The e-commerce market in Japan is poised for 7.7% growth in 2025, reaching JPY29 trillion ($206.8 billion). This surge is driven by shifting consumer preferences towards online shopping and strong mobile penetration, reveals GlobalData, a data and analytics company.
GlobalData’s latest report, “Japan Cards and Payments – Opportunities and Risks to 2028,” reveals that the Japanese e-commerce market registered 8.4% growth in 2024 to reach JPY26.9 trillion ($191.9 billion).
Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, comments, “Japan is among the leading e-commerce markets in the Asia-Pacific region, trailing just behind China. This is supported by high mobile and online penetration, as well as a strong preference for online shopping due to its ease and time-saving benefits. Furthermore, the popularity of online shopping events such as Black Friday, Cyber Monday, and Singles’ Day has further fuelled the expansion of e-commerce.”
International brands are also venturing into this space to capitalize on the growth potential in the e-commerce sector. For instance, Chinese digital commerce group Alibaba launched a new cross-border e-commerce application, “TAO,” in October 2024 to compete with rivals such as Amazon and Rakuten.
TAO provides a wide array of around three million products across various categories. It incorporates a range of features, including dedicated customer service, reliable delivery and return policies, multiple payment options, and personalized product recommendations tailored to Japanese customers. The platform also supports various payment methods, such as PayPay, the leading digital wallet in Japan, as well as credit cards and convenience store payments.
Payment cards remain the preferred payment method for online purchases. According to GlobalData’s 2024 Financial Services Consumer Survey, credit cards alone account for over 50% of the total. This can be attributed to their added benefits, such as interest-free installment payment options, reward programs, cashback, and discounts.
Alternative payment solutions are the second most preferred payment method. PayPay remains the most preferred alternative payment option, with international brands such as Amazon Pay and PayPal also making their presence felt.
Gupta concludes, “The upward trajectory of e-commerce sales is expected to persist in the coming years, driven by evolving consumer preferences, the growing popularity of online shopping festivals, and the emergence of new e-commerce companies in the market. Consequently, the e-commerce market is anticipated to increase at a CAGR of 6.1% between 2025 and 2029 to reach JPY36.7 trillion ($261.8 billion) in 2029.”
GlobalData’s 2024 Financial Services Consumer Survey was carried out in Q2 2024. Approximately 67,292 respondents aged 18+ were surveyed across 41 countries.
