Why Rakuten Struggles Against Amazon in Japan's E-Commerce Market

In Japan, the e-commerce landscape is dominated by two major players: Rakuten and Amazon. While other platforms like Lazada, Shopee, AliExpress, and Yahoo! Shopping exist, Rakuten and Amazon lead the market in terms of monthly visits—Amazon with 626.2 million and Rakuten with 535.5 million.

However, despite Rakuten's large user base and its dedicated design lab, the platform faces several user experience (UX) challenges compared to Amazon. Here are some key areas where Rakuten falls short and how it can improve to stay competitive:

1. Complex Navigation

Rakuten's app has a complicated menu structure, making it hard for users to find what they need quickly. Simplifying the navigation and improving the search function would make the app more intuitive and user-friendly, boosting conversion rates.

2. Lack of Cultural Sensitivity

Rakuten's app may not fully cater to the preferences and behaviors of Japanese users. Understanding local culture and adapting features to meet user expectations is crucial for building stronger connections with customers.

3. Performance Issues

Slow loading times and technical glitches negatively impact the user experience. Optimizing app performance for speed and reliability is essential to keep users engaged and reduce frustration.

4. Limited Personalization

Amazon stands out for its personalized recommendations, which help users discover products they’re more likely to purchase. Rakuten could benefit from improving its recommendation engine to make the shopping experience more relevant and tailored to individual user preferences.

5. Complicated Payment Process

A smooth and secure payment process is key in e-commerce. If Rakuten's payment system is confusing or lacks security features, users will prefer Amazon for its ease of use and trustworthiness. Streamlining the checkout experience can prevent users from abandoning their carts.

6. Outdated Visual Design

Rakuten’s app design isn’t as visually appealing or easy to navigate as Amazon’s. A more modern and clean design, with an intuitive interface and clear visual hierarchy, could significantly improve user engagement and satisfaction.

7. Ignoring Customer Feedback

Incorporating user feedback into regular updates is vital for keeping an app relevant. If Rakuten is not consistently improving its app based on user suggestions, it risks falling behind as user needs and market trends evolve.

8. Lack of Mobile Optimization

With mobile commerce on the rise, having a fully optimized app for all mobile devices is critical. If Rakuten’s app isn’t responsive or lacks mobile-specific features, it will lose users to Amazon’s more mobile-friendly platform.

How Rakuten Can Improve

To compete with Amazon, Rakuten needs to focus on user-centered design and conduct in-depth user research. By continuously iterating and making changes based on user feedback, Rakuten can create a more engaging and efficient shopping experience. Improvements in navigation, personalization, performance, and design will not only boost user satisfaction but also drive sales and conversion rates.

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