Cross-border ecommerce refers to the online sale of products to customers in different countries. With inbound tourism on the rise in Japan, overseas customers are growing increasingly familiar with Japanese products. This is an opportunity for businesses in Japan engaged in cross-border ecommerce to expand. The United States (US), in particular, is a target market that shouldn’t be overlooked by cross-border ecommerce businesses.

In this article, we’ll go over the key points that businesses in Japan should keep in mind when conducting cross-border ecommerce with customers in the US. This includes the size and characteristics of the US market, as well as the payment methods to consider offering.

What’s in this article?

• How big is the United States’ ecommerce market?　
  
• How can you target US customers in cross-border ecommerce?
  
• Which payment methods should you use for cross-border ecommerce to the US?
  
• What shipping methods are available for cross-border ecommerce to the US?
  
• What to know about cross-border ecommerce to the US
  
• How to meet US customers’ needs through cross-border ecommerce
  

How big is the United States’ ecommerce market?　

According to data from the US Census Bureau, the United States’ ecommerce sales grew to over $1 trillion in 2024, an 8.1% increase from the previous year. Additionally, ecommerce sales accounted for about 16.4% of total sales in the country.

The ecommerce market grew rapidly in 2020 due to the closure of many retail stores during the COVID-19 pandemic. Subsequently, in 2021, the US’ ecommerce market share was about 14%. By 2023, it had reached the 15% range.

According to estimates from the Ministry of Economy, Trade, and Industry (METI), the US’ ecommerce market share is expected to continue to rise gradually, potentially exceeding 20% by 2027.

Why has ecommerce grown in the US?

In 2020, many people stopped shopping at brick-and-mortar stores due to the COVID-19 pandemic—online shopping via ecommerce malls and other sites became more common as physical businesses closed. Another reason for the growth of ecommerce is inflation. As prices have gone up, there has been a growing demand for ecommerce sites that allow customers to purchase products at lower prices than in physical stores.

Why do US customers use cross-border ecommerce?

US customers engage in cross-border ecommerce so they can buy things at relatively low prices and get unique items that are not available in their own country.

For example, customers in the US who are interested in certain subcultures in Japan, such as anime or gaming, might want to buy official goods related to their hobbies, but they might not be able to get them easily in their own country, or the items might be too expensive. Cross-border ecommerce allows customers to potentially get lower prices than in the US, as well as official, limited-edition goods that are only available in Japan.

Now that the pandemic has passed, many people in the US are traveling to Japan, resulting in a revitalization of tourism. It’s not uncommon for those travelers to discover products in Japan that they enjoy and then return to the US and purchase them again online. In this way, cross-border ecommerce is growing along with inbound tourism.

Unique cultural characteristics of US ecommerce

Ecommerce sites in the US regularly hold sales and promotional campaigns that are unique to US culture. Just as businesses in Japan have New Year’s sales and Golden Week sales, US businesses often have promotions that coincide with their holidays, such as Black Friday, Cyber Monday, Independence Day, and Memorial Day.

Also similar to Japan, the US has a strong gift-giving culture. Birthdays, weddings, graduations, baby showers, and other special occasions are often celebrated with gifts.

It’s therefore important for businesses in Japan that are considering expanding their cross-border ecommerce to the US to deepen their knowledge of the country, including common customs and cultural norms.

Major US ecommerce businesses

According to the data from METI, the top ecommerce businesses in the US are Amazon, Walmart, Apple, and eBay. Amazon has the highest share of the market at 39.6%, but since third-party businesses account for about two-thirds of Amazon’s market share, it’s likely that Amazon’s own share is really about one-third of that figure.

Some of these companies allow businesses in Japan to open stores on their platforms for the purpose of cross-border ecommerce. We’ll look at how this works. Please note, however, that the methods for creating a storefront, the documents needed, and other requirements are different for each ecommerce site. If you plan to use a site such as Amazon or Walmart for cross-border ecommerce, be sure to review that company’s information about opening a storefront in advance.

Amazon

Thanks to Amazon’s partnership with Japan External Trade Organization (JETRO), it is simple for businesses in Japan to conduct cross-border ecommerce on Amazon.

Walmart

Walmart is a very popular brick-and-mortar store chain in the US, and its online sales have increased significantly since the pandemic began. Businesses in Japan are also able to register and sell goods on Walmart.com, but because the site is not available in Japanese, sellers need to employ bilingual Japanese-English staff or a translation agency to pursue cross-border ecommerce.

eBay

Just as Yahoo! Auctions is the leading auction site for Japan, eBay is the leading auction site for the US. eBay is popular in Japan, as well, and is used by many customers looking for products from outside of Japan. Businesses in Japan can also use the site to conduct cross-border ecommerce with customers in the US. For individual entrepreneurs who are new to cross-border ecommerce, eBay offers sales support, as well as manuals and e-learning courses on cross-border ecommerce that are in Japanese.

How can you target US customers in cross-border ecommerce?

There are a variety of ways for businesses in Japan to launch cross-border ecommerce operations in the US. Here are a few common methods.

Creating an ecommerce site from scratch

One option for conducting cross-border ecommerce in the US is to set up and use your own ecommerce site. When building and operating an ecommerce site, it is a good idea to use a payment platform that is widely accepted in the US and offers the most common payment methods.

Creating a storefront on a US ecommerce site

Another method of conducting cross-border ecommerce is to use an existing ecommerce site, such as Amazon or Walmart. This is probably the easiest way to get started with cross-border ecommerce in the US.

Wholesaling to US retailers and selling from the retailers’ commerce sites

Alternatively, you can promote your products to US retailers first, and if they like them, the retailers will stock them and sell them through their own ecommerce sites. As a cross-border ecommerce method, this is relatively difficult, so it is important to make sure the products you plan to sell are already well-known in the US.

Which payment methods should you use for cross-border ecommerce to the US?

The three main payment methods used in ecommerce in the US are:

• Credit cards
  
• Debit cards
  
• PayPal
  

Credit cards are the most popular payment method in the US, and ecommerce sites are no exception. Additionally, cashless payments via PayPal are a popular option on many ecommerce sites. While various other payment methods are available, it’s a good idea to support these three options at the very least.

Stripe offers a wide range of features to support the efficient operation of payment services, including information processing, revenue management, and the introduction of cashless payments, such as credit cards. Stripe Checkout supports more than 30 languages and more than 135 currencies, and can be used to streamline and simplify the payment pages of cross-border ecommerce sites. It also makes it possible to provide customers with a smooth and enjoyable payment experience, which, in turn, can increase conversion rates.

What shipping methods are available for cross-border ecommerce to the US?

Businesses in Japan have two main options for shipping products to customers in the US: shipping from a warehouse in Japan or shipping from a warehouse in the US.

Shipping from a warehouse in Japan

If the ecommerce site you use is already compatible with cross-border ecommerce and can accept orders from the US, you can fulfill orders to overseas customers by shipping your inventory directly from a warehouse you manage in Japan. When sending goods from Japan to overseas destinations, it is a good idea to use a delivery service that offers a global tracking service and good insurance coverage, such as EMS international mail.

However, international shipping tends to be more expensive and slower than domestic shipping. For this reason, it is important to set delivery charges that are not too high for customers, while also balancing your business’s revenue and expenditures. The key is to provide high-quality products and high-level ecommerce services that will counterbalance any delivery fees you have to charge.

Shipping from a warehouse in the US

Products from Japan can be pre-positioned in a US warehouse and then shipped from that warehouse when a customer in the US places an order. That way, there is no need for the business to rush products overseas whenever a customer buys something—the goods are already there. The time from order to delivery also tends to be faster than shipping directly from Japan, and the shipping costs charged to the customer are typically lower. All of these factors can contribute to higher customer satisfaction.

However, businesses should note that if a large amount of inventory is held in the US and does not sell as well as expected, it will have to be returned to Japan or disposed of. When storing inventory, it’s also very important to ensure thorough quality control, such as using clean, hygienic warehouses that have air conditioning.

What to know about cross-border ecommerce to the US

Importing to the US and customs duties

When importing or exporting goods across national borders, cross-border ecommerce businesses are subject to customs duties. Appropriate procedures are necessary when exporting products from Japan to ensure that the customs duties incurred at the time of importation are handled smoothly. Customs duties are set for each item, and are classified and clarified using the globally-recognized HS code system. In addition, tariffs—a specific type of customs duties—are applied; the rate differs depending on the country the trading partner is from.

Customs duties, including tariffs, are important elements of cross-border ecommerce that businesses in Japan must be aware of before selling to the US.

Also, Japan’s consumption tax is applied to products and services consumed within Japan, so it isn’t applied to sales abroad. Business owners who sell products to overseas customers via cross-border ecommerce need to make sure they understand consumption tax as it relates to ecommerce. With this knowledge, and by following the appropriate procedures, business owners can reduce the amount of consumption tax they pay.

Systems and institutions related to selling products in the US

Here are a few important laws and institutions that you should familiarize yourself with before operating cross-border ecommerce in the US. Be sure to consult with a specialist to learn more about these items, as they can have an impact on how you conduct business with customers in the US:

• Consumer protection: Federal Trade Commission (FTC) Act, Consumer Product Safety Act (CPSA)

• Intellectual property protection: Copyright law, trademark law, patent law

• Product labeling: Fair Packaging and Labeling Act (FPLA), Nutrition Labeling and Education Act (NLEA)

• Electronic commerce-related: Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) Act, Children’s Online Privacy Protection Act (COPPA)

• Privacy and data protection: California Consumer Privacy Act (CCPA )

• Environment-related issues: Toxic Substances Control Act (TSCA), Clean Air Act (CAA)

• Consideration for people with disabilities: Americans with Disabilities Act (ADA)

• Food products and pharmaceuticals: Food and Drug Administration (FDA)

• Toys and products for children: Consumer Product Safety Commission (CPSC)

• Electrical devices: Underwriters Laboratories (UL)

How to meet US customers’ needs through cross-border ecommerce

For businesses in Japan looking to expand their reach, the US is a target country that cannot be overlooked. Its value is due to a number of factors, including the size of its ecommerce market and US customers’ increased awareness of products in Japan.

For cross-border ecommerce aimed at US customers, businesses in Japan must provide flexible services that support local customers with diverse cultural values. They also need to provide services in English. Additionally, local market research is important for cross-border ecommerce to meet the needs of US customers. It is a good idea to conduct extensive research on the current market, including trends, and determine whether your business’s products are suitable for US customers. This information will help you better explore the possibility of expanding and growing your business.