What Just Happened?
In July 2025, Amazon stopped running Google Shopping ads — a move that stunned advertisers and brands alike. Previously, Amazon commanded a massive impression share in Google Shopping auctions (upwards of ~60% in the U.S. and ~55% in the U.K.), dominating product feed visibility on Google’s results pages. Digiday+1
Reports indicate that Amazon’s ads disappeared virtually overnight after a gradual reduction earlier in the year, prompting speculation about strategic motives. Flipflow
Why It Matters for Sellers
Even if you sell only on Amazon, this change affects you — and here’s why:
🧠 1. Loss of External Traffic
Amazon’s Shopping ads used to drive significant external clicks into Amazon product listings. Without this flow, overall sessions may drop, especially from shoppers who start their search on Google. Fluid Marketplaces
💸 2. Changing CPC Dynamics
When Amazon exited the auctions, many retailers initially saw lower cost-per-click (CPC) and easier visibility for their own Google Shopping ads. But as advertisers moved in to capture that space, CPCs have begun creeping back up. Tinuiti
This means:
- Short-term opportunity for cheaper external traffic
- Medium-term competition heating up as brands adjust
📈 3. Greater Focus on Your Own External Traffic
If Amazon isn’t spending heavily on Google ads, your brand has to. External traffic increases:
- Amazon Attribution tracking becomes essential
- Paid search on Google, meta platforms, and TikTok becomes more strategic
- SEO and off-Amazon funnels gain importance
Without Amazon’s ads “doing it for you,” brands need to take ownership of how customers find them online. Fluid Marketplaces
🎯 4. More Competition Within Google’s Ecosystem
While the initial absence created room, other major advertisers (Target, Walmart, Home Depot, SHEIN) quickly increased their spend to fill the vacuum. That means competition didn’t disappear — it just shifted. Tinuiti
Why Amazon May Have Pulled Back
We still don’t have an official explanation, but analysts suggest several possibilities:
- 🧪 Strategic testing: Evaluating whether Google Shopping ads truly drive incremental revenue. Incubeta
- 💰 Cost control: Cutting a multi-million-dollar spend that may not deliver strong ROI. Logical Position
- 🛍 Traffic control: Keeping shoppers inside Amazon’s ecosystem rather than paying to send them through Google. Fluid Marketplaces
What Sellers Should Do Now
Here’s how you can react strategically:
✔ 1. Capture the Window Quickly
If Google Shopping is less competitive, jump in now:
- Update your Google Merchant feed
- Run Shopping campaigns on high-intent SKUs
- Optimize product data and pricing for Google results
This window may not last — Amazon has already begun re-entering in some markets. Digiday
✔ 2. Diversify Paid Channels
Don’t rely solely on one ad channel. Build a balanced acquisition strategy across:
- Google Search & Shopping
- Meta (Facebook/Instagram)
- TikTok
- DSP and Marketplace ads
This spreads risk and reduces dependency on a single ecosystem.
✔ 3. Use Amazon Attribution
Amazon Attribution lets you see how external campaigns perform on Amazon. That means your off-Amazon spend drives real business insight and ranking signals — not just vanity metrics.
✔ 4. Focus on Organic and Brand Awareness
Search visibility now overlaps more with organic behavior. Prioritize:
- SEO both on-site and on-Amazon
- Content marketing
- Email and retention strategies
Final Thoughts
Amazon’s withdrawal from Google Shopping ads is one of the most significant advertising shifts of 2025. Brands that act fast can capitalize on short-term opportunities — while thoughtful strategies now will future-proof your business as the landscape continues to evolve.
The big takeaway: Never rely solely on someone else’s traffic engine. Build your own channels, own your audiences, and be ready when platforms shift.
