A/B Testing
A method of randomly presenting two or more variations of a web page or app to users and statistically verifying which one achieves better results. It is a fundamental marketing tool for enabling data-driven decision making.
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Glossary
Affiliate Marketing
A performance-based advertising model where affiliates (referrers) promote products on their blogs or social media, and receive commissions for purchases or registrations generated through their referrals. Advertisers benefit from low-risk customer acquisition, while affiliates earn supplementary income.
Anchoring Bias
A cognitive bias in which the first number or piece of information presented becomes a reference point (anchor) that strongly influences subsequent judgments and decisions. It is widely used in price negotiations and sale displays.
Annual Plan
A pricing plan where you subscribe to a service on a yearly basis. It is generally offered at a discount compared to the monthly plan, making it a cost-effective choice for users who are committed to long-term use.
Anonymous Shipping
A shipping service in flea market app transactions that allows both sellers and buyers to send and receive products without disclosing personal information such as names and addresses to each other. Mercari's "Raku-Raku Mercari Bin" and "Yu-Yu Mercari Bin," as well as Rakuma's "Kantan Rakuma Pack," are representative services that greatly contribute to privacy protection and dispute prevention.
Asset Allocation
An investment strategy that determines how to distribute funds across different asset classes such as stocks, bonds, real estate, and cash. It is said that approximately 90% of investment returns are determined by asset allocation, making it a more important investment decision than individual security selection.
Auto-Charge
A feature that automatically replenishes a set amount from a linked credit card or bank account when the balance of an e-money or prepaid card falls below a configured threshold. It prevents payment failures due to insufficient balance and greatly improves daily convenience by eliminating the need for manual top-ups.
Auto-Renewal
A mechanism where a subscription contract is automatically extended to the next period when it expires, unless the user explicitly cancels. While it ensures seamless continued use of a service, it can also be a source of unintended billing issues.
Bank Pay
A collective term for QR code payment services that debit directly from a bank account. By bypassing credit cards and prepaid balances to settle instantly from your bank account balance, it features overspending prevention and low fees.
Behavioral Economics
An academic field that studies how psychological biases and emotions influence economic decision-making, based on the premise that humans do not always act rationally. It complements the limitations of the "rational economic agent" model assumed by traditional economics.
Birthday Coupon
A special discount coupon distributed around a user's birthday or birth month. Often featuring higher discount rates than regular coupons, it is a marketing tactic aimed at boosting customer loyalty and reactivating dormant users.
Buy Now, Pay Later
A payment method where you don't pay at the time of purchase and are billed later in a lump sum. Short for Buy Now, Pay Later, it has gained popularity especially among younger consumers for offering installment and deferred payments without requiring a credit card.
Bonus Point
Additional points awarded on top of regular point earnings when specific conditions are met. Designed as incentives to encourage particular user behaviors, they include sign-up bonuses, birthday bonuses, and purchase bonuses during campaign periods.
Browser Extension Coupon
A tool that operates as a browser extension, automatically searching for and applying available coupon codes on e-commerce checkout pages. It eliminates the hassle of manually hunting for coupons and helps users purchase at the lowest possible price.
Budget Rule
A household management guideline that pre-determines the allocation ratios of income to spending, savings, and investments. The most well-known example is the "50/30/20 Rule," which recommends allocating 50% of take-home pay to needs, 30% to wants, and 20% to savings and investments.
Bulk Discount
A discount system applied when purchasing a certain quantity or more of products at once. Because the unit price decreases, it is particularly effective for saving on everyday essentials and consumables.
Bundled Subscription
A subscription model that packages multiple services or products together at a flat rate. Typically priced lower than subscribing to each service individually, it allows cross-category access to different types of services, as seen with Apple One and Amazon Prime.
Buyer Protection
A collective term for protection systems provided by platforms on flea market apps and online marketplaces to ensure buyers can transact with confidence. These systems offer refunds and compensation when issues arise, such as non-delivery, receipt of items that differ from the description, or purchase of counterfeit goods.
Customer Acquisition Cost
A metric indicating the total marketing expenditure required to acquire a single new customer. Abbreviated as CAC, it encompasses advertising costs, personnel expenses, tool fees, and more. The ratio of CAC to LTV is a critical determinant of business sustainability.
Cancellation Policy
The terms and conditions governing subscription service cancellation procedures, refund conditions upon cancellation, and data retention periods after cancellation. Often overlooked when choosing a service, it is a critical factor that should always be reviewed before signing up.
Car-Sharing
A service where multiple users share vehicles. It comes in two forms: station-based services like Times Car and Careco, and peer-to-peer car-sharing like Anyca, enabling an "ownership-free car lifestyle" where you use a car only when needed.
Cart Abandonment
The phenomenon where shoppers add items to their cart on an EC site but leave without completing the purchase. The industry average cart abandonment rate is approximately 70%, making it a critical improvement area for EC businesses seeking to minimize lost sales opportunities.
Cashback
A mechanism that returns a portion of the amount paid in the form of cash or points after purchasing a product or using a service. It functions as an effective discount and encourages continued usage.
Cashback Site
An intermediary site that returns a portion of the purchase amount as cash or points to users who shop at partnered e-commerce sites and services. Simply routing your purchase through the site triggers the reward, and combining it with coupons further amplifies savings.
Cashless Medical Service
A system in which the insurer pays medical expenses directly to the healthcare facility when a travel or medical insurance policyholder receives treatment at a partner medical institution. The patient receives treatment without any out-of-pocket payment at the reception desk, eliminating the need to advance high overseas medical costs and enabling worry-free medical visits even in emergencies with limited cash on hand.
Charge Bonus
A benefit where additional points or balance are awarded in proportion to the amount charged when topping up an e-money or QR code payment service. Since it stacks on top of regular point returns, it serves as a means to effectively boost your overall return rate.
Churn Rate
A metric indicating the percentage of users who canceled a service within a given period. It is one of the most critical KPIs for measuring the health of a subscription business, with monthly churn rate being the most widely used measure.
Circular Economy
An economic model that keeps resources in circulation through repair, reuse, and recycling rather than discarding products and materials. In contrast to the traditional "make, use, dispose" linear economy, it aims to build a sustainable system that maximizes economic value while minimizing resource input and waste output.
Insurance Claim Process
The series of procedures through which the insured requests payment of insurance benefits from the insurer after an insured event occurs. The process proceeds through incident reporting, submission of required documents, damage assessment, and benefit payment, with the speed and accuracy of the process directly affecting the amount and timing of the payout.
Click and Collect
A purchasing method where you order products online and pick them up at a physical store or designated collection point. Also known as BOPIS (Buy Online, Pick-up In Store), it is a core component of omnichannel strategy that combines the convenience of EC with the immediacy of physical retail.
Co-Working
A work style and facility type where people from different organizations - freelancers, remote workers, startups - use a shared workspace to perform independent work in the same space. Beyond mere space sharing, it is characterized by the interactions and collaborations that emerge among users.
Common Point
A point currency that can be earned and redeemed across a wide range of participating merchants and services, not limited to a single corporate group. Rakuten Points, d Points, T-Point, Ponta Points, and PayPay Points are known as Japan's five major common point programs.
Comparison Shopping
The consumer behavior of comparing prices, quality, and terms for the same product or service across multiple sellers to purchase under the most favorable conditions. The proliferation of price comparison sites and apps has made this practice easily accessible.
Compound Interest
A mechanism where interest earned on the principal is added back to the principal, so that in the next period, interest is calculated on the increased amount. Often attributed to Einstein as "the greatest invention of mankind," compound interest produces a snowball effect that accelerates wealth growth over long-term investing.
Contactless Delivery
A no-contact delivery method where the delivery person leaves the package at a designated spot such as the front door or meter box without meeting the customer face to face. It spread rapidly during the COVID-19 pandemic and has become a standard delivery option for food delivery and e-commerce.
Contactless Payment
A payment method that uses IC chip or NFC (Near Field Communication) technology to complete a transaction simply by holding a card or smartphone near a payment terminal. Suica, iD, QUICPay, and Visa Touch Payment are representative examples.
Content Marketing
A marketing approach that continuously provides valuable content (articles, videos, white papers, etc.) to target customers, building trust relationships that ultimately drive purchasing behavior and brand loyalty. Rather than direct selling like traditional advertising, it is an inbound approach that attracts customers through information delivery.
Conversion Rate
The percentage of website or app visitors who complete a desired action such as a purchase, registration, or inquiry. Also abbreviated as CVR, it is widely used as a benchmark for measuring marketing effectiveness and guiding site improvements.
Coupon Code
A discount string issued by a service provider. When entered at checkout, it deducts a fixed amount or percentage from the product price or service fee.
Coupon Stacking
A technique of applying multiple coupons or discount codes simultaneously to maximize savings. Rules on whether stacking is allowed vary by service, so checking in advance is essential.
Credit Card Rewards
A collective term for various perks awarded based on credit card spending, including points, miles, cashback, and airport lounge access. Rewards are a key factor in choosing a card, and the real value is determined by the balance between benefits and the annual fee.
Credit Score
A numerical indicator that quantifies an individual's creditworthiness, used in credit card and loan screening to evaluate repayment ability and willingness. In Japan, three agencies - CIC, JICC, and the Japanese Bankers Association Personal Credit Information Center - manage credit information, recording delinquency history and borrowing status.
CRM
An abbreviation for Customer Relationship Management, referring to the collective strategies, methods, and tools for centrally managing customer relationships and building long-term trust. Through the accumulation and analysis of customer data, it enables optimal communication at the right time.
Cross-Selling
A sales technique that suggests products from a different category related to what the customer is about to purchase, encouraging additional purchases. The classic example is "Customers who bought this item also bought these," aiming to increase average order value while enhancing customer satisfaction.
Cyber Insurance
An insurance product that comprehensively covers liability for damages, incident response costs, and business interruption losses arising from cyberattacks and data breaches. Against the backdrop of surging ransomware attacks and increasingly sophisticated phishing scams, demand is expanding beyond corporations to include sole proprietors and freelancers.
D2C
Short for Direct to Consumer, a business model where manufacturers and brands sell products directly to consumers through their own EC sites or direct-operated stores, bypassing wholesalers and retailers. The main advantages are price competitiveness through eliminating intermediary margins and improved marketing precision through direct access to customer data.
Dark Pattern
A collective term for deceptive UI/UX designs that guide users into taking unintended actions. Common examples include overly complex cancellation procedures, confusing button placement, and hidden additional charges.
Dark Store
A small warehouse-style store not open to walk-in customers, serving as a fulfillment hub for instant delivery (quick commerce). Located in urban areas, it functions as infrastructure enabling ultra-fast delivery within 10-30 minutes of an order.
Deal Alert
A feature that automatically notifies users via push notification or email when a specific product or service goes on sale. It prevents missed deals and helps users purchase at the optimal time.
Debit Card
A card that instantly debits the purchase amount from a linked bank account at the time of payment. Unlike credit cards with deferred billing, it can only be used within the account balance, making it a payment method with low risk of overspending.
Debt Management
A household management approach that involves comprehensively tracking all personal borrowings - mortgages, card loans, student loans, credit card revolving payments - and optimizing repayment plans to minimize interest costs. The basic strategy is to visualize the full picture of debt and prioritize repayments accordingly.
Decoy Effect
A psychological effect where adding a clearly inferior "decoy" option makes a specific choice appear relatively more attractive, guiding consumer decisions. It is frequently used in pricing plan design.
Delivery Area
The geographic range within which a food delivery service can operate. It is configured per platform and per restaurant, and the stores and menus available to a customer depend on whether their location falls within the coverage area.
Delivery Fee
The shipping cost charged when having food delivered through a food delivery service. It dynamically fluctuates based on multiple factors including the distance between the customer and the restaurant, time of day, weather conditions, and supply-demand balance.
Delivery Partner
An independent contractor who enters into a service agreement with a food delivery platform to transport meals from restaurants to customers. They operate as self-employed individuals rather than employees, using bicycles or motorbikes to carry out deliveries.
Delivery Rating
A system where customers rate a delivery partner's service quality with star ratings and comments after a food delivery is completed. Rating scores affect the partner's account standing and priority dispatch, functioning as a quality control mechanism for the entire service.
Delivery Subscription
A monthly subscription plan for food delivery services that waives or discounts delivery fees on orders above a certain amount. Uber One and Demaecan Premium are representative examples, offering greater cost savings the more frequently you order.
Dependent Deduction
A system that allows a certain amount to be deducted from income when the taxpayer has dependents as defined by the Income Tax Act. The deduction amount varies by the dependent's age and cohabitation status: 380,000 yen for general dependents, 630,000 yen for specified dependents (ages 19-22), and for elderly dependents (age 70+), 580,000 yen if cohabiting or 480,000 yen if living separately.
Digital Payment
A general term for payment methods that use electronic means to settle transactions without cash. It is a broad concept encompassing credit cards, e-money, QR code payments, online bank transfers, and more.
Discount Code
An alphanumeric string that, when entered at checkout for a product or service, applies a discount. Often used interchangeably with coupon code or promo code, it is widely adopted across e-commerce sites.
Dollar-Cost Averaging
An investment strategy of regularly investing a fixed amount of money into the same investment at set intervals. When prices are high, fewer units are purchased; when prices are low, more units are purchased, resulting in a smoothed average acquisition cost. This mechanical approach eliminates emotional decision-making and is well-suited for long-term wealth building.
Deduction Ceiling
The maximum donation amount eligible for tax deductions under Furusato Nouzei. It varies by individual depending on annual income, family composition, and other income deduction statuses. Since donations exceeding the ceiling become out-of-pocket expenses, advance simulation is essential. Generally, the higher the income, the higher the deduction ceiling.
Dynamic Pricing
A pricing strategy that adjusts the price of goods and services in real time based on factors such as supply and demand fluctuations, competitor pricing, inventory levels, and time of day. Long used in airline and hotel pricing, it has rapidly spread to EC and retail in recent years.
E-Money
A form of digital currency that can be used for payments within the range of a pre-charged balance. Representative services include Suica, Rakuten Edy, nanaco, and WAON, and it is widely used for small-value transactions at transit systems and retail stores.
e-Tax
The common name for the electronic filing and tax payment system operated by the National Tax Agency (official name: National Tax Electronic Filing and Payment System). It enables filing tax returns, submitting various notifications, and paying taxes via the internet. With a My Number Card and smartphone (or IC card reader), you can complete your filing from home, and refund processing is faster than paper submissions.
Early Bird Discount
A discount applied when you book or purchase well in advance of the event or service date. Widely adopted for travel, airline tickets, event tickets, and more.
Earning Rate
The percentage of points awarded relative to the purchase or service usage amount. Also called the "cashback rate," an earning rate of 1% means 1 point is awarded per 100 yen spent. It is one of the most fundamental comparison metrics when choosing credit cards and common point programs.
E-Commerce Site
A general term for websites where goods and services are bought and sold over the internet. Short for Electronic Commerce, they range from large-scale marketplaces like Amazon and Rakuten Ichiba to individually operated online shops.
Email Marketing
A marketing approach that uses email to communicate with prospects and existing customers, driving purchase promotion and retention improvement. With diverse formats including newsletters, drip campaigns, and transactional emails, it remains one of the highest-ROI digital marketing channels even in the age of social media.
Emergency Fund
A financial safety net kept in an easily accessible form to prepare for unexpected events such as job loss, illness, or natural disasters. Generally recommended at 3 to 6 months of living expenses, this fund should be the top priority for saving before allocating money to investments or major purchases.
Endowment Effect
A psychological tendency to value things you own more than their market value. This creates resistance to letting go and can hinder rational buying and selling decisions.
Extended Warranty
A service that extends repair and replacement coverage beyond the standard manufacturer warranty period in exchange for an additional fee. Available in multiple forms including retailer extended warranties, credit card-bundled extended warranties, and manufacturer direct extended warranty plans, with the break-even point for enrollment varying based on the product price range and failure risk.
Family Plan
A subscription plan that allows multiple users such as family members or housemates to share a single subscription. It is significantly cheaper per person than individual subscriptions, making it an effective way to optimize household spending.
Final Tax Return
The procedure of calculating your own income and tax amount for the year (January 1 to December 31) and filing a declaration with the tax office during the period from February 16 to March 15 of the following year. While most salaried employees can complete their obligations through year-end adjustment, a final tax return is required for medical expense deductions, Furusato Nouzei donation deductions, reporting side income, and the first year of mortgage deductions.
Financial Goal
A general term for specific financial objectives that individuals or households aim to achieve. By organizing multiple goals - such as building an emergency fund, saving for a home down payment, children's education funds, and retirement savings - along a timeline according to life stage, and prioritizing them, you can prepare funds in a planned manner.
Financial Literacy
A collective term for the knowledge, skills, and attitudes needed to understand financial products and services and make appropriate decisions based on one's own economic situation. It encompasses a wide range of areas including household management, wealth building, risk management, and understanding of tax systems, and determines the quality of economic decision-making throughout one's lifetime.
First-Time Discount
A discount offered to users who are using a service for the first time. Many online services have adopted this mechanism to acquire new customers.
Fixed Cost Reduction
A household improvement strategy that involves reviewing recurring monthly expenses (rent, insurance premiums, phone bills, subscription fees, etc.) and lowering total spending while maintaining quality of life. Once implemented, the savings persist automatically, making it more cost-effective than cutting variable expenses.
Flash Sale
A sales method offering steep discounts within an extremely short window - from a few minutes to a few hours. Compared to regular time sales, flash sales are shorter in duration and tend to feature higher discount rates.
Flea Market App
A smartphone application that facilitates peer-to-peer buying and selling. Mercari, Rakuma, and Yahoo! Flea Market are among the most popular services, enabling everything from listing to payment and shipping within a single app. Escrow payments ensure transaction safety, and anonymous shipping is also supported.
Food Delivery
A service where delivery drivers bring restaurant meals to a location specified by the customer. Platforms such as Uber Eats and Demaecan act as intermediaries, matching restaurants, delivery partners, and customers in a three-sided marketplace.
Free Shipping
A service or condition where delivery charges are waived when purchasing products on an EC site. The three main patterns are threshold-based (applied above a certain purchase amount), membership-based (always applied as a member benefit), and limited-time (applied during promotional periods).
Free Trial
A mechanism that lets you try a subscription service for free for a limited period. Users can experience the value of a service without risk, while businesses use it as a key customer acquisition channel to drive conversions to paid memberships.
Freemium
A business model that offers basic features for free while charging for advanced features or additional content. A portmanteau of "Free" and "Premium," it is adopted by many digital services including Spotify and Dropbox.
Fulfillment
A comprehensive term for the entire business process from order receipt to delivery completion in EC. Encompassing receiving, inspection, inventory management, picking, packing, shipping, delivery, and returns processing, it is the backbone of EC operations that determines customer experience and business profitability.
Furusato Nouzei (Hometown Tax)
A system that allows you to make donations to municipalities you wish to support, with the amount exceeding 2,000 yen deducted from your income tax and resident tax. Since you receive return gifts from the recipient municipality, it is widely used as a mechanism to obtain regional specialty products for an effective out-of-pocket cost of just 2,000 yen.
Gamification
A technique that incorporates game elements and mechanics (points, badges, rankings, level-ups, etc.) into non-game services to boost user motivation and engagement. Point programs and tier systems are classic examples of gamification.
Ghost Kitchen
A food service operation that has no dine-in seating and functions exclusively as a cooking facility for food delivery. Also known as a cloud kitchen or virtual restaurant, it enables efficient operations focused on delivery demand while keeping rent and labor costs low.
Gig Economy
An economic sphere centered on a work style where individuals take on one-off, short-term jobs (gigs) without being employed by a company. Food delivery partners, ride-sharing drivers, and crowdsourcing freelancers are among the most representative participants.
Grandfathering
A preferential measure that allows existing users to continue using a previous pricing plan or terms. When a service raises prices or changes conditions, users who subscribed before the change can keep using the service under the original terms. It is used to maintain customer loyalty.
Group Insurance
Insurance in which a company or organization acts as the policyholder and enrolls its employees or members as insured persons in bulk. The primary advantage is premiums that are typically 20-40% lower than individual enrollment, with a wide range of types available including life, medical, and property insurance.
Household Budget App
An application for recording income and expenses on a smartphone, visualizing the balance of household finances. By automatically linking with bank accounts and credit cards, it eliminates the need for manual entry and supports tracking overall assets and analyzing spending trends.
Household Budget Management
The practice of recording and analyzing household income and expenses to achieve financial stability and savings goals through planned allocation of funds. The spread of digital tools has made precise and convenient management possible.
iDeCo
The popular name for Japan's Individual-type Defined Contribution pension plan, a private pension system where individuals contribute their own funds and select their own investment products to prepare retirement savings. Its standout feature is a triple tax advantage: contributions are fully tax-deductible, investment gains are tax-exempt, and withdrawals receive favorable tax treatment.
Income Deduction
A deduction method that subtracts a fixed amount from gross income when calculating taxable income. There are 15 types including the basic deduction, spousal deduction, social insurance premium deduction, and life insurance premium deduction, serving to reflect the taxpayer's personal circumstances in their tax burden. The larger the deduction, the lower the taxable income and consequently the tax liability.
Influencer Marketing
A marketing approach where influencers with large followings on social media or blogs promote products or services. Considered more trustworthy than traditional advertising, it is particularly effective for reaching younger demographics.
Insurance Comparison
The process of cross-comparing products from multiple insurance companies across dimensions such as coverage, premiums, riders, and services. While comparison websites and insurance shops have made it easier for consumers to select optimal insurance on their own, there is a risk of judging solely on superficial premium cheapness if the comparison criteria are not properly set.
Insurance Deductible
The amount the insured must pay out of pocket when an insurance claim is paid. When an insured event occurs, the deductible is subtracted from the damage amount, and the remainder is paid as the insurance benefit. Setting a higher deductible lowers the premium, so you need to choose the optimal setting by balancing your risk tolerance against the premium cost.
Insurance Premium
The consideration paid by the insured to the insurer under an insurance contract. Premiums consist of the "pure premium" (the portion allocated to future benefit payments) and the "loading" (the portion covering the insurer's operating expenses and profit). The amount calculated for each individual varies based on factors including age, gender, health status, coverage details, and deductible level.
Invitation Code
A unique string used when an existing user invites a new user. Both parties receive rewards upon entry, making it the core mechanism of referral programs.
Invoice System
The common name for the Qualified Invoice Preservation System introduced in October 2023. To claim input tax credits for consumption tax, it requires the preservation of "qualified invoices" issued by qualified invoice-issuing businesses registered with the tax office. Since input tax credits are being phased out for transactions with tax-exempt businesses, the system has significantly impacted freelancers and small-scale businesses.
Last-Mile Delivery
A logistics term referring to the final delivery segment from a distribution hub (delivery center or depot) to the end destination (consumer's home or office). Said to account for approximately 50% of total delivery costs, improving its efficiency and quality has become an industry-wide challenge as EC continues to grow.
Liability Insurance
Insurance that covers legal liability for damages when you cause bodily injury or property damage to others in daily life or business activities. Classified into personal liability insurance for individuals and premises liability insurance or product liability (PL) insurance for businesses, it provides protection against damages that can reach hundreds of millions of yen.
Limited-Time Offer
A special discount or benefit valid only within a predetermined period. By clearly stating the end date, it creates a sense of urgency and encourages immediate action, making it a promotional technique used across a wide range of industries.
Listing Optimization
Techniques for maximizing views and purchase rates when listing items on flea market apps or auction sites by optimizing titles, photos, descriptions, and pricing. Understanding search algorithms and buyer psychology is a critical skill that directly impacts sales.
Live Commerce
An EC method that introduces and sells products in real time through live streaming. The host demonstrates product feel and sizing while viewers ask questions via chat and purchase on the spot. Known as "zhibo daihuo" in China where it has formed a massive market, it is also expanding in Japan with Rakuten and Mercari entering the space.
Loss Leader
A featured product sold at cost or at zero profit. A marketing strategy that deliberately sets loss-making prices to attract customers and then sells them other higher-margin products.
Loyalty Discount
A discount benefit offered to existing customers who continuously use a service. The discount rate increases based on usage frequency or cumulative spending, and it serves as a customer retention strategy.
Loyalty Program
A system where businesses reward customers with points, perks, and preferential treatment based on their continued patronage and purchase frequency. Designed to retain customers and increase LTV, representative examples include airline mileage programs and retail point cards.
Customer Lifetime Value
The total revenue a single customer generates for a business over the entire duration from the start to the end of their service usage. Abbreviated as LTV (Life Time Value), it is one of the most critical metrics in subscription businesses and serves as a foundation for management decisions.
Marketplace
An online platform where multiple sellers and buyers gather to trade goods and services. The operator itself holds no inventory, instead providing the trading venue along with payment and logistics infrastructure, earning revenue through commissions.
Meal Kit
A cooking kit that bundles a recipe with all the necessary ingredients. Pre-prepped ingredients are portioned and packaged, allowing you to prepare restaurant-quality meals at home in a short time. Subscription-based delivery services have gained popularity as an evolution of food delivery.
Medical Expense Deduction
A system that allows you to deduct the excess from your income when annual medical expenses exceed a certain amount (generally 100,000 yen). Medical expenses of family members sharing the same household can be combined, and transportation costs for hospital visits and prescription drug costs are also eligible. While a final tax return is required, it provides significant tax savings in years with high medical expenses.
Micro-Insurance
An insurance product that provides coverage limited to specific risks for a small premium. While traditional insurance offers comprehensive coverage for monthly premiums of thousands to tens of thousands of yen, micro-insurance provides per-day or per-use coverage for premiums as low as tens to hundreds of yen per month. Ease of enrollment and claims through smartphone apps is a defining feature.
Micro-Mobility
A collective term for small-scale transportation options specialized for short-distance travel, including electric kick scooters, electric bicycles, and bike-sharing. It is rapidly gaining popularity in urban areas as a solution for the last-mile problem (getting from the nearest station to the final destination).
Mileage Program
A loyalty program offered by airlines where miles are earned based on flight distance and credit card spending, redeemable for award tickets and seat upgrades. Among point programs, mileage programs offer some of the highest redemption values, making them one of the most attractive reward systems for frequent travelers.
Minimum Order Amount
The minimum purchase amount required to place an order on a food delivery service. It is set to ensure that delivery costs remain economically viable, and orders below this threshold may incur a small-order surcharge.
Mobile Wallet
An application that centrally manages payment methods such as credit cards, e-money, and loyalty cards on a smartphone, enabling transactions to be completed with the device alone. Apple Pay and Google Pay are the leading platforms.
Money Management
A systematic approach to managing income, expenses, savings, investments, and debt comprehensively, balancing short-term household stability with long-term wealth building. Unlike simple frugality, it is characterized by strategic fund allocation that considers the entire life plan.
Mortgage Deduction
A system that allows a certain percentage of the year-end mortgage balance to be deducted from income tax when purchasing or renovating a home using a housing loan. Officially called the "Special Deduction for Housing Loans." Following the 2022 tax reform, the deduction rate was set at 0.7% with a maximum deduction period of 13 years for new construction. It is one of the largest tax incentives supporting home acquisition.
Multi-Point Card
A credit card or point card that allows you to earn points from multiple point programs simultaneously or selectively with a single card. Attracting attention as a tool for double-dipping and triple-dipping on points, it dramatically boosts the efficiency of point accumulation.
NFC Payment
A contactless payment method using NFC (Near Field Communication) technology that completes transactions simply by holding a smartphone or card near a payment terminal. Two standards coexist - FeliCa and Type A/B - and both are present in the Japanese market.
NISA
An abbreviation for the Nippon Individual Savings Account, a tax-advantaged investment system unique to Japan where investment gains (dividends and capital gains) from stocks and mutual funds are tax-exempt. The system was significantly expanded in 2024, relaunching as the "New NISA" with an annual investment limit of 3.6 million yen and a lifetime limit of 18 million yen.
No-Claim Discount
A system that discounts future premiums when no insurance claims are filed during a specified period. The auto insurance no-claim rating system is the most representative example - the longer you maintain a claim-free record, the higher your rating climbs and the cheaper your premium becomes. Conversely, filing a claim drops your rating and significantly increases premiums, requiring the judgment to evaluate the break-even point of filing a claim.
NPS
An abbreviation for Net Promoter Score, a metric for measuring customer loyalty. Respondents answer the single question "How likely are you to recommend this service to a friend or colleague?" on a scale of 0-10, and the score is calculated as the difference between the percentage of promoters and detractors.
Nudge
A mechanism or design that guides people toward better behavior without restricting their freedom of choice. Proposed by behavioral economist Richard Thaler, it is widely applied from public policy to marketing.
On-Demand Service
A service model that delivers services immediately in response to user requests. Spanning a wide range of domains including food delivery, ride-sharing, housekeeping, and video streaming, its defining characteristic is the immediacy of being available "when you want it, as much as you want it."
Onboarding
The introductory process that guides new users to understand the value of a service and reach a state of continuous usage. Since the quality of the initial experience significantly influences subsequent retention rates, it is a critical initiative directly tied to reducing churn and improving LTV.
One-Stop Special System
A simplified procedure that allows you to receive the Furusato Nouzei donation deduction without filing a final tax return. It is available to salaried workers who donate to no more than 5 municipalities per year, requiring only the submission of an application form to each municipality for each donation. Introduced in 2015, it has significantly contributed to the expansion of Furusato Nouzei usage.
Opportunity Cost
The maximum benefit that could have been obtained from an alternative choice that was forgone by making a particular decision. An invisible cost, but an essential concept for rational decision-making.
Order Tracking
A feature that lets you monitor the status of a food delivery order in real time. It visualizes each stage - from order confirmation, cooking, partner pickup, in transit, to arrival - along with the delivery partner's current location on a map.
Subscription Pause
A feature that lets you temporarily stop billing and usage for a set period without canceling your subscription. Useful during travel, business trips, or periods of low usage, it helps reduce costs while avoiding the hassle of canceling and re-subscribing and the risk of losing data.
Payment Gateway
A system infrastructure that mediates between e-commerce sites or apps and various payment methods (credit cards, e-money, QR code payments, etc.). It eliminates the need for merchants to contract individually with each payment provider, enabling support for multiple payment methods through a single integration.
P2P (Peer-to-Peer)
A transaction model in which individuals deal directly with each other without going through an intermediary such as a corporation. In the sharing economy context, it refers to a model where a platform provides matching and payment services, while the actual service provision and consumption are completed between individuals.
P2P Insurance
A mutual-aid insurance model in which members of a group sharing the same risk pool their premiums to fund claim payments. Leveraging technology to distribute risk within the group without a traditional insurance company as intermediary, this model is expected to improve premium transparency and deter fraudulent claims.
Platform Fee
A fee charged by sharing economy or marketplace platform operators to service providers and/or users as compensation for transaction intermediation. It serves as the revenue source that covers operational costs including matching, payment processing, customer support, and insurance.
Point Devaluation
A reduction in the real value per point caused by a program operator revising exchange rates or benefit terms. Typical examples include increases in the miles required for award tickets and reductions in point exchange rates - representing the risk that the purchasing power of your held points will erode.
Point Economy
An economic ecosystem centered on a specific point program, where diverse services spanning payments, telecommunications, e-commerce, finance, and entertainment are interconnected, creating a cycle of point earning and redemption. The Rakuten Economy, PayPay Economy, and Docomo Economy are among the major point economies competing in Japan.
Point Exchange
The process of converting accumulated points into another point program's currency, e-money, gift certificates, airline miles, or other forms of value. Exchange rates vary by service and destination, making the choice of exchange target the key to maximizing point value.
Point Expiry
The maximum period during which awarded points remain usable. Points that pass their expiration date are automatically forfeited and can no longer be redeemed or exchanged. Expiration policies vary by service, making this one of the most critical aspects of point management.
Point Investment
A system that allows you to invest accumulated points in financial products such as stocks, mutual funds, and cryptocurrencies. Because it enables investment experience without using cash, it has gained attention as a low-barrier entry point for investment beginners. Rakuten Point Investment and PayPay Point Management are representative services.
Point Multiplier
An indicator showing the multiplication factor applied to the standard point earning rate. Through campaigns or meeting specific conditions, point awards can increase to 2x, 5x, 10x or more of the base rate - a factor that significantly impacts the efficiency of point accumulation.
Point Rewards
A mechanism where points are earned based on the amount spent on purchases or services, and accumulated points can be applied toward future transactions. It helps build customer loyalty.
Prepaid Card
A pre-loaded card that can be used for payments within the range of the deposited (charged) amount. Its key feature is preventing overspending, and it is widely used by minors who cannot hold credit cards and as a payment method that requires no credit screening.
Price Matching
A policy where a retailer lowers its price to match a competitor selling the same product for less. For consumers, it effectively guarantees the lowest price; for retailers, it is a strategy to prevent customer defection.
Price Negotiation
The act of a prospective buyer requesting a price reduction from a seller on a flea market app. On Mercari, negotiations take place through the "offer feature" or comment section, and it has become an established part of CtoC transaction culture. Understanding negotiation etiquette and strategy is key to smooth transactions for both sellers and buyers.
Product Recommendation
A system that analyzes user purchase history, browsing behavior, and demographic data to automatically suggest optimal products and content for each individual user. Approximately 30-35% of EC site sales are reportedly driven by recommendations, making it a core technology powering personalized shopping experiences.
Product Review
Ratings and feedback on products posted on EC sites and review platforms. Typically combining star ratings (5-point scale) with text comments, they serve as word-of-mouth information that significantly influences buyer decisions and directly impacts EC sales.
Product Warranty
A system in which a manufacturer or seller guarantees the quality and performance of a product for a specified period. Covers free repair, replacement, or refund for initial defects and natural malfunctions that occur after purchase. Warranty duration and coverage vary by product category and manufacturer, and retaining the warranty certificate along with proof of purchase is a prerequisite for exercising your rights.
Promo Code
A general term for discount codes issued by service providers to boost sales. Essentially synonymous with coupon codes, but often tied to limited-time campaigns.
Purchase Protection
A system provided by credit cards or e-commerce platforms that compensates for damage, theft, non-delivery, and other issues with purchased goods. Coverage details and claim requirements differ by payment method and platform, including card company shopping insurance, PayPal buyer protection, and Amazon Marketplace guarantees.
Push Notification
A mechanism for delivering real-time messages to user devices through apps or browsers. Used for timely information delivery such as sale announcements, coupon distribution, and order status updates, it contributes to improving user engagement.
QR Code Payment
A cashless payment method where you complete a transaction by having a store terminal scan a QR code or barcode displayed on your smartphone, or by scanning a store's QR code with your smartphone. PayPay, Rakuten Pay, and d Barai are among the most popular services.
Quick Commerce
An instant-delivery e-commerce service that delivers products within 30 minutes of ordering. Centered on groceries and daily necessities, it uses dark stores as fulfillment hubs and last-mile delivery to achieve a speed that traditional online supermarkets cannot match.
Rank System
A system that assigns ranks (membership status) based on customer usage history and purchase amounts, offering increasingly generous benefits and perks at higher tiers. Incorporating gamification elements as a customer retention strategy, it is widely adopted by airlines and e-commerce platforms.
Recurring Payment
A payment method where charges are automatically billed and settled at fixed intervals. It is the backbone of subscription services, with payments debited from a credit card or bank account on a set cycle such as monthly or annually.
Redemption Rate
The conversion ratio applied when exchanging points for other points, miles, e-money, cash, or other forms of value. Rates differ by exchange destination, and the same points can vary in real value by several times depending on the chosen target. It is the single most important metric governing your point exit strategy.
Referral Bonus
A reward granted to one or both parties when an existing user refers a new user. The reward can take various forms including cash, points, coupons, or service credits, and serves as a driving force for word-of-mouth customer acquisition.
Referral Marketing
A marketing approach that acquires new customers through referrals from existing customers. By utilizing invitation codes and referral links with incentives for both the referrer and the referred, it promotes a chain of word-of-mouth. Compared to customers acquired through advertising, referred customers tend to have higher LTV and lower CAC, making it a growth strategy pillar adopted by many services.
Referral Program
A system where both the existing user and the new user receive rewards when a referral is made. It is a marketing approach that systematizes word-of-mouth promotion.
Resale Value
The price a purchased item can be expected to fetch when resold on the secondhand market. Brand-name goods, limited collaboration items, and popular sneakers tend to have high resale value, sometimes trading at premium prices above retail. Being mindful of resale value at the time of purchase can effectively reduce the real cost of ownership.
Retargeting
A technique of displaying ads again on other websites or social media to users who have previously visited your website. By repeatedly reaching out to users who are considering a purchase, it aims to improve conversion rates. Also known as remarketing.
Return Gift
Regional specialty products or services sent by municipalities to Furusato Nouzei donors. Under Ministry of Internal Affairs standards, the procurement cost of return gifts must be within 30% of the donation amount, and total expenses including shipping within 50%. A wide variety of categories are available including food, daily necessities, travel vouchers, and experience-based services, making them a key factor in choosing where to donate.
Return Policy
The rules established by EC sites and retailers governing product returns and exchanges. It specifies the return window, conditions, shipping cost responsibility, and refund methods, and is a critical factor that directly affects consumer purchase decisions and business credibility.
Ride-Sharing
A service in which ordinary drivers use their personal vehicles to transport passengers for a fee. Uber and Lyft are the leading platforms, seamlessly handling ride requests, driver matching, and payment through smartphone apps.
Insurance Riders
Supplementary coverage options added to a base insurance policy. Designed to complement risks that the base policy alone cannot fully cover, riders allow you to customize your insurance to match your risk profile by selecting only the ones you need. However, stacking riders also carries the risk of inflating premiums.
Robo-Advisor
An online investment service that proposes asset allocations and performs automated portfolio management based on algorithms. By simply answering questions about your risk tolerance, an optimal portfolio is constructed and rebalancing is executed automatically, enabling anyone to start investing regardless of knowledge or available time.
Savings App
A general term for smartphone applications that help users save money in daily life by providing features such as expense tracking, coupon search, price comparison, and cashback.
Seasonal Sale
A large-scale discount sales event held at the turn of each season or during major holiday periods such as New Year and Golden Week. It is a staple retail strategy that simultaneously achieves inventory turnover and customer acquisition.
Secondhand Market
A collective term for distribution markets where products that have already been in consumers' hands are bought and sold again. This includes reuse shops, flea market apps, auction sites, used bookstores, and used car dealerships. Japan's reuse market has surpassed 3 trillion yen and continues to expand year over year, driven by growing environmental awareness and the proliferation of flea market apps.
Seller Rating
A rating given by buyers to sellers after completing a transaction on flea market apps and marketplaces. Typically consisting of a three-tier scale ("good," "neutral," "bad") and comments, it serves as an indicator that visualizes seller trustworthiness. Accumulating high ratings is a valuable asset that directly drives sales growth.
SEO
An abbreviation for Search Engine Optimization, referring to the full range of strategies for achieving higher rankings on search engines like Google. Built on three pillars - technical internal optimization, content quality improvement, and external backlink acquisition - it is a method for achieving sustainable traffic without advertising costs, adopted by many businesses.
Service Fee
A fee charged to customers by food delivery platforms for order processing and system operations. It is billed separately from the delivery fee and is typically calculated as a fixed percentage of the order amount, usually around 10%.
Sharing Economy
An economic model in which individuals share or rent out idle assets they own (cars, homes, skills, etc.) to others through internet platforms. Driven by a shift in consumer behavior from ownership to access, it has expanded globally, led by companies like Uber and Airbnb.
Shipping Method
A collective term for the delivery options available when shipping products through flea market apps or online shops. Options include Yu-Packet, Nekopos, Takkyubin Compact, and Yu-Pack, among others. Choosing the optimal method based on product size, weight, and price range minimizes shipping costs and improves profit margins.
Side Income
A general term for income earned from side jobs, secondary employment, or freelance activities beyond one's primary salary. Since the Ministry of Health, Labour and Welfare published its "Guidelines for Promoting Side Jobs and Secondary Employment" in 2018, more companies have permitted side work, drawing attention to income diversification as a means of stabilizing household finances and accelerating wealth building.
Skill Sharing
A service model where individuals offer their specialized knowledge and skills to others through platforms. Covering a wide range of areas including language lessons, programming instruction, cooking classes, and yoga instruction, it connects teachers and learners directly online.
Smartphone Insurance
An insurance product that covers repair or replacement costs for smartphone screen cracks, water damage, malfunctions, and theft. Multiple options exist including carrier protection services, manufacturer warranty plans, and dedicated insurance from small-amount short-term insurance companies, with enrollment rates rising as device prices continue to climb.
Social Commerce
A sales approach that enables the entire journey from product discovery to purchase within a social media platform. Representative examples include Instagram Shopping, TikTok Shop, and LINE Gift, creating new purchasing behaviors by embedding shopping experiences into users' everyday social media browsing.
Space Sharing
A service where individuals or businesses rent out idle spaces they own (meeting rooms, parking lots, storage, kitchens, etc.) on an hourly basis through platforms. It is a rational system that increases real estate utilization rates while allowing renters to secure needed spaces without upfront investment.
Split Payment
A payment method for splitting costs such as dining bills or group travel expenses among multiple people. By using the transfer and group payment features of QR code payment apps, settlements can be completed on smartphones without exchanging cash.
Status Match
A program where airlines or hotel chains grant equivalent status in their own loyalty program based on elite status held with a competitor. Used as a strategic initiative to poach premium members from rivals, it serves as a customer acquisition tool.
Student Discount
A discount system applied upon proof of student status. Offered across a wide range of fields including transportation, software, and subscription services, it helps reduce the financial burden on students.
Subscription
A contract model where you pay a fixed fee at regular intervals to use a product or service. This business model symbolizes the shift in consumer behavior from ownership to access, and has become widespread across fields including video streaming, music, and software.
Subscription Box
A subscription-based EC service that delivers curated assortments of products on a regular basis. Available across diverse categories including food, cosmetics, books, and pet supplies, this business model offers the "joy of unboxing" through professional curation and the excitement of discovering new products.
Subscription Fatigue
The sense of exhaustion and frustration users feel when they have too many active subscriptions, leading to management complexity and ballooning total costs. The ongoing charges for rarely used services have become a social issue, and regular reviews are recommended.
Sunk Cost
Costs that have already been paid and cannot be recovered. Also known as irrecoverable costs. Rationally, sunk costs should be ignored and decisions should be based solely on future gains and losses, but humans tend to be swayed by the feeling of "what a waste" and cling to past investments.
Surge Pricing
A dynamic pricing mechanism that temporarily raises prices when demand exceeds supply. Widely adopted in food delivery and ride-sharing, it aims to balance supply and demand while providing incentives for service providers.
Switching Cost
A collective term for the monetary, time-related, and psychological costs incurred when switching from a currently used service or product to another. The higher the switching cost, the stronger the customer lock-in.
Tax Accountant
A nationally certified professional specializing in tax matters, providing services such as preparing and filing tax returns, tax consultation, representing clients during tax audits, and bookkeeping. Beyond supporting tax affairs for sole proprietors and small businesses, they also offer tax-saving strategies and business advice. Under the Tax Accountant Act, non-certified individuals are prohibited from performing tax representation.
Tax Credit
A deduction method that directly subtracts a fixed amount from the calculated tax liability. While income deductions reduce taxable income, tax credits reduce the tax itself, resulting in a greater tax-saving effect for the same deduction amount. The mortgage deduction and the resident tax portion of Furusato Nouzei fall under this method.
Tax Saving
The practice of legally reducing tax burden by utilizing systems and deductions permitted by law. It is clearly distinguished from tax evasion (illegal tax avoidance). Furusato Nouzei, iDeCo, NISA, and various income deductions are representative tax-saving methods, and by correctly understanding and applying these systems, it is possible to reduce annual tax burden by tens of thousands to hundreds of thousands of yen.
Tier Pricing
A pricing strategy that sets multiple price levels (tiers) based on service features or usage volume. Users can choose the plan that matches their needs, while businesses can maximize revenue across a broad customer base.
Time Bank
A mutual-aid exchange system where participants provide their time and skills and receive an equivalent amount of service time from other participants in return. Using "time" as the unit of exchange instead of currency, its defining feature is that one hour of labor is treated as equal value regardless of the type of work performed.
Time Sale
A sales method that offers products or services at discounted prices only during a specific time window. The scarcity created by the time limit stimulates purchasing desire and drives short-term sales increases.
Tokenization
A security technology that replaces sensitive data such as credit card numbers with random strings (tokens) unrelated to the original information. Even if a token is leaked, the original card number cannot be recovered, significantly improving the safety of payment data.
Travel Insurance
An insurance product that comprehensively covers risks arising during travel, including illness, injury, damage to personal belongings, liability, and trip cancellation. Broadly divided into overseas and domestic travel insurance, with significant differences in coverage and benefit amounts between credit card-bundled insurance and voluntarily purchased insurance products.
Trust Score
A metric that quantifies user trustworthiness on sharing economy platforms. It is calculated comprehensively from multiple factors including transaction history, ratings, identity verification completion status, and response speed, providing a quantitative sense of security in transactions between strangers.
Two-Factor Authentication
A security method that verifies identity by combining two different types of authentication factors, such as a password plus an SMS code or biometric authentication. It is a critical defense against unauthorized access in cashless payments and online banking.
Upselling
A sales technique that suggests a higher-grade or higher-priced product than what the customer is considering, aiming to increase the purchase price. The core appeal is "for just a little more budget, you can get a much better product," targeting simultaneous improvement of customer satisfaction and revenue.
Usage-Based Pricing
A billing model where charges fluctuate based on the amount of usage or consumption. Unlike flat-rate pricing, you pay only for what you use. It is adopted across a wide range of fields including cloud services, telecommunications, and utilities.
User Rating
Rating scores and reviews that service providers and users mutually assign to each other after completing a transaction on a sharing economy platform. By visualizing trust, this mechanism ensures a sense of security and maintains quality in transactions between strangers.
Variable Cost
A general term for expense items whose amounts fluctuate from month to month. This includes food, socializing, clothing, entertainment, and daily necessities, all of which vary significantly based on lifestyle habits and seasonal factors. In household management, the basic strategy is to track variable costs separately from fixed costs and control them by setting budget limits.
Viral Marketing
A marketing approach where users voluntarily share content and information, causing awareness to spread explosively like a virus. While the rise of social media has made it possible to achieve massive reach at low cost, intentionally creating viral buzz is far from easy.
Virtual Card
A digital-only card that issues a card number, expiration date, and security code exclusively through an app or web interface without producing a physical plastic card. Specialized for online payments, it features reduced fraud risk and the convenience of instant issuance.
Welcome Coupon
A discount coupon automatically granted to users upon new registration with a service. Widely used as a marketing tactic to lower the barrier to first-time use and drive new customer acquisition.
Wishlist
A feature on EC sites that lets you temporarily save products you are interested in. Also called "favorites" or "wish list," it is used to organize and compare products under consideration, as well as to receive price drop notifications.
Withholding Tax
A system where the payer of salary or compensation withholds income tax at the time of payment and remits it to the government. For salaried employees, estimated income tax is deducted from monthly salary, with any excess or shortfall settled through year-end adjustment. Withholding also applies to certain payments to freelancers, requiring settlement through a final tax return.
Word-of-Mouth Marketing
A marketing approach that leverages consumer word-of-mouth (WOM) to spread awareness and reputation of products or services. Real user voices carry higher credibility than one-way corporate advertising messages and strongly influence purchasing decisions. The proliferation of social media has dramatically expanded the speed and reach of word-of-mouth.
Year-End Adjustment
A procedure where an employer finalizes the total annual salary and various deductions for employees, settling any excess or shortfall in income tax withheld monthly. Conducted every November-December, this procedure eliminates the need for a final tax return for most salaried employees. Life insurance premium deductions and mortgage deductions (from the second year onward) are also applied through this procedure.