Amazon.com 2015 Annual Report Download - page 36

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26
Supplemental Information
Supplemental information about outbound shipping results for our North America and International segments is as
follows (in millions):
Year Ended December 31,
2015 2014 2013
Outbound Shipping Activity:
Shipping revenue (1)(2)(3) $ 6,520 $ 4,486 $3,097
Shipping costs (4) (11,539) (8,709) (6,635)
Net shipping cost $ (5,019) $ (4,223) $ (3,538)
Year-over-year Percentage Growth:
Shipping revenue 45 % 45 % 36 %
Shipping costs 32 31 29
Net shipping cost 19 19 24
Percent of Net Sales (5):
Shipping revenue 6.5 % 5.3 % 4.3 %
Shipping costs (11.6) (10.3) (9.3)
Net shipping cost (5.1)% (5.0)% (5.0)%
___________________
(1) Excludes amounts charged 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) Includes amounts earned from Fulfillment by Amazon programs related to shipping services.
(4) Includes sortation and delivery center costs.
(5) Includes North America and International segment net sales.
We expect our 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.