There are various options for building ecommerce sites, including application service providers (ASPs), software-as-a-service (SaaS), ecommerce malls, open-source solutions, and ready-made software packages. The most suitable approach varies depending on factors such as budget, necessary features, operational methods, and ability to grow. As a result, it might not be clear which approach to choose or where to start.

In this article, we explain the main methods for building ecommerce sites in Japan, including setup steps, associated costs, payment services, and important considerations for operation.

Key takeaways

• Methods for building an ecommerce site include application service providers (ASPs), software-as-a-service (SaaS), ecommerce malls, open-source solutions, and ready-made software packages. Because each method has its own characteristics, it is important for a business to choose a solution that is suitable for its budget, technical capabilities, flexibility, and security.
  
• The costs and time required to launch an ecommerce site vary depending on the development method. It is important to review fees and ongoing operating costs because they can impact profitability.
  
• When selecting a payment service for an ecommerce site, it is important to confirm that it supports the payment methods that target customers want to use and that the transaction fees and payment cycles align with the business’s needs.
  
• When designing an ecommerce site, it is important to keep the site simple at the beginning and ensure that the site can be expanded as the business grows. That way, it will be easier to implement changes as they become necessary.
  

Considerations before creating an ecommerce site

Here are the items to review and consider before creating an ecommerce site that is suitable for a business’s needs.

Understand trends in the Japanese ecommerce market

According to a survey conducted by the Ministry of Economy, Trade and Industry, the size of Japan’s B2C market reached ¥26.1 trillion in 2024, marking a 5.1% increase from the previous year.

By sector, retail sales—including food, clothing, home appliances, and daily necessities—account for a large share, while service-based and digital sectors—such as travel, ticketing, and video streaming—have also increased. The B2B ecommerce market consists of transactions between businesses and also continues to expand—over ¥514 trillion in 2024.

The ecommerce penetration rate in the retail sector stands at just under 10% and is steadily rising, which demonstrates that the domestic ecommerce market in Japan continues to expand.

Traditional business models are often limited to sales in brick-and-mortar stores. On the other hand, online sales channels present considerable opportunities for sole proprietors and small and medium-sized businesses. They can expand their customer bases and sales opportunities both nationwide and overseas.

Clarify purpose for creating an ecommerce site

Japan’s ecommerce market is likely to continue to expand. Therefore, the next step is to clarify why a business needs to build an ecommerce site.

The direction a business takes when building an ecommerce site will vary depending on its goals. Some goals might include reaching customers in areas the business couldn’t serve through brick-and-mortar stores alone, expanding into new sales channels, or starting overseas sales.

Choose products and target customers

Clearly define the products and services the ecommerce site will offer and its target audience. Product messaging, website design, and payment methods are chosen based on age groups, lifestyles, and transaction types (e.g., B2C or B2B).

Select sales territory and operational structure

Consider whether the business will sell only within Japan or expand into cross-border ecommerce. The region where the business sells can impact many elements, including shipping methods, shipping costs, supported languages, and currencies.

The business also needs to decide who will be responsible for product registration, order processing, inventory management, shipping, and customer inquiries.

Outline required features and budget

Determine the budget for building and operating the ecommerce site, and identify the necessary features. Since costs tend to rise as features are added, it is more cost effective to keep the site simple in the early stages and gradually add features as the business grows.

Choosing how to build an ecommerce site

When choosing a method for building an ecommerce site, it is important to compare factors such as the staff’s technical capabilities, range of features available, future growth, and security. The business also needs to consider its budget for initial costs and ongoing monthly expenses.

ASP and SaaS

ASP and SaaS are services that provide the basic functions required for ecommerce sites online. While the terms have different meanings, they are often used interchangeably in the Japanese ecommerce sector.

By using ASP or SaaS, businesses do not need to set up their own servers or systems, which makes it possible to launch ecommerce sites with relatively little technical effort. Many of these services come with prebuilt features, such as product listings, inventory management, order management, and payment processing. This makes them ideal for businesses building their first ecommerce sites or those looking to start selling quickly.

Some of the most popular examples include Shopify, BASE, STORES, and Color Me Shop.

Ecommerce malls

An ecommerce mall is an online shopping mall where multiple businesses operate stores. Examples of well-known ecommerce malls include Rakuten Ichiba, Amazon, and Yahoo! Shopping. Ecommerce malls already have large customer bases, making it easier to attract customers.

While this approach is well-suited for businesses that prioritize customer acquisition and want to start selling relatively quickly, it’s important to note that there are limitations on design and functionality. In addition, the costs associated with store setup and sales commissions can be substantial.

Open-source solutions

Open source solutions include ways of building ecommerce sites using publicly available source code. Examples include EC-CUBE and WooCommerce. Since features and designs can be customized to meet a business’s specific requirements, this approach is well-suited for businesses that prioritize uniqueness and flexibility.

On the other hand, building and maintaining these sites requires a certain level of technical expertise, and the business must handle security measures and updates on its own. This method is best suited for businesses that have staff members with specialized knowledge or have a dedicated development team.

Package-based software

A packaged solution involves implementing software that bundles the necessary features for an ecommerce site and then customizing it to meet the business’s specific requirements. Well-known ecommerce platform providers in Japan include ecbeing and Commerce 21. Because this approach allows businesses to use standard features while easily adding custom functionality and integrating with external systems, it is well-suited for businesses that prioritize customization.

However, implementation and customization often require specialized knowledge. If the business does not have in-house technical staff, it might need to use the services of development firms or vendors.

Costs and time frames to set up an ecommerce site

The costs and time required to launch an ecommerce site vary depending on the development method. Be sure to compare the initial and monthly costs, payment and sales fees, as well as the preparation time needed before the site goes live.

Actual costs and time frames vary depending on the chosen services, necessary features, and extent of customization. In addition, there can be added costs, such as payment processing fees, sales commissions, and advertising costs.

Steps for creating an ecommerce site

Once the business has decided on a setup method, it can proceed with the preparations needed to launch the ecommerce site. While the specific steps vary depending on the service, we outline the general process below.

Prepare the necessary services and development environment

Sign up for or create an account with a service that supports the chosen development method. Set up the necessary infrastructure, such as a server and domain.

At this stage, begin setting up the operational framework. This includes establishing basic rules for product sales and shipping, such as shipping methods, shipping rates, and inventory management. If the ecommerce site is operating in Japan, it must comply with requirements under the Act on Specified Commercial Transactions, such as mandatory disclosures and return policies.

Design and establish basic settings

Next, configure the design and basic information for the ecommerce site. Decide on elements such as the logo, color scheme, product categories, and navigation. Focus on creating a site that makes it easy for customers to find products and make purchases.

Create other important pages on the site, such as business information, contact details, and privacy policies. Since there are many customers in Japan who pay via smartphone, it’s important to make sure it is a mobile-friendly site.

Add products

List products on the ecommerce site. Be sure to set up all the information necessary for a purchase, such as the product name, price, description, images, inventory level, size, and color.

Errors in product information can lead to lower customer satisfaction, returns, and negative reviews. Before publishing, check that there are no mistakes in price, inventory level, or other product details.

Set up payment methods

Set up the payment methods for the ecommerce site, such as credit card payments, convenience store (konbini) payments, bank transfers, and digital wallets. The available payment options and transaction fees vary depending on the payment service. It is important to check these details before implementation to ensure the site supports customers’ preferred payment methods.

Place a test order and launch the site

Before launching, conduct a test to ensure that orders process correctly. This includes product selection, payment, order confirmation emails, and inventory updates. Verify that customers can make purchases without issues on various devices, such as smartphones, computers, and tablets.

If there are no issues, launch the ecommerce site and begin accepting actual orders.

Key points when selecting a payment service for an ecommerce site

For ecommerce sites, it’s important to offer payment methods that are easy for customers to use. The business also needs to verify merchant fees, payment cycles, ease of implementation, and security features.

Does the payment service support payment methods customers want?

One common cause of cart abandonment is the lack of preferred payment methods. Ensure the payment service supports the payment methods customers use most frequently.

Are the fees and payout cycle suitable for the business?

Fees include transaction fees, monthly fees, and transfer fees. Be sure to understand in advance what types of fees will apply.

It’s also important to confirm when sales proceeds will be deposited. If the payment cycle is long, it can impact cash flow. It’s important to verify in advance that the payment cycle aligns with the business’s cash flow needs.

Is it easy to implement and integrate the payment service with the ecommerce site?

Check whether the payment service can be easily integrated with the ecommerce site or platform. If application programming interfaces (APIs), plug-ins, or prebuilt integration features are available, this can help minimize the development burden.

Can the payment service reduce the burden of security and Payment Card Industry Data Security Standard (PCI DSS) compliance?

When handling credit card payments, outsourcing the processing of card information can reduce the burden on the business regarding security and PCI DSS compliance. However, there are still responsibilities that fall on the business, such as verifying that the payment service used is PCI DSS compliant.

Common ecommerce site mistakes and how to avoid them

Launching an ecommerce site isn’t the end of the process. Instead, the business needs to manage the site with a long-term perspective that includes customer acquisition, cost management, and the addition of new features. To minimize unnecessary costs, it’s important to be aware of common pitfalls in advance.

Establish a customer acquisition strategy

Even if a business launches an ecommerce site, it might not lead to sales unless the business has a strategy for helping customers find the site. It’s important to plan customer acquisition methods, such as search engine optimization (SEO), social media, advertising, and email newsletters.

Understand monthly costs

In addition to monthly service fees, ecommerce sites typically incur ongoing costs, such as payment processing fees, sales commissions, app and plug-in fees, and advertising expenses.

Even if sales grow, excessive cost increases can squeeze profits. Be sure to regularly review monthly expenses.

Consider future growth

Adding too many features when launching an ecommerce site can increase initial costs and operational burdens. Start by focusing on necessary features and consider adding more as the business grows.

Before implementing a service, verify its ability to grow—such as whether the business can add necessary features in the future or integrate it with external services.

How Stripe Checkout can help

Stripe Checkout is a fully customizable prebuilt payment form that makes it easy for you to accept payments on your website or application.

Checkout can help you:

• Increase conversion: Checkout’s mobile-optimized design and one-click checkout flow make it simple for customers to input and reuse their payment information.

• Reduce development time: Embed Checkout directly into your site, or direct customers to a Stripe-hosted page, with just a few lines of code.

• Improve security: Checkout handles sensitive card data, simplifying PCI compliance.

• Expand globally: Localize pricing in 100+ currencies with Adaptive Pricing, which supports 30+ languages and dynamically displays the payment methods most likely to improve conversion.

• Use advanced features: Integrate Checkout with other Stripe products, such as Billing for subscriptions, Radar for fraud prevention, and more.

• Maintain control: Fully customize the checkout experience, including saving payment methods and setting up post-purchase actions.

Learn more about how Checkout can optimize your payment flow, or get started today.

FAQs about creating ecommerce websites