Variations in E-Commerce Penetration Rates by Sector in the Japanese E-Commerce Market and Initiatives to Address Them

あゆみ佐藤
3 days ago
2 min read

Japan’s e-commerce market consists of multiple segments, including merchandise, services, digital content, business-to-business (BtoB) transactions, and consumer-to-consumer (CtoC) transactions. Each segment shows a different level of e-commerce penetration (the share of transactions conducted online). This report outlines the differences in e-commerce penetration rates based on the Ministry of Economy, Trade and Industry’s “FY2024 E-Commerce Market Survey,” and discusses the underlying factors and strategic implications for overseas businesses.

1. Overall Situation

Segment	E-Commerce Penetration Rate	Change from Previous Year
BtoC-EC	9.8%	+0.4pt
BtoB-EC	43.1%	+3.1pt

Penetration rates are increasing overall, with BtoB-EC showing particularly strong growth due to the digitalization of procurement and ordering processes.

2. E-Commerce Penetration in Merchandise Categories

Category	Market Size (Trillion Yen)	E-Commerce Penetration Rate
Books, Video, Music	1.87	56.45%
Home Appliances, AV Equipment, PCs	2.74	43.03%
Household Goods, Furniture, Interior	2.56	32.58%
Apparel and Accessories	2.80	23.38%
Food, Beverages, Alcohol	3.12	4.52%

High-penetration categories such as digital media and consumer electronics have established online purchasing behaviors and efficient supply chains. In contrast, food and beverages have lower penetration due to logistics and freshness management challenges.

3. Service and Digital Content Segments

Service-related e-commerce includes travel, food services, entertainment ticketing, financial services, and beauty and wellness. While market size data is available, detailed penetration rates are not published. Key trends include:

Travel services: expanding use of online travel agencies and mobile booking
Food services: steady adoption of delivery and takeout ordering
Ticketing and event services: widespread use of digital tickets and QR entry
Financial services: growth in online applications and automated advisory tools
Beauty and wellness: salon reservations and telemedicine adoption becoming routine

Digital content such as video streaming, music streaming, and online gaming is inherently online, reflecting the ongoing shift to digital consumption.

4. BtoB-EC and CtoC-EC

BtoB-EC has seen rapid growth as companies standardize online procurement and integrate ordering systems with operational platforms.CtoC-EC continues to expand through flea-market applications and resale platforms, where trust and transaction transparency are supported by rating and verification systems.

5. Factors Behind Differences in E-Commerce Penetration

Product CharacteristicsDigital goods and standardized consumer electronics adapt easily to online sales, while fresh food and high-value or large items require more logistical support.
Consumer and Business BehaviorBusinesses increasingly seek efficiency through standardized online ordering, while some consumer categories still value physical inspection and in-person experience.
Infrastructure ReadinessCold-chain logistics, installation and assembly services, and return networks influence how quickly different categories transition online.
Regulatory and Support FrameworkSector-specific regulations and government support programs affect the pace of digital adoption across industries.

6. Strategic Implications for Overseas Businesses

High-penetration categories such as electronics, digital content, and BtoB procurement offer faster market entry opportunities.
Lower-penetration areas such as food and daily goods present opportunities for differentiation through logistics, freshness control, or packaging innovation.
Customer experience can be strengthened through AR try-on, virtual demonstrations, and online support tools.
Collaboration with e-commerce platforms and logistics/payment service partners can reduce barriers to entry.
Regulatory compliance and product labeling alignment are essential for sectors such as food, cosmetics, and healthcare-related products.

7. Outlook

E-commerce penetration in Japan is expected to continue rising. The growth of sustainable products, the expansion of D2C brands, the adoption of AI in operations, and the popularity of live commerce are likely to gradually narrow gaps across categories and create new business opportunities.