Japan is Amazons 3rd largest marketplace, behind only the US and Germany. Over $11 Billion was spent on Amazon Japan in 2017 (click for reference).
If you are not selling on Amazon Japan then you should be!
One of the most common concerns companies have when expanding into a new market such as Japan is:
Will our products sell in Japan?
The simple answer is Yes. If you have a great quality product and strong sales in your home country then there is no reason why your products won’t sell in Japan too.
Just like Amazon in USA & Europe, Amazon Japan is also a fantastic platform for getting your product in front of thousands of potential customers every day.
Selling on Amazon Japan
This article breaks down a real product launch on Amazon Japan by a UK company. Rising Sun Commerce managed the whole process, from product listing setup to sales strategy.
Main Client Goal: To test whether the Japanese market was a good fit for their products & brand.
Measure of Success:
- Able to generate 5 to 10 sales per day.
- Obtain positive product reviews and seller feedback.
How achieving this goal was structured:
- Amazon Japan account created.
- New product listing registered on Amazon Japan.
- Amazon Sponsored Products advertising campaigns setup.
We identified relevant customer search terms that had good search volume and used these to push potential customers to the product listing. We wanted to generate sales so in this phase we were not looking at profits.
Because this was a ‘Test-The-Market’ campaign the longer-term vision was not discussed with the client. 420 units were sent to Japan to evaluate whether there was demand from the Japanese market for the client’s products and then if the Japanese customers reacted positively to the client’s products / brand.
WAS JAPAN A GOOD FIT FOR OUR CLIENT?
- Campaign length: 76 days
- 420 units sold
- Total advertising spend: ¥328,443 (~£2,300)
- Total sales: ¥628,084 (~£4,410)
- Peak sales day: 16 units sold
- Positive seller feedback: 5
- Positive product reviews: 5
The goal of the client was achieved. Even from this small test batch of products, we could clearly see that:
- There was definite demand in Japan for our clients product(s).
- The clients brand was received very well (based on product reviews and seller feedback).
To achieve 16 sales in a single day so quickly was encouraging, bearing in mind it was a new product with no sales history. Based on the sales trend and market size we’d forecast product sales of 30 to 40 units per day consistently if the client continued to sell their products and promote their brand on Amazon Japan.
The client has over 30 complementary products currently on sale across Europe and America so we conservatively predict that this client would generate 100s of daily sales across their range in Japan, worth well in excess of £1,000,000 per year.