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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Technology and content,” “Marketing,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. There are no internal revenue transactions between our reportable segments. These segments reflect the way our chief operating decision maker evaluates the Company’s business performance and manages its operations.
North America
The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused online and physical stores. This segment includes export sales from these online stores.
International
The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores.
AWS
The AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions.
Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):
Three Months Ended
March 31,
20202021
North America
Net sales$46,127 $64,366 
Operating expenses44,815 60,916 
Operating income$1,312 $3,450 
International
Net sales$19,106 $30,649 
Operating expenses19,504 29,397 
Operating income (loss)$(398)$1,252 
AWS
Net sales$10,219 $13,503 
Operating expenses7,144 9,340 
Operating income$3,075 $4,163 
Consolidated
Net sales$75,452 $108,518 
Operating expenses71,463 99,653 
Operating income3,989 8,865 
Total non-operating income (expense)(606)1,403 
Provision for income taxes(744)(2,156)
Equity-method investment activity, net of tax(104)(5)
Net income$2,535 $8,107 
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,
20202021
Net Sales:
Online stores (1)$36,652 $52,901 
Physical stores (2)4,640 3,920 
Third-party seller services (3)14,479 23,709 
Subscription services (4)5,556 7,580 
AWS10,219 13,503 
Other (5)3,906 6,905 
Consolidated$75,452 $108,518 
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(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, videos, games, music, 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 to 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 digital video, audiobook, 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.