Amazon’s withdrawal from Google Shopping is reshaping the advertising landscape. Competitors may now gain access to cheaper clicks and increased visibility.
The e-commerce giant has suddenly stopped participating in Google Shopping ad auctions, a decision with major consequences for Alphabet’s ad earnings and retail advertisers globally.
Mike Ryan, Head of Ecommerce Insights at SMEC, described the move as “colossal,” likening it to Amazon’s sharp retreat during the pandemic.
What’s happening.
Sujit explained:
“Amazon has made a significant international exit from product ads on Google Shopping. They represent a huge revenue stream for Alphabet and act as a rising tide for auction pricing. This must be painful for Google.”
He added that Amazon had been gradually scaling back on Google Shopping over the past year, but the switch from a slow withdrawal to a complete halt marks a crucial turning point.
Why now.
Sujit emphasized the key question:
“Because only by understanding why can we consider the next question: how long?” He speculated that motives could include reducing spend on Google, or internal strategy changes related to AI and advertising.
Bigger picture.
For brands and sellers, the development may bring fewer benefits, as Amazon has long leveraged Google Shopping as a “Trojan horse” tactic to capture customers and direct them into its own marketplace.
What Experts Are Saying
Industry professionals have weighed in on this development, sharing reactions ranging from surprise to speculation and strategic perspectives.
Shock at the Scale of the Exit
Many experts highlight that Amazon’s complete withdrawal from Google Shopping auctions is unprecedented, with data reflecting a total halt across millions of impressions.
Josh Duggan (Co-Founder, Vervaunt):
“Amazon has officially exited the Google Shopping auction. This is something many will be watching closely—especially those managing Shopping campaigns at scale. Typically, Amazon shows up in about 30% of auctions across our clients, so this marks a major change. CPCs haven’t fallen yet, but advertisers should definitely check their own account data and keep monitoring closely.”
David Kyle (Senior Paid Media Manager, National Positions):
“I can’t get Amazon to appear in Free Listings, even for clients that are generating strong sales on the platform. It looks as though they’ve completely disconnected from Merchant Center.”
Speculation on Timing and Strategy
Duane Brown (CEO & Head of Strategy, Take Some Risk):
“This is fascinating, and I think they’ll return. Could this be tied to a Prime Day pause, with a comeback around September or the back-to-school season? That period is massive for Amazon.”
William Julian-Vicary (CTO, Clarity):
“Could this become another case study like we’ve seen with eBay and Airbnb? Amazon isn’t a typical brand to analyze for user behavior, but tests on this scale generate valuable insights. Hopefully, they’ll share what they’ve learned from pulling back so dramatically—this is a big move.”
Opportunities for Competitors
Brandon Yann (Sr. Manager of Client Services & Strategy):
“With Amazon gone, now is the perfect time for brands and agencies to run Google Search-to-Amazon ads with attribution, since Amazon no longer benefits from free exposure through Shopping Ads.”
Market-Wide Impact
Robin Yarwood (Google Ads & Social Media Expert):
“Which markets are we talking about? Do you expect lower CPCs for bigger advertisers?”
Ryan confirmed the exit covers 20 international Amazon domains, impacting every major market observed.
Why This Matters
Amazon’s withdrawal removes one of the fiercest competitors from ad auctions. This could result in lower CPCs, greater impression share, and higher click-through rates for other advertisers.
It also gives competitors the chance to capture traffic and sales that Amazon typically controls, offering a short-term advantage and an opportunity to test fresh campaigns as auction dynamics evolve.
Bottom Line
Amazon’s sudden exit from Google Shopping is disrupting the advertising landscape. Rival retailers currently stand to benefit, but the critical question remains: is this just a short-term break or a signal of a broader, long-term strategy?
FAQs: Amazon Pulls Out of Google Shopping Ads
Q1. Why did Amazon stop running Google Shopping ads?
The exact reason has not been confirmed. Experts believe it may be a temporary pause linked to Prime Day, seasonal shifts like back-to-school sales, or a larger strategic change.
Q2. Is Amazon’s withdrawal from Google Shopping permanent?
At this point, it’s unclear whether the move is temporary or a long-term strategy. Industry professionals suggest Amazon may return, but no official timeline has been shared.
Q3. Which markets are affected by Amazon’s exit?
Reports confirm that the withdrawal covers 20 international Amazon domains, impacting most major markets worldwide.
Q4. How does Amazon’s exit impact other retailers?
Competitors may see lower CPCs, higher impression share, and improved click-through rates. It also creates an opportunity to capture traffic and sales that Amazon would typically dominate.
Q5. Will CPCs decrease now that Amazon is gone?
While cost-per-clicks (CPCs) have not dropped significantly yet, advertisers are advised to monitor their campaigns closely, as auction dynamics may shift in the coming weeks.
Q6. What should advertisers do in response?
Brands and agencies can use this window to test new campaigns, run Search-to-Amazon ads with attribution, and take advantage of the reduced competition in Shopping auctions.
Q7. Could this be a strategic move by Amazon?
Yes, some experts believe Amazon may be testing outcomes from stepping back. Large-scale experiments like this can provide valuable data for future advertising strategies.
