Cross-border commerce is the process of selling products from one country to customers in another. This practice has attracted attention on a global scale. In Japan, many businesses use cross-border e-commerce as a means of expanding into new markets and promoting Japanese brands to customers overseas. With inbound tourism in Japan on the rise, Japanese products could gain a larger customer base, creating opportunities for e-commerce businesses in Japan.

The US and China are both prominent cross-border e-commerce markets from which Japanese businesses have benefitted economically. Within Asia, there is also a growing interest in cross-border e-commerce with Taiwan, South Korea and Thailand.

Because the two countries are near each other, Taiwan is a major trading partner for Japan for exports and imports. In this article, we provide the key information businesses in Japan need to know about cross-border e-commerce with Taiwan, such as market scale, payment methods used in Taiwanese e-commerce and more.

What's in this article?

• What is the Taiwanese e-commerce market like?
  
• What marketing strategies should Japanese businesses use for cross-border e-commerce in Taiwan?
  
• How can cross-border e-commerce businesses expand into Taiwan?
  
• Which payment methods should you use for cross-border e-commerce in Taiwan?
  
• What to know about cross-border e-commerce in Taiwan
  
• Adapting to Taiwanese trends and culture for cross-border e-commerce
  

What is the Taiwanese e-commerce market like?

Here are some key data points regarding cross-border e-commerce in Taiwan:

Key data on Taiwan's e-commerce market

• Population: Approximately 23.42 million people, as of the end of 2023
  
• Currency: New Taiwan Dollar, frequently called the "Taiwan dollar" and using the symbol NT$ 　
  
• Online sales for the entire retail industry: NT$653.3 billion in 2024
  
• Annual growth rate of online retail sales: 2.65% in 2024, compared to the previous year
  
• Smartphone ownership among people ages 16–64: 94.9%, as of January 2024
  
• Percentage of people who are "habitual" mobile shoppers: 92% of all customers
  

In Taiwan, owning a smartphone is quite common and mobile devices are widely available. A significant number of customers use smartphones and other mobile devices to shop at e-commerce shopping centres, making mobile devices an indispensable part of everyday shopping. Thus, the spread of mobile devices has played a role in enhancing Taiwan's e-commerce market.

Characteristics of Taiwan's e-commerce market

Large single population

In Taiwan, around half of people at or above marriageable age are unmarried. This large number of unmarried people is a contributing factor to shopping activity, including cross-border e-commerce.

For example, Taiwanese women – who generally have a strong sense of independence – are often willing to buy products from home or abroad. They see these purchases as investments in themselves. Unmarried people in Taiwan make active efforts to buy products that suit their lifestyles and needs regardless of the products' country of origin.

Trust in Japanese goods

According to a survey conducted by the Japan-Taiwan Exchange Association, approximately 60% of Taiwanese respondents named Japan as their "favourite country." This strong affinity is also reflected in customer behaviour, fuelling demand for Japanese products in Taiwan. Because of the close diplomatic and cultural ties between the two countries, Taiwanese customers often place a high level of trust in Japanese products and share a common perception that they are reliable and high in quality.

In terms of inbound tourism, Taiwan is one of the leading sources of tourists from Asia to Japan. Many of these visitors become repeat customers, purchasing Japanese goods through cross-border e-commerce after returning home. Popular product categories among Taiwanese tourists include cosmetics, food items, home appliances, anime merchandise and fashion products, all of which are frequently bought again online.

Taiwanese customers recognise the strong brand reputation and consistent quality of Japanese products, making the cross-border e-commerce market relatively easy to enter.

Widespread convenience store payments

Just as convenience store culture is deeply embedded in daily life in Japan, convenience stores are also an important part of life in Taiwan. Taiwan has a high "convenience store density," which measures the number of convenience stores per unit of land area. It has a similar density to countries such as Japan and South Korea.

In Taiwan, it's common for all adults in a household to work, which often means no one is home during the day to receive deliveries. As a result, it's standard practice to pick up online purchases at convenience stores. Similar to Japan's popular convenience store payment system, Taiwan also widely uses a system that allows people to make payments at convenience stores.

Social media use

The most popular social media platforms used in Taiwan are:

• YouTube
  
• Facebook
  
• LINE
  
• Instagram
  

These are also frequently used in Japan. Therefore, Japanese businesses can, for the most part, use the same sales methods and marketing strategies they employ in Japan for cross-border e-commerce with Taiwan.

In Taiwan, using social media to spread information about Japanese brands and products can help increase customer purchasing motivation. It is fairly simple for a Japanese business to get started with cross-border e-commerce in Taiwan in comparison to other markets such as China or the US.

E-commerce shopping centres in Taiwan

Here are the four most popular e-commerce shopping centres in Taiwan:

Shopee

Shopee is the most popular e-commerce shopping centre in Taiwan. The platform is from Singapore but is the largest shopping site in Taiwan, with a product lineup that is unrivalled in terms of the volume of goods distributed.

When using this site for cross-border e-commerce, businesses do not need Taiwanese corporate status, so Japanese businesses can open a store with relative ease. However, Shopee has had many instances of counterfeit goods being sold on the platform and the site has a reputation for unreliability. Businesses considering using Shopee to expand into Taiwan should be aware of these risks.

momo

Another major e-commerce platform in Taiwan is momo. During the COVID-19 pandemic, momo significantly expanded its logistics network by increasing its number of warehouses. This helped attract a large number of new customers. The momo app has a user-friendly design, which customers enjoy for its convenience.

In addition, momo features a dedicated section for verified authentic products, which can assure customers they aren't purchasing counterfeit goods, such as electronics, household items and cosmetics. Well-known Japanese brands can benefit from opening a store on momo. However, it's important to note that operating on momo requires a registered corporate presence in Taiwan.

PChome

PChome is known for its 24-hour delivery service and offers a wide selection of home appliances and electronic devices. Their prices are often more affordable than those found in physical stores or mail-order services. Similar to momo, PChome also requires businesses to have Taiwanese corporate status to engage in cross-border e-commerce.

Yahoo! Shopping

Much like in Japan, Yahoo! Shopping is popular among all kinds of customers in Taiwan. The Taiwanese version is similar to the Japanese version – they are both e-commerce shopping centres and auction sites. This similarity makes Yahoo! Shopping an appropriate option for Japanese businesses looking to engage in cross-border e-commerce with Taiwan. However, the terms and conditions for using the site as a business vary from case to case. It's important to check in advance whether or not Yahoo! Shopping requires a business to hold corporate status in Taiwan.

The Taiwanese version of Yahoo! is affiliated with Yahoo! Auctions, which is operated by Yahoo! Japan. Therefore, customers in Taiwan can have items purchased on Yahoo! Auctions shipped directly to them. The platform also supports browsing and searching in traditional Chinese – the written language used in Taiwan. This makes it easier for local customers to find and purchase items not readily available in Taiwan, such as games, official anime merchandise and other Japanese goods.

What marketing strategies should Japanese businesses use for cross-border e-commerce in Taiwan?

Social media and live commerce

In Taiwan, many customers prefer to research products and services through social media before making a purchase. This is especially true among younger generations for whom social networks are a part of everyday life. As a result, digital marketing on popular platforms in Taiwan – such as LINE, Facebook, Instagram and YouTube – plays a key role in reaching this audience.

Facebook, in particular, stands out among the others. It is so widely used by businesses in Taiwan that many businesses rely primarily on Facebook pages instead of maintaining their own websites. For any business considering cross-border e-commerce from Japan to Taiwan, establishing an official Facebook page is highly recommended. Since these social media platforms are popular in both Japan and Taiwan, businesses can use their existing social media expertise from the Japanese market when building a strategy for Taiwan.

Other social media strategy options for a launch plan include partnering with local Taiwanese influencers to help spread product information and using live commerce events to interact with customers in Taiwan.

Exclusively Japanese products

In Taiwan, Japanese products – including home appliances – are well regarded and popular with customers. However, there is more customer demand for products not readily available in Taiwan. Offering products that must be purchased from Japan might increase sales. This means products should meet quality standards typical of Japanese goods and be available exclusively through cross-border e-commerce.

Due to the prevalence of counterfeit products, Taiwanese customers are often more likely to buy from reliable and trustworthy sellers. Therefore, Japanese businesses that sell products to Taiwanese customers through cross-border e-commerce should strongly emphasise that the products are genuine. By selling Japanese products that satisfy Taiwanese customers, customer trust for Japanese businesses as a whole can also improve.

How can cross-border e-commerce businesses expand into Taiwan?

There are many ways to get started with cross-border e-commerce. In this section, we look at the main methods businesses need to know about to pursue cross-border e-commerce from Japan to Taiwan.

Build an e-commerce site

With this method, the business sets up and uses its own e-commerce site. The site can be fully customised, making it easy to represent a business' unique brand and style. When building an e-commerce site, businesses have two options. They can prepare their own server and domain and use an e-commerce platform – such as an application service provider (ASP) – as the underlying infrastructure system. They can also custom build their own e-commerce site from scratch.

It's important to remember that building an e-commerce site requires a significant up-front investment and can take a considerable amount of time. Careful cashflow management and realistic timelines are important to the success of the project.

When targeting Taiwanese customers through cross-border e-commerce, it's important to create a site properly localised for the Taiwanese market. This includes translating content into traditional Chinese and addressing cultural nuances. Hiring staff fluent in both Chinese (i.e. the official language) and the Taiwanese dialect is key. In addition, businesses might need to implement inventory management systems – whether managing inventory in Japan or setting up a warehouse in Taiwan. In some cases, partnering with experts who understand the local e-commerce landscape can also be a valuable step toward success.

Create a store on an e-commerce shopping centre

One way to sell products in Taiwan is to open a store in an e-commerce shopping centre in Japan that supports cross-border e-commerce to Taiwan, such as Rakuten or Yahoo! Auctions. Alternatively, businesses can open stores directly on major Taiwanese e-commerce platforms, such as Shopee or momo. These platforms are well-known and widely used by Taiwanese customers, making it easier to attract customers and build brand awareness. In addition, they support local payment methods and offer enhanced delivery systems, which can increase customer trust and convenience.

Using an established e-commerce platform can reduce initial costs and allow for a faster launch compared to building a custom site. However, it's important to note that each platform charges sales commissions and other fees. Because each marketplace has its own requirements and terms for setting up a store, businesses should take the time to research and select the platform that best meets their needs.

Which payment methods should you use for cross-border e-commerce in Taiwan?

In Taiwan, the digitalisation of payments has been steadily progressing because of cooperation between fintech businesses and the government. As previously mentioned, smartphone ownership is high and many customers prefer to shop using their mobile devices.

The main payment methods used in Taiwan are listed below. Among them, convenience store (i.e. Konbini) payments are particularly popular, supported by the country's extensive network of convenience stores.

• Visa or Mastercard
  
• LINE Pay
  
• JKOPay
  
• Convenience store payment
  

When selling products to Taiwan through cross-border e-commerce, it is important to have payment methods widely used by Taiwanese customers. For a Japanese business that intends to pursue cross-border e-commerce with Taiwan, it is a good idea to be able to offer these payment methods, including credit card payments.

What to know about cross-border e-commerce in Taiwan

Here are some key points businesses in Japan should consider before engaging in cross-border e-commerce with Taiwan.

Customs duties

When importing or exporting goods across borders, cross-border e-commerce businesses are subject to customs duties. Following the proper procedures when exporting products from Japan to Taiwan can help businesses handle customs duties incurred at the time of import. Businesses should verify what documents and permits are required for customs clearance so they can prepare accordingly.

Taiwan categorises tariffs in detail, with rates varying by item and country of origin. A helpful resource for checking applicable tariff rates is WorldTariff, compiled and provided by the Japan External Trade Organisation (JETRO).

According to JETRO, small-value imports with a transaction value of NT$2,000 or less are exempt from customs duties. However, this exemption does not apply to repeatedly shipped items, such as more than twice within 30 days or more than 6 times within 6 months.

Generally, duties are the buyer's responsibility. This means duties applied to cross-border purchases increase the total cost to the customer. It's important to offer products that justify the price so customers can see the value of purchasing through cross-border e-commerce.

In some cases, the seller is responsible for paying duties. To avoid misunderstandings, it's important to specify on an e-commerce site who is responsible for paying applicable duties, the buyer or the seller.

EZ WAY

A common method of shipping goods in cross-border e-commerce is through private international courier services, often referred to simply as "couriers." These services are eligible for simplified customs clearance in Taiwan, but they require recipients to verify their identities using the EZ WAY app. EZ WAY is an identity authentication app provided by Taiwan's Ministry of Finance. It was introduced to simplify customs procedures and ensure that imported goods pass through customs smoothly and legally.

In the past, there have been many cases of customers importing goods under false names, using someone else's identity to avoid customs duties or splitting shipments to stay under the duty-free threshold. The EZ WAY app was developed to address these issues by providing an easy and secure way for a customer to authenticate their identity.

It's important to note that this identity verification requirement only applies to private courier shipments that use simplified customs clearance for small packages. Services such as Express Mail Service (EMS) and standard international mail are not affected and will continue to follow existing customs procedures.

If the buyer does not complete the required declaration and identity authentication through the EZ WAY app, the shipment could be returned by Taiwan Customs. Therefore, sellers must ensure customers are clearly informed of the need to complete the process in order to successfully receive their orders.

Subscription services

In Japan, subscriptions for goods – such as food, beverages and beauty products – have become widespread. This is not the case in Taiwan. If a customer unintentionally selects a subscription plan on an e-commerce site, they might be confused and file a complaint if they unexpectedly receive a product or are automatically charged. In addition, if the customer suspects their credit card is being used fraudulently, they could end up cancelling it.

While subscription-based purchases offer the benefit of continuous revenue, it is important to take into account local business practices and customer habits. In Taiwan, subscription-based purchasing services are not yet well established. Therefore, it is important to clearly explain the following two points on an e-commerce site:

• A subscription means products are delivered regularly.
  
• When each regular shipment is made, the fee will be automatically charged to the customer's credit card.
  

Return and exchange policies

In both Taiwan and Japan, customers have the right to return items and receive a refund if they change their minds within seven days of receiving a product purchased online.

However, Taiwanese customers tend to be more comfortable making returns than their Japanese counterparts. As a result, it's important for businesses to clearly outline their return and exchange policies in advance and establish a simplified process for handling customer inquiries and requests. Establishing a system that effectively manages the following key points is important for maintaining customer satisfaction and trust:

• Set up a dedicated page for smooth returns and exchange requests.
  
• Ensure customer service is available in the local language so communication is clear.
  
• Set different conditions (e.g. whether or not the customer pays for shipping) for each product and situation.
  

Local regulations

Businesses planning to conduct cross-border e-commerce with Taiwan should consider the copy on product labels and other materials. There are two key regulations to keep in mind: the Pharmaceutical Affairs Act and the Fair Trade Act.

The Pharmaceutical Affairs Act regulates the sale of cosmetics, health equipment, pharmaceuticals and health foods, such as supplements. Businesses must be familiar with this law, as it prohibits claims about the treatment or cure of diseases, misleading expressions such as medical advice or exaggerated claims about efficacy. Businesses that do not comply with the Pharmaceutical Affairs Act will be reprimanded for these illegal actions.

The Fair Trade Act prohibits businesses from engaging in false or misleading advertising or offering excessive rewards when selling products or services.

Issues related to these acts are often reported in the Taiwanese media. Being criticised in the media for involvement in a scandal could damage a business's brand image, causing it to lose customer trust. Japanese businesses should take care when conducting cross-border e-commerce for the Taiwan market.

Businesses can also consult with experts for advice on product labelling and phrasing to ensure compliance with Taiwan's legal landscape.

Adapting to Taiwanese trends and culture for cross-border e-commerce

In this article, we explored the cross-border e-commerce market in Taiwan and highlighted key considerations for Japanese businesses aiming for success – including market size, unique characteristics and important logistical and operational points.

Beyond business, Taiwan and Japan share strong cultural ties. Taiwan consistently ranks among the top Asian countries for inbound travel to Japan and shows a high level of interest in Japanese brands and products. These cultural connections create a favourable environment for cross-border e-commerce and help drive demand from Taiwanese customers.

To succeed in cross-border e-commerce targeting Taiwan, it's important to understand the local e-commerce landscape. This includes recognising the preferences and buying habits of Taiwanese customers – particularly the digital native generation – and effectively promoting uniquely Japanese products. Offering familiar and trusted payment options is key to delivering a positive customer experience. In addition to supporting credit cards, businesses should also ensure compatibility with other widely used local payment methods to meet customer expectations.

Stripe offers a wide range of functions to support the efficient operation of payment services, including the introduction of cashless payments, such as credit card payments, information processing and revenue management. For example, Stripe Checkout supports more than 30 languages and more than 135 currencies and can be used to refine and simplify the payment pages of cross-border e-commerce sites. This also makes it possible to provide customers with a smooth and pleasant payment experience, which in turn leads to an increase in the purchase completion rate.