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Extending free shipping to outside sellers can strengthen online marketplaces, study suggests
- January 29, 2026 at 9:29 AM
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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 boost marketplace commission revenue and reduce shipping burdens, even when logistics services themselves are not directly profitable.
Originally published at Phys.org