Japan's e-commerce market to grow 7.7% in 2025

The market grew 8.4% in 2024.

The e-commerce market in Japan is expected to grow by 7.7% in 2025, reaching $206.8b (JPY29t), driven by increased consumer preference for online shopping and strong mobile usage, according to GlobalData.

The report, “Japan Cards and Payments – Opportunities and Risks to 2028,” also showed the market grew 8.4% in 2024, reaching $191.9b (JPY26.9t).

“Japan is amongst the leading e-commerce markets in the Asia-Pacific region, trailing just behind China,” said Shivani Gupta, senior banking and payments analyst at GlobalData.

“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,” she added.

International brands are also entering the market. In October 2024, Alibaba launched its cross-border e-commerce platform, “TAO,” to compete with Amazon and Rakuten. The platform offers three million products, customer service, reliable delivery, and various payment options, including PayPay, credit cards, and convenience store payments.

Payment cards are the most popular method for online purchases, accounting for over 50% of transactions, according to GlobalData’s 2024 Financial Services Consumer Survey.

Alternative payments, such as PayPay, Amazon Pay, and PayPal, are also widely used.

GlobalData predicts the e-commerce market will continue growing, with a 6.1% CAGR from 2025 to 2029, reaching $261.8b (JPY36.7t) by 2029.