Extending free shipping to outside sellers can strengthen online marketplaces, study suggests
Jan 29, 2026
Extending membership-based free shipping programs to third-party sellers can strengthen online marketplaces rather than cannibalize them, according to a new study published in the INFORMS journal Information Systems Research. The findings suggest that programs like Amazon's "Buy with Prime" can boos
t marketplace commission revenue and reduce shipping burdens, even when logistics services themselves are not directly profitable. ...read more read less