Rakuten, often referred to as “Japan’s Amazon,” employs several strategies to generate revenue. Here are some of the key ways Rakuten makes money:
1. E-commerce Sales: Rakuten operates a vast online marketplace where various sellers can list and sell their products. The company earns money by charging sellers fees for listing their products and a commission on each sale.
2. Rakuten Super Points: This loyalty program rewards customers with points for purchases that can be redeemed for future discounts. While it enhances customer retention and satisfaction, it also encourages more spending, indirectly boosting Rakuten’s revenue.
3. Subscription Services: Rakuten offers subscription services, such as Rakuten Prime, which provides members with benefits like free shipping and exclusive deals. These subscriptions generate recurring revenue.
4. Advertising Services: The platform allows brands to advertise their products on Rakuten’s site. It generates income through display ads and sponsored listings, capitalizing on its large user base.
5. Financial Services: Rakuten has diversified into financial services, including banking, credit cards, and insurance. These services contribute significantly to its overall revenue stream.
6. Mobile Services: Rakuten Mobile, its telecommunications arm, aims to compete in the mobile network market. While this segment is still growing, it has the potential to generate substantial revenue in the long term.
7. International Expansion: Rakuten has expanded its operations internationally, acquiring businesses and forming partnerships to tap into new markets, which helps diversify its revenue sources.
8. Affiliate Marketing: Through its affiliate marketing program, Rakuten partners with various retailers and pays them commissions for driving traffic or sales to their sites.
Overall, Rakuten’s multifaceted business model, combining e-commerce, financial services, advertising, and more, enables it to generate diverse revenue streams.
