selling in japan: best practices for different e-commerce platforms

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btrax, Inc. powering global brands Selling in Japan: Best Practices for Different E-Commerce Platforms

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Learn about the important e-commerce differences in Japan: E-commerce customer behavior Setup time and costs Product selection, fulfillment and payment mCommerce capabilities and opportunities Marketing integration

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Page 1: Selling in Japan: Best Practices for Different E-Commerce Platforms

btrax, Inc.

powering global brands

Selling in Japan: Best Practices for Different

E-Commerce Platforms

Page 2: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Japanese E-Commerce Market Overview

Japanese E-Commerce (B-to-C) Market Growth (2008 - 2012)

100

90

80

70

60

50

40

30

20

10

0

($billion)E-Commerce

Share

2008 2009 2010 2011 2012

$60B$65B

$92B

$82B$75B

Page 3: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Key Differences in Japanese E-Commerce

US: Average order amount: $74

JP: Average order amount: $850

US: Average return rate: 17-25%

JP: Average return rate: 2-3%

Page 4: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Japanese Options on 4 Key E-Commerce Areas

1. Platforms

2. Payment Options

3. Shipping & Logistics

4. Customer Support

Page 5: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

1. Japanese E-Commerce Platform Options

a. Shopping mall

d. Installable online store

c. Hosted e-commerce

b. Apparel specific mall

Page 6: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

1. Japanese E-Commerce Platform Options

Page 7: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Case Study 1: Blue Nile

Page 8: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Case Study 1: Blue Nile

Page 9: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Case Study 2: Toys R Us

BEFORE

Page 10: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Case Study 2: Toys R Us

AFTER

Page 11: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Case Study 2: Toys R Us

MOBILE

Page 12: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Case Study 3: Expedia

Page 13: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

2. Payment Options

a. Credit Card (44%)

b. Cash on Delivery (16%)

c. Bank Transfer (15%)

d. Convenience Store Payment (9%)

Page 14: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Access from Mobile devicesSales from Mobile devices

Mobile Commerce in Japan

Rakuten Ichiba Individual Store

Shopping Mall vs Individual Store

2013July-Spt

2013Oct. - Dec.

2014Jan. - Mar.

2014Apr. - June

Page 15: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

3. Shipping & Logistics

a. International Shipping

b. Domestic ShippingPros Cons

● Faster delivery

● Lower risks of damages

● Cheaper in the long term

● Requires warehouse

● Inventory management

● High setup cost

Pros Cons

● No setup required

● Easier to manage inventory

● Shipping costs are high

● Slower delivery

● High risks of damage

● Expensive in the long term

Page 16: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Common Delivery Speed in Japan

Page 17: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

4. Support Options

a. Email Support

b. Phone Support

Pros Cons

● Lower cost

● Location free

● More response time

● Could lower conversion rate

● May require multiple interactions ● Some platforms require phone support

Pros Cons

● Lead to higher conversion rate

● Can better serve customers

● Complies with most store policies

● Requires Japanese speaker

● Requires to be in JP time zone● Requires immediate response

Page 18: Selling in Japan: Best Practices for Different E-Commerce Platforms

powering global brands

Q&A

Brandon Katayama Hill

CEO, btrax

http://about.me/brandon.hill

btrax JapanStep Roppongi 2F,6-8-10 Roppongi Minato-ku,Tokyo, Japan 106-0032www.btrax.com/[email protected]

btrax, Inc.665 Third St. Suite 505San Francisco, CA [email protected]