Note: This article's pricing (in Japanese yen), platform comparisons (Rakuten Ichiba, Yahoo! Shopping, Amazon Japan, and others), and legal references (Japan's Act on Specified Commercial Transactions) reflect the Japanese market. This will be most relevant if you are opening an online shop in Japan.
Some people want to open an online shop but aren't sure which service to use.
This article explains recommended online shop services for those opening their first online shop. We also cover how to choose a service that fits your business, and key points beginners should keep in mind when running a shop.
Types and Characteristics of Online Shops
Online shops fall into three types: marketplace-type, self-hosted, and ASP-type. Here, we explain the characteristics of each.
Marketplace-Type Online Shop
A marketplace-type online shop is where multiple shops open stores on a single site. Amazon and Rakuten Ichiba are examples. Since these platforms are well known and have strong customer-drawing power, a major appeal is that your shop can catch customers' eyes even without putting much effort into customer acquisition.
However, costs for opening and running a shop — such as listing fees and sales commissions — tend to be higher than with other types. Since the design format is fixed, it's also harder to express originality.
Self-Hosted Online Shop
This means launching a shop on a server you've prepared yourself. There are no costs at all, such as sales fees or listing fees.
You need to source all the features required to run an online shop yourself, but in exchange you can freely customize the design and text. However, be aware that it's hard to gain customers without actively working on customer acquisition.
ASP-Type Online Shop
ASP-type means launching a site using a service equipped with all the features needed to open and run an online shop. BASE and Shopify are examples.
You can easily build the ideal online shop even without any site-building knowledge. Costs for opening and running a shop are kept lower than other types, making it appealing as a low-risk way to start.
However, as with self-hosted shops, it tends to be hard to gain customers without customer acquisition efforts.
3 Recommended Marketplace-Type Online Shop Services
Here, we introduce recommended marketplace-type online shop services. The characteristics of each service are as follows:
As of November 2024
Rakuten Ichiba
Image source: Rakuten Ichiba
A marketplace-type online shop service that has been running since 1997. With about 57,000 stores, it has fewer listed stores than other marketplaces, creating an environment where products are easier for users to notice.
It holds a 28.9% share of overall online retail, making it a marketplace with a high user usage rate.
It's also appealing that you can get support from a dedicated EC consultant to help grow your sales.
Yahoo! Shopping
Image source: Yahoo! Shopping
An online shopping marketplace run by LINE Yahoo. There's no setup fee or fixed monthly fee at all.
Since it draws traffic from LINE, Yahoo!, and PayPay, you can expect plenty of customer traffic to your own shop. Help desk support is also available if you have questions about running your shop.
Amazon
Image source: Amazon
Amazon's appeal is being able to reach over 300 million customers worldwide. By using Fulfillment by Amazon, you can leave storage, order processing, packaging, shipping, returns handling, and customer service entirely to Amazon.
It's also a great deal for people just launching a shop, with a "Start Dash Success Pack" that offers up to 7.875 million yen in cashback on sales.
6 Recommended ASP-Type Online Shop Services
Here, we introduce recommended ASP-type online shop services.
BASE
Image source: BASE
A service that claims the No. 1 spot for online shop launches for 5 years running. Registration, monthly, and annual fees are all free, making a 0 yen setup fee a major appeal.
Just by following the on-screen instructions, you can easily handle everything from design to product registration, even without specialized knowledge. Credit card payments, which often take time to set up elsewhere, can be enabled right away with BASE.
You can also expect traffic from its shopping app, which has been downloaded 7 million times.
STORES
Image source: STORES
STORES has no cost at all until a product sells. Its sales fee, at 3.6–5.5%, is also the lowest in the industry, making it appealing for opening and running an online shop at low cost. It's also easy to set up sales integration with Instagram, making it strong for social-media-driven customer acquisition.
You can choose and customize your shop's design from 48 templates. Since design elements can be freely edited, you can express your brand's identity through design.
Setup fee: 0 yen. Monthly fee: "Free Plan 0 yen, Basic Plan 2,980 yen." Sales fee: "Free Plan 5.5%, Basic Plan 3.6%." Payment methods: credit card, convenience store payment, bank transfer, Rakuten Pay, PayPal, deferred payment (Paidy), carrier billing, cash on delivery, Amazon Pay, PayPay. Support: "FAQ page, email support." Customizability: 〇
Shopify
Image source: Shopify
Shopify is an online shop service used in 170 countries around the world. Since EC site templates, payment methods, and hosting are all packaged together, anyone can easily launch an online shop.
By adding features from the Shopify App Store, which offers over 7,000 apps, you can build an even more ideal shop.
Its high customizability, letting you freely design your shop's look and features using custom code, is also appealing.
Color Me Shop
Image source: Color Me Shop
Color Me Shop's appeal is its low running cost. You can easily open a shop even without specialized knowledge or technical skill. You can also edit the design with HTML/CSS, letting you build a shop that pursues your brand's image.
With plenty of customer-acquisition features, like Easy Listing Ads and Easy Retargeting, it's also a good option for anyone worried about whether they can attract customers.
Makeshop
Image source: Makeshop
An online shop service that has held the No. 1 spot in shop sales for 12 years running. It has been adopted by over 12,000 companies, with a 98% customer satisfaction rate.
You can get support with everything needed to run an EC site, from building a shop that sells to consulting on operations and fulfillment.
Many features that are paid add-ons on other online shop services come as standard here, giving it the best cost performance in the industry.
ShopServe
Image source: ShopServe
ShopServe is a service that claims the No. 1 spot among SaaS/cart-type platforms by sales. A dedicated staff member is assigned to support you with everything from editing your admin dashboard and pages to boosting sales and customer acquisition. This has produced cases where the sales growth rate increased by 120%.
Integration with WordPress, letting you freely build your own original online shop, is also appealing. Always-on SSL means you don't need to worry about security either.
How to Choose an Online Shop Service That Fits Your Business
Here, we explain how to choose an online shop service that fits your business.
How Much Is the Setup Fee?
When choosing an online shop, check the setup fee.
If you spend a large amount before you have any sales, you risk not being able to recoup it. Running an online shop also involves monthly usage fees, payment processing fees, and optional feature costs.
Before launching, carefully calculate not just the setup cost but also the ongoing costs of running the shop, and choose a service that lets you achieve your expected profit.
Is Strong Support Available?
If your company doesn't have staff with online shop expertise, opening and running your first online shop isn't easy.
Support varies by service and plan. When launching your first online shop, it's a good idea to choose a service with as much support as possible.
Does It Have the Features to Achieve Your Goals?
Online shop services differ in their characteristics and range of features. If you choose based on cost alone without checking whether the features match your goals, you may not be able to achieve the online shop you envisioned.
Check whether the service has the features needed to achieve what you want from your online shop — such as "I want to expand overseas" or "I want to focus on design."
Does It Support a Wide Range of Payment Methods?
The payment methods an online shop supports vary by shop.
If the available payment methods are limited, customers are more likely to leave without completing a purchase. Choose a service that supports as wide a range of payment methods as possible.
Minimum Points Beginners Running an Online Shop Should Know
To avoid failure, beginners running an online shop should keep the following points in mind:
- Put effort into customer acquisition
- Comply with the Act on Specified Commercial Transactions
- Take security measures
We'll explain each of these in detail below.
Put Effort into Customer Acquisition
Whether you can turn a profit running an online shop largely depends on your ability to attract customers.
If you start an online shop outside of a marketplace-type platform, the likelihood of catching customers' eyes without customer acquisition efforts is extremely low. Use social media and advertising to keep reaching your target audience.
Comply with the Act on Specified Commercial Transactions
Note: The following legal requirement is specific to Japan. The Act on Specified Commercial Transactions is a law that applies to types of transactions prone to consumer disputes, established to protect consumers' interests. Online shops fall under the mail-order sales category defined by this Act.
Set up a page on your site titled something like "Notation Based on the Act on Specified Commercial Transactions," and be sure to include the required items, such as the seller's name, address, and phone number, the timing of product delivery, and the selling price.
For details on the Act on Specified Commercial Transactions, see the Act on Specified Commercial Transactions Guide.
We also cover the required notation under the Act on Specified Commercial Transactions in the blog article below. Please use it as a reference.
Take Security Measures
Online shops handle customers' personal information. Because of this, it's important to take security measures as strong as possible to prevent personal information from leaking.
It's important to invest in a solid setup, such as using paid rather than free antivirus software on your computer, even if it costs more.
If You're Opening an Online Shop, Shopify Is Recommended for Its Low Cost and Strong Support
Online shop services come in two types, marketplace-type and ASP-type, and we recommend ASP-type, which lets you open and run a shop at low risk.
Among ASP-type online shops, Shopify has a 0 yen setup fee, and its monthly fees and sales commissions are also set at relatively low rates. Because of this, Shopify is especially recommended for anyone who wants to start an online shop easily and at low risk.
Use the online shop service that fits your business to achieve the online shop operation you envision.
