Is Rakuten like Amazon?

Rakuten and Amazon are both online platforms that allow consumers to purchase products, but they operate in very different ways. Here's a comparison to help you understand the key differences between the two:

Rakuten vs Amazon: Key Differences

1. Business Model:

• Rakuten:
  • Rakuten is often referred to as the "Amazon of Japan," but it's more of a marketplace than a traditional retailer. It doesn’t directly sell most of the products on its platform; rather, it connects third-party sellers with consumers, much like eBay. Rakuten provides a platform for retailers and individual sellers to list their products.
  • It also offers services in e-commerce, digital content, financial services, and telecommunications.
• Amazon:
  • Amazon is both a retailer and a marketplace. While Amazon does sell its own products, it also allows third-party sellers to list their products. However, a significant portion of the inventory Amazon sells is owned, stocked, and shipped by Amazon itself.
  • Amazon is heavily involved in logistics and supply chain management, which allows it to offer services like Amazon Prime, same-day delivery, and Amazon Fresh.

2. Product Listings:

• Rakuten:

  • Rakuten offers a wide variety of products, but it’s less centralized than Amazon. Because it’s primarily a marketplace, there are often more third-party sellers and sometimes products from international vendors.
  • Rakuten also specializes in various categories, such as electronics, fashion, books, and beauty products, with a focus on Japanese and Asian market items.

• Amazon:

  • Amazon has a massive selection across virtually every category, from electronics and home goods to books and groceries. Since Amazon directly sells many of the items, it has a more centralized product selection and offers a consistent experience for product listings.
  • You can find a mix of brand-new, refurbished, and used items, along with a wide range of Amazon-exclusive products (e.g., Amazon devices like the Kindle, Echo, etc.).

3. Shopping Experience:

• Rakuten:

  • Rakuten’s website is often described as less user-friendly than Amazon’s, especially for international shoppers. While Rakuten Japan is extremely popular, its global marketplace has been somewhat difficult for many users outside Japan to navigate.
  • Rakuten also has a loyalty program where customers earn Rakuten Super Points for every purchase, which can be redeemed for discounts on future orders.

• Amazon:

  • Amazon’s shopping experience is typically faster and more streamlined, with advanced search features, personalized recommendations, and easy-to-use interfaces across web and mobile platforms.
  • Amazon’s Prime membership gives members access to free shipping, Prime Video, Prime Music, Prime Reading, and other perks, creating a more integrated shopping experience.

4. Loyalty Programs & Rewards:

• Rakuten:

  • Rakuten offers a loyalty program called Rakuten Super Points, which rewards you with points for each purchase. These points can be redeemed for discounts on future purchases. Additionally, Rakuten has partnerships with many retailers where you can earn cashback through Rakuten Rewards (formerly known as Ebates).
  • Rakuten Cashback: One of the most attractive aspects of Rakuten is its cashback deals. Users can earn cashback (up to 40% or more) on purchases made at partner stores, which is similar to a rewards or affiliate program.

• Amazon:

  • Amazon offers Amazon Rewards for using the Amazon credit card, where you can earn cashback or points. Amazon Prime members get exclusive perks like free shipping, Prime Day sales, and exclusive discounts.
  • However, unlike Rakuten, Amazon does not have a direct cashback program for non-members.

5. Shipping and Delivery:

• Rakuten:

  • Rakuten’s shipping and delivery times vary depending on the individual seller. Rakuten doesn’t offer Amazon-like logistics, so you might find that shipping takes longer than on Amazon.
  • Rakuten Japan has a very reliable shipping system, but international delivery times can be slower and more expensive. Some sellers on Rakuten provide free shipping, but it’s less common.

• Amazon:

  • Amazon offers fast and reliable shipping. With Amazon Prime, you can get free 2-day shipping (sometimes even same-day delivery for eligible items), and access to Amazon Fresh and Amazon Whole Foods for groceries. Amazon’s robust logistics network gives it a significant edge in terms of delivery speed and reliability.

6. International Presence:

• Rakuten:

  • Rakuten is primarily known in Japan but has made efforts to expand internationally, especially in countries like the U.S., Germany, and China. However, it’s not as dominant globally as Amazon.
  • Rakuten Global Market allows you to purchase products from Japan, but international customers might face shipping fees and language barriers.

• Amazon:

  • Amazon is global and has a dominant presence in many countries, including the U.S., U.K., Germany, Canada, India, and Japan. It operates dedicated websites in many regions, offering tailored experiences for each country. The company’s ability to ship internationally is much more established and streamlined than Rakuten’s.

So, Is Rakuten Like Amazon?

While both are e-commerce giants, Rakuten and Amazon serve slightly different purposes:

• Rakuten is more of a marketplace platform, connecting consumers with a variety of sellers, many of which are from Japan or Asian markets. Rakuten’s model is based on third-party sales and cashback rewards.

• Amazon, on the other hand, is a retail powerhouse that sells directly to consumers but also provides a marketplace for third-party sellers. Amazon offers more robust logistics, streamlined shopping experiences, and faster delivery, especially for Prime members.

When to Use Rakuten:

• You’re looking for cashback offers and want to shop from a wide range of sellers.
• You’re interested in unique or Asian market products, especially from Japan.
• You’re willing to navigate potentially slower shipping times.

When to Use Amazon:

• You want a one-stop shop for almost anything, from electronics to groceries.
• You need fast, reliable shipping and an excellent customer service experience.
• You’re an Amazon Prime member and enjoy the benefits of exclusive deals, fast shipping, and integrated services like Prime Video.

In summary, Rakuten is more about rewards and a diverse marketplace, while Amazon offers a more streamlined, fast, and expansive shopping experience. Both have their advantages depending on your needs, but Amazon tends to be the more dominant and reliable choice for most consumers.