On May 15, TikTok Shop Japan officially opened for invitations, and the first batch of POP store merchants began to prepare for entry. The platform plans to fully open to the market in June. This time, TikTok Shop entered Japan, adopting the "merchant self-operation" model (also known as the POP model or small store model), that is, merchants need to complete product listing, marketing, order fulfillment and after-sales service by themselves, with higher freedom and pricing power, and also bear more business responsibilities.

This new trend not only means that TikTok is accelerating the expansion of its global e-commerce territory, but also marks that content e-commerce has officially entered Japan's mature "shelf e-commerce" market, bringing unprecedented new opportunities for global cross-border sellers.

Japan: The unique charm of the world's third largest e-commerce market

Japan is the world's third largest e-commerce market, second only to China and the United States. According to the "E-commerce Market Survey Report" released by the Ministry of Economy, Trade and Industry (METI) of Japan in 2023, the scale of Japan's B2C e-commerce market in 2022 will be 22.7 trillion yen (about 167 billion US dollars), a year-on-year increase of 9.9%. Among them, the sales of goods e-commerce was 13.9 trillion yen, accounting for 61.3%, which was particularly strong.

According to Statista data, the overall scale of Japan's e-commerce market in 2024 is expected to exceed 240 billion US dollars, and the e-commerce penetration rate will reach more than 74%, covering a population of 126 million, with strong consumption power. Especially in categories such as fashion, beauty, digital, and daily household, Japanese consumers show high-frequency, high-price, brand-oriented, and content-oriented purchasing habits.

More noteworthy is that the return rate of Japan's e-commerce market has been maintained at 3% to 5% for many years, which is much lower than the level of 10%-15% in European and American countries. For cross-border merchants, logistics and after-sales risks are relatively controllable, and it is a mature consumer market with "high stickiness + low risk".

Content e-commerce cuts into shelf e-commerce: TikTok Shop's breakthrough in Japan

Unlike traditional shelf-based e-commerce platforms (such as Rakuten, Amazon Japan, and Yahoo! Shopping), TikTok Shop represents a new form of e-commerce that is "content-driven + interest recommendation".

TikTok has accumulated more than 20 million monthly active users in the Japanese market (Datareportal 2024), of which Generation Z and millennials account for more than 65%. These users are more receptive to content shopping methods such as short videos and live broadcasts. The launch of the POP model provides content e-commerce merchants with a direct channel to Japanese consumers, and also allows the "grass-planting to conversion" to be completed in an ecosystem.

However, since Japanese consumers pay attention to quality, service and brand tone, and have extremely high requirements for platform trust and shopping experience, merchants need to make more detailed localization efforts than other markets to gain a foothold in TikTok Shop Japan.

How should cross-border sellers seize the opportunity of TikTok Shop Japan?

Facing this new market that is both full of potential and fiercely competitive, the following suggestions can be used as a reference for sellers:

1. Deep localization of product selection and operation

Japanese consumers are active in beauty, 3C accessories, home storage, health food and other categories, but prefer brand reputation and practicality. Sellers who have settled in need to adjust their copywriting, video expressions, and product descriptions according to Japanese cultural habits, and avoid using overly exaggerated marketing language.

At the same time, the "Japanese aesthetic" should be appropriately integrated into the video content, such as clean, simple, and functional product display methods that are more likely to gain consumer favor.

2. Create a KOL matrix and influencer-led product ecosystem

Japanese local content influencers are highly trusted, and many Japanese consumers will make consumption decisions through "Internet celebrity recommendations + content search". Sellers can find local influencers to cooperate through channels such as TikTok Creator Marketplace, quickly establish a brand trust foundation, and promote conversion.

3. Layout the local fulfillment system in advance

Although TikTok Shop Japan is still mainly cross-border, the platform is very likely to promote local warehouses and pre-fulfillment mechanisms in the future to improve consumers' delivery experience. If sellers can set up overseas warehouses in Japan in advance or cooperate with third-party fulfillment services, they will have obvious advantages in logistics timeliness and after-sales processing.

At present, service providers such as U-Speed have provided local warehousing and return solutions covering the Japanese market, which can help cross-border merchants enter Japan with a lower threshold.

4. Pay attention to after-sales service and customer service experience

Japanese consumers are particularly sensitive to after-sales service, even more than they care about price. It is recommended that sellers equip Japanese customer service teams or use AI customer service tools to improve communication efficiency; at the same time, the return and exchange policy should be as clear and transparent as possible to establish a positive brand reputation.

Can content e-commerce shake up the Japanese e-commerce landscape?

Although TikTok Shop has successful cases in other countries, such as Southeast Asia, the United Kingdom, and the United States, the Japanese market has a mature e-commerce ecosystem and high user loyalty, and it is not easy to shake local giants such as Rakuten and Amazon Japan.

However, it is undeniable that the "grass-planting efficiency" and "explosive ability" of content e-commerce are infiltrating consumers' consumption paths. If TikTok Shop can effectively combine the advantages of short video content, talent resources, cross-border product richness and local fulfillment support, it is not impossible for it to stand out in the Japanese e-commerce market.

For cross-border sellers, TikTok Shop Japan is undoubtedly a new battlefield with "high threshold but high return". Whoever can occupy a position in the early stage, adapt quickly and establish a stable operation chain will have the possibility to stand out in this round of changes.