How To Start Dropshipping In Japan In 2025
Why start dropshipping
Are you seeking a flexible and rewarding way to earn income?
Dropshipping is the perfect solution for aspiring entrepreneurs who want to start a business with low risk and high potential.
Imagine being able to sell products from the comfort of your home, without the hassle of managing inventory or shipping logistics.
This model empowers you to focus on marketing and customer engagement, allowing you to build a brand that resonates with your audience.
With dedication and creativity, you can turn your passion into profit.
Keep reading to discover how to launch your successful dropshipping venture!
How dropshipping works
Why start dropshipping in Japan
Japan, known for its technological innovations and consumer habits, offers an excellent opportunity for entrepreneurs interested in dropshipping. The country’s ecommerce landscape is thriving, characterized by high internet usage and a strong inclination towards online shopping, making it a prime location for starting a dropshipping venture.
Recent data indicates that Japan’s ecommerce sector is projected to hit $220 billion by 2025, fueled by an increasing number of internet users and the growing adoption of smartphones. This creates a substantial opportunity for dropshippers to engage with a market that possesses significant purchasing power and a discerning consumer base.
A major benefit of dropshipping in Japan is the ability to focus on niche markets.
Japanese shoppers often seek unique and specialized items, which aligns seamlessly with the dropshipping approach. By concentrating on niche products – like sustainable goods or vintage apparel – entrepreneurs can stand out in a competitive landscape and cultivate a dedicated customer following.
Additionally, the dropshipping model requires minimal initial investment, making it appealing for aspiring business owners in Japan. As opposed to conventional retail, dropshipping eliminates the need for managing inventory and storage, thereby lowering overhead costs and financial risks. This adaptability is especially advantageous in Japan’s fast-paced market, where consumer trends can change swiftly. By utilizing dropshipping, entrepreneurs can quickly respond to these shifts and scale their businesses accordingly.
As we reflect on this, Japan’s cultural focus on quality and customer service can greatly benefit dropshippers. Establishing strong relationships with suppliers and emphasizing customer communication can help address potential challenges and build trust with Japanese consumers. Effective interaction and a dedication to high standards are crucial in a market where customer loyalty is paramount. By prioritizing these elements, dropshippers can create a robust brand presence and achieve lasting success in the Japanese market.
Advantages and disadvantages of dropshipping in Japan
Advantages of dropshipping in Japan
1. High ecommerce growth
Japan’s ecommerce market is rapidly expanding, with projections indicating significant growth, making it a lucrative environment for dropshipping businesses.
2. Strong consumer spending power
Japanese consumers have a high purchasing power, which can lead to better profit margins for dropshippers.
3. Tech-savvy population
With a high rate of internet penetration and smartphone usage, Japanese consumers are comfortable with online shopping, enhancing the potential customer base for dropshipping.
4. Access to niche markets
Japanese consumers often seek unique and specialized products, allowing dropshippers to successfully target niche markets such as eco-friendly items or traditional crafts.
5. Minimal upfront investment
Dropshipping requires less initial capital compared to traditional retail models, making it accessible for new entrepreneurs.
6. No inventory management
The dropshipping model eliminates the need for inventory storage and management, reducing operational complexities and overhead costs.
7. Flexibility and scalability
Dropshippers can quickly adapt to changing market trends and scale their operations without the constraints of physical inventory.
8. Cultural appreciation for quality
Japanese consumers value high-quality products and excellent customer service, which can enhance brand reputation if met.
9. Diverse payment options
Japan offers various payment methods, including credit cards, convenience store payments, and digital wallets, catering to different consumer preferences.
10. Strong logistics infrastructure
Japan has a well-developed logistics and shipping network, facilitating efficient order fulfillment and delivery.
Disadvantages of dropshipping in Japan
1. High competition
The ecommerce market in Japan is saturated, making it challenging for new dropshippers to stand out among established players.
2. Language barrier
Non-Japanese speakers may face difficulties in communication, impacting customer service and supplier relationships.
3. Cultural nuances
Understanding Japanese consumer behavior and preferences requires in-depth knowledge of local culture, which can be a hurdle for foreign entrepreneurs.
4. Shipping times and costs
Depending on suppliers’ locations, shipping times can be longer and costs higher, potentially affecting customer satisfaction.
5. Quality control issues
Relying on third-party suppliers can lead to inconsistent product quality, which may harm the brand’s reputation.
6. Returns and refunds complexity
Managing returns and refunds can be complicated in Japan, where consumer protection laws are strict, leading to potential financial losses.
7. Regulatory compliance
Navigating Japan’s legal requirements for ecommerce, including taxes and import regulations, can be complex and time-consuming.
8. Limited brand loyalty
Japanese consumers may be less brand-loyal compared to other markets, making it essential for dropshippers to continuously innovate and engage customers.
9. Dependence on suppliers
Dropshippers rely heavily on third-party suppliers for product quality, availability, and shipping, which can lead to operational vulnerabilities if suppliers fail to meet expectations.
While some may argue that dropshipping has its challenges, the ability to start a business with minimal upfront investment and the flexibility to operate from anywhere makes it a compelling choice for aspiring entrepreneurs ready to embrace the digital marketplace.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Japan?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
