E commerce companies in India are on a brawl when it comes to advertising. With the sector promising an unmatched growth over the years every company with a .com/.in suffix has gone crazy with swelled up advertising spends. The core promise of all these marketplaces have been discounts. Thereby, a question of sustainability has always haunted the investors of all e-commerce companies. However, breaking the discounting odds Amazon introduced Amazon Prime service in India and played it real smart to push it through during their biggest sale of the year.
Introduction of Amazon Prime in India
Breaking the ‘discounting’ odds, recently, Amazon introduced its Amazon Prime service in India. Amazon Prime is a well received service offering by Amazon across the globe where the company asks for a fixed membership fee for complementary quicker deliveries, early access to their deals etc- The membership fee is charged annually and also includes access to Amazon Prime Video Service, an equivalent of Netflix. It was an awaited move by Amazon India to introduce Prime which again replicated by Snapdeal Gold and Flipkart Assured launches by peers. As Amazon Prime is a paid service the success of this in India was always under the clouds but Amazon has played it real smart while introducing it in the country.
Amazon unveiled the Prime service to its customers on 26th July 2016 advertising on Amazon India website. The service was free for the first 2 months. Amazon loyals took no time to subscribe to this – after all this was free.
Few days down the line on 1st August 2016, Amazon released a full page Amazon Prime advertisement in national dailies across India.
This ad made sure that everyone who is registered with them subscribes to the ‘Temporarily Free’ service for the next two months.
Amazon India’s Great Indian Festival – Oct 2016
What was next? Couple of months later, Amazon announced its biggest sale of the year the Amazon Great Indian Festival starting 1st Oct 2016 – 5th Oct 2015 with early access to all their deals to Amazon Prime customers. A full page ad followed again in all leading dailies.
The sale promised early access to all the deals to Amazon Prime customers. However, there was a surprise waiting.
Amazon Prime Services Expire for Indian Consumers
Most of the customers would have seen the below while taking advantage of the biggest sale using their Prime membership.
Amazon even introduced a introductory price for the first year of membership and notified all the customers to subscribe to the Prime service for Rs 499/year and avail early access to the festive deals.
Best Amazon Deals A Day Later
A considerable percentage would have subscribed to this. In addition to the above, we have a strong feeling that the best of the deals will be unveiled from 2nd October onwards when Prime membership of most of the customers would expire and thus they will be tempted to subscribe to it for another year. What strengthens the point of best deals coming on 2nd October is the fact that both Snapdeal and Flipkart sale starts from 2nd October.
A masterstroke by Amazon killing two birds with one stone – getting a head start in the sale and making Amazon Prime work together.