According to iResearch China, Amazon only holds less than 1 percent in China's lucrative e-commerce market. (Photo : Getty Images)
China's potential to be the largest market for Amazon has been spoiled by Alibaba's dominance and the rise of JD.com.
On Friday, however, Amazon unveiled its Prime membership service to its Chinese customers. The success of Amazon in India, which has been a critical market for Amazon due to its failure to gain traction in China, has been the company's pivot in the international ground.
According to Bloomberg, the Chinese Amazon Prime has been offering its free-shipping service on eligible overseas goods with orders south of 200 yuan ($29.58). Annual membership costs 388 yuan ($59), a little more than half the price for U.S. customers, which stands at $99.
The launch, however, is not without its limits. Amazon Prime in China does not offer streaming of digital content such as music and video.
Moreover, its free two-day shipping of eligible goods without a minimum order size, which is available for new signups in other regions, is not available for Chinese Amazon Prime customers.
This move is seen by experts as an attempt by Amazon to start setting foothold in the world's second-largest economy. The Washington-based company shares only an underwhelming 1 percent to 3 percent of China's e-commerce industry--a minuscule figure compared to Alibaba's 47 percent and JD.com's 20 percent market share, according to Business of Fashion.
Although not considered a crackdown on China's heavily saturated e-commerce industry, especially with the lack of standout offers, the move might just open doors for other business ventures and diversification of the company in the country.
