Amazon Launches Prime Shopping Edition to Take On Flipkart VIP

Amazon has launched a new Prime membership variant called Prime Shopping Edition for Android users in India. The plan offers free shipping, one-day deliveries, and other shopping benefits for Rs. 399 per year. However, it does not include entertainment offerings such as Prime Video, Music, Reading, and Gaming.

Prime Shopping Edition can only be accessed on the Amazon app or mobile browser on Android devices. Amazon is hoping to take on Flipkart”s VIP program, which offers similar benefits to customers in metro cities.

Amazon Prime in India currently costs Rs. 1,499 per year but is sometimes available for Rs. 999. It includes all of Amazon”s entertainment offerings. The company said that Prime is already popular across India, with many new signups in Tier 2 and Tier 3 cities.

Amazon expects Prime Shopping Edition to be a success, given India”s 650 million smartphone users, of which over 85% use Android devices. However, the company has not disclosed how long the offer will be available, or if it will be discontinued after the Great Indian Festival (GIF) sale.

Amazon launched a similar offer last year, called the Prime Video Mobile Edition Plan, for Rs. 599 per year.

The launch of Prime Shopping Edition comes just before the festive season sales, when Amazon and Flipkart compete to attract customers with offers. Amazon has announced that its GIF sale will start on October 10, but has preponed it to October 8 to match Flipkart”s Big Billion Days (BBD) Sale.

According to a recent report, Amazon”s non-Prime shoppers have an average order value (AOV) of around Rs. 1000-1,200, while Prime customers have an AOV of Rs. 1,800-2,000, nearly double that of regular shoppers. Experts believe that the new launch will help Amazon expand its Prime service to new customers.

Amazon currently has around 200 million monthly active users (MAUs) in India, of which 18-20 million have Prime memberships.