Amazon Pulls Out of Google Shopping Ads – What That Means for the Rest of Us

There’s a quiet tremor rolling through the digital ad world – and most people aren’t paying attention.

Amazon has stopped buying Google Shopping ads in the United States.

Let that sink in for a second. The biggest eCommerce platform in the world, one that once dominated the top rows of Google’s product carousel for nearly every high-intent keyword, has pulled the plug.

No blog post. No press release. Just gone.

This decision didn’t come out of nowhere – and it has massive implications for brands, agencies, and anyone fighting for visibility in the modern digital shelf.

What Actually Happened

As of mid-July 2025, Amazon is no longer showing up in the Sponsored Shopping results on Google — not just in the U.S., but also in several major international markets. This includes the UK, Germany, France, Italy, Spain, Canada, and Australia.

Amazon’s absence was first spotted by teams at Merkle and Tinuiti, and later confirmed through data from MediaRadar and other tracking sources. For the past several years, Amazon had consistently ranked among the top Google Shopping advertisers. Its withdrawal represents a fundamental shift in strategy.

It’s worth noting: Amazon is still running Search ads on Google — just not Shopping ads, which are image-heavy placements that show up alongside product listings and allow direct comparison of prices, retailers, and delivery promises.

Why Did Amazon Do This?

There’s no official word from Amazon. But there’s enough strategic logic here to make some strong inferences.

1. Google Shopping is Expensive — and Leaky

Amazon may have crunched the numbers and decided the ROAS from Google Shopping just doesn’t justify the cost anymore — particularly when a lot of that traffic leaks into price comparisons, alternative retailers, and a lower-conversion experience.

In the past, Amazon could afford to burn on Google Shopping to block competitors or fill gaps in their own funnel. But today, their focus seems tighter: own the ecosystem, reduce margin pressure, and drive higher-quality traffic that they can remarket against. Google Shopping doesn’t give you that.

2. Amazon’s Flywheel Is Stronger Than Ever

Amazon’s internal ad engine is more powerful now than it’s ever been. With Sponsored Products, Sponsored Display (especially via vCPM), DSP, and AMC-powered retargeting and audience segmentation, they can dominate high-intent shopping moments within their own walls.

Why bid on traffic from Google when 61% of product searches already begin on Amazon? If you’re confident in your flywheel, and you control the experience from click to conversion to remarketing to subscribe-and-save — then Google Shopping starts to look like a middleman with a bad haircut.

3. They Want Brands and Sellers to Take Over the Spend

And maybe the boldest theory: Amazon’s stepping back on purpose — so you’ll step in.

As sellers and brand owners, we’ve always been partially subsidizing Amazon’s growth through rising CPCs, FBA fees, and participation in programs like Vine, AWD, and the Brand Referral Bonus.

It’s possible Amazon’s modeling now shows that they can get the same result — the same volume — by not paying for top-of-funnel Google Shopping ads, as long as their third-party sellers are still running campaigns themselves. They offload the cost, maintain the volume, and keep the margin.

A true marketplace power play.

What This Means for Brand Operators and Advertisers

If you’re a brand that’s been competing against Amazon on Google Shopping, this is your moment. For the first time in years, the 800-pound gorilla just stepped out of the auction.

We’re already seeing some brands report:

• Lower CPCs in Google Shopping
• Higher impression share for their PLAs
• Improved visibility on key branded and category keywords

But the opportunity isn’t just about cheaper traffic. It’s about the strategic reallocation of that traffic.

With Amazon off the board, Google Shopping becomes less about defense and more about offense. You can now actually test top-of-funnel campaigns that lead to your own DTC site, drive subscriptions, collect first-party data, and build LTV — without Amazon pushing back into the SERP.

That said, don’t get comfortable.

Because while Google Shopping may be quieter, Amazon’s internal competition is heating up. If they’re reallocating budget internally — which they almost certainly are — you can expect:

• Higher CPCs in Sponsored Products
• More aggressive DSP activity, especially for mid-funnel audiences
• Increased pressure on brands to prove profitability through AMC and better attribution

And if you’re not already using tools like AMC, MTA, or post-purchase surveys to figure out what role Google Shopping plays in your funnel- now’s the time.

The Bigger Picture: Amazon Is Playing Chess

This isn’t a fluke. Amazon is making calculated moves to consolidate power within its own ecosystem and reduce reliance on external platforms.

We’ve seen this pattern before:

• They deprioritized Facebook ad integration
• They introduced their own Demand-Side Platform to reduce dependence on third-party display networks
• They expanded Buy with Prime to DTC sites to extend their fulfillment tentacles

And now, they’re pulling out of Google Shopping.

It’s all part of the same play: own the data, own the traffic, own the shelf.

Final Take

If you’re a seller or brand operator, Amazon’s exit from Google Shopping is an opportunity — and a warning.

It’s your chance to own more SERP real estate, reduce CAC, and build a more diversified media mix. But it also means the battlefield is shifting. Again.

Amazon is making moves like a sovereign nation: not reacting to trends but reshaping them.

The question isn’t just “What are they doing?”
It’s: “Are you ready for what comes next?”

Because in the world of eCommerce, power is never given. It’s taken.