Japan E-commerce Market Size (2024 - 2029)

The Japan E-commerce market is experiencing significant growth, driven by factors such as high internet penetration, fast delivery services, and a wide range of product offerings. The shift from traditional retail to online shopping is facilitated by the country's advanced infrastructure and tech-savvy population. Digital advertising and the rise of social commerce are further contributing to the market's expansion. However, regulatory challenges, such as specific laws governing E-commerce practices, may pose limitations. The COVID-19 pandemic has also accelerated the adoption of online shopping, as more consumers turned to digital platforms for their needs.

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Market Size of Japan E-commerce Industry

Japan E-Commerce Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 14.30 %
Market Concentration Medium

Major Players

Japan E-Commerce Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan E-commerce Market Analysis

The Japan E-commerce market is expected to register a CAGR of 14.3% during the period 2022-2027. The E-commerce market in Japan is primarily driven by high internet penetration, secured by the Hi-tech network infrastructure. Besides, fast deliveries, and an extensive range of product choices in one place, is another reason for the growth of the e-commerce market in Japan.

  • The E-commerce market in Japan is going through significant transformational change as the Japanese are shifting from traditional brick-and-mortar stores to online businesses. E-commerce companies in the region are benefiting from high urban density, technically savvy customers, and a developed economy and further attracting the E-commerce market in the region.
  • Along with this, the distribution channel in-country is highly developed and connected, and the small size of the country makes shipping and delivery more convenient at a faster speed, which is also boosting the E-commerce market in Japan.
  • Digital advertising in the region is further driving the E-commerce market in the country. Search and display ads are mainly used by brands and advertising agencies primarily with product feeds and shopping ads usually used by major E-commerce companies such as Rakuten, Yahoo! Auction Shopping, and Amazon Japan.
  • Furthermore, social commerce is on the rise and is further propelling the growth of the e-commerce market in the region. E-commerce companies use sponsored content, working with influencers and celebrities, and ads on social media to promote products and services in Japan. While Japan has global social media platforms such as Twitter and Facebook, its popularly used social media network is Line, an app similar to WhatsApp with multiple features.
  • However, specific laws and regulations pertaining to E-commerce can limit the growth of the E-commerce market in the region. For instance, the Act on Improvement of Transparency and Fairness in Trading on Specified Digital Platforms will require e-Commerce platforms to submit an annual report to METI on their business practices. METI will subsequently solicit comments from merchants, conduct reviews, and publish the results. U.S. firms Amazon and Apple and Japanese firms Rakuten and Yahoo-Japan are among those affected by this law.
  • During the COVID-19 outbreak, although Japan hasn't seen strict lockdowns compared to Europe or North America, the multiple states of emergency and the promotion of staying at home have had people adopting online shopping at an unprecedented rate. As a result, more people switched to digital platforms, media, and apps, ordering food delivery and everyday items online.

Japan E-commerce Industry Segmentation

E-commerce or electronic commerce is the purchasing and selling of goods or services on the internet. It encompasses various data, systems, and tools for online buyers and sellers, including mobile shopping and online payment encryption. Most businesses with an E-commerce presence use an E-commerce store or an E-commerce platform to conduct online marketing and sales activities.

The Japan E-commerce Market is Segmented into B2C E-commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-commerce.

By B2C E-commerce
Market Size (GMV) for the Period of 2017-2027
Market Segmentation - by Application
Beauty and Personal Care
Consumer Electronics
Fashion and Apparel
Food and Beverages
Furniture and Home
Others (Toys, DIY, Media, etc.)
By B2B E-commerce
Market Size for the Period of 2017-2027
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Japan E-commerce Market Size Summary

The Japan E-commerce market is experiencing robust growth, driven by high internet penetration and advanced network infrastructure, which facilitate fast deliveries and a wide array of product choices. The shift from traditional retail to online shopping is significant, with urban density and tech-savvy consumers further propelling the market. The country's well-developed distribution channels and compact size enhance the convenience and speed of shipping and delivery, contributing to the market's expansion. Digital advertising plays a crucial role, with brands leveraging search and display ads, as well as social commerce, to reach consumers. Despite the presence of global social media platforms, local networks like Line are pivotal in driving social commerce. However, regulatory frameworks, such as the Act on Improvement of Transparency and Fairness in Trading on Specified Digital Platforms, pose challenges by requiring E-commerce platforms to adhere to stricter reporting and transparency standards.

The consumer electronics segment dominates the E-commerce market in Japan, supported by a strong digital landscape and favorable online sales policies. The culture of seasonal bonuses boosts E-commerce sales, particularly for luxury goods and electronics, with major players offering discounts during these periods. The ease of researching product specifications online enhances the compatibility of consumer electronics with E-commerce. The market is moderately consolidated, with key players like Rakuten, Amazon, and Yahoo! Japan leading the way through strategic acquisitions and partnerships. Innovations such as Uniqlo's "Buy with Purpose" feature and Rakuten's NFT platform highlight the dynamic nature of the market. Additionally, the rise of mobile commerce, facilitated by high mobile subscriptions, is expected to further drive market growth, with companies like Amazon Japan and Rakuten capitalizing on mobile transactions and in-app purchases.

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Japan E-commerce Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Key Market Trends and Share of E-commerce of Total Retail Sector

    4. 1.4 Impact of COVID-19 on the E-commerce Sales

  2. 2. MARKET SEGMENTATION

    1. 2.1 By B2C E-commerce

      1. 2.1.1 Market Size (GMV) for the Period of 2017-2027

      2. 2.1.2 Market Segmentation - by Application

        1. 2.1.2.1 Beauty and Personal Care

        2. 2.1.2.2 Consumer Electronics

        3. 2.1.2.3 Fashion and Apparel

        4. 2.1.2.4 Food and Beverages

        5. 2.1.2.5 Furniture and Home

        6. 2.1.2.6 Others (Toys, DIY, Media, etc.)

    2. 2.2 By B2B E-commerce

      1. 2.2.1 Market Size for the Period of 2017-2027

Japan E-commerce Market Size FAQs

The Japan E-commerce Market is projected to register a CAGR of 14.30% during the forecast period (2024-2029)

Rakuten Group, Inc., Amazon.com, Inc., Yahoo! Japan Corporation, Mercari, Inc. and DMM.com are the major companies operating in the Japan E-commerce Market.

Japan E-commerce Report Snapshots

Japan E-commerce Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)