Amazon.com 2013 Annual Report Download - page 6

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idea of online customer reviews – customers sharing their opinion on a product to help other customers make an
informed purchase decision. “Ask” is in that same tradition. From a product page, customers can ask any
question related to the product. Is the product compatible with my TV/Stereo/PC? Is it easy to assemble? How
long does the battery last? We then route these questions to owners of the product. As is the case with reviews,
customers are happy to share their knowledge to directly help other customers. Millions of questions have
already been asked and answered.
Apparel and Shoes
Amazon Fashion is booming. Premium brands are recognizing that they can use Amazon to reach fashion-
conscious, high-demo customers, and customers are enjoying the selection, free returns, detailed photos, and
video clips that let them see how clothes move and drape as the models walk and turn. We opened a new 40,000
square foot photo studio in Brooklyn and now shoot an average of 10,413 photos every day in the studio’s
28 bays. To celebrate the opening, we hosted a design contest with students from Pratt, Parsons, School of Visual
Arts, and the Fashion Institute of Technology that was judged by a panel of industry leaders including Steven
Kolb, Eva Chen, Derek Lam, Tracy Reese, and Steven Alan. Kudos to Parsons who took home the top prize.
Frustration-Free Packaging
Our battle against annoying wire ties and plastic clamshells rages on. An initiative that began five years ago
with a simple idea that you shouldn’t have to risk bodily injury opening your new electronics or toys, has now
grown to over 200,000 products, all available in easy-to-open, recyclable packaging designed to alleviate “wrap
rage” and help the planet by reducing packaging waste. We have over 2,000 manufacturers in our Frustration-
Free Packaging program, including Fisher-Price, Mattel, Unilever, Belkin, Victorinox Swiss Army, Logitech, and
many more. We’ve now shipped many millions of Frustration-Free items to 175 countries. We are also reducing
waste for customers – eliminating 33 million pounds of excess packaging to date. This program is a perfect
example of a missionary team staying heads-down focused on serving customers. Through hard work and
perseverance, an idea that started with only 19 products is now available on hundreds of thousands and benefiting
millions of customers.
Fulfillment by Amazon
The number of sellers using Fulfillment by Amazon grew more than 65% last year. Growth like that at such
large scale is unusual. FBA is unique in many ways. It’s not often you get to delight two customer sets with one
program. With FBA, sellers can store their products in our fulfillment centers, and we pick, pack, ship, and
provide customer service for these products. Sellers benefit from one of the most advanced fulfillment networks
in the world, easily scaling their businesses to reach millions of customers. And not just any customers – Prime
members. FBA products can be eligible for Prime free two-day shipping. Customers benefit from this additional
selection – they get even more value out of their Prime membership. And, unsurprisingly, sellers see increased
sales when they join FBA. In a 2013 survey, nearly three out of four FBA respondents reported that their unit
sales increased on Amazon.com more than 20% after joining FBA. It’s a win-win.
“FBA is the best employee I have ever had. … One morning I woke up and realized FBA had
shipped 50 units. As soon as I realized I could sell products while I sleep, it was a no-brainer.”
– Thanny Schuck, Action Sports LLC
“Starting out as an unknown brand, it was difficult to find retailers willing to stock our goods. No
such barriers existed at Amazon. The beauty of Amazon is that someone can say, ‘I want to start a
business,’ and they can go on Amazon and really start a business. You don’t have to get a lease on a
building or even have any employees at first. You can just do it on your own. And that’s what I did.”
– Wendell Morris, YogaRat
Login and Pay with Amazon
For several years we’ve enabled Amazon customers to pay on other sites, such as Kickstarter, SmugMug,
and Gogo Inflight, using the credit cards and shipping addresses already stored in their Amazon account. This