Amazon.com 2002 Annual Report Download - page 12

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our www.borders.com Syndicated Store and added over 50,000 magazine, newspaper and newsletter titles
to our Magazine store at www.amazon.com.
ETK Segment. This segment includes www.amazon.com retail sales of electronics, home improve-
ment and home and garden products, as well as our mail-order catalog sales. This segment also includes
commissions from sales of these products, new, used or collectible, through Amazon Marketplace and
amounts earned from sales of these products by other businesses through our Merchants@ program, such
as with OÇce Depot, and will include revenues from stores oÅering these products, if any, through our
Syndicated Stores program.
Our ETK segment had net sales of $645 million, $547 million and $484 million in 2002, 2001 and
2000, respectively. During 2002, we launched our OÇce Depot store at www.amazon.com.
International Segment. This segment includes all retail sales of the following internationally-focused
Web sites: www.amazon.co.uk, www.amazon.de, www.amazon.fr and www.amazon.co.jp. These interna-
tional sites share a common Amazon.com experience, but are localized in terms of language, products,
customer service and fulÑllment. To the extent available on these sites, this segment includes commissions
and other amounts earned from sales of products through Amazon Marketplace and product revenues from
stores oÅering products through our Syndicated Stores program, such as www.waterstones.co.uk and
www.virginmega.co.jp, and amounts earned from sales of products by other businesses through our
Merchants@ program.
Our International segment includes export sales from www.amazon.co.uk, www.amazon.de,
www.amazon.fr and www.amazon.co.jp (including export sales from these sites to customers in the U.S.
and Canada), but excludes export sales from www.amazon.com and www.amazon.ca. Our International
segment had net sales of $1.17 billion, $661 million and $381 million in 2002, 2001 and 2000, respectively.
In 2002, www.amazon.co.uk, www.amazon.de and www.amazon.co.jp each launched Amazon Marketplace.
In addition, the Syndicated Store at www.virginmega.co.jp was launched, and www.amazon.de launched a
magazine and periodicals store.
Services Segment. This segment consists of commissions, fees and other amounts earned from our
services business, including our Merchant.com program (such as www.target.com), and to the extent full
product categories are not also oÅered by us through our online retail stores, our Merchants@ program,
such as our apparel store, the Toysrus.com and Babiesrus.com stores, and portions of the Target store at
www.amazon.com, as well as our commercial agreement with America Online, Inc. This segment also
includes Auctions, zShops, Amazon Payments and miscellaneous marketing and promotional agreements.
The Services segment had net sales of $246 million, $225 million and $198 million in 2002, 2001 and
2000, respectively. In 2002, we launched our apparel store which now has more than 500 popular brands of
clothing, shoes and accessories oÅered by our Merchants@ program participants. In addition, we launched
www.target.com under our Merchant.com program.
Amazon.com Web Sites
Our Web sites promote brand loyalty and repeat purchases by providing feature-rich content, a secure
and trusted transaction environment and easy-to-use functionality. Our Web sites oÅer broad selection, low
prices, availability, convenience, discovery and fulÑllment. Key features include product reviews and other
information, Web pages tailored to individual customers' preferences, including recommendations and
notiÑcations, 1-Click@ technology, secure payment systems, browsing, searching and the ability to view
selected interior pages of over 250,000 books with our ""Look Inside the Book'' feature. Our community of
online users creates feature-rich content, including product reviews and online lists, such as wish lists,
wedding registries and baby registries of desired products and services that others can reference for gift-
giving purposes and Listmania lists with accompanying commentary regarding favorite products.
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