The platform, which debuted in Japan in October, offers approximately 3 million products across various categories and includes localised services such as customer support, payment options, and tailored product recommendations. To improve consumer confidence, Alibaba has implemented a 40-day free return policy and partnered with Japanese logistics providers Yamato and Sagawa for efficient delivery operations.
Tao offers a variety of payment options aimed at accommodating Japanese shoppers. These include PayPay, Japan’s largest digital wallet, Pay-easy, which facilitates payments via online banking, ATMs, or post offices, and traditional methods like credit cards and convenience store payment systems. This broad payment selection reflects Japan's evolving ecommerce habits, where digital payments are increasingly gaining traction in a society traditionally reliant on cash.
A 2021 JP Morgan report on global ecommerce trends revealed that credit cards dominate Japan’s online transactions, making up 68%, followed by bank transfers (13%), with cash and digital wallets each accounting for 5%. The report, citing data from WPL, highlighted a gradual shift in consumer preferences toward digital payment methods.
According to kr-asia.com, Japan’s ecommerce market remains highly competitive, with established players such as Amazon, Rakuten, and Yahoo Shopping (Japan) maintaining significant market shares. Smaller platforms such as Mercari and DMM.com also contribute to a crowded marketplace. A 2024 report by the Japan External Trade Organization (JETRO) indicated that Alibaba’s platforms, including Tao and AliExpress, were cited by 16% of surveyed users for recent engagement. In comparison, Amazon led the market with 24%, reflecting its dominant position.
Despite the competitive environment, Japan represents a promising market for Alibaba. The ecommerce sector in Japan is projected to generate USD 169.4 billion in revenue this year, with an estimated compound annual growth rate (CAGR) of 9.23%, potentially reaching USD 263.4 billion by 2029, according to Statista.
Alibaba’s global strategy has seen the company invest in markets like Southeast Asia through Lazada, Turkey via Trendyol, and other regions with AliExpress. The company has also expanded the cross-border capabilities of its Taobao and Tmall platforms, incorporating English-language interfaces and flexible delivery options to attract international users.
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