Report: Operating Cross-Border in Japan

Report: Operating Cross-Border in Japan

September 1, 2022

While Buy Now, Pay Later (BNPL) is taking most of the world by storm, growth of the online installment payment method in Japan will be slower. This is just one of the differences highlighted by a new report examining the fourth-largest e-commerce market in the world.

Degica’s Japan Cross-Border E-Commerce Report highlights the factors that make operating in Japan challenging for international businesses. Japanese consumers spend $18.2 billion annually on sites outside the country, with the top three destinations being sites in the U.S., China and Korea.

One of the biggest factors merchants hoping to sell into Japan need to consider is the single-language nature of the market. More than 70 percent of consumers say they will only buy from sites that are in Japanese.

Regarding payment, Japan is a cash-dominated society, where convenience store payments are very popular. Consumers are very careful about sharing their card information online and usually prefer an alternative payment method if provided.

Konbini is a popular payment method and a popular type of establishment. These ubiquitous convenience stores serve as a one-stop-shop for food and drinks, paying bills, printing documents and paying for online purchases. Consumers can even have their orders delivered there instead of their homes.

To read the entire report, click here.

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