A blue Prime logo pops up at the side of commodities’ price when you open Amazon China website. Amazon released the customized Chinese Prime membership system one week ago. Amazon offers free delivery service for customized Amazon Prime members yearly if they buy over 200 yuan goods for cross-boarder orders, while no limit to domestic orders when they purchase the blue Prime logo commodities.
China is the first country that Amazon offers free-delivery service for cross-boarder orders among 12 membership countries. This service covers 9 million terms on Amazon China and about 4 million terms from oversea markets.
In United States, consumers need to pay$ 79 to become Prime memberships so that they can enjoy freely two-day shipping service. It costs a lot for logistics and labor in United States. Therefore, the subscription fee for Prime sounds reasonable and convenient.
Prime Membership system is a key to Amazon business. It obtains a variety of users. Prime membership, marketplace and AWS are considered as three pillars of Amazon by Jeff Benzos.
Amazon Prime members are over 65 million so far. Wall Street analyst predicted that Prime service contributed $ 7 billion revenue in cash to Amazon.
It is hard to copy that business mode in Chinese market. Oversea shopping is demand point that Prime found in Chinese market. Chinese consumers have great demand on overseas commodities now. However, they balance the delivery fee and delivery time for their purchases. They would rather choose cheapest delivery mode. Amazon aims at attracting more Chinese consumers by introducing customized Prime service.
It hopes to introduce Prime service to more Chinese consumers before November 11th and Black Friday. By August, 2016, Chinese consumers made over 10 million oversea orders Amazon oversea sites, increased by 400% yoy.
It faces the competition from Tmall.com and JD.com in China. Time will tell us whether Prime service works in China.