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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Information on Reportable Segments and Reconciliation to Consolidated Net Income
Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):
 
Three Months Ended
March 31,
 
2019
 
2020
North America
 
 
 
Net sales
$
35,812

 
$
46,127

Operating expenses
33,525

 
44,815

Operating income
$
2,287

 
$
1,312

 
 
 
 
International
 
 
 
Net sales
$
16,192

 
$
19,106

Operating expenses
16,282

 
19,504

Operating income (loss)
$
(90
)
 
$
(398
)
 
 
 
 
AWS
 
 
 
Net sales
$
7,696

 
$
10,219

Operating expenses
5,473

 
7,144

Operating income
$
2,223

 
$
3,075

 
 
 
 
Consolidated
 
 
 
Net sales
$
59,700

 
$
75,452

Operating expenses
55,280

 
71,463

Operating income
4,420

 
3,989

Total non-operating income (expense)
(19
)
 
(606
)
Provision for income taxes
(836
)
 
(744
)
Equity-method investment activity, net of tax
(4
)
 
(104
)
Net income
$
3,561

 
$
2,535
Disaggregation of Revenue
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):
  
Three Months Ended
March 31,
 
2019
 
2020
Net Sales:
 
Online stores (1)
$
29,498

 
$
36,652

Physical stores (2)
4,307

 
4,640

Third-party seller services (3)
11,141

 
14,479

Subscription services (4)
4,342

 
5,556

AWS
7,696

 
10,219

Other (5)
2,716

 
3,906

Consolidated
$
59,700

 
$
75,452

____________________________
(1)
Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, music, videos, games, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”
(2)
Includes product sales where our customers physically select items in a store. Sales from customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”
(3)
Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.
(4)
Includes annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, digital music, e-book, and other non-AWS subscription services.
(5)
Primarily includes sales of advertising services, as well as sales related to our other service offerings.