Amazon is the world’s leading e-commerce platform serving numerous countries. It has successfully managed to grab billions of active users allowing them to buy and sell with confidence. On the other hand, Rakuten is a Japanese platform that started in 1997 from a small shop and grown rapidly.
In other words, Rakuten is the amazon of Japan, helping buyers and sellers to connect. However, with the presence of other ecommerce giants like Amazon. You may consider both of them a same platform busy in helping people buy and sell.
There are huge differences in the way Amazon and Rakuten operate. This blog will explore everything you need to know about these platforms including their vision, mission and business models.
Amazon Vs Rakuten: Mission/Vision
Amazon
Vision
Amazon’s vision is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.” This vision reflects Amazon’s focus on the customer experience and its commitment to being the primary destination for online shopping.
By aiming to serve as a platform where customers can effortlessly find and purchase any product, Amazon places customer satisfaction, convenience, and an expansive product range at the forefront of its strategic goals.
Mission
Amazon’s mission is “to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.” This mission statement highlights Amazon’s dedication to making online shopping affordable, diverse, and easy.
The mission emphasizes three pillars—low prices, product variety, and convenience—which have helped Amazon build a loyal customer base and maintain a competitive advantage in the retail industry.
Rakuten
Vision
Rakuten’s vision is “to become the No.1 Global Innovation Company, empowering individuals and businesses to succeed through a robust ecosystem of services.”
Unlike Amazon’s focus on e-commerce, Rakuten envisions itself as a leader in innovation that fosters growth and success for both individuals and businesses. This vision emphasizes Rakuten’s commitment to creating a global platform that not only facilitates commerce but also drives technological progress and support across various sectors, including financial services, digital content, and communications.
Mission
Rakuten’s mission is “to empower people and society through innovation and entrepreneurship.” This mission statement reflects Rakuten’s focus on creating a positive impact by promoting innovation and entrepreneurial opportunities.
By driving empowerment, Rakuten seeks to contribute to societal advancement, allowing individuals and companies to leverage technology for growth and success. This approach positions Rakuten as more than an e-commerce company, underlining its investment in a wide range of digital services that benefit both consumers and entrepreneurs.
Business Models
Amazon’s Business Model
Amazon operates on a multi-faceted business model designed to generate revenue from diverse streams, making it one of the most dominant players in global e-commerce. Key components include:
E-commerce Marketplace:
- Direct Retail: Amazon sells products directly to customers, sourcing goods from suppliers and manufacturers. This traditional retail model accounts for a significant portion of its revenue.
- Third-Party Sellers: Amazon provides a platform for independent sellers through its marketplace, earning revenue from listing fees, commissions, and fulfillment services like Fulfillment by Amazon (FBA).
- Prime Memberships: Amazon’s subscription service, Amazon Prime, offers benefits like free shipping, exclusive deals, and streaming services. This model boosts customer retention and generates recurring revenue.
Cloud Computing Services (Amazon Web Services – AWS):
- AWS is a leading provider of cloud infrastructure, offering services like storage, computing power, and machine learning to businesses and governments. AWS generates high-margin revenue, making it a critical driver of Amazon’s profitability.
Advertising Revenue:
- Amazon sells ad placements on its website and through its ecosystem, leveraging its vast customer base and rich data for targeted advertising. This growing segment provides another lucrative income stream.
Subscription Services:
- Beyond Prime, Amazon offers subscriptions like Audible, Kindle Unlimited, and Amazon Music. These services cater to different customer preferences and encourage ongoing engagement.
Devices and Ecosystem:
- Amazon sells devices such as Kindle, Echo, and Fire TV, which act as gateways to its content and services. These products reinforce its ecosystem by keeping customers engaged within Amazon’s platform.
Logistics and Delivery:
- Amazon operates an extensive delivery network, including last-mile delivery and warehouses, enhancing its control over the customer experience. This enables fast, reliable shipping, which differentiates Amazon in the market.
Rakuten’s Business Model
Rakuten operates on a platform ecosystem business model that integrates multiple services across e-commerce, digital content, and financial technology. Its goal is to create a holistic ecosystem that benefits both businesses and consumers. Key components include:
E-commerce Platform:
- Rakuten’s marketplace connects merchants with consumers, enabling businesses to sell their products directly. Unlike Amazon, Rakuten focuses more on empowering sellers by providing tools to manage their stores, customer relationships, and marketing.
- Rakuten also emphasizes loyalty through its Rakuten Super Points program, encouraging repeat purchases by rewarding customers with redeemable points for every transaction.
Membership-Based Ecosystem:
- Rakuten employs a subscription model for services like Rakuten TV, Kobo (e-book reader), and Rakuten Viber (messaging app). These offerings enhance customer retention and cross-platform engagement.
FinTech and Financial Services:
- Rakuten offers banking, credit cards, insurance, and investment services. Its fintech arm is a major contributor to its ecosystem, as customers can use Rakuten cards to earn rewards and finance purchases, strengthening the connection between its e-commerce and financial services.
Advertising and Data Monetization:
- Leveraging its digital ecosystem, Rakuten provides targeted advertising solutions to businesses. Its insights into customer behavior allow for precise marketing campaigns, making advertising a key revenue stream.
Global Innovation Focus:
- Rakuten invests in disruptive technologies, including AI, blockchain, and mobile solutions. These investments align with its mission to innovate and empower businesses globally. Its acquisition of companies like Viber and partnerships in mobile telecommunications reflect its strategy to expand beyond e-commerce.
Logistics Partnerships:
- Unlike Amazon, Rakuten focuses on partnering with third-party logistics providers instead of building its own network. This approach minimizes operational costs while maintaining efficiency in order fulfillment.
Associated Expenses
The costs associated with both Amazon and Rakuten vary according to their polices, here is the breakdown.
|
The Individual Plan |
The Individual plan costs 100 yen per unit sold. |
|
Professional Plan |
The Professional plan costs ¥4,900 per month, regardless how much you sell. |
|
Referral Fees |
Amazon charges a referral fee for each item sold, ranging from 8% and 15% spending on the product category. |
|
Fulfillment Fees |
You can opt to handle storage and fulfill yourself, but if you’re using Fulfillment by Amazon (FBA) you’ll need to consider this added cost on sales. The specific fee per unit can range from ¥193 to ¥5,625 depending on the size of your product. |
Rakuten
|
Registration Fee |
¥60,000 |
|
Monthly Fixed Fee |
¥50,000Monthly Fee: 2 Installments (6 months each) |
|
Contract Period |
1 Year |
|
Listing Capacity |
Unlimited |
|
System Fee |
PC: 2.0%-4.0%(Mobile: 2.5% – 4.5% ) |
|
Rakuten Super Points Fee |
1.00% |
|
System Enhancement Fee for Improving Safety and Usability on the marketplace. |
0.10% |
|
R-Pay (Payment Processing Fee) |
2.5% – 3.5% |
Shipping and Delivery Options
Shipping and delivery options play a crucial role in enhancing customer satisfaction and ensuring a seamless shopping experience. Leading e-commerce platforms like Amazon and Rakuten provide flexible and efficient delivery services tailored to customer needs.
Amazon’s Shipping and Delivery:
Amazon offers a wide range of shipping options designed for speed and convenience. For regular customers, standard shipping delivers products within 3-5 business days, while expedited and priority shipping options ensure faster delivery. Amazon Prime members enjoy exclusive benefits like free two-day or same-day delivery in eligible areas.
Additionally, Amazon’s delivery innovations, such as Amazon Locker pickup points and drone delivery trials, cater to diverse customer preferences. The company’s robust logistics network, powered by advanced warehousing and last-mile delivery systems, ensures reliable service across the globe.
Rakuten’s Shipping and Delivery:
Rakuten’s shipping options vary depending on the merchants on its platform, as it connects sellers with buyers rather than directly handling logistics. Many sellers offer standard and expedited shipping, often incentivized through Rakuten Super Points, which customers can redeem on future purchases.
Rakuten also collaborates with third-party logistics providers to ensure reliable and timely delivery. In certain regions, Rakuten has launched innovative initiatives, such as partnerships with local couriers and autonomous delivery systems, to enhance customer satisfaction.
User Experience and Interface
Amazon’s User Experience and Interface:
Amazon focuses on a clean, practical, and highly functional interface. Its website and app are designed to make navigation straightforward, with features like a prominent search bar, categorized menus, and personalized recommendations based on browsing and purchase history.
The platform also emphasizes speed, offering one-click purchasing and streamlined checkout processes to enhance convenience. UX elements like reviews, ratings, and “frequently bought together” suggestions build trust and encourage additional purchases. Amazon’s interface ensures consistency across devices, providing a cohesive experience whether accessed via desktop or mobile.
Rakuten’s User Experience and Interface:
Rakuten takes a more interactive and loyalty-driven approach to its UX/UI. Its platform emphasizes the integration of its ecosystem, where users can easily navigate between e-commerce, financial services, and entertainment options. The design promotes the Rakuten Super Points program, clearly displaying how customers can earn and redeem points, creating a gamified shopping experience.
Rakuten also prioritizes merchant branding, allowing sellers to customize their stores, giving customers a more personalized feel. While its interface is visually richer, it may feel slightly less streamlined compared to Amazon’s minimalist approach.
Marketing Strategies
Marketing strategies are at the heart of any successful business, enabling brands to build awareness, attract customers, and maintain loyalty. Both Amazon and Rakuten employ robust and innovative marketing approaches tailored to their unique business models, focusing on customer retention and global expansion.
Amazon’s Marketing Strategies
Amazon leverages a multi-pronged marketing strategy centered on customer-centricity, data-driven insights, and a vast ecosystem of services.
Personalization and Data-Driven Marketing:
Amazon uses advanced algorithms and AI to analyze customer behavior, preferences, and purchase history. This enables highly personalized product recommendations, targeted emails, and dynamic advertisements that cater to individual needs, enhancing conversion rates.
Content and Inbound Marketing:
Amazon optimizes its platform for search engines, ensuring its products rank high on SERPs. It also provides detailed product descriptions, reviews, and Q&A sections to engage customers and establish trust.
Prime Membership and Loyalty Programs:
The Amazon Prime subscription is a cornerstone of its strategy, offering benefits like free shipping, streaming services, and exclusive deals. This creates long-term customer retention and recurring revenue.
Innovative Advertising:
Amazon offers self-service advertising solutions for brands to display sponsored products, increasing visibility. It also monetizes its platform by running third-party advertisements, generating significant ad revenue.
Global Outreach:
Amazon uses localized marketing strategies to cater to different regions, customizing its offerings and promotions based on cultural and consumer behavior insights.
Rakuten’s Marketing Strategies
Rakuten adopts a community-driven, loyalty-focused marketing approach that integrates its ecosystem of services to create lasting customer relationships.
Loyalty and Reward Programs:
Rakuten’s Super Points program is a key driver of its marketing efforts. Customers earn points with every purchase, which can be redeemed across its platform, encouraging repeat transactions and fostering brand loyalty.
Partnership Marketing:
Rakuten collaborates with global brands and sponsors major events, such as sports teams and tournaments. These partnerships enhance its visibility and position Rakuten as a global innovation leader.
Ecosystem Integration:
Rakuten cross-promotes its wide array of services, including Rakuten Viber, Rakuten TV, and financial products, creating a seamless ecosystem. This encourages customers to use multiple services, increasing overall engagement.
Empowering Merchants:
Rakuten supports its sellers with marketing tools, allowing them to run promotions, customize storefronts, and attract customers through targeted campaigns. This decentralized approach builds stronger relationships between merchants and customers.
Localized Marketing:
Rakuten emphasizes local market needs, tailoring its strategies to align with cultural preferences and trends. This ensures its relevance and appeal across diverse markets.
Factors To Consider When Choosing Amongst Amazon Vs Rakuten
When deciding between Amazon and Rakuten, several key factors can help determine which platform better suits your needs as a shopper or seller.
Product Variety:
Amazon offers a broader selection of products, ranging from everyday essentials to niche items. If you value an extensive range, Amazon may be the better option. Rakuten, however, emphasizes localized goods and unique offerings from smaller merchants, catering to those seeking distinct or regional products.
Pricing and Deals:
Amazon is known for competitive pricing and exclusive deals, particularly for Prime members, who also enjoy benefits like free shipping. Rakuten focuses on its loyalty program, offering Super Points for every purchase, which can be redeemed across its ecosystem, making it a cost-effective choice for repeat customers.
Customer Experience:
Amazon provides a fast, streamlined shopping experience, with reliable delivery options and comprehensive customer support. Rakuten, in contrast, emphasizes community and a personalized shopping journey, which may appeal to those seeking a more interactive experience.
Marketplace Approach:
For sellers, Amazon provides a highly structured and centralized platform, offering fulfillment services like FBA. Rakuten empowers merchants with greater control over their storefronts and branding, making it an attractive option for businesses that prioritize autonomy.
Regional Availability:
Amazon operates globally, while Rakuten’s presence is more regional, with a strong focus on Asia and specific international markets. Consider your location and the platform’s reach when choosing.
Conclusion
Choosing between Amazon and Rakuten depends on your specific needs and priorities as a customer or seller. Amazon excels in providing a vast product range, fast shipping, and a seamless shopping experience, backed by its global reach and technological innovation.
On the other hand, Rakuten stands out for its loyalty-driven ecosystem, personalized shopping experiences, and focus on empowering merchants. By carefully considering factors like pricing, product variety, customer experience, and marketplace approach, you can make an informed decision about which platform aligns best with your preferences.
FAQs
- Which platform is better for customers seeking discounts and rewards?
Rakuten offers a robust loyalty program through Super Points, which are ideal for repeat customers. Amazon also provides discounts, especially for Prime members, but lacks a similar points-based system.
- Does Amazon or Rakuten have a larger global presence?
Amazon has a broader global reach, serving customers worldwide. Rakuten operates primarily in Asia and select international markets.
- Which platform provides better support for sellers?
Amazon offers structured tools like Fulfillment by Amazon (FBA), which simplifies logistics for sellers. Rakuten allows more customization and autonomy for merchants, making it a better choice for those seeking control over their storefronts.
- What makes Rakuten unique compared to Amazon?
Rakuten emphasizes loyalty programs, personalized shopping experiences, and a community-driven approach, setting it apart from Amazon’s efficiency-focused model.
- Which platform is faster for delivery?
Amazon generally provides faster delivery options, including same-day and two-day shipping for Prime members, thanks to its extensive logistics network. Rakuten relies on third-party providers, so delivery times may vary.
