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Segment Information
6 Months Ended
Jun. 30, 2023
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 infrastructure,” “Sales and 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 costs recorded in “Technology and infrastructure” are incurred in the U.S. and are included in our North America and AWS segments. The majority of infrastructure costs recorded in “Technology and infrastructure” are allocated to the AWS segment based on usage. 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 advertising and subscription services 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 advertising and subscription services 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 (loss) is as follows (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202320222023
North America
Net sales$74,430 $82,546 $143,674 $159,427 
Operating expenses75,057 79,335 145,869 155,318 
Operating income (loss)$(627)$3,211 $(2,195)$4,109 
International
Net sales$27,065 $29,697 $55,824 $58,820 
Operating expenses28,836 30,592 58,876 60,962 
Operating loss$(1,771)$(895)$(3,052)$(2,142)
AWS
Net sales$19,739 $22,140 $38,180 $43,494 
Operating expenses14,024 16,775 25,947 33,006 
Operating income$5,715 $5,365 $12,233 $10,488 
Consolidated
Net sales$121,234 $134,383 $237,678 $261,741 
Operating expenses117,917 126,702 230,692 249,286 
Operating income3,317 7,681 6,986 12,455 
Total non-operating expense(5,970)(118)(14,904)(773)
Benefit (provision) for income taxes637 (804)2,059 (1,752)
Equity-method investment activity, net of tax(12)(9)(13)(8)
Net income (loss)$(2,028)$6,750 $(5,872)$9,922 
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):    
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202320222023
Net Sales:
Online stores (1)$50,855 $52,966 $101,984 $104,062 
Physical stores (2)4,721 5,024 9,312 9,919 
Third-party seller services (3)27,376 32,332 52,711 62,152 
Subscription services (4)8,716 9,894 17,126 19,551 
Advertising services (5)8,757 10,683 16,634 20,192 
AWS19,739 22,140 38,180 43,494 
Other (6)1,070 1,344 1,731 2,371 
Consolidated$121,234 $134,383 $237,678 $261,741 
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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 media content 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, health care services, and shipping services, and our co-branded credit card agreements.