A guide to local warehouses and 3PLs in Japan
Localizing your online store in Japan can be stressful: a different alphabet, address format, logistic and shipping system, and a remote location can be overwhelming if faced all together.
This is why, after our articles about web design, shipping systems and payment methods in Japan, we are here today to analyze which apps and services can help you automate and delegate the logistics and fulfillment in Japan without huge initial investments.
Before starting digging deeper in the logistics and warehousing ecosystem, we want to highlight one aspect that we consider crucial in setting up your online store in the Land of the Rising Sun: we’ll never stress enough the importance of moving your inventory intended for the Japanese market in a domestic warehouse. This not only will result in lower shipping costs per unit and faster and more reliable delivery, but will eliminate the friction between the fulfillment and partial shipping in a foreign country, and the final delivery in Japan.
We will now present an overview of the main app and services which we advise when it comes to localizing your business to Japan. Most, if not all, of them are fully integrated with Shopify, which we strongly believe is one of the best e-commerce platforms when it comes to internationalization of your online store. Some of these services are English-friendly, some are not, so feel free to engage in a conversation with us if you have any question or further information about the functioning of the services listed below.
- THIRD PARTY LOGISTICS (3PL)
A 3PL — short for third-party logistics (sometimes called a TPL) — is used in logistics and supply-chain management to outsource part or all of a business’ distribution and fulfillment services.
This is the definition given by Shopify Plus in this useful article which helps you understanding, on a global perspective, which kind of services fall under a “3PL” definition and to assess if your EC business may need the help of 3PL services now or in the future.
Japan has its own 3PL services, and today we would like to introduce two companies which offer warehouse and fulfillment services and can be integrated with Shopify:
Offering an entirely-manageable-online, zero-fixed-cost outsourced logistic service, OpenLogi aims, as their mission states, at “Making Daily Logistic Operations Simpler”. From storage and inventory management to fulfillment and inventory history check, OpenLogi offers to its customers a highly reliable, easy to manage service, with a wide API documentation which facilitates the integration with each store’s systems and apps. Its rate calculation is very straightforward, and is based on pay-as-you-go premises: the sum of reception, storage and shipping fee will constitute the cost of the service for each merchant. Shipping fees within Japan, except for the island of Okinawa, are offered at a flat rate (depending of course on the size of the packages), and international shipping options are also available. Options of customized packaging, gift wrapping, wholesale fulfillment and cash on delivery are available to merchants using the service, and the company is now expanding its set of partner services and integrations available.
Part of Connect Group, which offers a wide range in terms of services and infrastructures, Connect Logistics is a 3PL which covers domestic and global fulfillment thanks to its warehousing, transportation and logistics consultancy services. Based in Saitama, the warehouse management of Connect’s structures can be easily integrated with Shopify through Logiless, software which will be analyzed later in this article.
1. WAREHOUSE MANAGEMENT SYSTEMS
A warehouse management system (WMS) is software and processes that allow organizations to control and administer warehouse operations from the time goods or materials enter a warehouse until they move out. Operations in a warehouse include inventory management, picking processes and auditing. — Definition from TechTarget.
Even if Shopify provides already some tools of inventory management, and is expanding its functions in this sense, there are some external integrations which can make your inventory management smooth and straightforward we would highly recommend:
Logiless (ロジレス in Japanese) is a cloud-based, all-in-one software dedicated to e-commerce. Through Logiless it is possible to manage orders and stock in one place, reaching a high efficiency of operations at low cost. Everything from the moment a new order is received to the actual fulfillment and shipping is automated and manageable through the Logiless app, which now is available also in a Shopify-optimized version.
Localized in Japan thanks to its alliance with Transcosmos, which funded the company during a series-B funding and became its number one allied in the Japanese market, but with an entire website, interface and support team in English, Anchanto provides several e-commerce related services in South-East Asia, Japan and Australia and is currently working with a range of sellers on Shopify. Providing a logistics network of partners, as well as a set of softwares for inventory management, orders fulfillment and multi-channel stores, Anchanto can be an interesting option for merchants who prefer to use an English-friendly software which is knowledgable about the Asian and Australian market.
Another domestic WMS, Next Engine is a wide-spread software whose main features are order management, inventory management and products registration and management for e-commerce. Used by more than 20,000 shops in the country, Next Engine counts between its clients brands like Nestle’ and has started as a spin-off service from the e-commerce experience of the company Hamee, selling cellular phone cases and operating more than 250,000 products. Its two key values are “centralized management” and “automation”, which are aimed at making merchants save time and resources in operations which can be easily managed through the Next Engine System. A free trial of 30 days is available on their website.
Logikura (ロジクラ) is a cloud EC logistics software which aims at reducing EC shipping work thanks to its cloud-based features. Through its smartphone app and its desktop version, and the Shopify integration, merchants can easily import their store data into the Logikura system, fulfill orders with their smartphones including label printing and manage inventory.
2. MULTI-WAREHOUSE / MULTI-CHANNEL MANAGEMENT SYSTEMS
Things can become more complicated, in Japan as everywhere else, when it comes to multiple warehouses and/or multiple points of sale (for example online store + POS + wholesale channel, etc.). In this case, we would advise two international softwares that perfectly integrate with Shopify, and allow a more detailed and deeper management of orders and inventory in situations of high growth or market expansion.
Stitch Labs is a Multichannel Inventory Order Management System, which allows merchants to centrally manage several inventories, points of sale and warehouses thanks to a smooth integration with not only the main marketplaces and e-commerce platforms, but also with accounting, 3PLs, shipping, logistics and many more systems. With a highly responsive support center and a wide API documentation, Stitch Labs is an adaptable and reliable tool when it comes to drive your store growth to the next level. Pricing depends on the desired features and order volume, and personalized plans can be discussed directly with the company itself.
Similar to Stitch Labs but more affordable for also smaller sized, or at a slower growth rate, brands, Tradegecko is also a highly integrated, centrally managed inventory and multi channel management system. Its interface is also entirely in English and a free trial is available on their website.
3. SHIPPING AND FULFILLMENT APPS
Whether you’re shipping hundreds of packages or just a couple of packages a day, with Ship&Co you can process all your shipments from Japan in one single interface. Founded by Thomas Bertrand, who gained a deep e-commerce experience while running his online store Bento&co, Ship&Co helps you create your shipping labels quickly & easily with multiple carriers from Japan, to anywhere. The app is currently compatible with Japan Post International and YuPack, Yamato, FedEx, DHL and UPS.
ShipStation is one of the leading shipping-related apps for Shopify. Fully integrated with Shopify and many Shopify apps between which the above mentioned Stitch Labs, ShipStation creates hundreds of labels at a time for many shipping options. It also allows merchants to calculate shipping rates, and monitor the shipping trends of their store.
Lunaris, Japanese Shopify app development agency, has developed two very straightforward apps for calculating rates for Japan Post, and create and print shipping labels in the correct format. Labels can be easily customized, and insurance on the shipping can be added in a few clicks.
When it comes to orders’ format and shipping in Japan, quite often formats issues are encountered: this is why at Flagship we have created the Japan Order CSV app, which localizes your data for the Japanese market and makes it downloadable in a format ready to use with Japanese shipping softwares. Check out our guide about Shipping for E-Commerce in Japan to know more about shipping services in Japan, and get in touch with us if you have any question or doubt!
