Amazon.com 2013 Annual Report Download - page 35

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24
Supplemental Information
Supplemental information about outbound shipping results is as follows (in millions):
Year Ended December 31,
2013 2012 2011
Outbound Shipping Activity:
Shipping revenue (1)(2)(3) $ 3,097 $ 2,280 $ 1,552
Shipping costs (6,635) (5,134) (3,989)
Net shipping cost $ (3,538) $ (2,854) $ (2,437)
Year-over-year Percentage Growth:
Shipping revenue 36 % 47 % 30 %
Shipping costs 29 29 55
Net shipping cost 24 17 76
Percent of Net Sales:
Shipping revenue 4.1 % 3.7 % 3.2 %
Shipping costs (8.9) (8.4) (8.3)
Net shipping cost (4.8)% (4.7)% (5.1)%
___________________
(1) Excludes amounts earned on shipping activities by third-party sellers where we do not provide the fulfillment service.
(2) Includes a portion of amounts earned from Amazon Prime memberships.
(3) Shipping revenue for the years ended December 31, 2013 and 2012 include amounts earned from Fulfillment by
Amazon programs related to shipping services.
We expect our net cost of shipping to continue to increase to the extent our customers accept and use our shipping offers
at an increasing rate, our product mix shifts to the electronics and other general merchandise category, we reduce shipping
rates, we use more expensive shipping methods, and we offer additional services. We seek to mitigate costs of shipping over
time in part through achieving higher sales volumes, optimizing placement of fulfillment centers, negotiating better terms with
our suppliers, and achieving better operating efficiencies. We believe that offering low prices to our customers is fundamental
to our future success, and one way we offer lower prices is through shipping offers.