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24
Results of Operations
Beginning in the first quarter of 2015, we changed our reportable segments to North America, International, and AWS.
These segments reflect the way the Company evaluates its business performance and manages its operations. See Item 1 of Part
1,“Financial Statements—Note 11—Segment Information.”
Net Sales
Net sales include product and service sales. Product sales represent revenue from the sale of products and related shipping
fees and digital media content where we record revenue gross. Service sales represent third-party seller fees earned (including
commissions) and related shipping fees, AWS sales, digital content subscriptions, advertising services, and our co-branded
credit card agreements. Amazon Prime membership fees are allocated between product sales and service sales and amortized
over the life of the membership according to the estimated delivery of services. Net sales information is as follows (in
millions):
Year Ended December 31,
2015 2014 2013
Net Sales:
North America $63,708 $ 50,834 $41,410
International 35,418 33,510 29,934
AWS 7,880 4,644 3,108
Total consolidated $107,006 $ 88,988 $74,452
Year-over-year Percentage Growth:
North America 25% 23%26%
International 6 12 14
AWS 70 49 69
Total consolidated 20 20 22
Year-over-year Percentage Growth, excluding the effect of foreign exchange
rates:
North America 26% 23%26%
International 21 14 19
AWS 70 49 69
Total consolidated 26 20 24
Net Sales Mix:
North America 60% 57%56%
International 33 38 40
AWS 7 5 4
Total consolidated 100% 100% 100%
Sales increased 20%, 20%, and 22% in 2015, 2014, and 2013, compared to the comparable prior year periods. Changes in
foreign currency exchange rates impacted net sales by $(5.2) billion, $(636) million, and $(1.3) billion for 2015, 2014, and
2013. For a discussion of the effect on sales growth of foreign exchange rates, see “Effect of Foreign Exchange Rates” below.
North America sales increased 25%, 23%, and 26% in 2015, 2014, and 2013, compared to the comparable prior year
periods. The sales growth in each year primarily reflects increased unit sales, including sales by marketplace sellers. Increased
unit sales were driven largely by our continued efforts to reduce prices for our customers, including from our shipping offers,
sales in faster growing categories such as electronics and other general merchandise, increased in-stock inventory availability,
and increased selection of product offerings.
International sales increased 6%, 12%, and 14% in 2015, 2014, and 2013, compared to the comparable prior year periods.
The sales growth in each year primarily reflects increased unit sales, including sales by marketplace sellers, offset by the
unfavorable effect of foreign exchange rates. Changes in foreign currency exchange rates impacted International net sales by
$(5.0) billion, $(580) million, and $(1.3) billion in 2015, 2014, and 2013. Increased unit sales were driven largely by our
continued efforts to reduce prices for our customers, including from our shipping offers, sales in faster growing categories such