Analysis of Growth Outlook for Japan's Overall E-Commerce Market

あゆみ佐藤
3 days ago
3 min read

Introduction: Market Scale and Growth Overview

In FY2024, Japan’s e-commerce market reached new record highs:

Segment	Market Size	YoY Growth
Consumer (BtoC) E-Commerce	¥26.1 trillion	+5.1%
Business-to-Business (BtoB) E-Commerce	¥514.4 trillion	+10.6%

(Source: FY2024 E-Commerce Market Survey, Ministry of Economy, Trade and Industry, METI)

The continued expansion in both BtoC and BtoB segments reflects a broad digital shift in transaction behavior, driven by the advancement of logistics infrastructure, improvements in payment systems, evolving consumer habits, government-led digital transformation (DX) initiatives, and intensifying platform competition.

1. Growth Foundation: Infrastructure Development

1.1 Advancement of Logistics Networks

Major logistics companies have optimized delivery routes and expanded rapid-delivery models, particularly in metropolitan areas. In the food and beverage e-commerce sector, the market grew to ¥3.12 trillion in FY2024 (+6.36%), supported by greater availability of temperature-controlled logistics solutions.(Source: METI)

1.2 Maturation of Digital Payment Systems

The diversification of payment methods—including credit cards, e-money, QR code payments, and Buy Now Pay Later (BNPL)—has lowered consumer barriers to online purchasing. In addition, fintech-driven fraud detection and online credit scoring have strengthened transaction security.

2. Growth Driver: Changing Consumer Behavior

2.1 Establishment of a Mobile-First Environment

Smartphones have become the primary channel for online shopping, with app notifications and one-tap checkout improving purchase continuity.The fashion-related e-commerce market—focused on apparel and lifestyle goods—reached ¥2.80 trillion (+4.74%), showing stable expansion.(Source: METI)

2.2 Normalization of Contactless and Online Experiences

Digital experiential services—such as telemedicine, remote learning, live commerce, and AR-based try-on solutions—have become part of everyday consumption.The services e-commerce sector grew to ¥8.2 trillion (+9.43%), with notable growth in:

Travel reservations: ¥3.52 trillion (+12.8%)
Food delivery: ¥0.97 trillion (+9.6%)

3. Government and Regional Policy Support

3.1 DX Support for Small and Medium Enterprises

Government programs promoting e-commerce adoption and digital transformation continue to support small and medium businesses nationwide.

3.2 Regional Revitalization and E-Commerce Utilization

Local governments and regional cooperatives are actively expanding e-commerce channels for regional products. As a result, Japan’s BtoC e-commerce penetration rate reached 9.8% (+0.4 percentage points).

3.3 Integration with Inbound Tourism Demand

The recovery of inbound tourism has driven increased use of online reservations and digital ticketing before, during, and after travel.

4. Platform Competition and Service Diversification

4.1 Functional Enhancement by Major Marketplaces

Amazon, Rakuten Ichiba, and PayPay Mall continue to compete through loyalty programs, recommendation systems, and delivery benefits.

4.2 Expansion of D2C and Direct-to-Consumer Brands

In categories such as cosmetics and health supplements, brand-owned e-commerce and CRM-based subscription models are helping companies increase customer lifetime value (LTV).

4.3 Growth of BtoB E-Commerce Marketplaces

Platforms for procurement of industrial parts, raw materials, and corporate services have grown, promoting widespread adoption of self-service purchasing in B2B transactions.

5. Deepening of Digital Transformation (DX) in Enterprises

5.1 API-Driven Business Process Automation

API integration is advancing unified management of inventory, pricing, and ordering workflows.

5.2 Spread of Data-Driven Operations

The use of purchase history and behavioral data to support decision-making, optimize inventory, and improve LTV is becoming standardized across many enterprises.

6. Expansion of Cross-Border E-Commerce and Inbound Demand

In FY2024, cross-border e-commerce purchases of Japanese products reached:

Region	Market Size	YoY Growth
China	¥2.64 trillion	+8.5%
United States	¥3.14 trillion	+6.0%

Totaling ¥5.78 trillion, driven primarily by cosmetics, health supplements, consumer electronics, and fashion.Inbound visitors increasingly follow a three-stage purchasing cycle: pre-trip online search, on-trip digital engagement, and post-return cross-border repurchasing.

7. Strategic Implications for Overseas Manufacturers

Strategic Area	Key Action
Local Partnerships	Collaborate with logistics, payment, marketing, and customer support partners
Mobile Optimization	Strengthen app usability, simplified checkout, and visual content engagement
Multi-Channel Deployment	Combine cross-border direct e-commerce with major marketplace presence
Data Utilization	Improve LTV through CRM and behavior analytics
Sustainability Positioning	Adopt reusable packaging and eco-friendly operations to enhance brand value

Conclusion

Japan’s e-commerce market continues to grow through the mutual reinforcement of logistics infrastructure, evolving consumer behavior, supportive government initiatives, platform competition, and enterprise-level digital transformation.Furthermore, the interplay between cross-border e-commerce and inbound tourism is emerging as a key driver of sustained market expansion.