Amazon unveils Prime Now in China

Amazon unveils Prime Now in China

Amazon on Friday unveiled its popular Amazon Prime membership program in China, which will include free, cross-border shipping from the Amazon Global Store as well as no minimum free domestic shipping.  The online retailer plans to lure in Chinese customers by providing foreign products at an affordable price. Amazon does not have a decent market share in China. The company with a footprint of less than 1.5 percent of the market even launched a store on Alibaba’s Tmall site last year in order to reach Chinese consumers.

Amazon Prime would contend with local contenders like Alibaba and JD.com, will cost 388 yuan ($57.23) per year after the first year, a discounted rate. The global picture for the internet giant looks promising though. The online e commerce leader managed to keep its sixth consecutive quarter of profits. From July to September the Amazon sales rose 29% to $ 32.7 billion. The profit that the firm manages to reach rose to 252 million. The amount is relatively modest, due to operating expenses that fly at the same time to more than $ 32 billion.

The delivery cost increased to 43 percent in third quarter compared to last year. The same-day delivery Amazon Prime is creating more problems to the company because it offers this service at no extra charge to customers who pay an annual amount of 99 dollars or 10.99 dollars per month. The fourth quarter, due to purchases of the holiday season is always the most important for Amazon. This year the company’s Seattle (Washington) hired 120,000 additional staff to cope with the fourth season holiday rush. This is 20% more than last year. It hopes to achieve between 42 and 45.5 billion in revenue during the period. However, analysts on average expects at $ 44.6 billion.

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