How to Ship Packages from the US to Japan with Speedcommerce

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Expanding your eCommerce business to Japan is easy with Speed Commerce. Today’s eCommerce company has the opportunity to penetrate many markets and the eCommerce market has matured nicely and been steadily expanding in Japan.

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There are basically two ways to approach addressing eCommerce order fulfillment for your Japanese customer. If your business is significant enough to handle a presence in Japan, then partnering with a local 3PL is the best course of action. Your biggest obstacle is capital resources as carrying the additional inventory in another country will require additional capital.

The second and most common way, especially for most eCommerce companies is to partner with a U.S. based 3PL provider that can support both your U.S. and Japanese based customers. Shipping items from the United States to Japan involves several steps and considerations, including choosing the right shipping method, handling customs requirements, and ensuring your items arrive safely.

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Introduction

Japan is one of the world’s largest e-commerce markets. It’s characterized by the dominance of business-to-businesses (B2B) transactions, a growing focus on business-to-consumer (B2C) sales, and an emerging consumer-to-consumer (C2C) market. The B2C market has more than doubled in size within the last decade.

Three gigantic online platforms dominate the territory: PayPay Mall, Amazon Japan, and Rakuten Ichiba. Over 75% of the total population purchases regularly in these marketplaces. Many brands sell on at least one of these top three ecommerce marketplaces, while others also sell directly to customers through their own branded websites.

Rakuten Ichiba is Japan’s largest online shopping platform with a customer base of over 100 million shoppers. It’s the most trusted eCommerce marketplace in Japan and outperforms global eCommerce giants, including Amazon and Yahoo.

Amazon Japan is the biggest ecommerce platform in Japan in terms of total sales. Smaller online marketplace operators such as Wowma, Mercari, PayPay Mall, and Qoo10 Japan are also competing in the market. Foreign players such as China’s Alibaba and the US-based South Korean online retailer, Coupang, are also present in the Japanese market. The average monthly household expenditure on goods and services ordered over the internet in Japan from 2015 to 2022 is over 1,000 Japanese yen.

Cost & Delivery Speeds

The cost of shipping from the U.S. to Japan varies depending on the delivery method you choose, the dimensions, and the weight of the package. There are many great options as Japan has multiple carrier options all with consistent results.

Getting a package from the U.S. to Japan takes around 4 business days with fast delivery methods, about 10-20 business days with slower delivery methods, and about 15-25 business days with the slowest and cheapest delivery methods. Here are some examples: USPS offers flat rate box shipping to Japan ranging from. Priority Mail International is the most affordable option available and it ensures delivery to Japan within 6 to 10 working days.

DHL Express offers reliable shipping services with insurance and doorstep courier services. It provides a clear and accurate goods description on the commercial invoice for quick customs clearance. FedEx International Economy is the carrier’s cheapest option to Japan for delivery within 4 working days. FedEx International Priority ensures delivery within 2 days. FedEx has collaborated with Japan Post to better manage the logistics once the package reaches the destination country. UPS Worldwide Expedited is the fastest and best value option, with a 2 working day lead time.

Choosing a Shipping Carrier

Choosing the best shipping carrier for international shipping requires careful consideration of several factors. The choice you make can impact your business’s efficiency, customer satisfaction, and overall cost. Here are some key factors that Speed Commerce suggests that you choose when determining which shipping carrier to pick for international shipping:

1. Does the carrier cover the specific countries and regions you need to ship to. Some carriers may have more extensive international networks than others.
2. Does the carrier offer transit times that meet your customers’ expectations?
3. Compare the shipping rates offered by different carriers. Keep in mind that the cost can vary based on the destination, package weight, and dimensions.
4. At Speed Commerce we only recommend carriers that have a reputation for reliability and on-time deliveries that meet our standards.
5. International shipments often involve customs procedures. We integrate with our recommended carriers so that you don’t have to check whether the carrier provides assistance with customs documentation and clearance or if you need to handle it yourself.
6. All of the recommended carriers offer good tracking and shipment visibility, which are essential for both you and your customers.
7. All of our selected carriers offer quality customer support.
8. We take the guesswork out of the packaging requirements to ensure it complies with all carrier regulations.
9. Speed Commerce ensures that the carrier complies with international shipping regulations and is familiar with export/import rules for the countries you are shipping to. 
10. Lastly, consider your returns requirements to determine if they align with how the carrier handles returns from international customers.

By carefully considering these factors, you can make an informed decision when selecting the best shipping carrier for your international shipping needs. It’s often a good practice to periodically review your choice of carrier to ensure it continues to meet your evolving requirements.

What We Do

Receiving

The inbound shipping team with Speed Commerce is ready to receive, inspect, enter into inventory, and place your products on the shelves, ready for the warehouse team to pick products for your orders.

Picking & Packing

Accurate assembly of ecommerce orders can make or break your business. Our team goes the extra mile to ensure orders are assembled correctly, packed with care, accurately labeled, and sent to shipping on time.

Shipping

Because of our shipping volume to and from our facilities, we have established relationships with major carriers and negotiated favorable rates. Ensuring your orders are received by the carrier as expected is our top priority.

Inventory Management

Making sure you have enough stock on hand (but not too much) takes expertise in ecommerce retail trends. We work closely with our clients and their Speed Commerce client success manager to anticipate spikes or dips in demand. Our team also manages monthly inventory reporting and takes measures to avoid shrinkage.

Cross-Docking

Need to expedite order fulfillment to meet unexpected high-demand? We’re experts in cross-docking. Our team is agile and can quickly receive (and complete their inbound checklist) on the dock, then our pick-pack team will quickly assemble orders and prepare for shipment. We don’t waste time putting items on the shelves; instead we get them out the door!

Returns Management

Get your reverse logistics under control. We manage the full end-to-end process of returned product, including refreshing and reviving! Reducing shrinkage and get your product back out the door generating profit with our returns management service.

Long-Term Storage

Store your inventory in our safe and secure warehouse and gain flexibility you need in your operations. We have space for your long-term storage needs. Centrally located, our warehouses are ideally situated to give you access to your inventory in a secured location. We offer transparent pricing, quick start, and flexible terms.

Managed Services

We remove the headaches in managing your ecommerce fulfillment and warehousing operation. We work with you to learn what’s important to you and craft our agreements to match your expectations. You’ll meet with your client account manager regularly to review our performance and make adjustments.

Speed

Your customers want their orders delivered quickly. In ecommerce, fast order fulfillment is a must! We live up to our name and ensure speed in everything we do. Same-day fulfillment gets your orders packed and shipped shortly after your customer makes their purchase.

Shipping to Japan with Speedcommerce

Navigating international markets and optimizing shipping processes with Speed Commerce can help streamline your global e-commerce operations. Here’s a step-by-step guide to help you navigate international markets and improve shipping efficiency with Speed Commerce:

1. Market Research and Strategy: Identify target international markets based on market research, demand analysis, and growth potential. Develop a clear market entry strategy, including pricing, product selection, and marketing tactics for each market. 
2. Product Localization: Adapt your products for international markets, considering factors like language, packaging, and compliance with local regulations. Customize product descriptions and labels as needed.
3. E-commerce Website Localization: Localize your e-commerce website by translating content, pricing, and product listings into the languages and currencies of your target markets. Implement geolocation features to automatically display the appropriate language and currency for visitors.
4. Shipping Strategy: Work closely with Speed Commerce to optimize your shipping strategy for international markets. Determine shipping options (e.g., standard, expedited, express) and set clear delivery expectations for customers.
5. Customs Compliance: Ensure that all international shipments comply with customs regulations, including accurate customs declarations and required documentation. Work with Speed Commerce to manage customs clearance efficiently.
6. Inventory Management: Maintain proper inventory levels in Speed Commerce’s fulfillment centers to prevent stockouts and overstocking. Use Speed Commerce’s inventory management tools to track stock levels in real-time. 
7. Shipping Costs and Fees: Understand and budget for international shipping costs, including shipping fees, customs duties, and taxes. Consider offering free or discounted shipping to attract international customers.
8. Customer Support: Provide multilingual customer support to assist international customers with inquiries, returns, and issues. Ensure customer support is available during local business hours in target markets.
9. Returns and Refunds: Establish clear and fair return and refund policies for international customers. Work with Speed Commerce to manage returns efficiently and minimize return shipping costs.
10. Optimize Packaging: Work with Speed Commerce to optimize packaging for international shipments to reduce shipping costs and ensure product protection. Consider eco-friendly packaging options where applicable.
11. Analytics and Performance Monitoring: Utilize Speed Commerce’s analytics tools to track shipping performance, delivery times, and customer satisfaction in international markets. Adjust strategies based on data insights and customer feedback.
12. Scale and Expand: Continuously evaluate the performance of your international expansion efforts and identify opportunities to scale in existing markets or expand to new ones.
13. Local Partnerships and Marketing: Consider partnerships with local influencers, retailers, or distributors to help promote your products in international markets. Create targeted marketing campaigns to reach international audiences through digital advertising and social media.

By following these steps and working closely with Speed Commerce, you can effectively navigate international markets, optimize your shipping processes, and expand your global e-commerce presence while providing a seamless experience for your international customers. Regularly reviewing and adapting your strategies will be key to long-term success in international e-commerce.

Duties & Taxes

When shipping a package internationally from the United States to Japan, your shipment may be subject to customs duty and import tax. Here are some key points:

• The tax-free threshold is 10,000 JPY. If the full value of your items is over this amount, the import tax on a shipment will be 10%.
• Japan assesses tariff duties on the c.i.f. (cost, insurance + freight) value at ad valorem (based on the value of the goods) or specific rates, and in a few cases, charges a combination of both.
• Japan’s preferential system of tariffs grants lower or duty-free rates to products imported from developing countries.
• Goods imported into Japan are subject to Customs duty and consumption tax. In addition to consumption tax, certain other internal taxes (liquor tax, tobacco tax, etc.) are also applicable to dutiable imported goods.

Please note that these are general estimates and actual costs may vary. It’s always best to check directly with the customs authority for the most accurate information.

Japan Customs Information

Here are some resources for Japan’s customs information:

• Japan Customs is the official website https://www.customs.go.jp/english/. It provides comprehensive information on customs procedures, customs valuation system, import procedures, temporary admission procedures, refunds, and duty drawback payments, as well as relevant customs forms.
• Information for U.S. Citizens Traveling to Japan: This page from the U.S. Embassy & Consulates in Japan provides information for U.S. citizens traveling to Japan, including details about visa-free travel, electronic customs declaration gates (e-Gates) for customs clearance, and COVID-19 related information.
• Japan – Import Tariffs (https://jp.usembassy.gov/services/welcomebacktojapan/). This page provides information on Japan’s import tariffs.

These resources should provide you with a good starting point for understanding Japan’s customs procedures and regulations.

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Tips for Ecommerce Businesses

The Japanese ecommerce market is sophisticated and, in many ways, similar to the U.S. market. The adoption of a cashless society has furthered endeared the Japanese consumer to shop online more frequently. Here are some tips for doing business in Japan:

• The Japanese consumer is well educated but predominantly rely on the Japanese language for its eCommerce preferences, thus, it is necessary for companies to have in-depth translation and localization in their e-commerce business.
• It’s crucial to understand the Japanese market and its consumers. This includes understanding their preferences, shopping habits, and cultural nuances.
• Mobile optimization is critical to be successful in Japan. With the rise of m-commerce (transactions completed via mobile device apps), it’s important to ensure your ecommerce platform is mobile-friendly.
• Implementing an aggressive search strategy can help your business stand out in the competitive ecommerce market.
• Japan’s targeted advertising has evolved over the past few years. Understanding how to effectively target your audience can greatly improve your business’s performance.
• Various government agencies regulate eCommerce in Japan. Understanding these laws and regulations is crucial for operating a successful ecommerce business.
• Choosing the right ecommerce platform that suits your business needs is crucial. The major players in the Japanese ecommerce market are Amazon Japan, Rakuten, and Yahoo! Shopping.
• Smooth processing services and efficient distribution channels boost the market size. The Japanese consumer requires short delivery times and accurate/timely tracking.

Remember, doing eCommerce business in Japan is not an easy task – the country is notoriously difficult for those who come unprepared. Therefore, thorough research and preparation are key to success.