If you’ve been running Google Shopping ads lately, you might have noticed something unusual. Amazon, one of the biggest players in the space, has suddenly dropped out! In just a few days, Amazon’s share of Google Shopping impressions went from dominating the auctions to zero.
That’s a huge shake-up. Amazon’s exit doesn’t just change who shows up in the results; it shifts the entire competitive landscape for retailers, brands, and marketers. Suddenly, there’s more room at the top, and potentially lower costs to get your products noticed. But like any big change, there are pros, cons, and unknowns to navigate.
In this article, we’ll break down what’s happened, why it matters, and how businesses like yours can make the most of this unexpected opportunity while staying ready for whatever comes next.
Just in case you missed it
In late July 2025, Amazon made a sudden and complete exit from Google Shopping ads in major markets including the US, UK, Germany and Japan.
Over a single weekend, Amazon’s share of impressions on Google Shopping dropped from around 60% to zero. This was a dramatic change given that for years Amazon has been one of the dominant bidders in these auctions.
This move was not entirely unexpected, the data shows Amazon had been steadily reducing its Google Shopping ad spend since mid-2024. However, the speed and scale of the full withdrawal took many advertisers by surprise.
The exit affects product listing ads specifically, the ads you see in Google’s shopping carousel and search results with product images, prices and seller info. It does not mean Amazon is pulling back from all Google Ads entirely, but this change is a significant shift in the shopping ads landscape.
Why did Amazon exit from Google Shopping ads?
Amazon doesn’t make moves like this lightly, so why have they pulled out of Google Shopping ads? While no official statement has explained the full reasoning, there are a few logical factors at play:
- Efficiency and control: Advertising inside their own ecosystem allows Amazon to better control the customer journey and keep more profit in-house. Instead of paying Google for clicks that may lead back to Amazon, they can invest more directly in their own platforms like Amazon Retail Media and their Demand Side Platform (DSP).
- ROI challenges: Google Shopping ads can be highly competitive and expensive, especially when a giant like Amazon is bidding aggressively. Cutting back may be a move to optimise spend where it delivers better returns.
- Testing and strategy: It’s possible this is a strategic pause or test, especially around big retail events or new marketing pushes. Amazon often experiments with where and how it invests ad spend to maximise impact.
- Changing market dynamics: As retail media and AI-driven advertising tools develop, Amazon may be shifting its focus toward new ways to engage shoppers beyond traditional search ads.
In short, Amazon is likely refocusing its advertising budget to channels where it sees more control, efficiency, and opportunity. For other businesses, that shift opens up space, but it also signals a changing digital advertising landscape to watch closely.
Upsides for Other Digital Advertisers
Amazon’s exit from Google Shopping ads creates a window of opportunity for other advertisers to step up. Here’s what businesses can expect:
- Lower cost per click: Without Amazon bidding aggressively, many categories are seeing a noticeable drop in CPCs. This means you can get more clicks and traffic for your budget, at least for now.
- Greater visibility: With a major player out of the picture, your products have a better chance of appearing at the top of search results. This is especially good news for small and mid-sized retailers, who have previously struggled to compete for space.
- Improved click-through rates: Early reports suggest that as the auction becomes less crowded, ads are performing better, shoppers are engaging more with available listings.
- Opportunity to test and learn: This quieter competitive environment lets you experiment with new keywords, product categories, and bidding strategies. Gathering fresh data now can give you a head start as the market evolves.
- More diverse shopping results: Shoppers are likely to see a wider variety of brands and products in their search results, which can benefit niche and specialist retailers.
While this isn’t a permanent shift, being proactive now can help your business capitalise on the moment and build momentum.
It May Not Last
While the current market feels more open, there’s no guarantee it will stay that way.
- Amazon may return: This could be a temporary move. Amazon has previously paused spend around key retail dates, only to return with a fresh strategy and strong bidding power.
- Big retailers are already moving in: Competitors such as Walmart, Target, and other large chains have quickly increased their share of Google Shopping ads since Amazon stepped back. This means CPCs could climb again as the gap closes.
- Google will adapt: Google won’t ignore a drop in ad spend from a major partner. We may see changes in how Shopping ads are served or promoted, especially with AI-powered formats becoming more prominent.
- Auction dynamics change fast: A few aggressive bidders can quickly push prices back to previous levels, so any cost savings might be short-lived.
In short, treat the current environment as a window of opportunity rather than a new normal. Acting quickly is the best way to make the most of it.
What Should Businesses And Digital Marketers Do Now?
If you want to take advantage of Amazon’s absence, now’s the time to act. A few simple steps can help you grab more visibility and sales while the competition is lighter.
1. Give your Shopping campaigns a health check
Look at your current performance and see where there’s room to push a bit harder. If you’ve been holding back on bids because CPCs were high, try raising them slightly to capture more impressions.
2. Polish your product feed
Google Shopping is all about great data. Make sure your product titles are clear, your images are sharp, and your descriptions include the right keywords. Even small tweaks here can make a big difference in rankings.
If you are not sure where to start or do not have the time to fine-tune every detail, our feed enhancement service can do the heavy lifting for you. We optimise titles, images, and data fields, so your products are set up to win more impressions and clicks.
3. Keep an eye on the competition
Use Google’s Auction Insights or your PPC tools to watch who’s appearing in your space. If a big retailer suddenly shows up in your category, you can adjust before it affects your results.
4. Test something new
Whether it’s a new product range, a fresh bidding strategy, or different ad formats, now’s a good time to experiment. The insights you gather will be valuable even if the market changes again.
5. Be ready for the rebound
If Amazon comes back, you’ll want to know which tactics gave you the best results so you can keep competing effectively.
This is one of those rare moments when the playing field feels a bit more level. Make the most of it while you can.
To wrap it all up
For Google, losing a major spender will not go unnoticed. We could see new Shopping formats, more AI-driven placements, or other changes designed to attract big advertisers back. For other retailers, the short-term effect is clear, there is more room to compete, but it may not last forever.
Right now, smaller and mid-sized businesses have a rare chance to win more visibility, reach new customers, and gather valuable campaign data without Amazon dominating the auctions. But the competitive landscape moves quickly. Acting now means you can make gains that continue to pay off even if the market shifts again.
Amazon leaving Google Shopping ads might have been unexpected, but for the rest of us, it is an opportunity hiding in plain sight. The brands that move quickly, test smartly, and keep learning will be the ones still standing strong when the dust settles.
If you want to make the most of this gap, we can help. Get in touch with us for a free Google Shopping Ads health check, and we will show you exactly how to optimise your campaigns to capture this opportunity before the market changes again.
August 14, 2025
