Introduction: A Shocking Shift in Global Digital Advertising
In a dramatic and unexpected move, Amazon has globally withdrawn from Google Shopping ads, starting between July 21 and July 23, 2025. This sudden drop—first noticed by advertisers via Google Auction Insights—saw Amazon’s Shopping impression share plummet from over 60% to 0% across the US, UK, Germany, and other markets within just 48 hours.
This isn’t just a shift in paid strategy. It’s a global disruption with far-reaching implications for CPCs, ad competition, and eCommerce visibility.
What Exactly Happened?
Multiple digital advertisers confirmed that between July 21–23, Amazon’s presence in Google Shopping ads vanished. Brands monitoring auction share via Google Ads saw a total collapse in Amazon’s previously dominant impression share.
- US Share: Dropped from ~60% to 0%
- UK Share: From ~55% to 0%
- Germany: Around 38% → 0%
This mass withdrawal is the largest since Amazon briefly exited Shopping ads during the COVID-19 pandemic in 2020.
Why Did Amazon Exit Google Shopping Ads in 2025?
Experts and insiders suggest several strategic reasons for this global withdrawal from Shopping campaigns:
1. Incrementality Testing
Amazon may be analyzing whether Shopping ads bring incremental revenue or merely cannibalize organic traffic. It’s a common test strategy among large advertisers.
2. Post-Prime Day Cooldown
The exit followed closely after Prime Day 2025, suggesting a post-campaign cooldown. Amazon may re-enter closer to Back-to-School or Q4 shopping peaks.
3. Margin Optimization
Google Shopping ads are expensive. Amazon likely aims to improve margins by reducing spend on high-CPC platforms.
4. Negotiation Leverage
As one of Google’s largest advertisers, pulling out suddenly may offer Amazon bargaining power in future ad rate negotiations.
5. Focus on First-Party AI Search Tools
With Amazon investing heavily in its own AI-powered search tools like Rufus, it may prefer owning the full customer journey instead of relying on Google.
How Amazon’s Exit Affects Retailers, Brands & Advertisers
This move drastically changes the Google Shopping ad landscape.
✅ 1. Lower Competition = Lower CPCs
With Amazon gone, average CPCs dropped between 7–12% in some categories. Across the board, CPCs fell by 3–4%, giving other retailers room to increase ROAS (Return on Ad Spend).
✅ 2. Increased Impression Share for Other Brands
Retailers like Walmart, Target, Best Buy, and DTC brands saw a spike in their shopping impression share. Google Shopping auctions are now less crowded—perfect for scaling product visibility.
✅ 3. More Opportunity for Niche eCommerce Stores
Small and mid-size sellers can finally compete without Amazon eating into their traffic. This is a unique opportunity to run high-intent product ads without Amazon at the top.
✅ 4. Opportunity to Capture Branded Keywords
With Amazon not bidding on brands like “Nike,” “Samsung,” or “Apple,” retailers can now claim their own branded SERPs in Google Shopping without bidding wars.
The Numbers: CPC, CTR & ROI Trends Post-Exit
| Metric | Before Exit (Avg) | After Exit (Avg) |
|---|---|---|
| CPC (Electronics) | $1.55 | $1.30 |
| CTR (Retail Apparel) | 2.2% | 3.1% |
| ROAS (Home Goods) | 4.2x | 5.0x |
These are early indicators, but they suggest increased profitability for retailers using Google Shopping Ads post-Amazon.
What Should Advertisers & Marketers Do Now?
1. Re-Audit Auction Insights
Compare pre- and post-July 21 data. Identify cost-per-click drops, competitor shifts, and new keyword gaps.
2. Maximize Feed Quality
Google Shopping is now more competitive on feed optimization than ever. Use:
- Clean product titles
- High-res images
- Accurate GTIN/UPC codes
3. Plan for Amazon’s Possible Return
Amazon could re-enter for Q4. Prepare flexible budgets to scale up or defend your auction space as needed.
4. Own Branded & High-Intent Queries
Use branded keyword campaigns to defend your name and own your audience—without Amazon intercepting clicks.
Is Amazon Really Gone for Good?
Not likely.
Industry experts believe this is a temporary retreat to:
- Test incrementality
- Renegotiate ad fees
- Reallocate budget toward AI search, first-party data, or retail media
Expect Amazon to reappear during:
- Back-to-school sales
- Holiday season (Nov-Dec)
- Black Friday/Cyber Monday 2025
A Window of Opportunity for Digital Marketers
Amazon’s withdrawal from Google Shopping Ads is one of the most impactful moves in the 2025 digital ad world. While it’s too soon to call it permanent, one thing is certain: marketers and retailers have a golden window to take back the Shopping feed.
Whether you’re a DTC brand, an eCommerce retailer, or an ad agency, this is your chance to test, scale, and optimize like never before—without Amazon as the top competitor.
FAQs
Q. Why did Amazon pull out of Google Shopping ads?
To test ad incrementality, optimize margins, and possibly gain leverage in negotiations.
Q. Are CPCs dropping across industries?
Yes. Early signs show 3–12% drops depending on the niche.
Q. Will Amazon come back to Shopping ads?
Most likely. It may return for high-traffic seasons like Q4 or major promotional events.
