9 Best Online Business Ideas in Japan for 2025
Want to start a business in Japan, but not sure how?
Opening a physical store can be daunting, but an online business offers many advantages, such as a lower entry cost.
With e-commerce sales reaching ¥22.7 trillion in 2024 and growing at 8.61% annually, Japan presents unique advantages for foreign entrepreneurs willing to navigate its business landscape.
This comprehensive guide provides actionable insights, real financial projections, and step-by-step implementation strategies to help you build a successful online business in Japan.
What to know about the Japanese market
Understanding Japanese consumer behavior and conducting some Japanese market research will help you understand the online market in Japan and what Japanese people are looking for.
Additionally, if you are interested in foreign customers in Japan for your online business, researching them and their needs will help your business start off on the right foot.
Japan's market size and opportunities
Japan's e-commerce market is the fourth largest globally, with unique characteristics that create opportunities for foreign entrepreneurs:
Key statistics (2024-2025):
Total e-commerce market: ¥22.7 trillion
Mobile commerce: 55.4% of all online sales
Average order value: ¥8,200
Customer lifetime value: 3.2x higher than global average
Digital payment adoption: 89% of consumers
Consumer behavior insights for Japanese consumers
Japanese consumers exhibit distinct preferences that impact business strategy:
Payment preferences:
Credit cards: 61%
Digital wallets (PayPay, LINE Pay): 28%
Cash on delivery: 18%
Bank transfer: 15%
Shopping patterns:
Peak seasons: Golden Week (April-May), Obon (August), New Year (December-January)
Research-heavy buyers: 78% compare prices across 3+ platforms
Brand loyalty: 67% prefer established brands over newcomers
Mobile-first: 73% of purchases initiated on mobile devices
Top 9 online business ideas in Japan
The following online business ideas are in different industries, each targeting a different customer base.
1. Tech-related startups
As technology becomes increasingly embedded in everyday life, Japan’s IT and tech-related industries are rapidly expanding. This growth presents exciting opportunities for new online business ventures—especially in areas like AI-powered customer service tools, IoT solutions tailored to the aging population, fintech services designed for small and medium-sized enterprises, EdTech platforms for modern learning, and innovative healthcare technologies.
Recognizing this potential, the Japanese government introduced a Startup Visa Program to support entrepreneurs.
If you have a business idea—whether physical or online—you may be eligible to apply for a Startup Visa to launch your venture in Japan.
Market opportunity: Japan's tech sector is experiencing unprecedented growth, with the government investing ¥4 trillion in digital transformation initiatives.
Startup costs: ¥500,000 - ¥2,000,000
Time to profitability: 12-18 months
Projected monthly revenue (Year 2): ¥800,000 - ¥3,500,000
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2. English language school in Japan
Teaching English is one of the easiest small business ideas in Japan for most foreigners. If you are part of JET, but your contract is coming to a close, why not continue it on your terms by offering English teaching services in Japan?
According to Statista, about 40% of Japanese children between the ages of 10 and 14 are learning English, which opens a business opportunity to help them with their studies.
Offering online English courses allows flexibility, is cost-effective, and allows one-on-one learning to better accommodate the learner's needs.
You can even offer more specialized classes for adults, such as business or academic English.
Additionally, you can offer services to help those who want to take the Test of English as a Foreign Language (TOEFL).
Market opportunity: With 40% of Japanese children studying English and corporate English training demand growing 15% annually, this sector offers stable, recurring revenue.
Startup costs: ¥200,000 - ¥500,000
Time to profitability: 6-9 months
Projected monthly revenue (Year 2): ¥400,000 - ¥1,200,000
Individual lessons: ¥3,000-5,000/hour
Group classes: ¥15,000-25,000/month per student
Corporate training: ¥50,000-150,000/month per contract
TOEFL/IELTS prep: ¥30,000-60,000/course
3. Online retail
There are many unique opportunities when it comes to Japan's online retail business, the online shopping market is large, and is one of the most profitable ways to make money online in Japan.
The possibilities of what you can sell online in Japan are endless and include the following:
Homemade crafts
Accessories
Clothing
Subscription boxes
Downloadable files
If you love creating or want to sell items online, online retail is one of the simplest home-based businesses to start.
Market opportunity: Japan's e-commerce market offers diverse opportunities, from niche products to mass market items.
Startup costs: ¥300,000 - ¥1,500,000
Time to profitability: 8-12 months
Projected monthly revenue (Year 2): ¥500,000 - ¥2,000,000
Health and wellness products: 32% market growth
Pet accessories: ¥1.7 trillion market
Home organization tools: KonMari influence
Note: When selling online in Japan, you are legally required to register your name, address, and phone number on the online platform you will be selling from.
If you are uncomfortable providing your home address as a business address, you can use a virtual address service such as MailMate to help protect your home address.
A virtual address protects your home address and maintains privacy. However, you can keep your home address private using MailMate's virtual address.
Additionally, MailMate can handle all incoming business mail going to that virtual address, which you can access online on your dashboard. The dashboard also includes mail forwarding and a Japanese phone number.
4. Translation services
As many people know, Google Translate doesn’t always deliver the most accurate results—especially when nuance and context matter. If you're bilingual in Japanese and another language, this creates a valuable opportunity to offer professional translation services.
Starting an online translation business in Japan is a great option for foreigners with strong language skills. The demand spans a wide range of areas, from translating and localizing websites, blogs, and apps for the Japanese market to providing specialized services in fields like law, medicine, or marketing.
By tailoring your expertise to specific industries, you can build a niche business that meets the growing need for high-quality, culturally accurate translations.
Market opportunity: Japan's translation industry is valued at ¥280 billion, with 23% growth in technical and digital content translation.
Startup costs: ¥150,000 - ¥400,000
Time to profitability: 4-6 months
Projected monthly revenue (Year 2): ¥300,000 - ¥800,000
Legal translation: ¥25-40 per word
Medical translation: ¥20-35 per word
Technical documentation: ¥15-25 per word
Marketing localization: ¥12-20 per word
General translation: ¥8-15 per word
5. Consulting services
In the consulting business, you provide expert guidance to help organizations improve their operations and achieve their goals. This can be a promising freelancing path in Japan, especially for those with international experience or specialized knowledge.
Japan’s consulting industry is typically divided into four main areas, but as a freelancer, you can carve out your own niche—offering insights on attracting foreign customers, localization or social media marketing strategies, or optimizing business performance for both domestic and international markets.
Market opportunity: Japan's consulting market is worth ¥800 billion, with foreign market entry and digital transformation driving demand.
Startup costs: ¥100,000 - ¥300,000
Time to profitability: 3-6 months
Projected monthly revenue (Year 2): ¥400,000 - ¥1,500,000
Digital transformation: ¥100,000-300,000 per project
Foreign market entry: ¥150,000-500,000 per engagement
HR and organizational change: ¥80,000-200,000 per project
Sustainability consulting: ¥120,000-350,000 per project
6. Website design services
If you have a knack for designing websites, consider offering web design services for Japanese and foreign businesses in Japan. Creating an easily navigable website that attracts potential customers is a highly marketable and attractive skill.
Additionally, you're at a considerable advantage if your website design skills can create a mobile-friendly site accommodating mobile phone users.
Market opportunity: With 84% of Japanese businesses needing digital presence improvements, web design services are in high demand.
Startup costs: ¥200,000 - ¥600,000
Time to profitability: 6-8 months
Projected monthly revenue (Year 2): ¥350,000 - ¥900,000
Basic website: ¥200,000-400,000
E-commerce site: ¥400,000-800,000
Corporate website: ¥600,000-1,200,000
Custom web application: ¥800,000-2,000,000
7. Game cafe / online gaming application
Japan's gaming culture runs deep, from traditional board games like Shogi and Go to cutting-edge mobile esports.
The country boasts the world's third-largest gaming market, with Japanese players spending an average of 6.5 hours weekly on mobile games alone. This presents a unique opportunity for entrepreneurs to create online gaming platforms that blend Japan's rich gaming heritage with modern digital experiences.
Unlike Western markets where console gaming dominates, Japan's mobile-first approach means successful platforms must prioritize smartphone accessibility, social features, and bite-sized gaming sessions that fit into busy commuter lifestyles.
The key to success lies in understanding that Japanese gamers value community, skill development, and respectful competition – making tournament-style platforms and educational gaming content particularly appealing.
Market opportunity: Japan's online gaming market is worth ¥1.55 trillion and growing 12% annually, with mobile gaming representing 68% of revenue. The rise of esports and online board gaming creates opportunities for community-focused platforms.
Startup costs: ¥300,000 - ¥800,000
Time to profitability: 8-12 months
Projected monthly revenue (Year 2): ¥450,000 - ¥1,200,000
Tournament entry fees: ¥500-3,000 per player
Premium memberships: ¥1,500-5,000/month
Game coaching sessions: ¥3,000-8,000/hour
Sponsored tournaments: ¥50,000-300,000 per event
Digital game sales commissions: 15-30%
Live streaming donations: ¥10,000-100,000/month
8. Graphic design
Graphic design work can include logo design, branding, illustrations, and infographics for Japanese consumers.
The most important thing about design work is building a portfolio of your past works that potential clients can review to explore your style.
Market opportunity: Japan's design industry is valued at ¥450 billion, with strong demand for digital marketing materials.
Startup costs: ¥180,000 - ¥450,000
Time to profitability: 5-8 months
Projected monthly revenue (Year 2): ¥250,000 - ¥600,000
Logo design: ¥30,000-80,000
Brand identity package: ¥100,000-300,000
Marketing materials: ¥15,000-40,000 per piece
Website graphics: ¥50,000-150,000
Packaging design: ¥80,000-200,000
9. Blog writing
Blogging about your Japanese travel and food experiences or what it's like living in Japan allows interested people to get a glimpse of what it's like. It is one of the simplest small business ideas in Japan.
While it's hard to imagine that you can make money by posting on a blog, personal website, or your social media accounts, some related money-making options include displaying advertisements, affiliate partner programs, and direct ads with partner brands.
Market opportunity: Japan's content marketing industry is growing 18% annually, with businesses investing ¥180 billion in content creation.
Startup costs: ¥80,000 - ¥250,000
Time to profitability: 8-12 months
Projected monthly revenue (Year 2): ¥200,000 - ¥500,000
Affiliate marketing: 5-15% commission
Sponsored content: ¥50,000-200,000 per post
Digital products: ¥5,000-50,000 per product
Membership subscriptions: ¥1,000-5,000/month
Consulting services: ¥8,000-15,000/hour
Visa requirements for starting an online business in Japan
There are several visa pathways available for foreign entrepreneurs wanting to start an online business in Japan, each with specific requirements and benefits.
1. Business manager visa (most common)
The Business Manager visa requires either ¥5 million in capital investment or hiring two or more full-time employees who reside in Japan. This is the most traditional path for entrepreneurs.
Key requirements:
Capital Investment: Minimum paid-in capital of ¥5,000,000 (approximately USD 45,000) intended to cover initial business setup costs, including office space, equipment, and other necessary expenses
Business Registration: Must register a company in Japan before applying
Comprehensive Business Plan: Applicants should present a comprehensive business plan that outlines the nature of the business, projected financial statements, and operational strategies
Physical Presence: Traditional requirement for physical office space (though this is evolving for online businesses)
2. Startup visa program (recommended for online businesses)
With up to two years of residency to prepare business operations, this program offers a clear pathway for global talent to contribute to Japan's economic growth
Key requirements:
Innovative business idea with growth potential
Local government endorsement
Comprehensive business plan
Proof of sufficient funds for living expenses during preparation period
3. Digital nomad visa (limited application)
The Digital Nomad Visa launched effective March 31, 2024, and does not require a Certificate of Eligibility (COE)
Limitations:
Primarily for remote workers employed by foreign companies
May not be suitable for establishing a new business in Japan
Shorter-term solution compared to business-focused visas
4. Alternative pathways
If you're already in Japan on another visa (student, spouse, etc.), you may be able to change status; some visa types allow side business activities with proper permissions.
Special considerations for online businesses
Traditional visa requirements were designed for physical businesses, but Japanese immigration is adapting to digital-first companies. Online businesses may face additional scrutiny regarding:
Demonstrating legitimate business operations
Proving economic contribution to Japan
Establishing credible business presence
Meeting regulatory requirements for online commerce
Detailed documentation is necessary for legitimization and various applications.
Detailed business plan showing revenue projections
Proof of technical capabilities and infrastructure
Evidence of market research and customer base
Financial projections and funding sources
Compliance with Japanese e-commerce regulations
General visa recommendations for starting an online business in Japan
Start with Startup Visa: If your online business qualifies as innovative, this offers the most flexibility and support
Prepare comprehensive documentation: Online businesses need extra evidence of legitimacy and economic impact
Consider professional help: Immigration lawyers specializing in business visas can navigate the complexity
Plan for capital requirements: Even online businesses should prepare for the ¥5 million threshold or alternative employee arrangements
The key is demonstrating that your online business will contribute meaningfully to Japan's economy and that you have the resources and commitment to succeed long-term.
Resources for your online Japanese business
Starting a business in Japan involves a number of steps after deciding on a winning idea.
Take a look at these resources to ensure you have everything you need to start a successful business in Japan:
Frequently asked questions
How to sell online in Japan?
There are a couple of Japanese sites where you can sell online such as Rakuten, Merucari, and Amazon Japan. Listing your products on these sites will help you tap into the large Japanese consumer market.
Do I need to register my online business in Japan?
According to Japan's Mail Order Specified Commercial Transaction Act, you are required to provide your name, address, and telephone number. These requirements and others help protect the safety and rights of online consumers. Additionally, it is highly recommended that you submit a business opening notification (開業届).
Can I start an online business in Japan without speaking Japanese?
While it's technically possible, you'll face significant challenges. Many essential services—from customer support to government paperwork—operate primarily in Japanese. You'll likely need bilingual services or professional translators, especially for legal documents and customer communications. Consider this an investment in your business rather than an optional expense.
What taxes will I need to pay as an online business owner in Japan?
Your tax obligations depend on your business structure and revenue. As a sole proprietor, you'll pay income tax on your profits. Japan has a 10% consumption tax called JCT that applies to nonresident businesses selling digital products and services to Japanese consumers. Nonresident businesses with over JPY 10 million in Japanese sales per year are required to register and collect JCT. You'll also need to file a business opening notification (開業届, kaigyou-todoke) with the tax office. The Blue Return system (青色申告, aoiro-shinkoku) can help you claim better deductions, but requires more detailed bookkeeping.
Can I run my Japanese online business from overseas?
This depends heavily on your visa status and business structure. To qualify for the Business Manager Visa, you must meet specific requirements, such as having a registered company, a physical office space, and at least two employees or a minimum capital investment of ¥5,000,000. Some visa types require physical presence in Japan, while others may allow remote operations. Immigration law changes frequently, so consulting with a qualified professional is essential.
Do I need a Japanese bank account to start an online business in Japan?
Yes, a domestic bank account is practically essential. You'll need it for receiving payments, paying taxes, and registering with major platforms like Amazon Japan or Rakuten. Opening an account typically requires a residence card and proof of address, which means you'll generally need to be physically present in Japan.
What online payment platforms work best for selling to Japanese customers?
Japanese consumers prefer familiar payment methods. PayPay and LINE Pay are extremely popular for mobile payments, while convenience store (konbini) payments remain a trusted option for many shoppers. Credit cards are widely accepted, though some customers still prefer cash-equivalent methods. For international entrepreneurs, Stripe, Square, and Shopify Payments (Japan) offer reliable solutions with English support.
Is dropshipping legal and viable in Japan?
Yes, dropshipping is legal, but you must comply with Japan's Act on Specified Commercial Transactions (特定商取引法, tokutei-shougyou-torihiki-hou). This requires clear refund and return policies displayed in Japanese. Japanese customers have high expectations for delivery speed and customer service, so choose suppliers who can meet these standards.
How long does it take to legally register an online business in Japan?
When you take advantage of the "Startup Visa", you can stay in Japan for up to one year and prepare for starting a business, before the requirements are met. For company registration with professional help, expect 10-14 business days. Sole proprietorship registration is faster—sometimes just a few days. If you're using the Startup Visa program, you have up to one year to prepare before full incorporation.
What are the most trusted e-commerce platforms for beginners in Japan?
For beginners, BASE and STORES.jp are excellent choices—they're designed specifically for the Japanese market and offer user-friendly interfaces. Rakuten and Amazon Japan and other similar Japanese companies provide massive reach but require more setup and fees. Shopify works well for bilingual businesses or those targeting international customers alongside Japanese ones.
What business licenses are needed for online stores in Japan?
Most general online businesses only need to comply with the Specified Commercial Transactions Act. However, selling food, cosmetics, health supplements, or medical devices requires specific permits and licenses. Always check with relevant authorities about your specific product category before launching.
How do I build trust with Japanese customers online?
Trust is fundamental in Japanese business culture. Display your company information clearly, including your physical address and contact details. Offer responsive customer service in proper Japanese (consider hiring native speakers). Ensure your website is professional and mobile-optimized—many Japanese consumers shop primarily on their phones. Customer reviews and testimonials carry significant weight.
What are common mistakes foreign entrepreneurs make in Japan's online space?
The biggest mistake is underestimating the language barrier and cultural differences. Many entrepreneurs also skip proper legal compliance, ignore tax obligations, or apply Western marketing strategies without adaptation. Japanese consumers have different expectations around customer service, return policies, and product presentation. Taking time to understand these nuances from the start will save you significant problems later.
In closing
These online business ideas in Japan can open a world of entrepreneurship in Japan. As your business slowly picks up more customers and expands, you can invest more time and money into it until you are fully ready for this online business to be your main focus.
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