Segment Information (Tables)

3 Months Ended

Mar. 31, 2024

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,
		2023		2024
North America
Net sales		$	76,881	$	86,341
Operating expenses		75,983		81,358
Operating income		$	898	$	4,983

International
Net sales		$	29,123	$	31,935
Operating expenses		30,370		31,032
Operating income (loss)		$	(1,247)	$	903

AWS
Net sales		$	21,354	$	25,037
Operating expenses		16,231		15,616
Operating income		$	5,123	$	9,421

Consolidated
Net sales		$	127,358	$	143,313
Operating expenses		122,584		128,006
Operating income		4,774		15,307
Total non-operating expense		(655)		(2,324)
Provision for income taxes		(948)		(2,467)
Equity-method investment activity, net of tax		1		(85)
Net income		$	3,172	$	10,431

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,
		2023		2024
Net Sales:
Online stores (1)		$	51,096	$	54,670
Physical stores (2)		4,895		5,202
Third-party seller services (3)		29,820		34,596
Advertising services (4)		9,509		11,824
Subscription services (5)		9,657		10,722
AWS		21,354		25,037
Other (6)		1,027		1,262
Consolidated		$	127,358	$	143,313

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

(5)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.

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