Amazon Japan, the Japanese unit of e-commerce giant Amazon.com Inc., will expand its point program in May, it has been learned.
Through the new program, customers will receive points equivalent to 1 percent or more of the purchase price of all items. As the program will apply to items sold by vendors through Amazon, vendors will have to shoulder the cost of rewarding customers with points, portending a possible debate on whether the new policy constitutes fair business practice.
The Amazon Japan program rewards customers with points that correspond to the value of their purchase. The points can be used to buy other goods on the Amazon Japan website, with one point equivalent to 1 yen.
Currently, points are mainly offered for items directly procured and sold by Amazon. Vendors have thus far had discretion on whether to provide points for items sold through Amazon Japan's marketplace.
Amazon Japan reportedly started notifying vendors this month about changes to the point program. Each vendor can decide the reward points rate for items they sell.
However, if a vendor does not change the price of an item, it will incur extra costs associated with rewarding customers with points. As a result, some vendors may decide to increase prices.
Amazon faces strong competition in the Japanese online shopping industry from Rakuten and Yahoo. Amazon Japan is apparently seeking to boost its domestic business by enhancing its point program.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
