Articles & News

Amazon vs. Rakuten

If you have not heard about Rakuten now is the time to increase your knowledge on leading ecommerce business’ around the world. For those familiar with Amazon only, Rakuten is (simply put) the Amazon of Japan BUT it is a global company offering different benefits and is a competitor just like Alibaba competes with the two. Here we would like to list and describe three of the differences between the two.

Rakuten Japan was founded in 1997 and started as a small online shopping mall and has grown into more than just online ecommerce just like Amazon which was founded in 1995 with the mission “to be Earth’s most customer-centric company.” Each company has their own mission and goals but they do share customers in some regions around the world. Their differences are important though.

First, “Amazon is a closed system where the company handles everything for merchants, including warehouse management, logistics and customer service,” whereas “Rakuten is taking an open approach where they provide a shopping platform and payment gateway but business owners need to manage inventory, logistics and customer service by themselves.”

Second, Amazon is more like a ‘vending machine experience’ whereas Rakuten ecommerce is more like a ‘shopping mall experience.’ Also since Rakuten is an open platform compared to its competitors it is “membership based and more loyalty-driven by offering consumers direct benefits through cash back and Rakuten Super Points.”

Lastly, Amazon sells their own product (Amazon Basic) vs. Rakuten who is not looking to compete with sellers. As a seller on the Rakuten shopping platform you may have other competitors in your same league not Rakuten themselves which could be a major benefit.

We hope these few steps have broadened your knowledge on leading ecommerce business’ and potential options for you and your business OR as a customer. At the end of the day both business have a mission to help you succeed.