Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Information on Reportable Segments and Reconciliation to Consolidated Net Income

Information on reportable segments and reconciliation to consolidated net income (loss) is as follows (in millions):


	Three Months Ended March 31,
	2022		2023
North America
Net sales	$	69,244	$	76,881
Operating expenses	70,812		75,983
Operating income (loss)	$	(1,568)	$	898

International
Net sales	$	28,759	$	29,123
Operating expenses	30,040		30,370
Operating loss	$	(1,281)	$	(1,247)

AWS
Net sales	$	18,441	$	21,354
Operating expenses	11,923		16,231
Operating income	$	6,518	$	5,123

Consolidated
Net sales	$	116,444	$	127,358
Operating expenses	112,775		122,584
Operating income	3,669		4,774
Total non-operating expense	(8,934)		(655)
Benefit (provision) for income taxes	1,422		(948)
Equity-method investment activity, net of tax	(1)		1
Net income (loss)	$	(3,844)	$	3,172

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,
	2022		2023
Net Sales:
Online stores (1)	$	51,129	$	51,096
Physical stores (2)	4,591		4,895
Third-party seller services (3)	25,335		29,820
Subscription services (4)	8,410		9,657
Advertising services (5)	7,877		9,509
AWS	18,441		21,354
Other (6)	661		1,027
Consolidated	$	116,444	$	127,358

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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)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.

(6)Includes sales related to various other offerings, such as certain licensing and distribution of video content, shipping services, and health care services, and our co-branded credit card agreements.