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Exploring Ecommerce Market in Japan
Latest update: November 2024
Japan’s e-commerce market is one of the most mature in the Asia-Pacific region, driven by high internet penetration, widespread banking access, and a strong preference for domestic online shopping. This article examines the landscape of Japan’s e-commerce sector, covering top-selling categories, consumer preferences and key trends. The information is sourced from our E-Commerce Data Library, and is enriched with external references curated by the PCMI team.
You can explore this content as an infographic report, available for download below.
Current State of E-commerce in Japan
Japan is a key player in the Asia-Pacific e-commerce market, with 98% of its population banked1—one of the highest rates globally—ensuring easy access to online payments.
Key e-commerce statistics for Japan (data from PCMI)
- Total e-commerce volume in Japan for 2024: US$380 billion
- Retail e-commerce volume in 2024 in Japan: US$121 billion
- Compound Annual Growth Rate (CAGR) for 2024–2027: 7%
- Forecasted e-commerce market size for 2027: US$465 billion
Profile of the Japanese Online Shopper
95% of e-commerce sales in Japan are domestic, reflecting a strong preference for local products and services2
76% of the population, or 94 million people, shop online, showcasing the vast reach of e-commerce across the country.3
Japanese online consumers are willing to spend up to US$455 on a single product—US$77 more than the global average of US$378—showcasing their preference for quality and value4
Japan E-Commerce Payment Methods and Devices
Japan’s e-commerce market benefits from a variety of payment options and a significant mobile shopping presence. According to our PCMI’s E-commerce Data Library, the primary payment methods for online purchases in Japan, by share of volume, are:
- Credit card — 63%
- Digital wallet — 15%
- Cash — 8%
- Other — 8%
- Buy Now Pay Later — 3%
- Bank transfers — 2%
- Debit card — 1%
As for devices used for purchasing online, PCMI has observed that:
- 56% of e-commerce volume in Japan comes from purchases on mobile devices.
- 44% of e-commerce volume comes from desktop, showcasing a balanced but mobile-heavy shopping trend.
Top-Selling Categories and Leading Online Stores in Japan
Based on sales in 2023, the following product categories rank as the most popular among Japanese online shoppers:
- Food, beverages, and alcohol — US$21 billion
- Electrical and electronic products — US$20 billion
- Clothing, apparel, and accessories — US$20 billion
- Household goods and furniture — US$18 billion
- Books and audiovisual software — US$14 billion
As for the top online stores in Japan, based on traffic share (data from Similar Web), the ranking is as follows:
- Amazon — 35%
- Rakuten — 32%
- Mercari — 7%
- DMM.com — 6%
- MonotaRO — 2%
Key Insights into the Japanese E-commerce Market
Lastly, here are some key insights about e-commerce in Japan:
Retail accounts for US$121 billion of the e-commerce volume, showcasing the significant role of everyday consumer goods5
An impressive 95% of e-commerce sales in Japan are domestic, underlining the strong preference for local goods and services6
Cross-border e-commerce is growing, with 50% of purchases made from the United States, followed by South Korea (34%) and China (33%)7
The e-commerce fashion market is projected to grow by US$61 million by 2030, reflecting its consistent expansion8
Six out of ten Japanese cross-border shoppers cite slow product delivery as their primary concern, highlighting a key area for improvement in international logistics9
Next Step:
The PCMI E-Commerce Data Library
While the data shared here can be helpful, both payments companies and ecommerce companies may benefit from a deeper dive into Japanese e-commerce data, which they can obtain by acquiring the PCMI E-commerce Data Library for Asia Pacific.
The Library covers not only Japan but also 12 other countries in Asia Pacific, featuring e-commerce market data such as:
- Historical volume of Japan’s e-commerce market
- Projections of Japan’s e-commerce market volume for 2024-2027
- Breakdowns by merchant vertical for e-commerce in Japan: retail, travel, ride-hailing, digital goods and services like streaming
- Data on both cross-border and domestic e-commerce purchases in Japan for 2024 and projections for 2025 and beyond
- Breakdowns and projections of payment methods used in Japan’s e-commerce (international/domestic credit cards, Buy Now Pay Later, digital wallets, and others)
And much more.
Other key advantages make the PCMI E-commerce Data Library for Asia Pacific a uniquely powerful tool for companies that seek a fuller understanding of e-commerce in the region:
- It’s customizable to client needs: you can obtain additional data you need for your company’s specific business concerns, beyond what the Library offers
- It’s budget-friendly: while detailed reports are available for 12+ countries, you can just buy data on just 1 or save money by purchasing a country bundle
- It includes personalized guidance: every purchase of the Library entitles you to a free 1-hour consultation about the data with one of PCMI’s industry experts
- It offers unlimited sharing: there is no single-user license with the PCMI E-commerce Data Library for Asia Pacific, so you can share it freely with your organization
Keep up to date with our e-commerce, payments and crypto insights:
Sources:
- The Global Economy.com ↩︎
- PCMI E-commerce Data Library ↩︎
- SellersCommerce ↩︎
- The Future Shopper Report 2023, VML ↩︎
- PCMI E-Commerce Data Library ↩︎
- PCMI E-Commerce Data Library ↩︎
- Flow, Japan Cross-Border Shopping Trends ↩︎
- Coherent Market Insights ↩︎
- Flow, Japan Cross-Border Shopping Trends ↩︎
