Amazon recently announced that this year’s Prime Day would last 30 hours and would start from July 10 and continue through July 11. Promotions are expected to begin as soon as July 8.  These promotions will run in as many as 13 countries including new destinations like India and China. Amazon has hopes from India and China in regard to a boost in the number of Prime subscribers in order to gain a better control in the two markets.

Amazon Inc. offers a 30-day free trial for the Prime membership to new customers who wish to take benefits of the sales exclusive to Prime members. Prime members also enjoy benefits of some sales before a non-member does. New Prime members tend to draw more sales on Amazon as Prime subscribers tend to spend almost twice as much with Amazon than non-Prime members. The relationship between Amazon and its Prime members is beneficial for both parties. A boost in Prime members in India and China is much needed for Amazon if it wants to compete with the domestic competitions like Flipkart and Alibaba.

While Amazon has been trying hard to bring its share in the Chinese e-commerce market to a higher number, it has failed. In 2016, Amazon fared to only 1% of the Chinese market while domestic platforms like Alibaba and JD.com fared about 57% and 25% respectively. In the Indian market, Amazon has locked horns with domestic companies like Flipkart and Snapdeal. The battle between the companies is quite close and Amazon has announced a $5 billion expansion in the Indian market.

Prime Day could have a mixed effect in both these markets. The Chinese people wouldn’t bother with the program if they are not aware of it and Amazon would find it hard to leverage Prime Day in China owing to a small market share. Indian market would offer a better opportunity for Amazon to get more Prime members given the fact that Amazon is quite popular in India.

 

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