Amazon.com (AMZN)

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $924 million, $835 million, and $740 million for 2009, 2008, and 2007. Outbound shipping-related costs are included in “Cost of sales” and totaled $1.8 billion, $1.5 billion, and $1.2 billion for 2009, 2008, and 2007. The net cost to us of shipping activities was $849 million, $630 million, and $434 million for 2009, 2008 and 2007.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $190 million and $192 million for Q1 2009 and Q1 2008. Outbound shipping-related costs are included in “Cost of sales” and totaled $358 million and $320 million for Q1 2009 and Q1 2008. The net cost to us of shipping activities was $168 million and $128 million for Q1 2009 and Q1 2008.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $835 million, $740 million, and $567 million for 2008, 2007, and 2006. Outbound shipping-related costs are included in “Cost of sales” and totaled $1.5 billion, $1.2 billion, and $884 million for 2008, 2007, and 2006. The net cost to us of shipping activities was $630 million, $434 million, and $317 million for 2008, 2007 and 2006.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $191 million and $171 million for Q3 2008 and Q3 2007, and $569 million and $475 million for the nine months ended September 30, 2008 and 2007. Outbound shipping-related costs are included in “Cost of sales” and totaled $323 million and $260 million for Q3 2008 and Q3 2007, and $957 million and $725 million for the nine months ended September 30, 2008 and 2007. The net cost to us of shipping activities was $132 million and $89 million for Q3 2008 and Q3 2007, and $388 million and $250 million for the nine months ended September 30, 2008 and 2007.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $186 million and $152 million for Q2 2008 and Q2 2007, and $378 million and $304 million for the six months ended June 30, 2008 and

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2007. Outbound shipping-related costs are included in “Cost of sales” and totaled $314 million and $227 million for Q2 2008 and Q2 2007, and $634 million and $466 million for the six months ended June 30, 2008 and 2007. The net cost to us of shipping activities was $128 million and $75 million for Q2 2008 and Q2 2007, and $256 million and $162 million for the six months ended June 30, 2008 and 2007.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $192 million and $151 million for Q1 2008 and Q1 2007. Outbound shipping-related costs are included in “Cost of sales” and totaled $320 million and $238 million for Q1 2008 and Q1 2007. The net cost to us of shipping activities was $128 million and $87 million for Q1 2008 and Q1 2007.

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Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $740 million, $567 million, and $511 million for 2007, 2006, and 2005. Outbound shipping-related costs are included in “Cost of sales” and totaled $1.2 billion, $884 million, and $750 million for 2007, 2006, and 2005. The net cost to us of shipping activities was $434 million, $317 million, and $239 million for 2007, 2006 and 2005.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $171 million and $118 million for Q3 2007 and Q3 2006, and $475 million and $375 million for the nine months ended September 30, 2007 and 2006. Outbound shipping-related costs are included in “Cost of sales” and totaled $260 million and

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AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

$182 million for Q3 2007 and Q3 2006, and $725 million and $567 million for the nine months ended September 30, 2007 and 2006. The net cost to us of shipping activities was $89 million and $64 million for Q3 2007 and Q3 2006, and $250 million and $192 million for the nine months ended September 30, 2007 and 2006.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $152 million and $128 million for Q2 2007 and Q2 2006, and $304 million and $257 million for the six months ended June 30, 2007 and

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AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

2006. Outbound shipping-related costs are included in “Cost of sales” and totaled $227 million and $188 million for Q2 2007 and Q2 2006, and $466 million and $385 million for the six months ended June 30, 2007 and 2006. The net cost to us of shipping activities was $75 million and $60 million for Q2 2007 and Q2 2006, and $162 million and $128 million for the six months ended June 30, 2007 and 2006.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $151 million and $129 million for Q1 2007 and Q1 2006. Outbound shipping-related costs are included in “Cost of sales” and totaled $238 million and $197 million for Q1 2007 and Q1 2006. The net cost to us of shipping activities was $87 million and $68 million for Q1 2007 and Q1 2006.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $567 million, $511 million, and $420 million for 2006, 2005, and 2004. Outbound shipping-related costs are included in “Cost of sales” and totaled $884 million, $750 million, and $617 million for 2006, 2005, and 2004. The net cost to us of shipping activities was $317 million, $239 million, and $197 million for 2006, 2005 and 2004.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $118 million and $112 million for Q3 2006 and Q3 2005, and $375 million and $323 million for the nine months ended September 30, 2006 and 2005. Outbound shipping-related costs are included in “Cost of sales” and totaled $182 million and $159 million for Q3 2006 and Q3 2005, and $567 million and $471 million for the nine months ended September 30, 2006 and 2005. The net cost to us of shipping activities was $64 million and $47 million for Q3 2006 and Q3 2005, and $192 million and $148 million for the nine months ended September 30, 2006 and 2005.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $128 million and $103 million for Q2 2006 and Q2 2005, and $257 million and $211 million for the six months ended June 30, 2006 and 2005. Outbound shipping-related costs are included in “Cost of sales” and totaled $188 million and $148 million for Q2 2006 and Q2 2005, and $385 million and $311 million for the six months ended June 30, 2006 and 2005. The net cost to us of shipping activities was $60 million and $45 million for Q2 2006 and Q2 2005, and $128 million and $100 million for the six months ended June 30, 2006 and 2005.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $129 million and $108 million for Q1 2006 and Q1 2005. Outbound shipping-related costs are included in “Cost of sales” and totaled $197 million and $163 million for Q1 2006 and Q1 2005. The net cost to us of shipping activities was $68 million and $55 million for Q1 2006 and Q1 2005.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $511 million, $420 million, and $372 million for 2005, 2004, and 2003. Outbound shipping-related costs are included in “Cost of sales” and totaled $750 million, $617 million, and $508 million for 2005, 2004, and 2003. The net cost to us of shipping activities was $239 million, $197 million, and $136 million for 2005, 2004 and 2003.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $112 million and $87 million for Q3 2005 and Q3 2004 and $323 million and $264 million for the three quarters ended September 30, 2005 and 2004. Outbound shipping-related costs are included in “Cost of sales” and totaled $159 million and $128 million for Q3 2005 and Q3 2004 and $471 million and $383 million for the three quarters ended September 30, 2005 and 2004. The net cost to us of shipping activities was $47 million and $41 million for Q3 2005 and Q3 2004 and $148 million and $119 million for the three quarters ended September 30, 2005 and 2004.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $103 million and $84 million for Q2 2005 and Q2 2004 and $211 million and $178 million for the first half of 2005 and 2004. Outbound shipping-related costs are included in “Cost of sales” and totaled $148 million and $119 million for Q2 2005 and Q2 2004 and $311 million and $255 million for the first half of 2005 and 2004. The net cost to us of shipping activities was $45 million and $35 million for Q2 2005 and Q2 2004 and $100 million and $77 million for the first half of 2005 and 2004.

Shipping Activities

Outbound shipping charges to customers are included in “Net sales” and were $108 million and $94 million for Q1 2005 and Q1 2004. Outbound shipping charges to customers do not include amounts earned on shipping

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AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

by third-party sellers where we do not provide the fulfillment service. Outbound shipping-related costs are included in “Cost of sales” and totaled $163 million and $137 million for Q1 2005 and Q1 2004. The net cost to us of shipping activities was $55 million and $43 million for Q1 2005 and Q1 2004.