Note: This article covers permits and procedures that are specific to Japan (such as the secondhand dealer license and the business commencement notification). Requirements will differ in other countries.
For anyone who wants to spread the joy of reading through books, starting an online bookstore is the first step toward realizing that dream. An online bookstore has the advantage of costing less to set up than a physical store, but it's also true that there's a lot to prepare — initial costs, how to source stock, how to attract customers, and more. This article clearly explains the basic knowledge you need to start an online bookstore, the concrete steps involved, and tips for running it.
The Appeal of an Online Bookstore | Low-Cost, Nationwide Reach, Flexible Sales
Online bookstores offer appeal in the form of "low cost," "flexible operation," and "a wide sales network." Let's look at each in detail.
| Benefit | Online bookstore | Physical store |
|---|---|---|
| Startup cost | Only e-commerce site build cost and domain fee | Rent and interior fit-out costs are high |
| Fixed costs | Almost zero | Rent and utility costs required |
| Trade area | Can sell nationwide and overseas | Mainly local customers |
| Business-hour constraints | Can operate 24/7, 365 days a year | Can only serve customers during business hours |
| Inventory management | Flexible handling possible, e.g. via pre-orders | Limited by physical space |
1. Start and run the business at low cost
The biggest appeal of an online bookstore is that you can start relatively cheaply.
Low initial costs
A physical store can cost several million yen in rent and interior fit-out, but an online bookstore — including the cost of building the e-commerce site and the domain fee — can be started for roughly 100,000–200,000 yen. For example, if you build your site on Shopify, you can use it starting from 3,650 yen per month.
Low fixed costs
You don't need to pay for store upkeep or utilities, which greatly reduces your monthly operating costs.
Easy to open
Using a platform like Shopify or BASE, you can easily build an online store even without specialized knowledge.
2. A wide trade area that reaches customers overseas too
Unlike a physical store, an online bookstore doesn't require you to worry about business hours, and customers can order whenever they like. Also, whereas a physical store is limited to local customers, you can sell to customers nationwide and even overseas.
3. Flexible, efficient inventory management
A physical store has limited space, which can lead to excess inventory, but with an online bookstore you can adjust how much stock you order and make use of pre-orders to reduce wasted inventory.
4. You can build out a marketing strategy
A major appeal of an online bookstore is that it lets you use marketing strategies that would be difficult to pull off in a physical store.
Easy to attract customers using social media
Instagram and X (formerly Twitter) let you reach your target audience directly. Using hashtags like "#booklover" or "#recommendedbooks" lets you get information in front of interested customers.
Data-driven targeting
An online bookstore can make use of recommendation features based on customers' purchase and browsing history. For example, suggestions like "recommended for people who bought this book" can encourage additional purchases. You can also analyze trend data to effectively feature best-selling books suited to the season.
Content marketing
By creating a blog or feature pages, you can attract customers from search engines. Creating SEO-conscious content like "recommended business books" or "novel picks for Mother's Day" opens up opportunities to bring in new customer segments.
Secure repeat customers with email marketing
Sending emails about new releases or special sales lets you maintain an ongoing relationship with customers. In particular, sending personalized emails based on purchase history helps cultivate repeat customers.
Reach customers efficiently with paid ads
Using Google Ads or social media ads lets you target by age group, interests, and region. For example, you can promote picture books to parents or get a buzzworthy novel in front of younger readers, achieving efficient customer acquisition.
4 Steps to Opening an Online Bookstore
To open an online bookstore, working through concrete steps one by one is the shortcut to success. Here we introduce 4 steps that are approachable even for first-timers.
Step 1. Decide on a store name and brand image
Your store name and brand image are important elements that express your store's personality. Choose a name that's simple, appealing, and easy for customers to remember. A name that evokes the genres you carry will also make it easier to catch the interest of your target audience.
It's also important to check in advance whether the name is already taken, since you'll likely want to use your store name as your domain name too. Deciding on a logo and colors that match your brand image will help you build a store with a visually consistent feel.
Step 2. Build your sales site
Next, build a site for selling your products online. These days, there are convenient platforms that even beginners can use to easily build a site.
Shopify
Image source: Shopify
Shopify offers a wide range of templates and intuitive operation, letting you build a highly designed site. It also supports a variety of payment methods, including credit cards and PayPal, and its inventory management and pre-order settings enable efficient operations.
It also has robust SEO features, so you can expect to attract customers from search engines by making use of keywords like "picture books online." You can also easily reach your target audience by using its social media integration and email marketing features.
For more details about Shopify, please see the article below.
BASE
Image source: Boken Kenkyujo Books
BASE lets you start with zero initial cost and zero monthly fee, so even beginners can open a store while keeping risk to a minimum. Its intuitive operation lets you easily build a highly designed store, and you can extend its functionality with convenient apps for things like product reviews and coupon issuance.
It's also appealing in that it supports a wide range of payment methods, including credit cards, convenience-store payment, and carrier billing. BASE's own marketplace and customer-acquisition support make it easy even for beginners to attract traffic, making it ideal for running a small-scale bookstore.
Step 3. File a business commencement notification and apply for a secondhand dealer license
If your online bookstore deals in used books, obtaining a "secondhand dealer license" is mandatory. Filing a business commencement notification, on the other hand, isn't required, but since it offers several benefits, we recommend submitting one to the tax office.
Filing a business commencement notification
Can be used as proof of business
Filing a business commencement notification formally establishes you as a sole proprietor, so it can be used as supporting documentation when applying for a loan or signing a contract with a business partner.
Enables blue-form tax filing
Filing a business commencement notification lets you choose blue-form tax filing, which comes with tax benefits such as a deduction of up to 650,000 yen.
Applying for a secondhand dealer license
If you sell used books, you need to obtain a "secondhand dealer license" from your prefectural police department. The application requires the documents below. It can take several weeks to obtain the license, so be sure to apply early.
| Required document | Details |
|---|---|
| Fee | 19,000 yen |
| Application form | List of Application/Notification Forms (for Secondhand Dealers and Secondhand Market Operators) |
| Written oath | Required for both the applicant and the manager of the place of business |
| Certificate of residence | Must show registered domicile Required for both the applicant and the manager of the place of business |
| Identification | A copy of your driver's license or My Number card |
| Documentation proving you have the right to use the URL | Only required for the applicable business format |
Reference: Metropolitan Police Department, "Secondhand Dealer License Application"
Step 4. Attract customers using social media and ads
Once you've opened your store, attracting customers so they know about it is essential. Make effective use of social media and ads to promote your store.
Using social media
On Instagram and X (formerly Twitter), post photos of recommended books or new arrivals to convey the appeal of your books visually. Using hashtags like "#booklover" or "#recommendedbooks" lets you reach a specific readership. Also, theme-based posts such as "this week's new releases" or "a book for the season" tend to draw interest and boost engagement.
Using paid ads
Google Ads and Facebook Ads let you effectively reach your target audience. You can attract customers efficiently by narrowing ads down by age group and interests. For example, choose themes that fit the need — "recommended picture books" for parents raising children in their 30s, or "buzzworthy coming-of-age novels" for younger readers.
Sending an email newsletter
An email newsletter is a powerful tool for building repeat customers. Regularly sending new-release information, sale announcements, and genre-specific book recommendations keeps buyers engaged over time. For example, including "3 books recommended for people who bought this one" or a "members-only discount coupon" can be the trigger for a repeat purchase.
How to Source Books | New and Used
For new books, you source them through a distributor or publisher that lets you order in small quantities. For used books, you can buy directly from a secondhand bookshop, or use a flea-market app like Mercari or Yahoo! Auctions. Make use of each sourcing method to build a selection that fits your store's concept and customer needs.
Sourcing new books | Kotoritsugi
Image source: Kotoritsugi
"Kotoritsugi" lets you sign up easily online, and its dedicated app lets you manage everything from sourcing and selling books to inventory management in one place. Along with book-selection, ordering, and sales-management features, it also supports you with know-how on how to set up your shelves and how to sell.
Sourcing new books | Foyer
Image source: Foyer
Foyer offers a simple service built around the policy of "wholesaling books even in quantities of just one." No initial deposit is required, and you can start using it roughly 3 weeks after signing up. Using its dedicated free product-ordering system, you can choose from a stock of 3 million books (500,000 items) to build an appealing storefront. A return service is also available, allowing for flexible inventory turnover.
Sourcing used books | Secondhand bookshops and flea-market apps
Image source: BOOK・OFF
For sourcing used books, it's common to use secondhand bookshops or flea-market apps. Among these, Book Off is a great option that even beginners can use to easily start sourcing stock. In-store, you can buy books in good condition at reasonable prices, and using sales or bulk-purchase discounts lets you keep costs down even further.
When sourcing, keep trends and popular genres in mind. For example, business books, picture books, and buzzworthy novels tend to appeal to a wide readership and sell well.
Using Book Off's online store lets you source in bulk smoothly. Since you can efficiently stock up on items that fit your store's concept and customer base, you can build an appealing storefront even on a limited budget.
Online bookstore example | Toyokan Publishing
Toyokan Publishing is a publisher specializing in educational books, and its online site is built on Shopify. Beyond selling new releases, the site offers magazine subscriptions and content for users, making it a site that's enjoyable to explore and offers a variety of bookstore experiences just by visiting.
Summary | Take Your First Step Toward Opening an Online Bookstore
An online bookstore is an appealing business that lets you deliver books to customers nationwide at low cost. This article gave a concrete explanation of the basic knowledge of running an online bookstore, the steps to opening one, how to source stock, preparing working capital, and effective ways to attract customers — the key points for success.
You can also make use of distributor services like "Kotoritsugi" or "Foyer" to source books efficiently while keeping initial costs down. And by combining SEO, social media, and email marketing to strengthen how you attract customers, you can drive up sales. Work through your preparations one step at a time, and launch the online bookstore of your dreams!
