Amazon has started its Prime service in China. The service will allow the company to take advantage of China's growing demand for foreign goods.

China has seen a consistent rise in its demand for imported products including baby formula and fashion items. The new service will directly connect domestic shoppers with foreign sellers.

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Amazon is currently struggling to gain ground in China, where home-grown companies such as Alibaba and JD.com have a strong hold on the market. According to a study conducted by iResearch, Amazon has only a 1.1 percent market share in China. Amazon's latest move follows JD.com and Alibaba's attempt to bridge the gap between local buyers and foreign sellers.

The new service by Amazon entails yearly subscription at $57.23 for unlimited free international shipping. However, it requires the orders to have a minimum value of $29.50. The company is also throwing in a free one month trial. Amazon declined to elaborate whether its Prime feature will involve online video and music service, as it does in the United States. China has strict rules regarding foreign media products.

The delivery and logistics under this service will be handled by Amazon. The packages are expected to take five to nine days to reach their destination in 82 cities spread across the country. The company added that the orders worth more than 2,000 yuan ($295) are likely to take some additional time.

The introduction of the service comes at the time when Amazon's US rival Walmart plans to boost its presence in China as well. The company recently announce an infusion of capital into its partnership with JD.com. 

TagsAmazon, Amazon Prime, Alibaba