Amazon expands Prime service in India

Date : 26 January 2018

Amazon to more than double number of products available in Indian market.

Expansion of product range makes service more attractive

Encouraged by the initial success of the Prime program, Amazon has announced plans to offer more than 25 million products via the service, up from 11 million products previously.  The retailer will also expand its video services to include more locally produced content and introduce Amazon Prime Music.

Broad appeal of Prime service

Under Prime, Amazon offers fast delivery, additional discounts and video streaming to members. This combination of benefits is clearly appealing as the retailer has seen subscription to its membership service rise steadily, across 300 plus cities.

By expanding the Prime program, the retailer is confident this will be a key differentiator for market share versus local competitors.

Justifies price increase

In November 2017, the retailer increased the subscription price for Prime to INR 999 (US$15.70) a year from INR 499 (US$7.85). Akshay Sahi, head of Amazon Prime in India said, “With increased selection, we feel that Prime is worth that (price). The benefits we’re providing have reached a significant value and customers have had enough time to try that programme.”

Though Amazon declined to share the number of Prime subscribers, it said that about 30% of all orders on Amazon India come from Prime subscribers. Prime customers are known to spend more on Amazon than non-Prime subscribers, to buy products they weren’t buying earlier, and tend to reduce their spending on other platforms.

 

 

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