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Japan E-Commerce Latest Cases 2025: Nagomiya

Nagomiya Co., Ltd.: Achieving Full Elimination of FAX Orders, Workforce Reduction, and New Customer Acquisition Through B2B E-Commerce Adoption



1. Company Background and Organizational Challenges

1.1 Overview and Market Position of Nagomiya

Nagomiya Co., Ltd., founded in 2009, has grown over 15 years into a reliable wholesaler specializing in commercial-use Japanese confectionery.

Key business characteristics include:

  • Products: Commercial-use wagashi sourced from manufacturers nationwide

  • Clients: Confectionery shops, supermarkets, restaurants, ryokans, hotels, souvenir shops, and more

  • Registered customers: 1,110 companies (as of December 2020)

  • Supplier manufacturers: Approximately 40

  • Employees: 3 (pre-introduction)

Nagomiya’s business model expanded step-by-step—from wholesaling to supermarkets and wagashi shops in its early years, to later serving small independent retailers, foodservice operators, and other new sectors.


1.2 Limitations of the Traditional FAX-Based Ordering System

Before adopting B2B e-commerce, Nagomiya relied entirely on manual FAX orders—leading to serious inefficiencies.

Customer-side burdens

  • Handwritten order forms differing by manufacturer

  • The inconvenience of sending orders by FAX

  • Multiple order sheets required when ordering from multiple manufacturers

Nagomiya-side burdens

  • Frequent input errors caused by unclear handwritten forms

  • High risk of misreading or misinterpreting FAX orders

  • Significant costs for catalog printing

  • Two staff members were required solely for order processing

Operational challenges

  • Order processing workload increased directly with the number of customers

  • Employees lacked time for meaningful customer communication

  • The business model was reaching its operational limit—growth created more burden rather than value


1.3 Challenges in Acquiring New Customers

COVID-19 accelerated new customer registrations dramatically:

  • New registrations per day: 50 → 70–100

  • Increased sign-ups from sectors Nagomiya had not originally targeted (e.g., restaurants)

  • Staff capacity was reaching a breaking point

The company recognized a critical issue:Administrative bottlenecks—not market demand—were hindering growth.



2. Introduction of “B-Cart” and Transformation of Order Processing

2.1 Why Nagomiya Selected B-Cart

Nagomiya implemented B-Cart, a B2B e-commerce and ordering platform provided by Dai Co., Ltd.

Key reasons for selection:

  1. Comprehensive support for B2B-specific business practices– Handles invoicing, credit terms, multi-destination delivery, and other B2B needs by default

  2. Affordable small-scale start– Monthly fee of only ¥9,800

  3. Rapid deployment– Can be launched in as little as three days

  4. Strong track record– Over 800 companies had already adopted the platform


2.2 How B-Cart Reformed the Order Workflow

Before: Manual, error-prone workflow

  1. Customer fills out a handwritten order form

  2. Sends by FAX

  3. Staff manually inputs data into the system

  4. Errors frequently occur

  5. Shipping department receives instructions

After: Digital, automated workflow

  1. Customers place orders directly on B-Cart’s web interface

  2. Order data is automatically imported into Nagomiya’s system

  3. Staff contact customers only when additional confirmation is needed

  4. Shipping instructions are generated automatically

FAX, manual input, and reading errors were eliminated entirely.


2.3 Utilizing the “Memo” Feature to Strengthen Customer Understanding

B-Cart includes a “memo” section within the admin dashboard.

This allows:

  • Recording customer preferences (“This customer prefers ○○ product lines”)

  • Smooth handovers between staff

  • Enhanced service quality through personalized responses

The platform functions not only as an ordering system but also as a lightweight CRM tool.



3. Workforce Reduction Through Streamlined Order Processing

3.1 Reducing Order Staff from Two to One

The most immediate outcome of the digital transition was cutting order-processing staff from two people to one.

Reasons for the reduction:

  • Manual tasks dramatically decreased

  • Input errors were virtually eliminated

  • Processing steps were consolidated and accelerated


3.2 Reinforcing Customer Service with Freed-Up Capacity

Rather than simply reducing labor costs, Nagomiya reinvested the freed personnel resources into value-added activities:

  • More attentive phone support

  • Deeper understanding of customer needs

  • Consultative selling and recommendation-based interaction

This shift elevated the company from mere order processing to customer-focused service operations.



4. Significant Growth in New Customer Acquisition

4.1 B-Cart as a New Acquisition Channel

For the first time, Nagomiya gained a digital customer acquisition pathway:

  • Online search → site visit → registration → order

A scalable, automated new-customer acquisition model was established.


4.2 Surge in New Registrations

  • Before: 50 registrations/day

  • After: 70–100 registrations/day

Annualized, this represents 7,000–15,000 additional customers per year.


4.3 Expansion into New Market Segments

The customer base diversified significantly.

Traditional segments:

  • Wagashi shops

  • Supermarkets

Newly acquired segments:

  • Restaurants

  • Ryokans and hotels

  • Souvenir shops

B-Cart helped Nagomiya reach industries it previously could not access through offline sales alone.



5. Quantitative Results

5.1 Operational Efficiency

Metric

Before

After

Order staff

2

1

FAX orders

Yes

Eliminated

Input errors

Frequent

Rare

Processing time

Long

Significantly reduced


5.2 Customer Growth Metrics

  • Daily registrations increased by 40%–100%

  • Overall customer base expanded rapidly

  • Online acquisition became a sustainable growth engine


5.3 Achieving Efficiency and Growth Simultaneously

Nagomiya accomplished what many SMEs struggle with:

  • Reduced labor costs

  • Increased sales volume

  • Expanded customer base

All without expanding headcount.



6. Organizational Benefits Beyond Efficiency

  • Improved employee motivation due to reduced manual workload

  • Lower printing and catalog production costs

  • Higher order accuracy and customer satisfaction

  • Stronger customer relationships enabled by better service



7. Industry Context: Comparison with Toyosu Gyosho Direct Market

A comparison with another B-Cart-based case, Toyosu Fisheries Direct Market, shows:

Item

Nagomiya

Toyosu

Industry

Wagashi wholesale

Seafood wholesale

System

B-Cart

B-Cart + kintone

Workforce

2 → 1

2 → 1 (equivalent)

Customer metrics

Expanded customer base

Customer unit price +20%

Revenue

Expanded via acquisition

1.5× revenue increase

Despite industry differences, both companies demonstrate that B2B e-commerce reliably enables efficiency and growth in parallel.



8. Lessons for the Broader Wholesale Industry

8.1 A Model for SME Digital Transformation

Nagomiya demonstrates that SMEs can adopt DX with:

  • Low initial investment

  • Quick implementation

  • Highly scalable operations


8.2 Why “Now Is the Time” for B2B E-Commerce

  • COVID-19 accelerated digital expectations

  • Companies urgently needed new purchasing channels

  • Paper/FAX-based workflows reached operational limits



9. Future Outlook

Nagomiya plans to extend its DX initiatives:

  • Web-based ordering integration with manufacturers

  • Continued automation of internal workflows

  • Expansion into a more data-driven operational model



Conclusion

Nagomiya’s adoption of B-Cart enabled a complete departure from manual FAX ordering, a 50% reduction in order-processing staff, and a doubling of new customer registrations—all while improving customer service quality.

The company achieved not just efficiency, but strategic growth, redefining its operational model:

  • From manual work to digital automation

  • From reactive order-taking to proactive customer engagement

  • From limited reach to new market expansion

Nagomiya stands as a best-practice case for how Japanese SMEs can leverage B2B e-commerce to achieve both operational excellence and business growth simultaneously.




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© JASEC 2017

Japan E-Commerce Association

Japan Academic Society for E-Commerce

 

Shoji NISHIMURA Lab., Faculty of Human Sciences, Waseda Univ.
2-579-15 Mikajima, Tokorozawa, Saitama 359-1192, Japan

info@jasec.or.jp +81-4-2947-6717

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