As social media use has increased, social commerce, which involves introducing and selling products on platforms such as Instagram and TikTok, has been gaining popularity in Japan. This sales method, which is different from conventional ecommerce sites, is being used as a new sales channel for sole proprietors and small and medium-sized enterprises.

This article will explain the types of social marketing, its advantages and disadvantages, the market size in Japan, and case studies of successful examples.

What’s in this article?

• What is social commerce?
  
• Social commerce market size
  
• Social commerce models
  
• Social media services used in social commerce
  
• Advantages of social commerce
  
• Disadvantages of social commerce
  
• Examples of successful social commerce
  
• How to introduce social commerce
  
• How Stripe Payment Links can help
  

What is social commerce?

Social commerce combines social media and ecommerce. It refers to platforms that use social networking services to promote and sell products and services. A key feature is its ability to attract the interest of users through interactions and posts on social media, hopefully inspiring them to make a purchase.

Differences from ecommerce

With a typical ecommerce site, customers search and compare products and then purchase the ones they want. In contrast, social commerce aims to encourage users to discover products based on social media posts, videos, and live streams. The posts include product information and purchase links that make it possible for users to buy products immediately.

Although social media can be used to attract customers and funnel them to ecommerce sites, the actual purchase process is carried out on the ecommerce site itself. In social commerce, payment can sometimes happen right there within the social media app.

Social commerce market size

Accurate data for the market size of social commerce in Japan is still limited, but it’s possible to roughly estimate its size by looking at the growth of the overall ecommerce market and the usage rate of social media.

According to the Ministry of Economy, Trade and Industry’s survey of the ecommerce market in FY2023, the size of Japan’s B2C ecommerce market was approximately ¥20.7 trillion in 2021, approximately ¥22.7 trillion in 2022, and approximately ¥24.8 trillion in 2023, indicating a strong growth trend.

Official market size data for social commerce isn’t available. Assuming that social commerce accounts for 2%–3% of all ecommerce sales, the estimated market size is ¥500–¥700 billion. Even viewed conservatively, the market size is significant, with definite room for growth.

Social commerce models

There are several models of social commerce, each with its own methods and characteristics. The model you select should match the products your company sells and the customers you’re targeting.

Social media model

This model uses social media posts and profiles to introduce products and drive purchases. Social commerce uses the shopping functions that are integrated into social media apps. Increasingly, payment links are also being used to complete sales. Because you can start selling easily without having to build a full ecommerce site, this model is widely used by independent sellers and small businesses.

Recommendation model

Before buying a product, customers often check online feedback and reviews. When purchasing behavior is influenced by social media posts and positive reviews like, “I'm glad I bought this,” it’s classified as the recommendation model.

C2C model

In the consumer-to-consumer (C2C) model, one person sells products to other people through social networking services and flea market apps. Mercari and Rakuma are examples of C2C platforms.

KOL model

In the key opinion leader (KOL) model, an individual with expertise and significant influence strongly impacts the purchasing behavior of their followers. In Japan, social commerce that’s centered on influencers falls in this category. When a company collaborates with KOLs for product introductions and reviews, the claims made about its products may be seen by followers as more reliable and trustworthy.

Live commerce model

The live commerce model is a method of selling products by introducing them in real time on live streams. You can communicate the appeal of the products in an entertaining way while interacting with viewers.

Social media services used in social commerce

Let’s look at the main social media platforms that are currently used in Japan.

Instagram

Because Instagram is focused on photos and videos, it’s well suited for promoting visually appealing products, such as cosmetics and clothing. When you add shopping tags to your posts and stories, you enable users to navigate to product pages with a single tap. It’s easy to curate your company’s image on Instagram, making it a powerful platform for branding.

TikTok

TikTok is a video social media app that’s popular with younger audiences. It’s characterized by a flow that goes from casual posts to product introduction to purchase process. TikTok Shop, which launched in Japan on June 30, 2025, allows users to purchase products while watching short videos and live streams on the TikTok app.

Facebook

Compared to Instagram and TikTok, Facebook’s users are typically older. Many of the posts are practical and emphasize interpersonal relationships, making it well suited for business.

You can run closed, community-based sales using Facebook Groups, or you can sell products on your page using the Facebook Shops function.

LINE

Although LINE is primarily recognized as a messaging app rather than a social media platform, it has been used for social commerce in Japan due to its widespread user base. Through official LINE accounts, businesses can deliver product information and coupons directly to users. Additionally, by implementing the “Lineup” feature, even companies without an ecommerce site can easily set up a shop within LINE and sell products directly.

Advantages of social commerce

Social commerce allows businesses to not only expand their sales channels and methods, but they can also build trust with customers by meeting them where they are on social media. Let’s take a look at the specific advantages social commerce has.

Makes low-cost selling possible

Social commerce requires very little initial investment, saving you money on advertising and website creation. Using posts and stories, your business can introduce products for free and appeal to followers and viewers in a natural way.

Business without an ecommerce site is possible

Using social media platforms such as Instagram, TikTok, LINE, or Facebook, and combining them with payment link services, it’s possible to sell products without having an ecommerce site. For example, Instagram Shop makes it possible to easily start selling simply by pasting payment links into posts and DMs, eliminating the need to integrate specialized cart systems and inventory management tools.

Simple purchase flow reduces cart abandonment

In social commerce, businesses can take advantage of the moment when a user sees a post and becomes interested in a product, facilitating an immediate purchase. By integrating product introduction with a clear path to purchase, businesses can reduce the risk of cart abandonment and improve their conversion rates.

Disadvantages of social commerce

While social commerce does offer many advantages, there are also some drawbacks to keep in mind. Be sure to understand the full picture before you start using social commerce.

Frequent updates

To succeed at selling on social media, the seller must post regularly, share stories, and do live streams. It’s easy for posts to become buried in a feed, so sellers should make their content stand out and consistently post with eye-catching images and videos, as well as other attention-grabbing content.

Efforts to get noticed and be found

On social media, it’s not always easy for brands or products to be found through searches. If an account has few followers and low engagement, it might take time and work to get noticed. Sellers might need to fine-tune their content, gauge the timing of their posts, and try different methods of communicating with their users.

External payment methods

On TikTok Shop and some other social platforms, users can complete payments within the app while watching videos or live streams. But some platforms still rely on external payment links that take users to a separate page, such as an ecommerce site. In these cases, take care to reduce the likelihood that customers will abandon a purchase due to a poor user experience or too few payment methods. Ensure any linked pages are designed appropriately, load quickly, and support credit card payments and Konbini payments, which are popular in Japan.

Examples of successful social commerce

Let’s take a look at some examples of successful social commerce in Japan.

NITORI

NITORI, known for the catchphrase, “More than you paid for,” is Japan’s largest furniture and interior goods chain store. By handling everything from planning to manufacturing and sales, the company is able to offer high-quality products at low prices and operate more than 700 stores across Japan.

In recent years, NITORI has begun focusing on online sales and the digital domain, using social media to live stream sales promotions. A prime example of this is NITORI LIVE, which are live commerce events on the company’s website. By announcing broadcasts and inviting viewers through its official Instagram account, NITORI successfully acquires viewers using social media integration.

Mitsui Shopping Park

Mitsui Shopping Park, operated by the real estate development company Mitsui Fudosan, is a large commercial complex that includes LaLaport and Mitsui Outlet Park. Its goal is to provide a shopping experience that transcends the boundaries of its physical facilities, and in recent years the company has been promoting initiatives that integrate online and real-world experiences.

For example, using social media and live streaming, Mitsui Shopping Park & ​​Mall allows customers the chance to browse and purchase products they may have missed out on in the store. As staff and influencers introduce products on the live stream, viewers can ask questions in the comments, and then follow the links within the stream to make a purchase.

UNIQLO

UNIQLO is a Japanese fashion brand that values customer feedback and uses it to develop and improve its products. UNIQLO’s owner, the Fast Retailing Group, is focused on global expansion, managing in-house everything from planning and production to logistics and sales. Committed to sustainability, UNIQLO aims to provide simple, high-quality clothing that lasts under the motto, “The power of clothing is the power of society.”

UNIQLO frequently updates Instagram with photos and videos that allow users to buy tagged products on its website.

With UNIQLO’s outfit discovery app, StyleHint, users can take photos of items they already own or upload images of their favorite items found on social media and the app will find outfit ideas to match that style. The app will display UNIQLO products similar to the uploaded images, and users can purchase the ones they like.

How to introduce social commerce

Adding social commerce to traditional ecommerce can help your business find new customer segments and expand sales opportunities. To get started, choose the social media platforms that suit your company’s products and target demographic.

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