Amazon Prime launches in China

So far, the retail giant hasn't had much traction in China, where it's going up against competitors like Alibaba and JD.com.
Written by Stephanie Condon, Senior Writer

Amazon Prime officially launched in China on Friday, as CNET reports, where it will give Amazon another shot at taking on Alibaba and JD.com.

For for 388 yuan (about $57), Prime members in China can sign up for sign up for a year's worth of unlimited deliveries of a selection of US-shipped and domestic items. For the first four months, Amazon is offering memberships at a promotional price of just 188 yuan (about $28).

While the price is lower than a Prime membership in the US, Chinese customers won't have access to video and music streaming services.

So far, Amazon hasn't gained much traction in China, and its competition is stiff. Earlier this year, Wal-Mart announced a strategic partnership with JD.com, China's second largest e-commerce company.

Amazon has had better traction in India. In June, after seeing its market share in India grow in a year from 14 percent to 21 percent, the company invested another $3 billion there.

However, Amazon's spending abroad -- including its expansion in India and investments in Prime services overseas -- took a toll on the company's third quarter financial results. Amazon reported on Thursday that its international segment had a Q3 net sales of $10.6 billion but even higher operating expenses of $10.9 billion. The $541 million operating loss dragged down Amazon's notably overall operating income.

The company also noted Thursday that it to invest more in its AWS infrastructure in China, with a second infrastructure region opening in China in the coming months.

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