Amazon.com 2002 Annual Report Download - page 34

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attributable to our International segment and our ETK segment, which increased $280 million and
$63 million, respectively. During 2002, revenues improved $47 million in comparison to 2001 due to
changes in foreign exchange rates (speciÑcally the weakening of the U.S. Dollar in comparison to the Euro
and the British Pound).
Net sales for our BMVD segment were $1.87 billion, $1.69 billion and $1.70 billion for 2002, 2001
and 2000, respectively, representing an increase of 11% for 2002 in comparison with a decline of 1% for
2001. This segment includes retail sales from www.amazon.com and www.amazon.ca of books, music and
DVD/video products and magazine subscription commissions. This segment also includes commissions
from Amazon Marketplace sales of these products, new, used or collectible, amounts earned from sales of
these products by other businesses through our Merchants@ program and product revenues from stores
oÅering these products through our Syndicated Stores program. The improvement in growth rates for our
BMVD segment in 2002 in comparison with 2001 reÖects increased unit sales resulting from our
continuing eÅorts to reduce prices for customers, including increases in customer discounts on books and
the introduction of everyday free shipping at www.amazon.com for certain orders. Also contributing to the
2002 increase in growth rates for BMVD are increases in unit sales through Amazon Marketplace.
Net sales for our ETK segment were $645 million, $547 million and $484 million for 2002, 2001 and
2000, respectively, representing increases of 18% and 13% for 2002 and 2001, respectively. This segment
includes www.amazon.com retail sales of electronics, home improvement 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. The
improvement in growth rates for our ETK segment in 2002 in comparison with 2001 reÖects increased unit
sales resulting from our continuing eÅorts to reduce prices for customers, including increases in customer
discounts through price changes and rebate programs and the introduction of everyday free shipping at
www.amazon.com for certain orders. Also contributing to the 2002 increase in growth rates for ETK are
increases in unit sales through Amazon Marketplace.
Net sales for our International segment were $1.17 billion, $661 million and $381 million for 2002,
2001 and 2000, respectively, representing increases of 77% and 74% for 2002 and 2001, respectively. We
anticipate that as the revenue base of our International segment increases, the percentage growth rates will
likely decline over time. During 2002, revenues improved $47 million in comparison to 2001 due to
changes in foreign exchange rates (speciÑcally the weakening of the U.S. Dollar in comparison to the Euro
and the British Pound). 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 international
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 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. The increase in net sales from our International segment results from, in each of the four
internationally-focused Web sites, an increase in unit sales (in part due to the introduction of Amazon
Marketplace on www.amazon.co.uk, www.amazon.de and www.amazon.co.jp), and our continuing eÅorts to
reduce prices to customers through increases in customer discounts and free and reduced-rate shipping
oÅers. The future growth of our International segment may Öuctuate signiÑcantly with changes in foreign
exchange rates. See Item 1 of Part I, ""Business Ì Additional Factors That May AÅect Future Results Ì
We Have Foreign Exchange Risk.''
Net sales for our Services segment were $246 million, $225 million and $198 million for 2002, 2001
and 2000, respectively, representing increases of 9% and 13%, respectively. This segment consists of
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