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Tuesday, January 23, 2018

Amazon India to expand Prime programme

More than two months after doubling the price of its Prime subscription service, online retailer Amazon India is expanding the Prime programme as it looks to retain a large chunk of its existing customers by making the service more attractive.

Amazon India (Amazon Seller Services Pvt. Ltd) will now offer more than 25 million products in the Prime service, up from 11 million earlier, at a delivery speed of one or two days, said Jamil Ghani, vice-president, Prime International, Amazon. Amazon is also investing hundreds of crores of rupees to expand its video offering in India, including spending on producing original content.

Under Prime, Amazon offers fast delivery, additional discounts and video streaming to customers.

“One of our central tenets in Prime is that we increase the value of the programme to the membership. One central way to do that is to continue to invest in existing benefits like selection and video. So this expansion in selection is in line with our belief that every day customers should have more selection to enjoy. We also add value by introducing new benefits so there’s more to come there as well,” said Ghani.

In November 2017 , Amazon increased the subscription price for Prime to Rs999 a year from Rs499.

 The company launched Amazon Prime in July 2016 at an initial discount of 50% from its price of Rs999.

“With increased selection, we feel that Prime is worth that (price),” said Akshay Sahi, head of Amazon Prime in India. “The benefits we’re providing have reached a significant value and customers have had enough time to try that programme out so now we can go to our (original) price.”

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