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Learn about the important e-commerce differences in Japan: E-commerce customer behavior Setup time and costs Product selection, fulfillment and payment mCommerce capabilities and opportunities Marketing integration
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btrax, Inc.
powering global brands
Selling in Japan: Best Practices for Different
E-Commerce Platforms
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Japanese E-Commerce Market Overview
Japanese E-Commerce (B-to-C) Market Growth (2008 - 2012)
100
90
80
70
60
50
40
30
20
10
0
($billion)E-Commerce
Share
2008 2009 2010 2011 2012
$60B$65B
$92B
$82B$75B
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Key Differences in Japanese E-Commerce
US: Average order amount: $74
JP: Average order amount: $850
US: Average return rate: 17-25%
JP: Average return rate: 2-3%
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Japanese Options on 4 Key E-Commerce Areas
1. Platforms
2. Payment Options
3. Shipping & Logistics
4. Customer Support
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1. Japanese E-Commerce Platform Options
a. Shopping mall
d. Installable online store
c. Hosted e-commerce
b. Apparel specific mall
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1. Japanese E-Commerce Platform Options
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Case Study 1: Blue Nile
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Case Study 1: Blue Nile
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Case Study 2: Toys R Us
BEFORE
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Case Study 2: Toys R Us
AFTER
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Case Study 2: Toys R Us
MOBILE
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Case Study 3: Expedia
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2. Payment Options
a. Credit Card (44%)
b. Cash on Delivery (16%)
c. Bank Transfer (15%)
d. Convenience Store Payment (9%)
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Access from Mobile devicesSales from Mobile devices
Mobile Commerce in Japan
Rakuten Ichiba Individual Store
Shopping Mall vs Individual Store
2013July-Spt
2013Oct. - Dec.
2014Jan. - Mar.
2014Apr. - June
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3. Shipping & Logistics
a. International Shipping
b. Domestic ShippingPros Cons
● Faster delivery
● Lower risks of damages
● Cheaper in the long term
● Requires warehouse
● Inventory management
● High setup cost
Pros Cons
● No setup required
● Easier to manage inventory
● Shipping costs are high
● Slower delivery
● High risks of damage
● Expensive in the long term
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Common Delivery Speed in Japan
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4. Support Options
a. Email Support
b. Phone Support
Pros Cons
● Lower cost
● Location free
● More response time
● Could lower conversion rate
● May require multiple interactions ● Some platforms require phone support
Pros Cons
● Lead to higher conversion rate
● Can better serve customers
● Complies with most store policies
● Requires Japanese speaker
● Requires to be in JP time zone● Requires immediate response
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Q&A
Brandon Katayama Hill
CEO, btrax
http://about.me/brandon.hill
btrax JapanStep Roppongi 2F,6-8-10 Roppongi Minato-ku,Tokyo, Japan 106-0032www.btrax.com/jptokyo@btrax.com
btrax, Inc.665 Third St. Suite 505San Francisco, CA 94107www.btrax.comsf@btrax.com
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