Amazon launches its prime subscription service in India, as the American online retailer makes a vision to supersede its customer base and market share here trying to develop an edge over other portals in one of the most populous country. The current decision of Amazon to sprang its wings in India has spurred the economy and e-commerce business with predicaments, elation and excitement.
“We’ve barely scratched the surface of this vast nation, its potential and its immense value to the global economy,” Bezos said in June at the US- India Business Council Leadership Summit in Washington D.C. CEO Jeff Bezos recently called the company’s fastest growing economy as a plan to start its Prime membership in India.
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Some of that investment came to fruition Tuesday, with the announcement that customers in around 100 cities will have access to Amazon prime membership and an unlimited free two day delivery. In 20 cities including Delhi, Mumbai and Bangalore, free one day delivery will also be available, along with a discounted fee of Rs. 50 per order on over 10,000 products over a general typical cost of Rs. 150.
It is estimated that around one third of the online shoppers in India are expected to drive two-thirds of the sales for online- marketplaces by 2020, according to a study by Google and AT Kearney. This really means that India is a potential target for almost all the online marketing portals dealing in sales and customer service. Flipkart, an Indian based company, has recently taken over Jabong for $70 million in case to increase its market. The acquisition of fashion platform is a move For Flipkart to not only further penetrate in the red-hot category but also maintain its leadership position in the market and keep Amazon at bay, according to Sandy Shen, research director with the e-commerce team at research from Gartner. After all, it has to keep its pace ever-lasting.
This step of Amazon is definitely going to increase competition in the market of e-commerce. All the online shopping websites will have to be stiff and strict, thereby maintaining their craze and market share in one of the most prospering economy of the world. Let us see how much this innovation works in favour of the people and app alike and what effects this decision brings on the other portals.