Japanese e-stores have become an important part of the country’s economy, thanks to the countrys rapid growth in consumer spending.
But their success is not without its challenges, including regulatory hurdles and competition from other online retailers.
E-commerce has exploded in Japan, as e-tailers like Amazon and eBay have sought to become the dominant players in the country.
But with e-shopping becoming a more popular form of retail, regulators have become increasingly interested in the online market.
Last month, the country�s central bank banned the sale of digital goods, including e-books, mobile phones and even some toys and other household goods, in a move that was aimed at encouraging more consumer spending in the long run.
But online retailers have been able to capitalize on the country���s economic boom to grow rapidly, according to research firm IHS Markit.
IHS predicts that online sales will grow by 40 percent this year, and by 50 percent by 2019.
Japan is one of the world�s top e-retailers, accounting for about a third of all e-book sales in the United States.
But the online shopping boom has also attracted online competitors that have also expanded their business in Japan.
In the first half of 2018, Amazon, eBay, Walmart and other online sellers in Japan increased their e-shop listings to 5 billion yen ($3.7 million), according to the company.
Walmart Japan, which operates in Japan through its online store, added 5.6 billion yen of e-waste in the same period.
The trend is likely to continue, IHS analyst Tetsuya Uchida said.
Online retailers also have faced a number of challenges in Japan that can have an impact on their bottom line, like rising costs of legal fees and taxes, Uchda said.
For example, some online retailers are required to collect sales tax on sales in Japan because of the large number of Japanese who live overseas.
This tax is a big issue for e-buyers because they pay for most of their purchases online, so the cost of collecting it on paper is high.
The Japanese government is considering an amendment to the nation���s corporate tax laws to encourage online retailers to collect the tax, but Uchada said there is no specific date for when the change will take effect.
Amazon has struggled in Japan since it began selling e-readers and tablets in 2014.
Its e-commission, which was nearly $30 billion in 2018, was down from $56 billion in 2019.
In 2020, it reported that it had spent $3.6 million in Japan in its retail operations.
For most of the year, Amazon used AmazonFresh, an Amazon-owned e-store, as its online retail presence in Japan went largely unused.
Last year, however, Amazon opened up a second store in Tokyo, Amazon Japan, and added online sales in a bid to expand its presence in the nation.
In 2017, Amazon purchased a large chunk of the Japanes online e-publishing business, including the publisher and publisher-run online retailer iBooks Japan, the company said in a statement.
Amazon Japan is expected to bring about 1,000 jobs to Japan by the end of 2021, according the company, which also announced plans to create more than 5,000 full-time jobs in Japan over the next three years.
While Amazon has been a big player in Japan�s e-sales market, its efforts have been hindered by the country s stringent anti-money laundering regulations.
It has faced fines for selling counterfeit e-cards and online gambling in Japan for years, and it has also been accused of failing to monitor its online sales to ensure compliance with anti-counterfeiting laws.
IHS predicts the online ecommerce market will grow at an average of 6 percent a year over the course of the next decade, and the country will become a net importer of ebooks by 2027.
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