How to Sell on Rakuten Japan

What if you could unlock the door to millions of potential buyers in Japan? Rakuten, often dubbed the "Amazon of Japan," offers sellers a golden opportunity to reach a highly engaged and affluent market. Selling on Rakuten can be a game-changer for your business, but it comes with its own unique challenges. If you're already selling on other platforms like Amazon or eBay, you may think it's just a matter of listing your products. However, Rakuten operates a bit differently, and that’s what makes it so interesting.

To get you started, we'll look at how to navigate Rakuten's system and what strategies you can use to succeed. The key isn't just to list products but to actively market them in a way that resonates with Japanese consumers.

Why Should You Sell on Rakuten Japan?

If you're unfamiliar with Rakuten, here's a quick breakdown. Rakuten is Japan’s largest e-commerce platform, boasting millions of users every day. The platform enjoys a loyal customer base thanks to its Rakuten Super Points system, which rewards buyers for their purchases. Sellers who effectively tap into this ecosystem can see their sales skyrocket.

According to Rakuten, over 111 million users are registered on their site, and most of these shoppers have high purchasing power. Japan’s e-commerce market is the fourth largest globally, with more than $150 billion in annual sales. Moreover, Rakuten’s ecosystem extends beyond e-commerce; it offers travel, banking, and even mobile services, keeping users consistently within its environment.

However, the process to sell on Rakuten is not exactly the same as selling on platforms like Amazon. It is essential to understand the cultural nuances, platform-specific strategies, and legal requirements for operating in Japan.

Step 1: Registering as a Seller on Rakuten

Before you even think about listing products, you’ll need to get your seller account set up. For non-Japanese companies, Rakuten requires you to register as a "Rakuten Global Seller," and the process includes submitting documentation about your business.

You will need:

• Business registration documents
• Financial statements
• A registered Japanese business address or a third-party service that provides this
• A Japanese bank account for receiving payments

It’s essential to have all this information ready before you begin, as incomplete applications are often delayed or rejected.

Step 2: Listing Your Products

Once your seller account is approved, you can start listing your products. But here’s where things get a little different from Western platforms. On Rakuten, product listings must be in Japanese. You can't just rely on Google Translate; you’ll need native-level translations or hire a service to do it for you. The Japanese market is very particular, and poorly translated listings can drastically impact your sales. Remember, Rakuten customers expect detailed product descriptions and high-quality images.

The platform also allows you to create a custom storefront, which is a key differentiator from Amazon. Your storefront design can include banners, promotional offers, and a unique layout to reflect your brand. Think of it as creating your mini-site within Rakuten’s ecosystem. Done right, this customization can significantly boost your brand presence.

Step 3: Fulfillment Options

While Amazon has its famous FBA (Fulfillment by Amazon) system, Rakuten offers its own fulfillment service called Rakuten Super Logistics (RSL). This service allows you to store your inventory in Rakuten's warehouses, and they handle packing and shipping for you. However, unlike FBA, this isn’t mandatory. You can also choose to fulfill orders yourself, but keep in mind that Japanese consumers expect fast and reliable shipping, often next-day delivery for domestic purchases.

Another essential aspect of fulfillment is customer service. Japanese customers value excellent customer support, so you may need to hire bilingual staff or a third-party service to manage this for you.

Step 4: Leveraging Rakuten Super Points

One of Rakuten’s most attractive features for customers is its Super Points program. Every purchase a customer makes earns them points that they can use on future purchases. As a seller, you can offer bonus points to customers to make your listings more appealing. This feature is incredibly effective in driving repeat purchases and customer loyalty.

Many top-performing sellers on Rakuten regularly offer 10x or more Super Points on their products during promotional periods. The key is to integrate this into your marketing strategy, especially when you want to push certain items or clear out inventory.

Step 5: Marketing Strategies on Rakuten

Marketing on Rakuten is a different beast compared to platforms like Amazon. In addition to optimizing your product listings, you’ll need to engage in Rakuten-specific marketing activities.

Here are some effective strategies:

• Rakuten Ichiba Ads: These are sponsored ads that appear across the platform. You can target specific keywords or customer segments to maximize visibility.
• Email Newsletters: Rakuten allows you to send newsletters to your store’s subscribers. Japanese customers appreciate personalized marketing, so tailoring your emails based on customer preferences can yield great results.
• Rakuten SEO: Just like Google, Rakuten has its own search algorithm. Optimizing your product titles, descriptions, and images for Rakuten’s search engine is crucial to getting your products in front of the right customers.

Step 6: Handling Payments and Taxes

Rakuten supports various payment methods, including credit cards, bank transfers, and even convenience store payments. It’s essential to offer multiple payment options to cater to the preferences of Japanese consumers.

In terms of taxes, Japan has a consumption tax that sellers must account for. If your business is based outside of Japan, you may need to work with a tax professional to ensure you're complying with local tax laws. Failure to do so could lead to hefty fines or account suspension.

Common Mistakes to Avoid

Selling on Rakuten can be highly profitable, but there are several common pitfalls that new sellers should watch out for:

1. Ignoring Customer Reviews: Japanese shoppers place significant importance on reviews. Negative reviews can hurt your sales, so always strive for excellent customer service.
2. Not Offering Free Shipping: Free shipping is expected in Japan, especially for high-ticket items. If you can’t offer free shipping, consider incorporating the shipping cost into your product price.
3. Underestimating the Importance of Store Design: Unlike Amazon, where the product page is standardized, Rakuten allows for significant customization. A poorly designed store can turn customers away, so invest in professional design services if needed.

Conclusion

Selling on Rakuten Japan is not just about listing products; it’s about fully integrating into the platform’s ecosystem. From setting up a custom storefront to leveraging Super Points and understanding local consumer behavior, it requires a comprehensive approach. If done correctly, the rewards can be substantial, allowing you to tap into one of the most lucrative e-commerce markets in the world.

By focusing on customer satisfaction, offering excellent service, and optimizing your marketing strategies, you can build a successful business on Rakuten that continues to grow over time.