【2026 Latest】 Guide to Dominating Japan’s “New Generation EC”: The Disruptive Power of Mercari Shops & TikTok Shop
For a long time, the Japanese E-commerce market has been dominated by the “Big Three”: Amazon, Rakuten Ichiba, and Yahoo! Shopping. However, between 2025 and 2026, a major tectonic shift occurred in this landscape. At the center of this evolution are Mercari Shops, born from Japan’s largest flea market app, and TikTok Shop, which has landed with overwhelming viral power.
This article explains the reality of these “New Generation EC” platforms and how businesses should utilize them, supported by the latest market data.
1. Mercari Shops: B2C Gateway to 23 Million “Treasure Hunters”
Mercari is a national platform used by over 23 million people monthly in Japan. While it started as a person-to-person (C2C) marketplace, the rise of “Mercari Shops” for businesses has transformed it into a critical sales channel.
【User Demographics and Characteristics】
- Massive User Base: Approximately 1 in 5 Japanese people use it every month.
- Obsession with “Value” and “Unique Finds”: Users enjoy a “treasure hunt” experience, looking for high-quality items at low prices or products available nowhere else.
- Circulation of Sales Credit: Users often use “Mercari Points” (earned from selling their own items) to make purchases, leading to a high propensity to spend.
【Market Scale and Trends】
Japan’s reuse market is projected to reach 4 trillion yen by 2030, with Mercari as its primary engine.
- Trending Products: Anime/character merchandise, entertainment goods, cosmetics, and apparel.
- Sales Formats: Inventory clearance and “outlet” items sell exceptionally well, alongside farm-fresh foods which are growing rapidly due to their “freshness.”
【Critical Note for Overseas Companies】💡
As of 2026, direct registration for overseas entities on Mercari Shops is still not permitted. To open a shop, you must meet the following:
- A Japanese domestic address (corporate registration or physical base).
- A Japanese domestic bank account.
- Verification via a Japanese phone number.
For overseas-based companies, reaching this audience requires selling through a licensed Japanese distributor or establishing a Japanese branch.
2. TikTok Shop: A New Experience of “Zero-Second Purchasing”
Since its full-scale entry into Japan in 2025, TikTok Shop has rapidly expanded its influence from youth demographics to those in their 30s and 40s as of 2026.
【User Demographics and Characteristics】
- “Discovery-Based” Buying: Unlike traditional EC where users “search to buy,” TikTok Shop is Discovery Commerce—users see a video, want the item, and buy it instantly.
- In-App Completion: Checkout happens within a few taps without leaving the app, resulting in extraordinary conversion rates (CVR).
【Sales Formats and Strengths】
- Live Commerce: Influencers demonstrate products in real-time. Immediate interaction with viewers builds trust incredibly fast.
- Short-Form Video: Visual appeals in the first 3 seconds can create “viral hits,” selling tens of thousands of units overnight.
【Accessibility for Overseas Companies: Cross-Border Leaders】
Unlike Mercari Shops, TikTok Shop actively welcomes cross-border sellers. Many overseas manufacturers currently succeed by shipping directly from their home warehouses to Japanese consumers using the platform’s integrated logistics and payment support.
3. Comparison & Strategy Table for Businesses
| Feature | Mercari Shops | TikTok Shop |
|---|---|---|
| Main Target | Ages 20–60 (Strong with housewives/all ages) | Ages 10–40 (Trends & efficiency focused) |
| Best-Selling Items | Brand goods, outlets, food, hobby items | Cosmetics, apparel, gadgets, lifestyle hacks |
| Overseas Entry | No (Domestic entity required) | Yes (Cross-border schemes available) |
| Buying Motive | “I want a deal/bargain find.” | “I want excitement/I want it now.” |
| Operational Load | Low (Mainly product listing/shipping) | High (Requires video/live content) |
Mercari Shops
Main Target：Ages 20–60 (Strong with housewives/all ages)
Best-Selling Items：Brand goods, outlets, food, hobby items
Overseas Entry：No (Domestic entity required)
Buying Motive：”I want a deal/bargain find.”
Operational Load：Low (Mainly product listing/shipping)
TikTok Shop
Main Target：Ages 10–40 (Trends & efficiency focused)
Best-Selling Items：Cosmetics, apparel, gadgets, lifestyle hacks
Overseas Entry：Yes (Cross-border schemes available)）
Buying Motive：”I want excitement/I want it now.”
Operational Load：High (Requires video/live content)
4. Opportunities and Challenges for Overseas Companies
- Mercari Shops: Ideal if you already have brand recognition or want to redefine your brand value through “pre-owned or like-new” items in Japan’s established reuse culture. If you have a Japanese partner, use this to emphasize the security of “domestic stock.”
- TikTok Shop: Offers the potential to gain massive market share from zero brand awareness through “video entertainment.” This is the primary choice for companies wanting to maintain direct control and expand rapidly through viral reach.
Summary: In 2026, platform strategy will be the ultimate divider between success and failure.
The era of passive selling—simply waiting for “branded searches” on Amazon or Rakuten—has come to an end. The question is: will you leverage Mercari’s 23 million active users to build loyalty through high-value deals? Or will you spark emotion and drive impulse buys on TikTok? The fastest route to the Japanese market is clear: identify if your product thrives on “reliability and price” or “excitement and experience,” then choose the platform that matches its DNA.
