AMZN
#Sure, <UNK>.
What I can tell you is the 3P percent of revenue continues to grow for now up to 46% of paid units, which is up 400 basis points year-over-year and 100 basis points sequentially off Q2.
We feel that Prime and FBA are reinforce each other, they are inextricably linked.
FBA adds Prime selection and Prime growth attracts more FBA sellers.
So we have seen growth in FBA.
It increases our Prime fast-track eligible selection, which we like and customers like, so we like what we see in the third-party side.
Yes, thanks, Doug.
I will point out that this quarter showed a lot of innovation, a lot of new products and features and a lot of investment.
We've already talked about India, but domestically, we're ---+ excuse me, globally we are investing very heavily in our Prime platform both in North America and International.
And that includes video content and original content, Prime Music, as <UNK> just said, the Prime Now has been expanded to 14 Metro areas, we have had same day delivery in now in 16 metro areas, we've built 14 new fulfillment centers, we've launched multiple devices including e-readers, tablets that are priced under $50, Echo, Dash Button.
So there's a lot of investment going on and there will be continue especially related to Prime.
And on the AWS side, as I said, we have 530 new features so far this year.
So innovation and investment will continue and can be lumpy.
I hate to use that word again, but could be lumpy over time.
The other dynamic in our Company though is definitely working on cost reductions and efficiency.
I think you see a lot of that in this quarter's P&L and in our capital efficiency, both in the warehouse world and also in infrastructure.
So we will continue to work on costs.
The good thing about 30% revenue growth is it gives you a lot more cost to work on as well.
So we will ---+ I would say it is not as much as a pendulum as maybe it's been portrayed, it is more of a constant.
The investment will, it sometimes ebbs and flows but the cost reductions will be a constant presence and the increase in customer experience and shortening the time to delivery in making the customer experience better.
This is <UNK>.
We are not going to update our Prime subscription growth beyond what we said last year or the end of last year, which last year in the year when we raised prices early in 2014, the global growth rate was 53% and North America growth rate was 50%.
So by default, the International growth rate was higher.
We like the adoption of Prime internationally, it is helped by additional selection that's available for fast-track shipment including FBA.
So that fly wheel is working.
We've also launched video benefits, most recently in Japan, but we have them in UK and Germany.
We continue to launch other Prime benefits, Amazon Pantry in Japan and Germany this quarter.
We launched Prime Now in the UK.
So it is very similar to the US story potentially time lagged a bit but we are seeing the same customer adoption and impact on growth rates.
Sure, thank you, <UNK>.
First, what I will classify as Prime demographics.
So yes, we still think there's a lot of people in the country who are not Prime members and we are anxious to have them try it and sign up and join.
The other thing that we see is that with our vast offering of selection and faster and faster shipping programs, we have a more competitive offering for many things that they buy.
So there's a share of wallet element to it as well over time that we are looking to be more useful to customers all the time.
On your comment about the economic drivers of Prime Now.
You know what I will say is, customers really value it.
It is not our entire selection, it is tens of thousands of items that they may need on a daily basis.
We think it is an interesting part of the selection offer for Prime and it's in many ways something that we can do that others cannot because it is a natural evolution of our 20-year effort to grow our fulfillment center network and our scale, quite frankly, makes it possible to even offer this to customers.
I will take the India question.
So again, India is a different market and does not have a lot of the same ready fulfillment options that some other countries did.
We see that as an opportunity, an opportunity that we can build and we can bring to sellers.
And as I believe I already mentioned, we like what we see, we are very encouraged, customer accounts, active customer counts are up 230% year-over-year and sellers, number of sellers is up 250% year-over-year.
90% of those sellers use our logistics and warehouse services, as you mentioned, which has caused us to triple our fulfilment capacity.
We are happy to do so.
We like what we see in India.
We think we have, we're attractive both to customers and to sellers and we like our position.
No comment on the pricing.
I would say that we have 23 sort centers which allows us to control a lot more of our shipments for longer but we certainly value our relationships with USPS, FedEx, UPS and other global carriers.
And we are looking forward to a great holiday season.
Yes, I will take that one, this is <UNK>.
No specific call outs in Japan.
I would say that we are still very bullish on our Prime Instant Video, especially our new original content we've created.
We think it is been critically acclaimed and also a big hit with customers.
Man in the High Castle is coming out shortly as is the second season of Transparent which won Emmys this year.
So we are really excited about the creative team we've assembled and the products that they have been able to bring to Prime customers.
And we still like the customer reaction.
Free trial conversion rates are higher when Prime members stream and they also renew at a higher rate their annual subscription.
So again, that's very important to us as well and are very happy with the results.
I would say it is difficult equation.
Yes, order size can go up but we ship a lot of toys and bigger items so it is hard to predict what that looks like.
But having the density, having the sort centers has certainly helped our cost structure in that area and having inventory closer to our customers.
Yes, sure.
On Prime Now, it is our intent to rollout benefits and functionality globally as quickly as possible.
I think we were able to do that with Prime Now and get to the UK faster.
We are happy with that, it is not necessarily a comment on Amazon Fresh, it's just they are different businesses.
So we're happy with the launch in the UK and the team did a great job to get that launch in a timely manner.
On Kiva, we are up to 30,000 bots at the end of Q3, which is ---+ and then they're in 13 for fulfillment centers.
At the end of 2014, we had 15,000 bots.
So we've doubled that amount and they were in 10 warehouses.
Our intent is to use that more widely.
And stay tuned.
I'm going to be vague on the scale of it but their capital intensity is offset by their density and throughput.
So it is a bit of an investment that has implications for a lot of elements to your cost structure but we are very happy with Kiva.
We think it is a great pairing our associates with Kiva robots to do some of the hauling of products within the warehouse has been a great innovation for us.
And we think it makes the warehouse jobs better and I think it makes our warehouses more productive.
Yes, I cannot get into too much detail on the components of EGM profitability.
I would say that we are seeing strong growth across all of our EGM categories.
We have great teams that are chasing a lot of different product lines and working with vendors to get more selection on the site, both retail and also third-party.
So still a lot of room there.
On the Prime sub growth, we are not updating the statistics.
We are very happy with the growth not only in participation but also purchases and retention and we had a very successful Prime Day in <UNK>ly that we are really happy.
It was a great event for customers and sellers.
That's about all I have on that.
