Amazon brings premium service 'Prime' to India, eyes better reach

Amazon India on Tuesday announced the launch of its globally successful Prime subscription programme in 100 Indian cities to further hook customers with free one-day delivery.

But Indian competitor Flipkart has an early mover advantage with its Flipkart First launched in 2014 and recently introduced early morning delivery service for working professionals and students. Even though the Prime subscription will cost users Rs 999 in India, Amazon is offering it at a discounted price of Rs 499. Users also get a two-month free trial, as the company wants consumers to experience the benefits of swift delivery and deals.

In a release, Amazon India said the Prime subscribers will get their deliveries within one or two-day at no extra cost on all merchandise marked as Prime on its website and app. It also offers 30 minutes early access to daily deals on its platform. Users in 20 cities will be able to opt for morning and scheduled deliveries at a subsidised cost of Rs 50.

“We are very excited to bring Prime to our customers in India. With Prime, guaranteed one-day delivery becomes an everyday experience instead of an occasional indulgence, and with no minimum purchases, it provides unlimited convenience all year long,” said Amazon India VP and Country Head Amit Agarwal.

As Amazon Prime comes to India almost three years after its global launch, Flipkart has really made some inroads in this segment with more product offerings. Flipkart First service, available for Rs 500, offers in-a-day guarantee delivery and no minimum purchase price, among others.

“We are expanding our early morning delivery service to further accelerate our reach across India to give seamless buying experience to one and all,” said a Flipkart source. Backed by its superior customer service and geographical presence, Flipkart wants to further strengthen its top position in India’s e-commerce charts. “We are planning organisational restructuring to take on the competition and will roll out special programmes with focus on consumers,” Flipkart Executive Chairman Sachin Bansal revealed to DH  recently.

Amazon succeeded roping in repeat purchases in the US using this platform, and it is estimated that nearly half of the US households have at least one member who subscribes to Prime. According to Amazon sources, the Prime users in India will also get the services of Amazon original TV series and movies besides other Indian and global content in the course of time to take on the aggressive Flipkart competition.

Amazon CEO Jeff Bezos had announced in June this year an investment of $3 billion and the Amazon India sources revealed that it will invest up to $300 million to get access to original movies and television series from India.
DH News Service