Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

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,
	2020		2021
North America
Net sales	$	46,127	$	64,366
Operating expenses	44,815		60,916
Operating income	$	1,312	$	3,450

International
Net sales	$	19,106	$	30,649
Operating expenses	19,504		29,397
Operating income (loss)	$	(398)	$	1,252

AWS
Net sales	$	10,219	$	13,503
Operating expenses	7,144		9,340
Operating income	$	3,075	$	4,163

Consolidated
Net sales	$	75,452	$	108,518
Operating expenses	71,463		99,653
Operating income	3,989		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

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,
	2020		2021
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
AWS	10,219		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.