Amazon, for a really long time, spent money advertising on Google Shopping. That makes sense, because the online retailer wants to reach people not on its platform.
In many ways, Amazon (AMZN) operates a store just like Macy's, Marshalls, or any other retailer. Yes, it has the advantage of a massive Prime membership base it can communicate with directly, plus an overall huge audience.
But advertising helped build and will help grow that customer base.
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Now, the online retail giant has quietly and abruptly dropped all of its Google Shopping ads. Amazon has not publicly commented on this, but the change had an immediate impact on revenue, traffic, and auction dynamics.
“This went into effect on July 23. Within 48 hours, Amazon’s impression share dropped from roughly 60% to 0% in major global markets. That’s not a slowdown, that’s a complete exit. And yes, we’re already seeing the ripple effects across client accounts,” Digital Position shared.
Google Shopping showed Amazon items and prices on Google rather than on Amazon's website or app.
The change is widespread, with Amazon taking itself off the Google Shopping network in the U.S., UK, Germany, and Japan.
Here's what Amazon has done to Google so far
- Complete Exit: Amazon disappeared from Shopping auctions between July 21-23, across multiple markets and verticals.
- Auction Rebalancing: With Amazon gone, a major share of Shopping traffic and auction pressure has vanished.
- Global Impact: This wasn’t a U.S.-only move. It was executed globally and nearly overnight, catching the entire PPC community off guard.
- Zero Clarity from Amazon: No statement has been issued.
Amazon's change has huge impact
The biggest issue here is that Amazon not being part of bidding for ad space has caused CPCs to crumble. It has also been good for smaller players who now have greater visibility.
Amazon, it should be noted, has not commented on the exit, and it could easily come back to Google Shopping.
“Amazon has not publicly discussed the withdrawal, so we cannot be sure of the exact reasoning. What’s for sure is that, in an ideal world, Amazon would prefer not to funnel advertising spend to Google because it is both costly and funding a rival in the ad space,” wrote GlobalData Managing Director Neil Saunders on RetailWire.
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He thinks Amazon may literally just be kicking the tires.
“So, perhaps this pullback is a test to understand the impact and the necessity of using Google. Or maybe it is part of a wider strategic move to become self-reliant, especially as AI-related searches become more significant. Only time will tell,” he added.
He noted that Amazon does have a sort of deadline.
“The next big event for Amazon is Prime Big Deal Days around October, so it will be interesting to see if they go back to advertising on Google around that occasion,” Saunders shared.
Google may not have delivered for Amazon
Amazon taking itself off of Google may open the door for some smaller players. That might be a mistake if Amazon allows niche players to gain a foothold the way it more or less saved Chewy.com by abandoning certain pet areas during the early days of Covid.
Retail book author Mark Ryiski suggests that there was no single driving reason for the change.
“Since we can only speculate, then I’d bet it wasn’t just one reason, but likely the overarching one is that Google Shopping platform was not delivering the required outcomes. At least not as much as it has in the past,” he wrote.
He pointed out that Amazon may be opening a window for its rivals.
“Amazon’s departure does create opportunities for brands/retailers, though the trade-off is that brands that were getting a ‘free ride’ from Amazon ads may now need to increase their ad investments,” he wrote.
RetailWire Brain Trust member was more blunt in her assessment.
“Always all about the Benjamin’s. I think this will be a net loss for Amazon. It’s spiteful and dumb,” she posted. “By the way, shopping/searching is becoming a torture on both platforms because of all the sponsored posts.”
Amazon leaves Google Shopping:
- Amazon could come back for the next Prime Day.
- Amazon may create its own competition by allowing rivals better exposure on Google.
- By not commenting on the change, Amazon has left many wondering about its next moves.
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