How to Sell on Rakuten with Dropshipping

Rakuten, often referred to as the “Amazon of Japan,” is one of the largest e-commerce platforms in the world. With a significant presence in Japan and growing markets globally, Rakuten provides a lucrative opportunity for entrepreneurs looking to expand their business. One of the most efficient ways to sell on Rakuten is through dropshipping, a business model that allows you to sell products without holding any inventory. This guide will take you through the steps of setting up and running a successful dropshipping business on Rakuten.

Understanding Rakuten and Dropshipping

What is Rakuten?

Rakuten is a Japanese e-commerce giant that operates globally, offering a wide variety of products, including electronics, fashion, home goods, and more. Founded in 1997, Rakuten has grown into a major player in the global e-commerce space, particularly known for its loyalty program, Rakuten Super Points. These points encourage repeat purchases by allowing customers to earn and redeem points across the Rakuten ecosystem. With millions of active users, Rakuten presents a vast customer base that sellers can tap into.

What is Dropshipping?

Dropshipping is a retail fulfillment method where you, as the seller, don’t keep the products you sell in stock. Instead, when you sell a product, you purchase the item from a third-party supplier—usually a wholesaler or manufacturer—and have it shipped directly to the customer. The key benefits of dropshipping include low startup costs, minimal risk, and the ability to offer a wide range of products without needing to manage inventory or warehousing.

The dropshipping model has gained popularity due to its flexibility and the low barrier to entry. For entrepreneurs looking to sell on Rakuten, dropshipping offers a way to quickly and efficiently start a business with minimal upfront investment.

Getting Started with Rakuten

Step 1: Create a Seller Account

To start selling on Rakuten, you first need to create a seller account. This process involves visiting Rakuten’s official website and applying to become a seller. During the application process, you’ll need to provide detailed information about your business, including:

• Company Information: Details about your business structure, including your business name, address, and contact information.
• Tax Identification: Rakuten will require your tax ID or equivalent, depending on your location, to comply with tax regulations.
• Banking Details: You’ll need to provide banking information for payments and transaction fees.
• Business Plan: Rakuten may ask for a brief overview of your business plan, including the types of products you intend to sell and your target market.

Once your application is approved, you’ll gain access to Rakuten’s seller platform, where you can start setting up your online store.

Step 2: Understand Rakuten’s Fee Structure

Before listing your products, it’s crucial to understand Rakuten’s fee structure. Rakuten charges sellers several types of fees, which typically include:

• Initial Setup Fee: A one-time fee charged when you first set up your Rakuten store.
• Monthly Platform Fee: A recurring fee to maintain your presence on the platform. This fee can vary based on the size of your store and the number of products you list.
• Commission Fees: Rakuten charges a commission on each sale, which can range from 5% to 15% depending on the product category. It’s important to factor these commissions into your pricing strategy.

Understanding these fees will help you price your products competitively while ensuring you maintain a healthy profit margin.

Step 3: Select a Dropshipping Supplier

Choosing the right dropshipping supplier is a critical step in your Rakuten selling journey. Alternatively, you can consider an agent, such as zhengsourcing. The supplier you choose will impact the quality of the products you offer, the reliability of your shipping, and ultimately, customer satisfaction. When selecting a supplier, consider the following factors:

• Product Quality: Ensure that the products your supplier offers meet Rakuten’s quality standards and appeal to the platform’s customer base. Poor-quality products can lead to negative reviews and returns, which can harm your reputation on Rakuten.
• Shipping Reliability: Shipping times are crucial, especially when selling on a platform like Rakuten, where customers expect prompt delivery. Choose suppliers that offer reliable shipping services, particularly to Japan and other markets Rakuten serves.
• Competitive Pricing: Your supplier’s pricing should allow you to price your products competitively on Rakuten while still making a profit. It’s important to compare multiple suppliers to find the best deals.

Popular dropshipping platforms like AliExpress, SaleHoo, and Oberlo are commonly used by dropshippers. However, when selling on Rakuten, it may be beneficial to consider local suppliers in Japan, as this can significantly reduce shipping times and costs, leading to higher customer satisfaction.

Setting Up Your Rakuten Store

Step 4: Design Your Storefront

Rakuten offers sellers the ability to create customized storefronts, which is a great way to establish your brand identity and stand out from the competition. Your storefront should be visually appealing, easy to navigate, and optimized for conversions. Here are some tips for designing your Rakuten storefront:

• Visual Design: Use high-quality images and a clean, professional design. Consider hiring a graphic designer if needed to create a unique and visually appealing storefront.
• Navigation: Ensure your store is easy to navigate. Organize products into categories, and make it simple for customers to find what they’re looking for.
• Branding: Use consistent branding across your storefront, including your logo, color scheme, and messaging. This helps build brand recognition and trust.
• Language: Since Rakuten is a Japanese platform, it’s important to offer bilingual (Japanese and English) descriptions and customer support. This caters to both local and international customers and can significantly increase your sales potential.

Step 5: List Your Products

Product listing is a crucial aspect of selling on Rakuten. Your product pages need to be optimized for both search visibility and conversions. Here’s how to create effective product listings:

• Product Titles: Use clear, descriptive titles that include relevant keywords. This helps improve your product’s visibility in Rakuten’s search engine.
• Product Images: Include multiple high-quality images that show the product from different angles. Images should be well-lit, professionally shot, and accurately represent the product.
• Product Descriptions: Write detailed descriptions that highlight the features, benefits, and specifications of the product. Include information about the materials, dimensions, and any unique selling points.
• Pricing: Set your prices competitively after accounting for Rakuten’s fees, supplier costs, and your desired profit margin. Keep an eye on your competitors’ pricing to ensure you remain competitive.
• Shipping Information: Clearly state the shipping times and costs. Transparency here is key to managing customer expectations and reducing the risk of negative feedback.

Step 6: Implement a Marketing Strategy

Marketing your Rakuten store is essential to drive traffic and sales. Rakuten offers various tools and programs that can help you promote your products, but you should also consider external marketing efforts. Here are some effective strategies:

• Rakuten Super Points: Take advantage of Rakuten’s loyalty program by offering bonus points for purchases made at your store. This can incentivize customers to choose your products over competitors.
• Seasonal Promotions: Run promotions and discounts during key shopping seasons, such as holidays or back-to-school periods. This can help boost your visibility and attract price-sensitive customers.
• SEO Optimization: Optimize your product listings for Rakuten’s search engine by using relevant keywords in your titles, descriptions, and metadata. This will help improve your products’ rankings in search results.
• Social Media Marketing: Use social media platforms like Instagram, Facebook, and Twitter to promote your Rakuten store. Engage with your audience by sharing product updates, promotions, and customer reviews.
• Email Marketing: Build an email list and send out newsletters featuring new products, exclusive discounts, and special offers. Email marketing can be a powerful tool to drive repeat purchases and build customer loyalty.

Step 7: Manage Orders and Customer Service

Efficient order management and exceptional customer service are critical to your success on Rakuten. Here’s how to manage your orders and provide top-notch customer service:

• Order Fulfillment: As soon as an order is placed, notify your dropshipping supplier to fulfill the order. Ensure that your supplier ships the products promptly and provides tracking information.
• Shipping Confirmation: Once the order is shipped, send a shipping confirmation email to the customer with the tracking number. This reassures customers and reduces the likelihood of order status inquiries.
• Handling Returns and Refunds: Establish a clear return and refund policy. Work with your supplier to handle returns efficiently. Make the return process as straightforward as possible for customers to maintain their trust and satisfaction.
• Customer Support: Provide responsive and helpful customer support. Answer inquiries promptly, resolve issues quickly, and maintain a professional and courteous tone. Excellent customer service can lead to positive reviews and repeat business.

Scaling Your Rakuten Dropshipping Business

Step 8: Expand Your Product Range

As your business grows, consider expanding your product range to attract a broader audience. Here are some strategies for expanding your product offerings:

• Complementary Products: Add products that complement your existing offerings. For example, if you sell electronics, consider adding accessories like chargers or cases.
• New Categories: Explore new product categories that align with your brand. Conduct market research to identify trends and customer demands that you can capitalize on.
• Supplier Relationships: Build strong relationships with your suppliers to negotiate better prices and gain access to exclusive products. This can give you a competitive edge and allow you to offer unique items.

Step 9: Monitor Performance and Optimize

Continuous monitoring and optimization are essential for long-term success. Regularly review your store’s performance metrics, such as sales, conversion rates, and customer feedback. Use this data to make informed decisions and optimize your store. Here are some areas to focus on:

• Product Performance: Identify your best-selling products and consider expanding your offerings in those categories. Conversely, discontinue products that don’t perform well to free up resources for more profitable items.
• Pricing Strategy: Continuously monitor your competitors’ pricing and adjust your prices as needed to stay competitive. Use dynamic pricing tools to automate this process if possible.
• Customer Feedback: Pay close attention to customer reviews and feedback. Address any recurring issues and use customer insights to improve your product listings, descriptions, and overall shopping experience.
• Marketing Effectiveness: Track the performance of your marketing campaigns. Analyze which strategies are driving the most traffic and sales, and focus your efforts on those channels.

Step 10: Automate Processes

To scale your Rakuten dropshipping business efficiently, it’s important to automate as many processes as possible. Automation can save time, reduce errors, and allow you to focus on growing your business. Here are some areas where automation can be particularly beneficial:

• Order Processing: Use automation tools to streamline order processing. These tools can automatically notify suppliers of new orders, track shipments, and update customers with shipping information.
• Inventory Management: Implement inventory management software that syncs with your suppliers’ stock levels. This ensures that your product listings are always up-to-date and helps prevent overselling.
• Customer Communication: Automate customer communication with tools that send out order confirmations, shipping updates, and follow-up emails. This can enhance the customer experience and encourage repeat purchases.