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Rakuten Introduction
One of the biggest Japanese e-commerce and online retailers, Rakuten, Inc. is a novel take on shopping at an online portal. The founder is Hiroshi Mikitani who started this small start-up company in 1997, and today it is one of the largest e-commerce platforms in Japan as well as in the international market. It's named by the Japanese word for "optimism," translating the idea of acting as a medium to empower consumers and businesses through technology.
How Rakuten Works
At its core, Rakuten is an online marketplace where a customer can purchase from electronics to clothes, groceries, and everything in between. The site connects buyers and sellers by giving the merchant the opportunity to create his shop within the Rakuten ecosystem. This model makes it possible for the seller to reach millions of customers while the consumer gets to choose more diverse products at competitive prices.
Yet another characteristic feature that is associated with Rakuten is the cashback opportunity. On the website, users are allowed to place purchases and receive cashback on eligible transactions. This, therefore, presents an incentive for repeat purchases and greater loyalty among customers as compared to traditional retail models.
Main Rakuten Features End
Cashback Program: Rakuten's most important feature is the cashback. Here, consumers receive money back in terms of percentage on every purchase and can withdraw the same from their account using PayPal or get it through cheque. While this feature tends to push consumers to shop through the portal, it also leads the users to discuss their tips and tricks among one another on the best way to be able to gain maximum cash back.
Next to Cashback in most, Rakuten also offers a loyalty program known as Rakuten Super Points. The customer earns points for his or her purchase and can later redeem those points to enjoy discounts. This encourages the customer to make further purchases and also enhances his or her shopping experience.
Diverse Product Offerings: Rakuten encompasses diverse products, which makes it a one-stop-shop for the customer. From fashion to electronics, users can find anything they want on this platform. Furthermore, Rakuten teams up with various retailers, thus expanding its inventory and giving its customers the privilege of choosing among multiple sellers.
Easy website and mobile app: A key issue concerning usability is covered with the main interfaces of the website and mobile application; the easy to use web portal and mobile application are browsed through, filtered search results viewed, and access accounts contain all purchases and cash back earnings.
Partnerships: The company has partnered with several other brands and retailers for expansion of the product line and also to expand its user base. In this case, Walmart and Lyft partnerships do strengthen its hold in the US market.
Savings: Cashback and loyalty points enable customers to save some amount over their purchases, making Rakuten a good online retailer for consumers who are cautious about expenditures.
Comvenience: Due to the vast number of products and interface, Rakuten makes online shopping convenient and efficient.
Accessibility: The platform is accessible to anyone having an Internet connection. In this manner, buyers and sellers across the world can be connected on the same platform.
It offers small businesses as an avenue to opening stores, thus boosting entrepreneurs and diversifying its products on the website.
Challenges and Criticisms
Although many have been successful, Rakuten has had its challenges. The website sometimes complicates navigation, and customers do not receive adequate care. Another challenge is other e-commerce tycoons that always threaten them by their existence such as Amazon and Alibaba.
While the cashback and loyalty point system is something very attractive, some users find the fine print of these programs complex or confusing at times. Even in terms of clarity on transparency, the cashback calculation and when it would be credited to a user's account can be unclear.
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Worldwide Expansion
Rakuten's aspiration is not restricted to the geographical boundaries of Japan. The company has been good at strategic acquisition and partnership, thus spreading its international footprint. In 2010, for example, it acquired Buy.com and further set up a base in the U.S. market. Ever since, Rakuten has continued to improvise on its offerings and has invested much in technology to ensure comfort for the end user.
In the recent past, Rakuten has further ventured into mobile telecommunication through its new business called Rakuten Mobile in Japan. The group can therefore diversify their services and offer an all rounded ecosystem, from e-commerce, telecommunications, and digital content.
Future Prospects
This will only propel the growth of Rakuten further. And with the situation being worse with the COVID-19 pandemic, e-commerce, for instance, shot ahead even further. Online shopping is becoming more popular than it ever was, and consumers will also look for the convenience of buying online.
Besides these, the latest innovation in technology, artificial intelligence, and machine learning will enable Rakuten to go that extra mile for customers with personalized shopping. Using data analytics, Rakuten can tailor various recommendations which result in customer satisfaction and higher sales rates.
Conclusion
In summary, Rakuten has marked a niche position in the e-commerce market. Their products are varied, their cash-back program is very effective, and most importantly, it supports small businesses. While challenges persist, its original approach and flexibility in dynamic change in market trends set Rakuten well for continued success. Because it will continue its expansion throughout the world, and continues to make improvements over time in what it offers, it will well be a strong player for the future of online shopping. Whether you be the savvy shopper looking to find some deals or the seller looking to get your wares out in front of a much wider audience, Rakuten presents exceptional opportunities within the digital marketplace.
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