In July 2025, Amazon abruptly and completely withdrew from Google Shopping ad auctions. This move affected not just the U.S. but also major markets like the UK, Germany, Canada, Japan, Spain, Italy, and Australia. Over just 48 hours, its Shopping ad impression share dropped from as much as 60% to 0% across multiple markets.
Amazon has not exited Google Search ads. The change applies only to Shopping ads, which display product images, prices, and retailer comparisons.
Why Now? What’s Driving the Decision?
Although Amazon hasn’t issued an official statement, industry analysts suggest a few possible reasons:
- Amazon may be testing whether Google Shopping ads are actually contributing incremental value to their sales funnel.
- The move could be aimed at protecting profit margins by cutting out Google’s ad costs, especially when traffic from Shopping ads leaks to other retailers.
- Amazon might be using its massive ad spend as leverage in negotiations with Google over data-sharing or auction terms.
- With the rise of AI-powered search experiences on Google, Amazon appears focused on owning its own search and discovery process from top to bottom.
The Fallout: What This Means for Advertisers
Lower CPCs and Less Auction Pressure
With Amazon gone, cost-per-clicks in Shopping auctions are expected to drop. Advertisers may see increased traffic and reduced competition for high-intent search terms.
More Visibility for Competitors
Brands like SHEIN, Target, and Wayfair have already increased their share of voice in key product categories. Many have reported a surge in impressions and clicks now that Amazon is no longer in the mix.
New Opportunities for DTC and Emerging Brands
This shift gives smaller and mid-sized brands a rare window to gain traction in Google Shopping, a space historically dominated by Amazon.
A Strategic Test
This may not be a permanent change. Amazon has stepped back from Shopping ads in the past, only to return. Marketers should watch carefully for signs of re-entry.
What CoreTrex Clients Should Consider
- Audit Your Google Shopping Campaigns - Review your current CPCs, impression share, and conversion rates. Benchmark performance before and after Amazon’s exit.
- Double Down on Shopping Ads - Now is the time to ramp up your presence. With less competition, your budget can go further.
- Drive Traffic Intentionally - If you’ve been using Google Shopping to push traffic to Amazon listings, consider shifting some spend to direct-to-consumer or branded landing pages.
- Monitor Amazon’s Activity - Keep an eye on your own Amazon auction insights. Watch for any signs Amazon is coming back into the Shopping ecosystem.
- Diversify Your Ad Mix - Strengthen your strategy across both Google and Amazon. Use data from both platforms to make smarter allocation decisions.
Final Word
Amazon’s sudden exit from Google Shopping is a major shift in the digital advertising landscape. For brands and agencies, it’s a rare opportunity to gain market share, improve return on ad spend, and capitalize on a less crowded auction. Whether this is a temporary pause or a long-term strategic change, one thing is clear — now is the time to act. CoreTrex is here to help brands navigate the shift and lead with smart, performance-driven strategies.
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