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Amazon treads on Alibaba's turf by offering free shipping in China

AMAZON.COM has expanded the coverage of its Prime free-shipping service to include China, where demand for overseas goods among its burgeoning middle class is rising. 

Analysts regard the move as an attempt to compete with Alibaba Group Holding Ltd, but so far the US e-commerce giant has made little headway against Jack Ma's group.



Chinese Prime subscribers now receive free shipping on orders exceeding CNY200 (US$29.50) on millions of eligible overseas goods, the company said in an e-mailed statement, reported Bloomberg. 



Domestic goods will also be delivered free to members who pay a subscription fee of CNY388 a year, lower than the US fee of $99. Amazon China representative Wu Shanhan said membership won't include access to any digital content.



Amazon's global logistics network will manage shipping and final delivery to each Chinese customer, it said. Packages are estimated to arrive within five to nine days in 82 cities across the country, with single orders of more than CNY2,000 requiring additional time, the company said.



Since its inception in 2005, Amazon Prime has attracted 65 million members in the US with free delivery perks and access to a growing library of videos and music. The programme has been credited with fostering customer loyalty and driving spending.
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