Amazon has officially withdrawn from Google Shopping Ads — not just in the U.S., but globally. This marks the end of what was once a high-visibility presence in Google’s retail ad space and opens the door for other advertisers to claim more real estate.
The move follows a year-long cooling period, where Amazon steadily reduced activity before finally pulling out completely in late July 2025.
At a Glance: Key Facts
| Detail | Insight |
|---|---|
| Scope of Withdrawal | Global — not just U.S. |
| Exit Timing | 22nd July 2025 |
| Previous Presence | Amazon appeared in ~30% of Shopping auctions (across tracked accounts) |
| Immediate Impact | Drop in auction competition, potential lower CPCs |
| Main Opportunity | Challenger brands can capture visibility & market share |
| Biggest Impacted Group | Advertisers directly competing with Amazon on product, price, or range |
The Withdrawal: What We Know
- Mike Ryan, Head of E-commerce Insights at Smarter E-Commerce, confirmed that Amazon had been reducing its Google Shopping activity for about a year.
- Josh Duggan, Co-founder at Vervaunt, reported that Amazon’s presence disappeared entirely from the Shopping auction after 22nd July — across 13 million daily tracked impressions.
- Historically, Amazon showed up in around 30% of Shopping auctions in their tracked client base.
This is not a minor pullback — it’s a complete global exit from Google’s product listing ads.
Why This Matters
Amazon is more than just another competitor in Shopping Ads:
- They set auction benchmarks — as one of the biggest spenders, Amazon’s bids influence CPC (Cost Per Click) levels across categories.
- They shape consumer expectations — product price, shipping speed, and range from Amazon often set the standard others are measured against.
- They drive competition intensity — their presence in 30% of auctions created constant pressure for direct competitors.
With Amazon gone, the auction dynamic changes immediately.
Impact on Advertisers
Lower Competition, Potential Lower CPCs
Without Amazon’s aggressive bidding, Cost Per Click rates may see a downward shift in affected categories.
For advertisers, this could mean:
- More budget efficiency
- Greater ability to dominate impression share
However, the actual CPC change will depend on how quickly other large players fill the gap.
More Visibility for Challenger Brands
Amazon’s leaving creates a visibility vacuum. Brands that were previously buried under Amazon’s dominance can now claim top ad placements without outbidding one of the deepest pockets in retail advertising.
Category-by-Category Effects
Not all advertisers will feel the same impact. The most affected:
- Direct product competitors (electronics, household goods, books, etc.)
- Price-sensitive markets where Amazon’s undercutting strategy was a constant hurdle
Opportunities Created
Expand Shopping Campaign Coverage
If Amazon previously dominated your category, now’s the time to widen your product feed coverage and bid for top visibility.
- Revisit product groups that underperformed against Amazon
- Test aggressive bids on high-margin items
Strengthen Brand Positioning
With Amazon gone, brand-driven search queries have more room to stand out. Advertisers should:
- Run branded Shopping campaigns alongside generic keywords
- Leverage custom labels in feeds to group high-value products
Test Competitive Pricing
Auction prices may be softer for now — combine this with strategic pricing tests to win market share before other big players adapt.
Risks & Unknowns
While this looks like an opportunity, it’s not without risks:
- Temporary Exit? — It’s unclear whether Amazon’s move is permanent or a strategic pause. If they return, competition and CPCs could spike again.
- Other Giants Moving In — Competitors like Walmart, Target, and specialised marketplaces could step in aggressively.
Strategic Takeaways
For advertisers and e-commerce brands, here’s how to respond right now:
Short-Term Moves
- Audit Auction Insights — See if Amazon’s exit is visible in your category data.
- Increase Test Budgets — Run experiments to see if CPCs and impression shares improve.
- Expand Product Feed — Push products that were previously too expensive to advertise.
Long-Term Moves
- Strengthen Non-Price Differentiation — Amazon’s absence won’t remove all competition.
- Invest in Brand Loyalty — Retarget new customers gained during this window to lock them in.
- Monitor Competitor Behaviour — Track which brands increase visibility in your space post-Amazon.
Bottom Line
Amazon’s global withdrawal from Google Shopping Ads is a major shake-up in retail media.
It changes competitive dynamics overnight, offering challenger brands a chance to secure prime ad real estate, potentially at lower costs.
Whether this is a permanent strategic shift or a temporary pullback, advertisers who act quickly can take advantage of the reduced competition — before the gap is filled.