As the cross-border ecommerce market continues to expand globally, many Japanese online retailers are looking abroad to develop new sales channels.

However, simply translating an ecommerce site designed for the local market into a foreign language isn’t enough to attract international buyers or motivate them to purchase. For cross-border ecommerce, localization tailored to local culture and business practices is foundational to succeed in the destination country or region.

In this article, we explain the basics of localization, how it differs from translation, main approaches, and why payment processing affects conversion rates for Japanese online businesses looking to expand overseas.

Key takeaways

• Localization refers to the process of refining content to suit the language, culture, and business practices of a target country or region.
  
• Localizing online storefronts will improve conversion rates, so it is increasingly important in the country.
  
• For Japanese ecommerce sellers to successfully expand internationally, localization—which covers a broad range of facets including language, culture, business practices, currency, and date formats—is necessary.
  
• There are several considerations for implementing localization strategies for cross-border ecommerce effectively.
  
• Stripe Payments, which can accommodate global payment needs, simplifies checkout for cross-border ecommerce and creates a secure and user-friendly website experience.
  

What is localization?

“Localization” means fine-tuning products, services, and website content to match the region’s language, culture, customs, and legal regulations when a business expands into a specific country or region.

When Japanese ecommerce businesses sell products across borders, weak localization strategies that don’t align with local culture and payment requirements can prevent them from attracting overseas buyers.

Localization helps businesses succeed in overseas markets. The process goes beyond translation to include adjustments to the wording and design of the ecommerce site to suit shoppers’ preferences and needs, and updating everything from cultural norms and business practices to the purchasing user interface (UI) and payment experience.

Proper localization gives international shoppers a website that feels natural and effortless to use, as if it were created specifically for them.

The difference between translation and localization

Translation converts words or sentences from one language into another. In the real world, translation involves more than simply replacing one word with another. It requires advanced skills to accurately understand the source text’s meaning and intent, then craft natural expressions in the target language.

Localization goes beyond translation; it aims to enhance the entire customer journey for the intended audience by considering local culture, customs, UI, payment methods, and legal regulations. In other words, this approach aligns a product with local needs and values and creates an environment where users feel comfortable using the service.

Why localization is increasingly important

Below are the two main reasons localization contributes to the success of a cross-border ecommerce business:

The rapid expansion of cross-border ecommerce from Japan

The cross-border ecommerce market is expanding worldwide. According to the Ministry of Economy, Trade and Industry, the value of online purchases from Japan by overseas buyers, particularly those from the United States and China, has steadily increased.

To attract international customers, creating a multilingual ecommerce site is a natural first step. Still, that website also needs to be tailored to the specific countries and regions it serves. Because these efforts determine competitiveness in cross-border ecommerce, localization matters more than ever.

Developing cross-border ecommerce without localization is difficult

If you expand your ecommerce business from domestic to cross-border while keeping specifications designed for the Japanese market, language and cultural barriers can create anxiety and stress for buyers and lead to cart abandonment right before purchase because of inadequate payment options. A CSA Research survey found that 76% of online shoppers said they “purchase from websites that provide information in their native language,” showing that localization directly influences purchasing behavior.

This shows why localization efforts matter in cross-border ecommerce.

Key areas for localization

Let’s look at the fields where localization plays a central role:

Language and content

When localizing linguistic content, avoid literal translations that sound awkward; instead, adapt the tone and expressions to sound natural to native speakers. If an ecommerce site launches with unchanged machine translation, unnatural or inappropriate phrasing might make local users uncomfortable or suspicious, risking damage to trust in your brand.

Culture and business practices

Also be mindful of regional customs, religions, taboos, and holidays, and ensure visuals and text do not inadvertently offend.

Each country has its own large-scale shopping events, such as Black Friday and Cyber Monday in the US and Singles’ Day in China. For international online retail, designing campaigns that align with these specific major sales periods is key to success. Failing to understand each market’s peak sales seasons can lead to significant lost opportunities.

Displaying currency, dates, and units

If you adapt currency, dates (MM/DD/YYYY, DD/MM/YYYY, or YYYY/MM/DD), and units (metric or imperial) to local standards, users can understand the information on the site more accurately.

Pay particular attention to date formats, especially for delivery and expiration dates. Misunderstandings can confuse scheduled deliveries and frustrate customers.

UI and user experience (UX)

Usability is a major consideration in both website and app UI and UX.

When pursuing cross-border ecommerce, site and app design and layout must align with local user expectations. For example, reordering input fields, buttons, and navigation to match local habits can reduce confusion and provide a smoother shopping experience.

Payment methods and display of pricing

Display prices in a way that matches local business practices, and offer multiple payment options preferred by local users to improve usability and greatly reduce cart abandonment just before purchase. These steps support a smooth checkout journey, which ultimately improves purchase completion rates.

How to implement localization strategies for cross-border ecommerce

Localization isn’t simply about handling language, currency, and ways to pay once and never again. An effective localization strategy requires understanding the region’s characteristics and needs, continuously monitoring data such as conversion and cart abandonment rates, and making ongoing improvements.

Research customer needs in the target countries and regions

Understanding the market size and competitive landscape in destination countries and regions is the first step, but it also requires researching local shoppers’ interests, purchasing habits, and trends. Understanding these factors will give you a solid foundation for an effective localization strategy.

Determine what will be localized and your priorities

Taking into account limited resources such as time and personnel, identify the areas and issues that need to be addressed first. Instead of trying to address everything at once, start by localizing priority areas directly related to the purchasing process, such as language and payment methods. Then move forward in stages while evaluating the cost-effectiveness of each step.

Confirm localization quality with local feedback

Have native speakers and local testers review the localized content to ensure the wording sounds natural and is straightforward for users in the target market.

Establish a system to refine content so it continuously reflects regional nuances and tone. This will prevent awkward phrasing from machine or overly literal translations, reduce misunderstandings related to culture or customs, and help ensure a user-friendly, trustworthy ecommerce site.

Use data for continuous improvement

After you launch your localized online store, you still need to regularly analyze data such as click-through, conversion, and cart abandonment rates to assess shopper response. Conduct ongoing A/B tests based on customer feedback and requests, and make continuous improvements that align with the trends and changes in your target market.

Localization of payments affects the purchase completion rate

The checkout process is the final step for a local user to confirm their purchase. Refining the payment experience to align with regional conventions can significantly improve the purchase completion rate. In this section, we’ll explain three main considerations for adapting payments in cross-border ecommerce:

Provide payment methods that meet local needs

In cross-border ecommerce, offer credit card payments alongside a broad range of cashless methods (e-money, etc.) that local users use regularly, giving customers multiple options.

By flexibly accommodating payment methods for cross-border ecommerce, you can lower barriers to buying and help prevent customers from leaving the site during checkout.

Order and layout of displayed payment methods

The order in which payment methods are displayed must not be static. Instead, it needs to automatically adjust based on user attributes such as region of residence, currency, and device.

If the system automatically displays the most suitable way to pay first for each shopper, the transaction process becomes more convenient and simple.

Display prices in the local currency

Displaying prices in the local currency and offering checkout options in that currency increases price transparency and saves users the trouble of calculating exchange rates. Clear pricing lowers the psychological barrier for local customers, letting them buy with confidence when ordering from abroad.

Key points when localizing

When implementing a localization strategy, it’s worth understanding the following points in advance:

Don’t rely solely on machine translation

Relying solely on machine translation can lead to unnatural phrasing or wording that offends customers, risking real damage to your brand image. A high-quality international ecommerce site requires thorough native-speaker editing.

Check the country-specific legal regulations and labeling requirements

In cross-border ecommerce, customs duties, legal regulations (such as consumer protection laws), and labeling rules can vary greatly by destination country or region, so review them thoroughly in advance. If you need expert insight or advice, consult a specialist familiar with international online trade in the target country.

Avoid a one-size-fits-all approach

Regional characteristics such as culture, purchasing trends, social media trends, and payment preferences vary widely by country and region. Instead of using the same marketing strategy across all markets, focus on local improvements tailored to each audience’s specific needs.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save engineering time with prebuilt payment UIs, access to 125+ payment methods, and Link, Stripe’s consumer network.
  
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• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
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Learn more about how Stripe Payments can power your online and in-person payments, or get started today.

FAQs about localization