Sunday, October 30, 2016

Amazon Delivers Prime Program to China

Amazon Delivers Prime Program to China 

 Amazon Prime China is the online retailer’s first unlimited and free cross-border shipping program..

Nowadays, China has become number one of internet shopping, additionally Chinese National Internet Shopping Day is closing which is in Nov. 11th. So as a well-known company, Amazon just launched Prime membership program in Mainland China on Friday to better serve Chinese customer to get products from overseas. Before this, if Chinese customer want to buy products from overseas, they have to pay a lot of money also they have to wait for months in order to get it. But with Amazon Prime, customer just need to spend with a minimum 200 yuan, or $29 purchase, they will have the product shipped to their door step for free, fast and easy.  The annual membership will cost 388 yuan ($57) which is cheaper than our domestic Prime membership ($99).  But due to regulations in China, the service is limited, such as banned books, movies, games, which is a downside of this membership. Also new regulations released this spring placed a maximum of 2000 yuan for each overseas transaction and a yearly limit of 20000 yuan for an online shopper’s international purchases which is another downside of this membership. I am not sure about this program will last long in China, because most of the Chinese customers are already well depended on existed local Chinese shopping website. But as Amazon, a global online shopping website, it already has a global network of vendors and logistics partners, with 123 fulfillment center around the world. I believe that Amazon will have a seat in Chinese online market. 


2 comments:

  1. Very interesting news. I feel this is a great opportunity for both Amazon and the Chinese market to explore and experience new consumption habits. This report is on par with the concepts we have learned over this course. Again, Amazon sets an example of global marketing strategy and highlights the factors that play a critical role when entering a new foreign market. Looking forward to see what happens in the future with Amazon in China!

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  2. I really like reading your analysis on something that is happening in your home country, which gives other insight that we wouldn't be able to get otherwise. Because of the availability of products and Amazon's incredible way of managing inventory, if they can actually fix the problems associated with the delays in delivery, this could be a big move for Amazon.

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