Ever dreamed of opening your own online shop in Japan, or perhaps you are looking for an opportunity to start one but are clueless where to begin?
The online shopping market is growing quickly in Japan, so if you would like to transform your passion into a business and this is something you have always wanted to do, then get off your laptop and start reading this article. Let’s dive in!
1. Decide What Products You Want to Sell
The first step is deciding what products you want to sell. Think about what you love and are passionate about—something that excites you and that you believe in. For example, you might enjoy making handmade earrings, crochet stuffed toys, colorful keychains, personalized paintings, or unique Japanese items like traditional crafts or beautiful stationery or stickers and want to turn your hobby into a flourishing business.
Choosing specific products that you’re passionate about helps keep you motivated. Running an online shop involves a lot of work, and loving what you sell makes the process more enjoyable and rewarding. Plus, when customers see that you truly believe in your products, they’re more likely to connect with your brand and become repeat buyers. Consider pricing and how much profit you wish to earn if you actually pursue your dream of opening an online shop.
2. Invest in Quality Materials, But Don’t Overbuy
Once you’ve decided on what products you want to sell, the next step is to gather the materials you’ll need. Quality is key, as investing in good materials will ensure that your products not only look great but also hold up well, which is essential for building a loyal customer base. However, it’s important not to overbuy, especially when you’re just starting out, so you don’t lose money if things don’t go as planned. Begin by buying materials in small quantities to test the market without making a big hole in your pocket.
Some materials can even be bought in bulk from online shops such as Amazon, while others can be bought from local stores such as Daiso and Seria, where packaging materials and other essentials cost 100 yen per piece. These stores are great for getting your business off the ground without breaking the bank. As your shop grows, you can gradually increase your inventory and invest in more materials or look for a regular supplier.
Other reliable art supplies and craft materials stores in Japan are Sekaido, Tokyu Hands, Ito-Ya, Loft and Yuzawaya that have branches across the country.
Another thing to consider is buying a small printer since you will, for sure, spend a lot of time printing invoices, inventory lists, receipts, and postage slips or shipping labels when you start receiving orders.
3. Make a Few Samples
Before launching your online shop, create a few samples of your products. Samples serve several important purposes: they allow you to test the quality and durability of your items, gather feedback from potential customers, and use them for marketing purposes and improving your products.
When making samples, think about whether you can reproduce the item 100 times without sacrificing its quality. Also, consider how long it takes to create one item. If it is a specially hand-crafted pair of clay earrings, is the time that you spent sculpting and putting them together enough, or did it take too long and is not worth the price? This is especially important for handmade products. Ask friends or family to be your first testers. Their honest opinions can help you identify any issues before you start selling to the public.
4. Take High-Quality Photos
In online shopping, a picture is worth a thousand words. Taking high-quality photos is the best way to showcase your products and attract customers and can make or break your potential business. When shopping online, people can’t touch or see your items in person, so your photos need to do all the talking.
If hiring a professional photographer isn’t in your budget, don’t worry. You can take amazing photos with just your smartphone. For instance, you can find many YouTube videos that will instruct you on how to work with natural light, set up a basic background, and pose your products at the best angles. A common theme or style in your photos helps establish your brand’s identity as well, so consider what kind of customers you would like to attract and stick with your branding.
5. Set Up Your Online Shops
Now that your products and photos are ready, it’s time to create your online store. Brainstorm unique and trendy names for your business and align it with your products and style. Some of the most used online platforms in Japan include Etsy Japan, Minne, Creema, and Mercari, and what’s great is it is possible to sell your products on all of them. They have easy-to-use interfaces and a vast consumer following, which makes them ideal for beginner sellers and buyers. They usually only require basic information and some identification like your Residence card or passport. Mercari, however, has a strict policy of requiring a valid My Number card upon application, so make sure your card is good to go.
Starting on these platforms allows you to reach a wide audience quickly. They handle much of the technical side of things, like payment processing, taxes, and customer service, so you can focus on creating and selling your products. As your business grows, you might consider launching your own website for more control over your brand and customer experience.
6. Register Your Company and Learn About Taxes
As your business grows, you may also need to register your business, particularly when you are considering expansion. Japan allows foreigners with working visas and student visas to obtain business registration, unlike other countries. The two types of legal business structures are sole proprietorship, known as Kojin Jigyo, or a corporation, known as Kabushiki Gaisha. You may also be required to submit a business proposal when registering your business to show you have done enough research and planning before launching.
If you want to keep operating, consider learning more about the Japan tax system. You will have to learn certain words and phrases, such as Consumption Tax, called Shouhizei, which is now at 10%, and Withholding Tax, which is known as Gensen Choushuu. It is recommended to consult a tax consultant or even hire a part-time accountant to learn more about the given rules and regulations.
7. Mastering the Art of Online Selling
To thrive in online selling, creating eye-catching banners and ads is key. Tools like Canva, Adobe Spark, and Crello make it easy to design standout visuals. Enhance your photos with Fotor, and use Piktochart for engaging infographics. To take your skills to the next level, consider taking online courses on Udemy or Coursera in selling, social media, and SEO. These courses will help you optimize your content, reach more customers, and boost your sales—all while making the process more enjoyable and effective.
8. Open Your Social Media Accounts
Being active on social media is a great way to advertise your online shop and engage with customers, so try to prioritize this as much as possible. Begin by creating profiles on leading platforms such as Instagram, TikTok, Facebook, and X, formerly referred to as Twitter. Instagram is particularly popular in Japan and is a great platform for visually showcasing your products to a large audience. Engage the viewers, answer their questions, and like their comments. These small gestures will go a long way for you.
If you want more people to know about your business, you could post in both English and Japanese. Social media is also a great place to share behind-the-scenes content, customer testimonials, and updates about new products or sales. Your focus should be on daily/weekly posting, replying to your followers, and informing them about new product launches, campaigns, or sales you are running.
9. Choose a Reliable Shipping Service
Shipping is a critical part of your online business. Your customers’ experience doesn’t end when they click “buy”—it extends to when they actually receive their package. That’s why it’s important to choose a reliable courier service that ensures your products arrive safely and on time.
Japan Post is a good place to start for small businesses as it has various products tailored to every need. Some other dependable companies are Yamato Transport and Sagawa Express, which have a great reputation in terms of service quality. Establishing different shipping options for small and bulk orders can help manage customer expectations and save you a lot of headaches in the future.
10. Set Up a Company Bank Account
Managing your business finances is easier with a dedicated bank account. A separate account helps you keep track of income and expenses, which is crucial for staying organized. It’s also necessary if you decide to register your business or apply for a permit.
In addition to opening a bank account, consider setting up an Excel sheet where you can record all transactions. This provides a clear financial overview and makes tax time less stressful. Being diligent about your finances from the start sets you up for success and helps avoid financial hiccups.
11. Join Craft Events to Promote Yourself
Despite the emphasis placed on online promotion, you should not disregard the importance of live events. To promote products such as handmade crafts or introduce your brand, it is best to attend local merchants’ and artists’ events that are done yearly like Design Festa and HandMade in Japan Fes, flea markets, or most of the street festivals in Japan. These events give you an opportunity to engage with your customers and garner direct feedback as well as engage and nurture existing customers. Always put links to your websites or QR codes that direct them to your shop in your stalls. The goal is for more people to find your online store and easily purchase your goods long-term after the events have ended.
Check with your city hall for information on local events where you can sell your goods. Researching reliable sources and asking for recommendations can help you find the best places to promote your shop. Other promotional items such as business cards or flyers can also lead the people that you meet at these events to your online store.
12. Offer Coupons and Discounts
Customers love freebies, and coupons or a small discount may attract them and make them come back for more. Simple additions such as a thank you note, stickers, or other little tokens such as additional gifts added to the orders last a lifetime in making the customers feel appreciated. These little things make first-time buyers more committed and become fans of the product or brand.
13. Consider Hiring Staff and a Designated Workspace
As your online shop begins to gain some traffic and the demand for your products grows, you may discover that some tasks are too much for you to handle on your own. Begin with one freelancer who will work part-time, to whom you can assign particular responsibilities, such as order fulfillment, customer support, or social media engagement. Eventually, you may have to begin hiring people, and this may require you to rent an office or section off your home for business use.
Employees mean more than just pay since they will require contracts, visas, taxes, and training and more. It may be hard to know where to start, but it is always beneficial to expand your team to achieve new business growth while at the same time having someone who can ensure that the basic operations are in check.
Starting an online shop in Japan involves careful planning, creativity, and a commitment to delivering quality products to not only your Japanese but foreign buyers. Remember, it may take time to see the results but persistence and continuous learning are key to growing your business. And as you grow, don’t forget to enjoy the journey—embracing the unique culture, traditions, and opportunities that Japan has to offer. Good luck with your new venture!
