Amazon Reverses Google Shopping Retreat And What That Means

In July 2025, Amazon abruptly pulled out of Google Shopping ad auctions across more than 20 international markets which was a bold move that created shifts in auction dynamics and marketer strategies.

Brands hoped this would lead to lower CPCs and a window to ramp up visibility: apparel and fashion saw ~10% CPC drops, while some categories experienced short-lived reductions of 25–30%.

1. Impact on Google & the Ad Ecosystem

  • Revenue Hit to Google: Amazon’s absence removed a key revenue driver and auction driver for Google.

  • Auction Dynamics Shift: With Amazon out, some brands saw CPC relief but it was uneven and often brief.

2. Opportunities for Competitors

  • More Visibility & Lower Click Costs: This gap gave agencies and retailers an opportunity to scale performance.

  • Tactical Manoeuvres: CSS affiliate networks like nonprofit retailers seized the moment to gain share.

3. Strategic Interpretation

  • Cost-Saving or Testing: Speculation swirled around cost control, Q2 incrementality testing, or reallocation to Amazon’s own DSP and AI tools.

  • Self-reliance Over Synergy: Amazon appeared to be prioritising its own media channels rather than supporting Google’s ecosystem.

4. Seller Risks

  • Ecosystem Dependence Exposed: Sellers relying on indirect traffic from Google Shopping lost that funnel and faced more pressure to diversify.

5. Takeaways & Forecasts

  • Short-term: Less competition, potentially cheaper ad costs, and a rare chance for impression share gains.

  • Mid-term: Expect brands to test broader Shopping campaigns and Search-to-Amazon link strategies.

  • Long-term: Keep an eye on Amazon’s ad channel trajectory will it stay focused on its internal ecosystem?

Amazon's Return: Pause Ends, Complexity Resumes

Amazon reduced its Google Shopping ad spend to near zero starting July 22, halting investments globally across all markets. Amazon resumed activity on August 23, restoring its impression share to ~74%, except in the U.S., where activity remained paused.

What This Bounce-Back Means 

  • Auction Dynamics Reset: The brief reduction in competition had already been replaced and in most regions, Amazon is back dominating again.

  • CPC Implications: Performance buyers who saw short-lived gains may now face price pressures anew as Amazon retakes ad share.

  • Strategic Urgency: The fleeting nature of opportunity underlines the need for fast action and diversification in ad strategies.

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