A woman carries an Amazon parcel in Berlin, 30 October 2013. Photo: Sascha Kohlmann (CC BY-SA 2.0)
Amazon has launched its flagship subscription service in Luxembourg.
The e-commerce company said that “Amazon Prime” would start operating in the grand duchy on 8 November. That made Luxembourg the 15th country where its membership programme is offered.
The key feature of Amazon Prime is “unlimited free one-day delivery on hundreds of thousands of products”, according to a company press release.
One-day delivery was already available in Luxembourg, for an average €5-€10 fee, but signing up for a one-month membership is simply cheaper. Amazon Prime costs €3.99 a month or €49 per year in the grand duchy. “Customers in Luxembourg can try Prime by signing up for a free 30 day trial,” the company stated.
Luxembourg shoppers are, for example, likely to be served by the firm’s nearest fulfillment centres in Koblenz, Germany, near Paris, or in Lille, France. Amazon also runs its own internal freight service between warehouses to manage supplies across EU markets, the company has indicated.
A bulk of Prime customer deliveries will be made by the shipping firm DHL. Items can be sent to a home or office address, package pickup point or an automated parcel locker.
The company has pegged a big part of its strategy on Prime. The countries where Amazon operates the service have seen faster growth, it has claimed.
Amazon Prime had already been available in the US, UK, Japan, Germany, Italy, Spain, France, Canada, Austria, the French-speaking part of Belgium, India, China and Mexico. In addition to Luxembourg, the company rolled out the service on Wednesday to the Dutch-speaking part of Belgium and the Netherlands.
An Amazon German shipping box. Photo: Olli Henze (CC BY-ND 2.0)
The company has only said that “tens of millions of members around the world” use Prime, but has not broken out specific figures.
Take-up of the service is largely concentrated in America. Morgan Stanley, an investment bank, estimated that “70% of all Prime subscribers live in the US”, Business Insider reported in April.
According to a report by Consumer Intelligence Research Partners, an investment research firm, issued on 18 October (PDF), “in the US, Amazon Prime has 90 million members.” CIRP found that members were more valuable to the firm, writing:
“These shoppers continue to spend on average about $1,300 per year, compared to about $700 per year for non-member customers.”
Amazon would not provide a forecast of how many members it aims to attract in Luxembourg.
Correction: A previous version of this article misstated the amount of free data storage. This was updated on 8 November at 4:30pm.