The download sales business model provides digital content over the internet, including music, videos, and ebooks. Because businesses don’t have to ship physical inventory, many use this model—from individuals with side gigs to fully developed companies.

In recent years, Japan’s digital ecommerce market has steadily grown, and this is expected to continue. In addition, interest in download sales has also grown. This article explains download sales—including its systems, characteristics, and starting points—within the current Japanese market.

What’s in this article?

• What are download sales?
  
• Characteristics of download sales
  
• Types of content sold as downloads
  
• How to start selling downloads in Japan
  
• How to create a download sales site
  
• Key points for download sales in Japan
  
• How Stripe Checkout can help
  

What are download sales?

Download sales are a sales model where businesses deliver digital content—such as music, videos, ebooks, and software—directly to customers’ devices over the internet. Unlike regular ecommerce sales involving physical goods, download sales do not require inventory management and shipping because data is the product.

According to the Ministry of Economy, Trade and Industry’s Market Survey on Electronic Commerce for Fiscal Year 2024, the size of Japan’s digital B2C ecommerce market in 2024 was almost ¥2.7 trillion. This represents a 1.02% increase from the previous year. During the COVID-19 pandemic, service-based ecommerce—such as travel and ticket sales—saw a significant decline. However, the digital product sector continued to perform without a downturn. Because digital products can be accessed from home, download sales are relatively unaffected by changes in the external environment.

Of the sectors within download sales, the online game market accounts for the largest share. However, it saw a slight decrease from the previous year. Meanwhile, paid music streaming—which was up nearly 6% year-on-year—and paid video streaming—up over 3% year-on-year—showed growth. On the other hand, digital publishing maintained its market size, increasing almost 0.6% year-on-year.

Characteristics of download sales

Download sales are distinct from those of general ecommerce, which involve physical goods. The most important characteristics of download sales are immediacy, low-cost structure, and ability to grow.

Immediate product delivery

A major feature of digital downloads is that the customer can start using the product immediately after buying it. Once they complete the payment, the customer can download the file or access the content. This sales method is well suited for products with immediate demand, such as digital materials and templates.

Low-cost structure

Inventory is not a concern with download sales. Businesses don’t need to warehouse physical products or hire workers to package and ship products. This low initial overhead makes it easy to get started with download sales. Individuals can also use this business model for small-scale side businesses. For larger companies, download sales provide the benefit of reducing logistics costs and inventory risks.

Repeated sales

Once the data for downloadable products is created, it can be sold multiple times. For example, products such as design templates, online course materials, and stock photos can be sold repeatedly to multiple customers. Businesses can create an ongoing revenue stream with the right marketing strategies and updates.

Download sales are a highly flexible business model that is suitable for both individuals and companies.

Types of content sold as downloads

With download sales, the product is not a physical item—it is the data itself. A wide variety of content types are available digitally, and this sales method is used across various business types, from individuals to large companies.

Ebooks and digital teaching materials

Ebooks, educational materials in portable document format (PDF), and online course materials are content types well suited to being sold as digital downloads. These materials span a range of genres, including specialized knowledge, language learning, and exam preparation.

Music and audio content

Music tracks, sound effects, narration materials, and clips for podcast audio are just some examples of this kind of content. Background music for content creators and commercially usable audio sources have stable demand.

Video content

Customers can also purchase video content via download. In highly specialized fields, a consistent level of demand can be expected.

Design materials and templates

These include illustrations, photographs, web design templates, and presentation templates. They are often in-demand downloadable content.

Software and app-related data

Programs, plugins, extensions, and configuration files are also sold as digital downloads.

How to start selling downloads in Japan

There are several ways to start selling digital downloads. It is best to choose the most suitable method based on the scale of your business and budget.

Use a specialized platform

The most convenient option is to use a platform that is specialized in selling digital content. By using a specialized site dedicated to data sales, you can start selling relatively quickly. Create an account, and upload your product data. Because payment functionality and download management are built in, you can get started without technical knowledge.

For example, Note, Inc., is a popular service for content creators to sell article content and various digital downloads, such as videos, audio, photos, comics, and templates. DLsite handles diverse content, such as fan-made comics (doujinshi), digital games, and ebooks. It is well known in Japan as a platform where creators publish and sell their works.

These dedicated services are ideal for individuals getting started with download sales or those offering trial sales.

Sell on an ecommerce platform

Another method is to use a general-purpose ecommerce platform. These platforms are characterized by their ability to handle both physical and digital products. They offer help with branding and the creation of highly customizable online shops.

Base.com and STORES, Inc., are two services in Japan for creating online shops. They offer free plans, which makes it relatively easy for beginners to start selling. However, the business owner must handle the marketing required to attract customers. Thus, this option is most suitable for those who are serious about download sales as a side business or those who want to develop their own brand.

Create an in-house ecommerce site

If you want to expand your download sales, creating an ecommerce site might be the best choice. Because there is freedom in designing the system, you can easily incorporate your own unique sales flow, membership system, and subscription plans.

On the other hand, development and operation will incur costs and require specialized knowledge. This option is most appropriate for those who want to nurture the business over the long term.

How to create a download sales site

You can build a site for download sales in a variety of ways. The method you choose is highly dependent on the business’s purpose and ability to scale. Here is the general flow of the most fundamental steps.

Decide on content to sell

First, decide what products you want to sell, such as teaching materials in PDF format, videos, images, or design templates. The best way to sell your content will vary.

At this stage, you should clarify technical aspects—such as file format and size—as well as other conditions such as terms of use. By clarifying these matters in advance, you can minimize the likelihood of issues arising after sales.

Select the sales method

Once you decide what to sell, the next step is to consider how to sell it.

There are three primary sales methods:

• Specialized platforms
  
• General ecommerce platforms
  
• In-house ecommerce sites
  

Each has its own characteristics, so choose the most suitable one based on factors such as products, costs, and business scale.

Set up payments and downloads

For digital downloads, it is important to configure the system so files can be downloaded immediately after payment.

In Japan, the following payment methods are commonly used:

• Credit card payments
  
• Convenience store (Konbini) payments
  
• Bank transfers
  
• Mobile payments
  
• Various online payments (e.g., PayPay, Rakuten Pay)
  

Payment methods are one of the key factors that can also lead to increased sales in ecommerce. Find out what payment methods your customers want, and prioritize implementing them.

Create product pages

To get customers to purchase your products, it’s important to create compelling product pages that effectively convey their appeal. The clarity of the description is especially important for digital products because the customer can’t check the contents before making the purchase.

When creating product pages, keep the following points in mind:

• Details and features of the product
  
• Specific examples of how and where it can be used
  
• Target customers (e.g., beginners, experts)
  
• Sample images and demo videos
  

When potential customers can clearly visualize the contents and how to use them, they can make the purchase with confidence.

Release after testing

Before releasing your product, conduct test purchases to verify that payment and download functions work correctly. If there are no problems, you can release the product and start acquiring customers.

Key points for download sales in Japan

Download sales are a relatively easy business to start, but there are also some points to note that are specific to digital products.

Risks with sharing or illegal copies

After a customer purchases a digital product, it can be easy to duplicate. Unlike with physical products, this cannot be easily managed.

To minimize risk, it is important to clearly define the terms of use in advance, including whether the following are allowed:

• Redistribution or sharing
  
• Commercial use
  
• Modifications or alterations
  

You can also add watermarks or limit the number of downloads as needed. It can be challenging to prevent risks, but you can minimize issues by establishing clear policies.

Support services

Digital products often generate inquiries after purchase, including proper use and system requirements. With software, templates, and video tutorials, issues can arise, depending on the customer’s operating environment and skill level.

Including the following support details on the sales page and in the terms of service can help prevent issues after purchase:

• Supported operating system (OS) and OS versions
  
• Recommended operating environment
  
• Support type (e.g., email or telephone support)
  
• Return policy
  

When conducting download sales within Japan, you must also display the disclosures required by the Specified Commercial Transactions Act. This includes clearly displaying the company’s information and contact details, as well as return and refund policies. Even digital products are subject to this requirement, so compliance is important.

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