{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,6,26]],"date-time":"2026-06-26T07:49:20Z","timestamp":1782460160475,"version":"3.54.5"},"reference-count":28,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"2","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Information Systems Research"],"published-print":{"date-parts":[[2026,6]]},"abstract":"<jats:p>Online marketplaces are increasingly extending their membership-based free shipping (MFS) programs to include external sellers, transforming logistics capabilities into a \u201clogistics-as-a-service\u201d (LaaS) model. This study uses a game-theoretic approach to analyze the implications of such extensions, with Amazon as a leading example. Contrary to the widespread belief that LaaS is a stand-alone profit center, our findings reveal that the primary value of extended MFS lies in enhancing the marketplace\u2019s core business. By attracting member consumers and optimizing fulfillment operations, marketplaces can increase commission revenues and reduce per-order logistics costs\u2014even if LaaS itself operates at a loss. Importantly, this strategy can benefit the broader marketplace ecosystem, including both internal and external sellers and member consumers, while potentially disadvantaging nonmembers. For practitioners and policymakers, these results underscore the need to rethink competitive dynamics and pricing strategies in digital platforms. Rather than viewing extended MFS solely as a logistics monetization tool, it should be seen as a strategic lever for shaping marketplace structure, seller participation, and consumer behavior.<\/jats:p>","DOI":"10.1287\/isre.2024.1196","type":"journal-article","created":{"date-parts":[[2025,10,6]],"date-time":"2025-10-06T16:04:01Z","timestamp":1759766641000},"page":"1113-1132","source":"Crossref","is-referenced-by-count":0,"title":["Unveiling the Strategic Impacts of Extending Membership-Based Free Shipping Programs Beyond the Online Marketplaces"],"prefix":"10.1287","volume":"37","author":[{"ORCID":"https:\/\/orcid.org\/0000-0001-5162-5412","authenticated-orcid":false,"given":"Geng","family":"Sun","sequence":"first","affiliation":[{"name":"Robert C. Vackar College of Business & Entrepreneurship, University of Texas Rio Grande Valley, Edinburg, Texas 78539"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-7982-3602","authenticated-orcid":false,"given":"Huseyin","family":"Cavusoglu","sequence":"additional","affiliation":[{"name":"Naveen Jindal School of Management, University of Texas at Dallas, Richardson, Texas 75080"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-2782-3520","authenticated-orcid":false,"given":"Srinivasan","family":"Raghunathan","sequence":"additional","affiliation":[{"name":"Naveen Jindal School of Management, University of Texas at Dallas, Richardson, Texas 75080"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"109","reference":[{"key":"B1","unstructured":"Anthony (2023) Amazon\u2019s shipping and logistics operations: Advanced strategies for supply chain management. Accessed July 12, 2025, https:\/\/signalytics.ai\/amazon-logistics-and-shipping-network\/."},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1287\/isre.2016.0621"},{"key":"B3","unstructured":"Barkho G (2020) Why some DTC brands are pulling out of Amazon. Accessed July 12, 2025, https:\/\/www.modernretail.co\/startups\/dtc-brands-leaving-amazon."},{"key":"B4","unstructured":"Benedetto AGD (2025) Adidas plugs its website and app into Amazon\u2019s \u2018Buy with Prime\u2019 program. Accessed July 12, 2025, https:\/\/www.theverge.com\/news\/616891\/amazon-adidas-buy-with-prime-direct-to-consumer."},{"key":"B5","unstructured":"Cahoot (2023) How Amazon Buy with Prime impacts the DTC customer experience. Accessed July 12, 2025, https:\/\/www.cahoot.ai\/dtc-guide-amazon-buy-with-prime\/."},{"key":"B6","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2016.2698"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1111\/poms.12541"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1007\/978-3-642-56183-2_9"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1287\/isre.2021.1001"},{"key":"B10","unstructured":"Greene J (2020) Amazon\u2019s big holiday shopping advantage: An in-house shipping network swollen by pandemic-fueled growth.\n                      Washington Post\n                      (November 27), https:\/\/www.washingtonpost.com\/technology\/2020\/11\/27\/amazon-shipping-competitive-threat\/."},{"key":"B11","doi-asserted-by":"publisher","DOI":"10.1016\/S0304-4076(98)00066-9"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1287\/isre.2013.0511"},{"issue":"1","key":"B13","first-page":"50","volume":"43","author":"Lummus RR","year":"2002","journal-title":"Production Inventory Management J."},{"key":"B14","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.38.3.345"},{"key":"B15","unstructured":"Moran CD (2022) Walmart to bring in-home delivery to 30M US households this year. Accessed July 12, 2025, https:\/\/www.grocerydive.com\/news\/walmart-to-bring-in-home-delivery-to-30m-us-households-this-year\/616687\/."},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.1016\/0022-0531(78)90085-6"},{"key":"B17","unstructured":"Orlowski K (2023) Buy with Prime increases shopper conversions by 25% on average. Accessed July 12, 2025, https:\/\/buywithprime.amazon.com\/blog\/buy-with-prime-increases-shopper-conversions-by-25-percent-on-average."},{"key":"B18","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.47.1.22.10667"},{"key":"B19","unstructured":"Savitz EJ (2022) \u2018Buy with Prime\u2019 could help Amazon extend dominance in online commerce.\n                      Barron\u2019s\n                      (June 17), https:\/\/www.barrons.com\/articles\/amazon-buy-with-prime-stock-51655494362."},{"key":"B20","doi-asserted-by":"publisher","DOI":"10.1111\/poms.13810"},{"key":"B21","doi-asserted-by":"crossref","unstructured":"Sun G, Cavusoglu H, Raghunathan S (2024) Strategic implications of online retail platforms\u2019 membership-based free shipping programs.\n                      Inform. Systems Res.\n                      35(2):673\u2013685.","DOI":"10.1287\/isre.2022.0208"},{"key":"B22","unstructured":"Thompson W (2023) The future shopper report 2023. Accessed July 12, 2025, https:\/\/www.vml.com\/insight\/the-future-shopper-report-2023?"},{"key":"B23","unstructured":"Tomay B (2023) Amazon is investing over $840 million in delivery service partner rates and new programs for delivery drivers. Accessed July 12, 2025, https:\/\/www.aboutamazon.com\/news\/transportation\/amazon-invests-over-840-million-in-DSP-rates-and-new-driver-programs."},{"key":"B24","doi-asserted-by":"publisher","DOI":"10.1287\/mksc.8.1.1"},{"key":"B25","unstructured":"Woodward M (2023) Amazon Prime statistics: Subscribers, usage & revenue 2023. Accessed July 12, 2025, https:\/\/www.searchlogistics.com\/learn\/statistics\/amazon-prime-statistics\/."},{"key":"B26","unstructured":"Young L (2022) Amazon\u2019s plans for massive warehouses go forward amid logistics review.\n                      Wall Street J.\n                      (July 28), https:\/\/www.wsj.com\/articles\/amazons-plans-for-massive-warehouses-go-forward-amid-logistics-review-11659035631."},{"key":"B27","doi-asserted-by":"publisher","DOI":"10.25300\/MISQ\/2021\/15759"},{"key":"B28","unstructured":"Zimmerman B (2020) Why Nike cut ties with Amazon and what it means for other retailers.\n                      Forbes\n                      (January 22), https:\/\/www.forbes.com\/sites\/forbesbusinesscouncil\/2020\/01\/22\/why-nike-cut-ties-with-amazon-and-what-it-means-for-other-retailers\/."}],"container-title":["Information Systems Research"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/pubsonline.informs.org\/doi\/pdf\/10.1287\/isre.2024.1196","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,6,26]],"date-time":"2026-06-26T07:22:30Z","timestamp":1782458550000},"score":1,"resource":{"primary":{"URL":"https:\/\/pubsonline.informs.org\/doi\/10.1287\/isre.2024.1196"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026,6]]},"references-count":28,"journal-issue":{"issue":"2","published-print":{"date-parts":[[2026,6]]}},"alternative-id":["10.1287\/isre.2024.1196"],"URL":"https:\/\/doi.org\/10.1287\/isre.2024.1196","relation":{},"ISSN":["1047-7047","1526-5536"],"issn-type":[{"value":"1047-7047","type":"print"},{"value":"1526-5536","type":"electronic"}],"subject":[],"published":{"date-parts":[[2026,6]]}}}