AS .COM INC. DIVERSIFIES, online retail is becoming a smaller piece of its business model. Online retail transactions— where Amazon sells products from its own inventory to an online shopper—accounted for about 61% of Amazon's revenue in 2017, a marked decrease from 77% three years earlier. Meanwhile, money made on marketplace commissions and services sold to marketplace AMAZON sellers, like Fulfillment By Amazon, accounted for nearly 18% of revenue. And Amazon Web Services (AWS) accounted for nearly 10%, about double the percentage from 2014. Amazon is the largest online retailer SNAPSHOin the by a wide T Diversified revenue streams margin, and its continued growth E-commerce sales, as a percent of total revenue. 80 has major implications for everyone .77.0% selling goods online. Here are the latest facts and figures about U.S. e-commerce's leader. 2014 2015 2016 2017 BY ALLISON ENRIGHT Source: Amazon company reports DATA POINTS ECEMBER 2018 // DIGITALCOMMERCE360.COM/IR // 25

E-RETAIL SALES IN THE U.S. continue The first stop for online shoppers to grow at about 15% annually. But the Amazon For the majority of online shoppers, Amazon is the factor behind that figure is significant. Year- first retail site or app they visit when shopping online. over-year increases of sales made by or through Amazon are powering that industry growth. Amazon 54.3% 14.5% 5.5% |walmart IncreasinAmazon accountg sclou for an toutsize d share of e-retail sales growth. Other 25.7% Source: Internet Retailet/Blzrate Insights online survey. July 2018 Everyone Amazon else 72.7% 27.3% AMAZON'S GRIP ON U.S. E-COMMERCE is tightening. In just five years Amazon has doubled its share of the U.S. e-retail market. In 2012, 20.0% of goods sold online in the U.S. were either sold direct by Amazon or Source: Amazon annual reports, U.S. Depart merit ol Commerce, sold through Amazon by marketplace sellers. In 2017, Internet Retailet estimates based on U.S. GMV that rate had more than doubled to 41.8%, according to Internet Retailer estimates calculated based on data from Amazon and the U.S. Commerce Department. ONE GROWTH AREA for Amazon is its marketing and advertising business. EMarketer A bigger bite Inc. estimates U.S. advertisers will pay Amazon Amazon's share of U.S. e-commerce sales. $4.61 billion to buy its ad products in 2018, making 50- Amazon the third-largest platform in the U.S., after and Google. 41.8% While revenue from retail sales, third-party services and AWS dwarf the revenue from this division, Amazon's advertising revenue is expected to double in the next two years.

29.0%

20- Adding ad revenue 2014 2015 2016 2017 Amazon's digital advertising revenue, 2018-2020. Source: Amazon annual leports, U.S. Department of Commerce. Internet Retailer estimates Revenue % of U.S. (in billions) ad spending 2018 $4.61 4.1% Drime Two-thirds 2019 $7.23 5.5% pi ii i i t of U.S. online households have an 2020 $10.92 7.0% ^^^^^J Amazon Prime membership, and more than 90% of new Prime members renew Source: eMai keter Inc.'s "Amazon Advertising 20J8 Report" their membership for a second year. Source: Internet Retailer estimates, Consumer Intelligence Research Part™