Japan’s domestic market continues to experience stagnant growth due to the country’s declining birthrate and aging population. However, overseas sales and distribution have been garnering attention as a means of countering this issue. Japanese products are particularly trusted for their quality and safety, and demand for them via overseas online shopping sites is growing every year.

In this article, we’ll go over high-profile markets as well as some recommended ecommerce platforms and online shopping sites for Japanese businesses interested in starting overseas sales.

What’s in this article?

• What are overseas sales?
  
• Reasons overseas sales are garnering attention in Japan
  
• Target countries and regions for overseas sales
  
• How to start overseas sales from Japan
  
• Popular overseas ecommerce sites
  
• Ecommerce platforms that let you create an online shop and sell overseas
  
• Points to consider for overseas sales
  
• Strategy and system development for overseas sales
  

What are overseas sales?

“Overseas sales” is a general term used for various types of businesses as well as ways in which Japanese businesses provide their products and services to markets outside Japan. This includes both straightforward exports and business models such as local production, franchise expansion, and licensing. There are a wide variety of transaction methods involved in overseas sales, from offline sales at physical stores to online transactions via the Internet (i.e., cross-border ecommerce).

Overseas sales channels are also diverse and can include direct sales to general customers, wholesale to local retailers, indirect sales through distributors, and licensing to specific regions. The appropriate method should be selected according to the business’s scale and objectives.

Reasons overseas sales are garnering attention in Japan

Why are overseas sales garnering attention in Japan right now? Economic and social structure changes are the biggest factors.

Sluggish growth in the Japanese domestic market

Since the mid-1980s, Japan’s birth rate has been steadily declining. As a result, the number of domestic customers has declined, and overall market growth has slowed. This has become a serious social issue.

Companies aiming for sustainable growth must now focus on overseas markets that have better growth potential.

Expansion of overseas demand

In contrast to Japan, the middle classes in China and Southeast Asia have expanded significantly in recent years, with purchasing power increasing greatly.

At the same time, customers in these regions have developed a high opinion of Japanese products due to the products’ quality and reliability. There has consequently been strong demand for Japan to export goods to these regions.

In addition, the Middle East is growing as an export destination for Japan and is a market that shouldn’t be overlooked by overseas businesses.

Improved price competitiveness due to the weak yen

Weakness of the yen is a major factor in increasing the price competitiveness of Japanese products in overseas markets. For customers purchasing in foreign currencies, Japanese products appear relatively inexpensive, which increases customers’ willingness to buy.

In addition, foreign exchange gains can be a significant opportunity for companies to increase profits. For example, if your company manufactures or purchases products in Japanese yen but then sells them in a foreign currency, the more the yen depreciates, the higher the sales amount after currency conversion—ultimately resulting in increased profits.

Target countries and regions for overseas sales

Japanese businesses interested in overseas sales need to think about which countries and regions to target.

Let’s look at the countries that are most promising for overseas sales according to fiscal year 2024 export data. These are the regions expected to provide growth in the future.

The United States

According to the Ministry of Finance’s trade statistics, the United States was Japan’s largest export destination in FY 2024, with exports totaling just over 21 trillion yen. The US is one of Japan’s largest trade partners, and its huge market size and overall economic growth have historically supported Japanese exports.

The main goods Japan exports to the US include automobiles, machinery products, and electronic components. In particular, the automotive sector accounts for a large share of Japan’s exports to the US, with high-quality Japanese cars typically highly regarded in the American market. Machinery and electronic components also play an important role in supporting local industries and technological innovation.

The Ministry of Finance’s FY 2024 data showed a steady growth rate of 5.1% as compared to FY 2023, underscoring the historically strong economic relationship between Japan and the US, and the high competitiveness of Japanese products.

China

When looking at Japan’s export volume for FY 2024, China ranked second after the US, with an estimated export value of nearly 19 trillion yen. It is expected that China, which is a massive market, will continue to be a key player for Japan in the future. A wide range of Japanese products are highly popular among Chinese customers, including cosmetics, clothing, daily necessities, digital products, food, and home appliances—all due to their quality and brand power.

The Chinese market is attractive not only for its enormous size but also for its growth potential. It saw a stable growth rate of 6.2% from FY 2023 to FY 2024, and the market environment for Japanese products is expected to remain favorable in the future.

However, entering the Chinese market also involves a variety of challenges, such as complex regulations, business practices, and intense competition. In order to overcome these issues, it is important for businesses to gain a deeper understanding of the local culture and customer needs, and to develop appropriate marketing strategies.

The Association of Southeast Asian Nations (ASEAN)

In recent years, exports from Japan to major ASEAN countries—such as Thailand, Singapore, Vietnam, Malaysia, and Indonesia—have increased significantly, and these countries have become an important part of the Japanese economy. Per the Ministry of Finance’s trade statistics, exports to all of the ASEAN nations reached just over 15 trillion yen in FY 2024. This represents a large percentage of Japan’s total exports, demonstrating that the ASEAN market is extremely important for the global strategy of Japanese businesses.

Singapore, in particular, maintained a high growth rate of 14.2% from FY 2023 to FY 2024, and it is leading Japan’s export expansion in the ASEAN region. Singapore has advanced logistics infrastructure and strong financial functions, and also serves as a gateway to the ASEAN region. As a result, it is becoming increasingly important both as a market in its own right and as a re-export hub to neighboring countries.

The ASEAN nations are positioned as one of Japan’s most promising export markets due to a combination of factors, including economic growth, a steadily expanding middle class, a large population of younger customers, and progress in regional integration. It is expected that economic cooperation between Japan and ASEAN countries will deepen and that mutually beneficial relations will continue to develop in the future.

The Middle East

The Middle East is establishing itself as an important export market for Japan. Although absolute export figures remain low compared to major trade partners such as the United States and China, exports to the Middle East as a whole reached over 4 trillion yen in FY 2024, indicating enormous potential.

Of particular note is the growth rate of export value in FY 2024 compared to FY 2023. The United Arab Emirates (UAE) led the expansion of exports to the Middle East with an astonishing growth rate of 31.4% year over year (YoY). Following the UAE, Qatar showed the second highest growth rate of 25.8% growth. In addition, Oman recorded a growth rate of 19.0%, and there are signs that the country intends to strengthen its economic ties with Japan as it diversifies its economy.

In addition to the US, China, ASEAN countries, and the Middle East, Japan exports a significant amount of goods to South Korea, Taiwan, Hong Kong, Germany, India, Australia, Mexico, and the Netherlands. This illustrates the diversity of potential target countries for overseas sales.

How to start overseas sales from Japan

What are some of the ways to sell Japanese products overseas? Let’s explore some common methods.

An in-house global ecommerce site

This method involves creating a multilingual ecommerce site based in Japan and selling directly to individuals overseas. It is relatively easy to create a website by using platforms such as Shopify.

An overseas marketplace

This method involves selling products to local customers by opening stores on overseas ecommerce malls such as Amazon, Tmall, Shopee, and Lazada. In many cases, platforms provide customer acquisition, payment, and delivery services, which makes it easy to launch your overseas sales.

Proxy purchasing and forwarding services

With services such as Buyee, FROM JAPAN, and tenso.com, businesses can sell to overseas customers without making their existing ecommerce sites cross-border compatible. Adopting this system is relatively simple and can be achieved easily with very low initial investment.

Opening local stores or ecommerce sites

This is a comprehensive approach to expansion overseas. It involves establishing a corporation abroad and opening stores that are operated in the target country or ecommerce sites based there. Products tailored to local cultures and languages can be developed, which allows for the creation of brands that are deeply rooted in local communities.

Wholesale distribution

This is when products are sold through local retailers and distributors. For example, there are Japanese companies that have partnered with Costco to sell their products in its physical and online stores.

Franchising

This method involves providing licenses to local overseas businesses and having them develop stores under your company’s brand name. It is often used in the food and beverage industry as well as the beauty industry. This allows for brand expansion while minimizing the risk involved with opening new stores.

Overseas exhibitions and tradeshows

This selling method involves exhibiting products at trade shows held in regions such as the United States, China, and Southeast Asia as a way to establish contact with customers. The Japan External Trade Organization (JETRO) provides support to businesses participating in exhibitions and business meetings, so it is a good idea to take advantage of this service.

Each of these sales methods has its own advantages and disadvantages. Carefully consider each and select the sales method that suits your business model.

Popular overseas ecommerce sites

If you want to sell products overseas, it is important to know which ecommerce sites are popular. It can be a good first step to select an online shopping site that offers popular services or use a platform that is considered standard among overseas customers.

Here are some of the most recommended sites.

Amazon

The appeal of Amazon lies in its overwhelming ability to attract customers; it allows any business to reach a global audience simply by opening a store.

In addition, the fulfillment service provided by Amazon, known as Fulfillment by Amazon (FBA), greatly reduces logistics issues associated with overseas sales. With FBA, Amazon handles all steps of the sale, including product storage, packaging, shipping, and even customer service. This allows businesses to focus on their sales strategies without having to worry about complicated international logistics arrangements or complying with regulations that might differ from country to country. By using FBA, any business can quickly and reliably deliver products to its customers around the world, resulting in improved customer satisfaction.

Because Amazon offers multilingual support and a variety of payment methods, it creates an environment where overseas customers can make their purchases with peace of mind.

eBay

eBay is an online marketplace that enjoys strong popularity around the world, partly thanks to the many niche products that are available on the site. Because there are people reselling from countries around the world, there are unique products on eBay that cannot be found on other sites such as Amazon.

Both individual and corporate plans are available with eBay, and they can be selected based on the scale of your business and your sales strategy. Some options have no initial costs, which makes this platform easy to use for both sole proprietors and individuals who want to start selling overseas as a side gig.

Shopee

Shopee boasts an overwhelming market share in the rapidly growing Southeast Asian region. It offers delivery services to Singapore, Taiwan, Thailand, Malaysia, the Philippines, Vietnam, and Brazil.

There are no initial or ongoing costs, so businesses can start cross-border ecommerce sales with no risk. For those who are trying overseas sales for the first time, this cost-based advantage is likely to be significant.

As long as you meet the vendor requirements—regardless of whether you’re an individual seller or you own a company—you can use Shopee to open a store. You don’t need a corporate number or business registration. Shopee is therefore an excellent option for individuals who are looking for a simple way to start selling overseas or for companies that want to conduct test marketing on a small scale first before expanding their businesses.

Tmall Global

Tmall Global is an ecommerce platform that was created in 2014 by the Alibaba Group. It makes it possible for overseas companies to enter the Chinese market without creating a Chinese subsidiary or holding a sales license for China. Overseas companies can complete order and shipping operations domestically, and choose from two delivery methods to Chinese customers: direct shipping or bonded zone shipping, the latter of which is suitable for popular products.

By using bonded zone shipping, a business can store products locally in a warehouse until it receives an order and then dispatch the order from that warehouse. As such, the order doesn’t have to go through customs procedures. This is ideal for products that are expected to be shipped quickly.

Lazada

Lazada is a major ecommerce marketplace targeting Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, and it is also operated by the Alibaba Group. You can sell your products to those six countries from Japan simply by opening a global account.

The recommended sales categories on Lazada are beauty, health, toys, games, watches, sunglasses, and electronic devices.

Ecommerce platforms that let you create an online shop and sell overseas

Let’s take a look at several user-friendly platforms for businesses that want to build online shops to sell overseas.

Shopify

Shopify supports multiple languages and currencies, making it an ideal platform for cross-border ecommerce sales. Shopify has a wide range of apps that can be integrated, offering services such as delivery, translation, and social media sales. This means a high degree of flexibility. With comprehensive Japanese language support, Shopify is easy to use for a wide range of users, from beginners to experts.

Makeshop

Businesses can sell their products to overseas customers by using Makeshop to create an ecommerce site. The process for overseas orders, from receiving an order to shipping, is almost identical to domestic orders, which make implementation both easy and less costly. After an order is received, a Japanese company called Zig-Zag purchases the product on your company’s behalf and handles its shipping. However, it is important to note that the ecommerce site itself does not have a content translation function.

BASE

BASE is a service that makes it easy to start an online store, even for those who have found it difficult in the past for reasons such as cost, time constraints, or lack of necessary technology. Anyone can create an online store with BASE’s easy-to-implement payment functions, attractive design themes, transaction analysis tools, and other features necessary for operating an online shop.

Because BASE is so simple to operate, people who are involved in product planning, production, and manufacturing can handle sales in addition to creating the actual products.

In addition, by using the Overseas Sales Agency app, you can delegate the processing of your overseas orders to an agent. The app lets you sell your products without having to edit HTML or add tags. There is no need to create overseas packaging or determine international shipping costs or delivery options, as you’re only responsible for domestic shipping within Japan. Because the agent handles inquiries regarding orders and delivery, even people who are not proficient in English can sell overseas with peace of mind.

Points to consider for overseas sales

There are several things to keep in mind when selling overseas that are different from selling domestically. Here are the main considerations.

Import and export regulations and local laws

Depending on the country, regulations for food, pharmaceuticals, cosmetics, and electrical appliances can be stricter. For example, ingredient labels, warning labels, and safety certifications (e.g., Product Safety Electrical Appliance & Material Certification (PSE) or European Conformity (CE) labels) might be required. It is important to prepare trade documents such as invoices and certificates of origin correctly.

Depending on the products and the sales method, reselling overseas can expose your business to new regulations or risks. Be sure to check carefully before you decide to sell, and ensure that you are not violating any local laws.

Customs duties and taxes

Each country has different customs duties and value-added tax (VAT) rates, and in some cases these might be the responsibility of the customer. By displaying prices with clearly indicated customs duties, taxes, and local shipping costs, you can help reduce uncertainty among shoppers. Many countries include taxes when displaying prices, so it is important to be mindful of the pricing that is customary in the local market and not assume it is the same as in Japan.

Stripe Connect supports more than 135 currencies and 40 payment methods. By using Connect, purchases from various regions all over the world can be completed. With support for sales tax, VAT, and consumption tax in over 100 countries, you can seamlessly process payments online, through issued invoices, or in a physical store.

Language and cultural differences

It is important to keep in mind that relying too much on AI translation can lead to many problems, including incomplete or inappropriate product descriptions. Using clothing as an example, the sizing in Japan is different from overseas. A medium-sized t-shirt in Japan could be considered a size small outside Japan. Make sure to always use phrasing and terms that are appropriate for the cultural background of the customers.

Problems with shipping and refunds

When shipping overseas, certain problems are more likely to occur, such as packages not arriving because of internal infrastructure problems in the country you’re trying to deliver to. This means that it is important to integrate shipping methods that can be tracked and establish a clear refund policy.

Multilanguage customer support across different time zones

It is important to respond to inquiries from overseas users in their local language. Due to time differences, it can be difficult for staff in Japan to provide real-time support. Introducing chatbots and automated response emails—and devising creative ways to utilize them—is a must.

Strategy and system development for overseas sales

In order to successfully sell your products abroad, you need to thoroughly understand the differences between overseas sales and domestic sales.

Many administrative factors are involved in overseas sales, such as selecting distribution channels, building an ecommerce platform, and dealing with local logistics and payment methods. In particular, overseas online shopping sites require an operational structure that can manage account payments in many different currencies, handle taxes, and offer customer support that is available across multiple time zones.

Because expanding overseas requires so much preparation, it isn’t always easy. However, thorough preparation and choosing the right site or platform can create opportunities for significant sales growth. If you’re planning to expand your business, first make sure that you choose a sales method that is suited to your company’s product and target market. Then, you can gradually establish logistics, payment, and support systems. These are the first steps toward sustainable overseas sales.