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Rakuten to go ahead with free shipping despite ongoing investigation

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I actually prefer the current (shipping added on) situation, because it's more transparent.

I think Amazon Prime has somewhat shifted 'shipping cost' off of a customer's control, and I know prices has gone up 'alot' to cover free shipping to far flung places. Of course if you live in Okinawa, then it's 'bring it on' because you're getting a much better deal overall.

4 ( +4 / -0 )

Rakuten has gotten so big that it no longer "needs" those little retailers and they know it!

Yes, part of this is an effort to squeeze out the little guys.

Retailers will just leave eventually due to this.

Yes, some certainly will.

At the end of the day Rakuten will continue because, like Amazon, it dominates the market. Therefore retailers have the choice to 'pinch their noses', stay with the 'bully', and take a hit to their profit margin, or take their business elsewhere. Rakuten knows this and that is why they know they can get away with such a policy change.

3 ( +3 / -0 )

As a retail merchant I have tried both Amazon and Rakuten. I did fairly reasonable business before both, however business is booming under Rakuten vs Amazon and I do pickup the shipping with a resulting profit windfall after all taxes, employees, creditors are paid. I thought this would have happened with Amazon but the increase in traffic was quite small. At first I thought perhaps it was still to new in the market so I stayed a bit longer, but after trying out Rakuten, now for almost 2 yrs my online business surpassed the foot traffic, just like their analysts and presentation statistics were presented to us. I have recently in the last 4 months counseled other neighboring business owners and they too have seen immediate results in both orders and profits. Unless your in business for yourself can one really understand the risks and costs of business. While this is the short version of the tale, I did have to do my own leg work too and change a few of my day to day business practices. That is the trouble with many businesses who are failing today as they are not in a position to change or want to change for their business. Like we grow and families grow or shrink so to does business. That is a lesson that can best be learned through experiences. It's business. Thank you to Rakaten..it paid off big for us and our employees.

3 ( +3 / -0 )

   Rakuten has gotten so big that it no longer "needs" those little retailers and they know it!

Yes, part of this is an effort to squeeze out the little guys.

Retailers will just leave eventually due to this.

Yes, some certainly will.

At the end of the day Rakuten will continue because, like Amazon, it dominates the market. Therefore retailers have the choice to 'pinch their noses', stay with the 'bully', and take a hit to their profit margin, or take their business elsewhere.

Then perhaps the "little guys" should upgrade, improvise and adapt. Find ways to deliver to the customer in a way that is much quicker and more efficient than the big boys. Adapt and use technology, consolidate your stores, and work together. Make customers WANT to use your service more than they want to use the big boys' service.

You may not be able to completely overcome the big boys, but you can certainly get some part of the business will still improving your own business.

Problem is that, in Japan, the little guys are slow to adapt to new technology. Hate to say it but while presenting itself as a high tech nation, the everyday Japanese on the street is slow to use & exploit technology when compared to South Korea and china.

3 ( +3 / -0 )

Rakuten is the internet version of the 7/11 bully! Do it our way or get out!

Rakuten has gotten so big that it no longer "needs" those little retailers and they know it!

I hope they get their arses handed to them in court!

2 ( +3 / -1 )

Rakuten has gotten so big that it no longer "needs" those little retailers and they know it!

I think they knew it years ago. I have to admit though, I'm not very good at finding physical addresses in Japan, and Rakuten has been an absolute time saver.

2 ( +2 / -0 )

Retailers will just leave eventually due to this.

2 ( +2 / -0 )

Mikitani denied the allegation, saying most items on Rakuten's shopping site carry price tags that already include shipping fees and the new policy would affect only about 8 percent of orders.

If its so negligible then no need to do it. Liar!

2 ( +2 / -0 )

rgcivilian1

 I did fairly reasonable business before both, however business is booming under Rakuten vs Amazon and I do pickup the shipping with a resulting profit windfall after all taxes, employees, creditors are paid.

you must be in a non-competitive niche or selling a brand or goods with good demand

with few sellers.

Marketplaces, franchises etc don't care about the sellers or owners, they are greedy and

care only about them making money even if it means killing the goose laying the golden egg.

I for one find Rakuten to be more expensive compared to Amazon, Lets take a look at the two

Amazon profession plan vrs Rakuten most Basic plan

Rakuten Amazon

No of listings 5,000 Limitless

Harddisk allowable capacity 500MB Limitless

Initial non refundable Registration fee 60,000yen non

Monthly fee 19,500yen (yearly) 4,500yen (monthly)

System Usage fee Desk top 3.5%〜5% non

mobile device 4%〜7% non

Rakuten Super point (% of purchase) 1% non

Mobile Device ( safety&improvement) 0.1% monthly sales non

Sales through Affiliate from 1.3% of sales

R-chat (Monthly fee) 3,000yen

RakutenPay usage (% of monthly sales) 2.5%〜3.5%

Referral Fee 11-15% 15% for most categories

If you sell 500,000yen at Rakuten, Rakuten makes close to 20% of sales.

Rakuten will find it difficult cutting it in the US with the above pricing structure.

It is as if they are out to milk sellers completely dry by charging for everything,

No wonder there are so many stores on Rakuten that have closed shop.

what next, charge sellers Reikin or thank you money as appreciation to Mikitani

for providing a selling platform.

1 ( +1 / -0 )

I don't know if Rakuten uses similar tacticts, but Amazon strong arms sellers into lowering prices, and even cuts out the middle-man by going directly to the seller's supplier and buying directly.

0 ( +0 / -0 )

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