Meeting Japanese Fulfillment Expectations

The High Bar for Delivery Services

Japanese consumers are known for their demanding expectations when it comes to home delivery. Here’s what you need to know:

Speedy Deliveries: In Japan, the norm is next-day delivery, and even remote areas expect fast service. For example:

• Tokyo to Osaka: 1 day
• Hokkaido to Okinawa: 2 days
• Other regions: Typically 1-2 days depending on distance and location.

Japanese consumers expect swift and reliable delivery, with any delay requiring a clear explanation.

• Precision and Convenience: Japanese consumers value designated delivery slots, often with hour-by-hour time slots. They also appreciate the flexibility of picking up packages from convenient locations, such as convenience stores.

• Hand-to-Hand Delivery: It is rare in Japan for delivery drivers to leave parcels on a customer’s doorstep. Deliveries typically require a signature, which leads to around 20% of packages needing redelivery. Although no-contact delivery has gained traction post-COVID-19, the cultural expectation for signed deliveries remains strong.

Embracing Omotenashi: The Culture of Hospitality

Japan’s deep-rooted culture of Omotenashi—unconditional hospitality—shapes customer service expectations. This means:

Source: Pexels

• Comprehensive Customer Support: Be prepared to offer thorough responses to inquiries about product quality, delivery times, or returns.

• Customer Strategy: Develop a robust customer service strategy as part of your logistics planning. This helps in building trust and delivering the exceptional service Japanese consumers expect.

Navigating Fulfillment and Warehousing Trends

Japan’s warehousing industry is evolving to meet e-commerce demands:

• Automation: To reduce delivery times and address labour shortages, many warehouses are automating processes. Automation is increasingly necessary to meet the fast-paced demands of the Japanese market.

• Value-Added Services: Innovations in packaging and delivery services are enhancing the customer experience, allowing e-commerce retailers to stand out.

Source: Pexels

Understanding Return Policies and Customer Expectations

Japan’s approach to returns and exchanges can differ significantly from other markets:

• Legal Framework: The Civil Code doesn’t mandate return or exchange acceptance, but the Specified Commercial Transaction Act requires a clear return policy on websites.

• Customer Satisfaction: Despite the legal landscape, companies like Amazon have influenced higher return expectations. A Recustomer survey revealed:
  • 41.2% of consumers expressed dissatisfaction with the return process.
  • 93.1% would shop again if return experiences improved.
  • 60.8% always check return policies before purchasing.

The Dynamics of Same-Day Delivery

In Japan, same-day delivery is not just a perk—it’s becoming a standard expectation. Here’s what you should consider:

• Speed and Flexibility: Offering a range of delivery options, including express solutions, is essential. The Japanese same-day delivery market is growing, with a projected increase from USD 0.36 billion in 2024 to USD 0.49 billion by 2029.

Source: Mordor Intelligence

• Infrastructure: New road infrastructure, such as the Central Circular Route (C2) and the Shin-Tomei Expressway, is improving access and reducing congestion, which supports faster delivery times.

Overcoming Barriers with a Plug-and-Play Solution

For Western brands entering the Japanese market, working with local providers can be daunting due to language barriers and the complex logistics landscape. However, partnering with an international provider with a local presence can simplify the process significantly. Rather than spending months navigating regulations, you can get set up in days, offering a smooth transition into the Japanese market.
A plug-and-play provider like Borderless360, for example, takes care of everything—from setting up your local fulfillment network to ensuring your delivery standards meet Japanese expectations. This approach not only saves time but also helps you avoid common pitfalls that can arise when dealing with local providers directly. 

Adapting to the Logistics Landscape 

Japan faces challenges in logistics, such as an undersupply of modern facilities and a looming shortage of truck drivers due to new regulations. Here’s how to navigate these:

• Modern Facilities: Many logistics facilities are outdated, and there’s a pressing need for modern solutions. Investing in or partnering with facilities that meet current standards can help address this gap.

Japan’s warehouse stock by age

Source: CBRE estimates derived from Seasonal Warehouse Statistics Report, Japanese Ministry of Land, Infrastructure, Transport and Tourism, March 2022.

• Reshoring and Supply Chain Resilience: Companies are reshoring manufacturing and reconfiguring supply chains to increase resilience. Ensuring your supply chain is adaptable can help mitigate disruptions. 

In summary, succeeding in the Japanese e-commerce market requires a deep understanding of local expectations and a commitment to exceptional service. By embracing speed, precision, and a customer-first approach, combined with a reliable international logistics provider, you can build a strong presence and meet the high standards of Japanese consumers.