Amazon.com 2001 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2001 Amazon.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

sites by offering new products, or used versions of new products we offer in our online retail stores, or offering
additional products or services that expand or supplement our retail product offering. Amazon Marketplace
permits sellers to utilize our e-commerce seller services and tools to present their product alongside our new
product on the same product detail page on our Web site; a single Web page provides the customer a choice
between purchasing a new product from us or the new or used product from the Amazon Marketplace seller.
Amazon Auctions allows buyers and sellers to conduct transactions in an easy-to-use auction format. zShops
allows individuals and businesses to create individual stores to offer popular as well as hard-to-find items to our
customers. We also own the Internet Movie Database (www.imdb.com), a comprehensive and authoritative
source of information on movie and entertainment titles, and cast and crew members.
Third-Party Sellers. The third-party sellers channel allows us to provide other companies a set of e-
commerce services and tools for the sale of their goods and services. We have third-party seller arrangements
with Toysrus.com, Inc., Target Corporation, Circuit City Stores, Inc., the Borders Group, Waterstones, Expedia,
Inc., Hotwire, National Leisure Group, Inc., Virgin Wines, and others. We offer:
‰Strong global brand recognition;
‰Web merchandising, including our patented search technologies, personalization, 1-Click ordering,
editorial content and customer reviews, and data-driven automation;
‰Technology infrastructure;
‰Customer service, including a global 24-hour customer support network, customer self-service
technology, and proprietary e-commerce call center technology;
‰Global fulfillment capabilities fully integrated to a Web site; and
‰Customer traffic and acquisition involving our millions of customers and our Associates Program.
In 2001, we began marketing three services for third-party sellers that are designed to provide catalog
retailers, physical store retailers and manufacturers with cost-effective e-commerce solutions and to expand the
selection on our Web sites for the benefit of our customers:
‰[email protected] Program: The third party seller offers its products for sale on our Web site,
either in our online retail stores or in a co-branded store on our Web site, or both. Its products are fully
integrated on our Web site and are purchased by customers through a single checkout process. The
third-party seller is the seller of record and pays us fixed fees, sales commissions, per-unit activity fees,
or some combination thereof. In this program, we offer the option of providing fulfillment-related
services on behalf of the third-party. Examples include the Toysrus.com toy store and Babiesrus.com
baby store at www.amazon.com; the Target store at www.amazon.com, which is part of our strategic
alliance with Target; our strategic alliance with Circuit City; and our strategic alliances that support our
travel stores on our U.S. and U.K.-focused Web sites.
‰Merchant Program: The third-party seller’s e-commerce Web site operates at its own URL using our
features and technology. In this program, we offer the option of providing fulfillment-related services
on behalf of the third-party. We believe this offering will enable third-party sellers to have a high
quality e-commerce site at a controllable and competitive cost. The third-party seller is the seller of
record and pays us fixed fees, sales commissions, per-unit activity fees, or some combination thereof.
An example is our features and technology that will be deployed at Target.com, which is scheduled to
re-launch in the second half of 2002.
‰Syndicated Stores Program: The third-party seller’s e-commerce Web site uses our e-commerce
services and tools, and offers our product selection. Under these arrangements, we are responsible for
fulfillment and we provide customer service. We are the seller of record on these transactions and remit
a commission to the third party. Examples include www.borders.com and www.waterstones.co.uk, both
of which were launched in 2001 as Syndicated Stores.
2