Amazon launches shopping-only Prime membership at Rs. 400
Amazon has launched a new version of its Prime membership program, Prime Shopping Edition, exclusively for Android users in India, per Moneycontrol. At Rs. 399 per year, this tier offers shopping perks like free shipping and one-day deliveries, similar to the standard Amazon Prime membership. However, it doesn't include access to Prime Video, Music, Reading, Gaming, or other entertainment services. This move follows Flipkart's introduction of its Rs. 499 subscription model, VIP, aimed at attracting Amazon Prime-like customers.
Exclusively available on Android devices
The Prime Shopping Edition is only available through the Amazon app or mobile browser on Android devices. This strategic move targets India's massive Android user base, which makes up over 85% of the country's 650 million smartphone users. It's unclear as of now how long this offer will last and if it's limited to the Great Indian Festival sale which starts on October 8.
Amazon's previous unbundling attempts
This isn't the first time Amazon has separated its Prime offerings. Last year, the company introduced a Prime Video Mobile edition plan for Rs. 599 per year. The launch of Prime Shopping Edition comes just before the festive season sale kicks off, with both Amazon and Flipkart vying for dominance in this highly competitive space. Amazon recently adjusted its Great Indian Festival sale dates to coincide with Flipkart's Big Billion Days sale.
Expanding Amazon's Prime customer base in India
Amazon Prime customers are the most profitable segment for the company. According to Satish Meena from market research firm Datum Intelligence, non-Prime shoppers on Amazon have an average order value (AOV) of around Rs. 1,000-1,200, while Prime customers have an AOV of Rs. 1,800-2,000. With roughly 200 million monthly active users (MAUs) in India, including 18-20 million Prime users, the introduction of Prime Shopping Edition could be an effort to expand Amazon's Prime customer base in this key market.
