We help businesses accept payments online.
Japanese customers are known for their meticulousness. They often prefer brands that demonstrate a commitment to quality and service, both in the products they offer and the online experience they provide. Every part of your website—from design, language, and functionality to payment options—should align with local preferences to foster trust, improve usability, and ultimately drive sales.
To better address these needs, eCommerce businesses can consider KOMOJU, a global payment gateway that offers tailored payment solutions for the Japanese market. KOMOJU allows online shoppers to enjoy convenience while enabling eCommerce owners to focus on running their businesses.
This article will explore the differences in the Japanese market, outline what Japanese shoppers expect, and provide insights on how to improve your Japanese website.
Understanding the Japanese Market
Attention to detail is essential when localizing your Japanese eCommerce. Japanese consumers are frequent online shoppers—according to a 2024 survey, most Japanese consumers shop online at least once a month, over 28 percent shop two to three times per month, and 2.4 percent use eCommerce platforms almost daily.
As a result, they are savvy and knowledgeable shoppers who seek high-quality products, transparent information, and excellent customer service, all of which reflect their high expectations for the online shopping experience.
Customer ratings in the Japanese market
According to Rakuten, one of Japan’s largest eCommerce platforms, several factors differentiate Japanese consumers from other markets. Japanese shoppers prioritize transparency and trust. They tend to be skeptical of marketing messages, which makes detailed product descriptions and authentic customer reviews crucial in building credibility.
For example, in Japan, the standard approach to grading or scoring often starts with a middle rating, such as 3/5 or 5/10, which is seen as the baseline for what is expected. From this midpoint, points are added for positive aspects or deducted for negative ones.
This contrasts with many Western practices, where higher ratings are typically the default and anything lower is viewed negatively. As a result, ratings in Japan may seem lower by Western standards, but they don’t necessarily indicate dissatisfaction. For instance, a 3/5 rating in Japan usually means that a product or service meets expectations.
Price differences between online and offline
Moreover, unlike many Western markets, Japanese consumers often expect lower prices online compared to physical stores, particularly for international brands. Factors that influence this expectation include:
- Online shopping is still growing: Many Japanese consumers still prefer in-person shopping, leading retailers to lower prices online to encourage more purchases.
- Perceived lower overhead costs: Consumers believe that online retailers can offer lower prices due to reduced operating expenses.
- Price comparison websites: Popular price-comparing platforms like Kakaku keep online shopping competitive.
- Resale marketplace competition: Platforms like Yahoo! Auctions and Mercari create a highly competitive resale market in Japan.
It is also simply true. In the United States, approximately 70% of products are priced the same online as in physical retail stores, with only 22% being cheaper online. In contrast, nearly 45% of products in Japan can be found at lower prices online.
As a result, retailers frequently adjust their prices to attract hesitant customers, leading to a more noticeable price gap between online and offline shopping.
Speed of delivery
Fast and flexible shipping is a top priority for Japanese consumers. Japan’s dense geography enables quick deliveries, and customers value the ability to customize delivery times to fit their schedules. For instance, Amazon Japan offers next-day delivery for all but the most remote locations, highlighting the high standard of service expected in the market.
Alternative payment methods unique to Japan
Regarding payment methods, Japan is gradually moving toward digital options like digital wallets, but cash still plays a role even in online shopping. In 2023, cashless payments—comprising credit and debit cards, e-money, and QR-code services—accounted for 39.3 percent of transactions, with credit cards leading in value and volume.
Another survey revealed that 76.7 percent of online shoppers prefer card payments, but many consumers still use cash-based methods, such as convenience store payments or cash on delivery (COD). This dual preference reflects the unique landscape of online payment methods in Japan, where traditional cash options remain popular even as digital solutions gain traction.
According to the International Trade Administration, Japanese consumers between the ages of 30 and 59 tend to make the largest online purchases, with older age groups shopping online more frequently than younger ones. Moreover, Japanese online spending is highest in the summer due to annual bonuses, which average nearly $3,000. These bonuses are often spent on luxury goods, leisure, and travel. Major shopping periods include White Day (March 14), Christmas, New Year, and the growing popularity of Black Friday since 2016.
Finally, loyalty programs play a significant role in retaining customers. Many Japanese consumers are drawn to websites with reward systems like Rakuten Points, which offer incentives for repeat purchases.
By understanding Japanese consumer expectations, businesses can successfully localize their eCommerce websites and better meet the needs of the Japanese market.
Key Benefits of Improving Your Japanese Website for Local & Logistic Barriers as a Merchant
Entering the Japanese market presents specific hurdles, particularly when it comes to language barriers, local preferences, and logistics. As a merchant, enhancing your website to serve Japanese customers better can help you effectively connect with this audience. Below are five advantages you’ll gain by localizing your website for Japan.
Faster Payment Processing
Japanese consumers often prefer a mix of credit cards, Konbini payments, and digital wallets like Rakuten Pay and PayPay. Offering familiar payment options simplifies the checkout process, making it quicker and easier for customers to complete their purchases without hesitation.
This not only builds trust by aligning with local payment preferences but also reduces cart abandonment, leading to a more seamless and reliable shopping experience that encourages repeat business. Prioritizing payment flexibility demonstrates your commitment to understanding customer needs, fostering confidence, and increasing customer loyalty.
Increase Consumer Reach
By localizing your website, you create a direct connection with your Japanese audience. When the language, content, and design align with local preferences, visitors are more likely to stay on your site, browse longer, and engage more deeply with your offerings. This increased interaction leads to stronger relationships and a better understanding of your customer base, which can inform future strategies.
Avoid Basic Translation Mistakes
Basic translation errors or misinterpretations of cultural norms can harm your brand’s image. Localization ensures that your messaging is accurate, culturally sensitive, and reflective of your brand’s values. This helps avoid misrepresentation and ensures that your company is portrayed professionally and appropriately, building a positive brand image in Japan.
Improved SEO Performance in Japan
Optimizing your website for Japanese search terms can improve your SEO performance in the region. Since customers will be searching in Japanese, localizing both content and keywords ensures that your site ranks higher in search results, leading to better visibility and more traffic from the local market.
Higher Customer Trust and Engagement
In Japan, trust is an important part of doing business, and gaining that trust starts with how you present your company. An adequately localized website shows that you understand local customs, expectations, and communication styles, making it easier for Japanese customers to trust your brand. When customers feel understood, they’re more likely to feel confident in purchasing from you.
To succeed in the Japanese eCommerce market, adapt your website to local preferences and cultural norms. A well-optimized site improves user experience, builds trust, and boosts sales. In this section, we’ll discuss practical strategies for improving your Japanese eCommerce website, focusing on design, navigation, and content.
How to Improve Your Japanese eCommerce Website
To succeed in the Japanese eCommerce market, adapt your website to local preferences and cultural norms. A well-optimized site improves user experience, builds trust, and boosts sales. In this section, we’ll discuss practical strategies for improving your Japanese eCommerce website, focusing on design, navigation, and content.
Add a Payment Gateway That Supports Local Methods
As noted above, it’s important to offer payment methods that Japanese consumers are most familiar with. While credit cards remain the most popular choice for online shopping, convenience store payments (konbini payments) and digital wallets are becoming increasingly favored.
According to recent surveys, such as those conducted by Appliv TOPICS (operated by Nile Co., Ltd) in 2023, credit cards account for approximately 80% of online purchases. Konbini payments make up around 10%.
These trends reflect consumer demand for fast and convenient transactions, encouraging retailers to adopt not only credit card payments but also mobile payment methods and, for those who prefer cash transactions, convenience store payments. Moreover, these options simplify the payment process.
With KOMOJU, businesses can quickly implement and manage several payment methods at once via one user-friendly platform. It offers easy integration, local compliance, customizable checkouts, real-time analytics, English language support, and even no-code solutions.
Optimize for Mobile Users
At the start of 2024, Japan had 188.9 million mobile connections. With a strong user base, mobile phones are the preferred platform for online shopping in Japan, with mobile internet penetration expected to increase from approximately 91% in 2019 to about 95% by 2025.
Japan’s eCommerce market is booming, with the number of eCommerce users projected to reach 66.9 million by 2028, representing over half of the anticipated population. Most major retailers in Japan have developed dedicated apps or mobile-friendly websites to facilitate online shopping, while even small and independent retailers are leveraging social media platforms like Instagram to promote their products.
With this in mind, developing a mobile-friendly website for your storeprovides a good user experience and encourages repeat visits.
Build Trust Through Customer Service and Reviews
Japanese customers value trust, reviews, and word of mouth, which can make opening a business in Japan difficult—especially for foreign businesses that must work harder than local brands to gain consumer confidence.
At 37%, Japan has one of the lowest ranks in the Edelman Trust Barometer, a global survey measuring the level of trust in government, media, business, and NGOs (second only to Russia). Thus, new businesses should generally expect Japanese customers to be skeptical of their marketing messages.
Collaborating with trusted local influencers can help build credibility by associating their products with personalities that consumers already trust. Adobe research suggests that Japanese social media users are more likely to share products they want rather than ones they own and are the least likely to engage with posts promoting special offers.
Case Studies of Successfully Localized Brands
Brands looking to expand into new territories must understand and adapt to local consumer preferences. The following case studies highlight three brands—Zara, Topologie, and Minimal—that have successfully localized their operations in Japan.
Zara
Zara, a Spanish fast fashion brand, entered the Japanese market in 1997 and quickly achieved success through affordable pricing and a fast production cycle. By shipping products from Spain to Tokyo in under four days and restocking twice a week, Zara ensures a steady flow of new items. This efficiency has led to Japanese customers having the highest repeat purchase rate among Zara’s global clientele.
Store managers and sales staff actively gather feedback, track fashion trends, and suggest design changes based on customer preferences. This close attention allows Zara to launch new designs in as little as one to two weeks, helping the brand keep up with constantly changing fashion trends.
For eCommerce businesses entering the Japanese market, Zara’s strategy emphasizes the importance of having a responsive supply chain, engaging with customers, and tailoring offerings to local preferences.
Topologie
Topologie, a French brand known for its multifunctional bags and smartphone cases, has effectively localized its operations in Japan, adapting its climbing-inspired designs to everyday life. Launched in Japan in 2018, Topologie quickly gained popularity with innovative and practical products that resonated with local consumers. The brand’s ability to pivot from bags to the highly sought-after smartphone shoulder case has cemented its position as a leader in this niche.
To further align with Japanese consumer preferences, Topologie introduced smartphone payment options such as PayPay, LINE Pay, and Merpay through KOMOJU. Responding directly to customer feedback requesting easier payment methods, the brand saw an immediate uptick in digital wallets payments, which now account for 15% of all transactions. KOMOJU’s unified platform has also streamlined payment management, allowing Topologie to efficiently manage multiple payment types while minimizing errors.
Topologie’s success in Japan comes from a mix of online and physical stores. The brand has grown by partnering with local retailers, using digital marketing, and working with influencers to boost its visibility. This case shows how important it is for eCommerce brands to adopt local payment methods, adjust products to local preferences, and connect with customers through various channels when entering the Japanese market.
Minimal
Minimal, a Tokyo-based chocolate brand known for its “Bean to Bar” chocolate, has made impressive progress in the eCommerce sector, especially during the COVID-19 pandemic. Initially successful in physical stores, Minimal recognized the importance of shifting to digital sales channels. They adopted Shopify as their eCommerce platform in 2018, placing them ahead of many other Japanese brands. This strategic decision has enabled them to reach a wider audience and improve customer engagement online.
Their eCommerce site is particularly attractive to customers aged 30 to 40, who appreciate a variety of digital payment options. Minimal ensures a smooth checkout experience by integrating popular payment methods such as credit cards, Google Pay, Apple Pay, and Shop Pay through Shopify Payments. With the addition of KOMOJU, they now also offer smartphone payment options like PayPay, which has become popular among younger consumers. Feedback indicates that customers value the seamless smartphone payment process, making it a standout feature of their online shopping experience.
Minimal’s approach emphasizes the importance of adopting diverse payment methods and creating an enjoyable online shopping experience. By focusing on eCommerce alongside traditional retail and leveraging platforms like Shopify and KOMOJU, companies can improve customer engagement.
Common Mistakes to Avoid When Localizing Your Japanese eCommerce Website
Entering the Japanese eCommerce market requires effective localization. However, many brands make mistakes that can hinder their efforts. Here are common pitfalls to avoid:
Neglecting Local Payment Preferences
Japanese consumers have specific payment preferences, including options like Konbini payments, PayPay, and paidy. Ignoring these local methods can lead to abandoned carts and lost sales. Research and integrate popular payment options to satisfy your customers’ preferences.
Using Automated or Poor Translations
Relying on automated translation tools often results in inaccuracies and cultural misunderstandings. Japanese consumers value precision and nuance, so poorly translated content can damage your brand’s credibility. Consider working with native speakers or professional localization services to ensure clear and culturally appropriate messaging.
Ignoring Mobile Optimization
With one of the highest mobile internet usage rates globally, mobile optimization is crucial in Japan. A website that isn’t mobile-friendly can alienate a significant portion of your audience. To capture and retain customers, ensure your site is responsive, loads quickly, and offers an excellent user experience on mobile devices.
Overcomplicating Website Design
While flashy designs can be tempting, Japanese consumers typically prefer clean, straightforward layouts that prioritize ease of navigation. Overcomplicated designs can confuse and frustrate users. Aim for a user-friendly interface that allows customers to find what they need quickly.
Summary
Japanese consumers have high expectations for quality and service. Moreover, shoppers prioritize transparency and trust, often remaining skeptical of general marketing strategies. As a result, authentic customer reviews and word-of-mouth recommendations are essential for building credibility.
By improving their websites, merchants can overcome local and logistical barriers. Benefits include faster payment processing, increased consumer reach, and improved SEO performance. A well-localized website builds customer trust and engagement, addressing concerns about brand reliability while encouraging positive interactions through reviews and recommendations.
To effectively engage this audience, eCommerce businesses must localize their websites by focusing on trust, design, language, functionality, and payment options. Utilizing a global payment gateway like KOMOJU can improve the shopping experience by offering tailored payment solutions that allow merchants to focus on their core business.
FAQ
Consider offering a variety of payment methods that align with their preferences. Here are some popular options:
- Credit and Debit Cards: Widely used for online purchases.
- Convenience Store Payments (konbini pay): A popular choice for many shoppers.
- Digital Wallets: Options like PayPay, Rakuten Pay, dbarai.
- Cash on Delivery (COD): Still common among Japanese consumers.
Here are some effective strategies:
- Localize Your Content: Ensure your website is culturally appropriate and free from translation errors. Moreover, consider a Japanese domain name (.jp).
- Detailed Product Descriptions: Transparency is vital, so include thorough information about your products.
- Show Authentic Customer Reviews: Positive reviews from real customers enhance credibility.
- Display Trust Signals: Use Clear return policies to reassure customers.
- Engage Through Customer Service: Responsive communication fosters trust and confidence.
- Utilize Social Media: Engage with customers on social media and consider collaborations with influencers.
To optimize your website for mobile users in Japan, follow these best practices:
- Local Language Support: To ensure user understanding and comfort, make all mobile content, including buttons, labels, and error messages, fully localized in Japanese.
- Responsive Design: Make sure your site adjusts to different screen sizes for a seamless experience.
- Fast Loading Times: Optimize images and reduce code to improve loading speeds.
- Simple Navigation: Implement a clear menu structure for easy product discovery.
- Mobile-Specific Payment Options: Offer popular payment methods for mobile users, like QR code payments and mobile wallets.
We help businesses accept payments online.
