standards, so your service is expected to be prompt, courteous, and provide clear answers. 

As such, having someone on your customer service team who is fluent in Japanese is important. Having politeness and etiquette will result in respectful inspections.

c) Show your product’s quality

Quality over quantity is what people say. And it’s true.

If your product is produced in its best quality, then describe it. Include detailed specifications, materials, and benefits to convey your product’s reliability.​

Frequently asked questions

What is Japan's online marketplace?

Japan’s top online marketplace is Rakuten, followed by Amazon Japan and Yahoo! Shopping. 

What is the best Japan online shopping?

Japan’s best online shopping sites are Amazon Japan, Rakuten, and Yahoo! Shopping Japan.

What is the equivalent of Amazon in Japan?

Amazon exists in Japan called Amazon Japan. For a Japanese online shopping site, then Rakuten would be the largest. 

What is the equivalent of eBay in Japan?

Yahoo Auctions is best known for the eBay equivalent in Japan.

In closing

Japanese online marketplaces offer opportunities for businesses to start selling in Japan or expand their reach in the online Japanese market sphere.

With careful planning, you can establish and grow your business online in Japan.