Amazon.com 2000 Annual Report Download - page 10

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Products and Services
General
Our U.S. online retail stores currently consist of books, music, DVDs, videos, consumer electronics, toys,
camera and photo items, software, computer and video games, tools and hardware, lawn and patio items,
kitchen products and wireless products. We anticipate new online store additions in 2001 and beyond.
U.S. Books, Music and DVD/Video Segment. The U.S. Books, Music and DVD/video segment had net
sales of $1.7 billion, $1.3 billion and $588 million in 2000, 1999 and 1998, respectively. During 2000, we
continued to enhance our book, music, DVD and video stores by expanding selection, making it easier to find
items, and generally improving the customer experience.
In 2000, our Book store had the largest pre-order in our history. Over 410,000 copies of ‘‘Harry Potter and
the Goblet of Fire’’ were pre-ordered on our sites worldwide. We joined with Federal Express to provide
complementary upgrades to the first 250,000 customers who ordered to ensure delivery on the day of release. In
addition, we launched an e-Books store, offering e-books in Microsoft Reader format for PCs and laptops, as
well as downloadable e-audiobooks from our strategic partner, Audible, Inc.
During 2000, our Music store launched Bargain Music, Latin and Box Set stores, as well as a Music
Accessories store, where customers can now find items such as MP3 players and blank media. We also
continued to expand our selection of free music downloads, adding thousands of tracks customers can sample
before making a purchase.
Also in 2000, we created over thirty genre or franchise stores for our DVD and Video stores, such as
Fitness, Bargain, Cult, and European Cinema. In addition, we launched a new feature that notifies consumers
when specific theatrical titles are announced on DVD and/or video. We also created and hosted the official Web
sites for a number of prominent films, including Traffic,What Lies Beneath,Nurse Betty, and The Legend of
Bagger Vance. Our DVD and Video stores were recognized in 2000 as the number one online DVD and Video
retailers by Forrester, Gomez Advisors, Video Business magazine and the Video Software Dealers Association.
We expanded the selection available to our customers for books, music, DVDs and videos with the
launches of Amazon Marketplace, a feature that enables customers to buy and sell used, collectible and rare
titles alongside the corresponding new title, and Amazon Outlet, a one-stop shopping area where customers can
find year-round bargains on thousands of products across our product lines, including book, music, DVD and
video titles.
Early-Stage Businesses and Other Segment. Our Early-Stage Businesses and Other segment includes our
Other U.S. Retail (non-book, music and DVD/video retail stores in the U.S.), and commissions earned on the
sales of these products through Amazon Marketplace, Auctions and zShops, and all other activities that
generate service revenue rather than retail revenue. Net sales for this segment were $683 million and
$164 million in 2000 and 1999, respectively. We had no revenue from this segment in previous years.
•Other U.S. Retail. Our Other U.S. Retail stores consist of the electronics business, which is
comprised of consumer electronics, computer and video games, wireless products, camera and photo
items, and software; our home improvement business, which is comprised of tools and hardware and
lawn and patio; and our kitchen store. For 2000, the electronics business was our second largest
U.S. business after books based on revenue. In 2000, we expanded our selection with the launch of
Amazon Marketplace, which enables customers to buy and sell used, collectible and rare merchandise
alongside the corresponding new product, and Amazon Outlet, where customers can find year-round
bargains on thousands of products across our product lines.
•Amazon Auctions and zShops. Amazon Auctions allows buyers and sellers to conduct transactions
with respect to a wide variety of products in an easy to use auction format. Amazon zShops allows
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