Unveiling the Strategic Impacts of Extending Membership-Based Free Shipping Programs Beyond the Online Marketplaces
Published Online:6 Oct 2025https://doi.org/10.1287/isre.2024.1196
References
- Anthony (2023) Amazon’s shipping and logistics operations: Advanced strategies for supply chain management. Accessed July 12, 2025, https://signalytics.ai/amazon-logistics-and-shipping-network/.Google Scholar
- (2016) Product line extension in consumer software markets in the presence of free alternatives. Inform. Systems Res. 27(2):282–301.Link, Google Scholar
- (2020) Why some DTC brands are pulling out of Amazon. Accessed July 12, 2025, https://www.modernretail.co/startups/dtc-brands-leaving-amazon.Google Scholar
- (2025) Adidas plugs its website and app into Amazon’s ‘Buy with Prime’ program. Accessed July 12, 2025, https://www.theverge.com/news/616891/amazon-adidas-buy-with-prime-direct-to-consumer.Google Scholar
- 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/.Google Scholar
- (2018) Cost drivers of versioning: Pricing and product line strategies for information goods. Management Sci. 64(5):2164–2180.Link, Google Scholar
- (2016) Product line extensions and technology licensing with a strategic supplier. Production Oper. Management 25(6):1121–1146.Crossref, Google Scholar
- (2002) The logistics behind the enter click. Klose A, Speranza MG, Van Wassenhove LN, eds. Quantitative Approaches to Distribution Logistics and Supply Chain Management, Lecture Notes in Economics and Mathematical Systems, vol. 519 (Springer, Berlin), 131–148.Crossref, Google Scholar
- (2021) Show me the money: The economic impact of membership-based free shipping programs on e-tailers. Inform. Systems Res. 32(4):1115–1127.Link, Google Scholar
- (2020) Amazon’s big holiday shopping advantage: An in-house shipping network swollen by pandemic-fueled growth. Washington Post (November 27), https://www.washingtonpost.com/technology/2020/11/27/amazon-shipping-competitive-threat/.Google Scholar
- (1998) Product line extensions and competitive market interactions: An empirical analysis. J. Econom. 89(1–2):339–363.Crossref, Google Scholar
- (2014) Online product reviews: Implications for retailers and competing manufacturers. Inform. Systems Res. 25(1):93–110.Link, Google Scholar
- (2002) Making the right e-fulfillment decision. Production Inventory Management J. 43(1/2):50–55.Google Scholar
- (1992) Market segmentation, cannibalization, and the timing of product introductions. Management Sci. 38(3):345–359.Link, Google Scholar
- (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/.Google Scholar
- (1978) Monopoly and product quality. J. Econom. Theory 18(2):301–317.Crossref, Google Scholar
- (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.Google Scholar
- (2001) A cross-functional approach to evaluating multiple line extensions for assembled products. Management Sci. 47(1):22–36.Link, Google Scholar
- (2022) ‘Buy with Prime’ could help Amazon extend dominance in online commerce. Barron’s (June 17), https://www.barrons.com/articles/amazon-buy-with-prime-stock-51655494362.Google Scholar
- (2022) Value of membership-based free shipping in online retailing: Impact of upstream pricing model. Production Oper. Management 31(11):4131–4153.Crossref, Google Scholar
- Sun G, Cavusoglu H, Raghunathan S (2024) Strategic implications of online retail platforms’ membership-based free shipping programs. Inform. Systems Res. 35(2):673–685.Google Scholar
- (2023) The future shopper report 2023. Accessed July 12, 2025, https://www.vml.com/insight/the-future-shopper-report-2023?.Google Scholar
- (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.Google Scholar
- (1989) Optimal entry timing for a product line extension. Marketing Sci. 8(1):1–17.Link, Google Scholar
- (2023) Amazon Prime statistics: Subscribers, usage & revenue 2023. Accessed July 12, 2025, https://www.searchlogistics.com/learn/statistics/amazon-prime-statistics/.Google Scholar
- (2022) Amazon’s plans for massive warehouses go forward amid logistics review. Wall Street J. (July 28), https://www.wsj.com/articles/amazons-plans-for-massive-warehouses-go-forward-amid-logistics-review-11659035631.Google Scholar
- (2021) Is more better? Divide between retailer’s and manufacturers’ preferences for reviews and review monetization. MIS Quart. 45(3):1349–1410.Crossref, Google Scholar
- (2020) Why Nike cut ties with Amazon and what it means for other retailers. Forbes (January 22), https://www.forbes.com/sites/forbesbusinesscouncil/2020/01/22/why-nike-cut-ties-with-amazon-and-what-it-means-for-other-retailers/.Google Scholar

