Between July 21 and July 23, Amazon quietly pulled out of Google Shopping Ads across all major global markets. The result? A total drop in Shopping ad impression share for the retail giant, while they continue to run standard Google search ads.

Although Amazon hasn’t offered an official explanation, the move is already impacting performance marketers, auction dynamics, and competitive positioning.

Here’s what we know, what’s shifting, and how advertisers should respond.

Why Did Amazon Step Away?

Industry observers point to several likely reasons , all of which signal a longer-term shift in Amazon’s marketing strategy:

• Prioritizing Direct Acquisition

Amazon is reinforcing its dominance as a shopping destination by driving users directly into its ecosystem, rather than relying on Google’s product discovery tools.

• Betting on AI

With internal tools like Rufus, multimodal search, and Find-on-Amazon, Amazon appears increasingly confident in its own AI-powered product discovery capabilities.

• Margin Optimization

Pulling back on external ad spend — especially on a platform like Google — could allow Amazon to improve profit margins by reducing customer acquisition costs.

• Platform Independence

Some experts suggest this move helps Amazon distance itself from Google’s ad infrastructure and assert more control over its own retail media platform.

• Possible Leverage Play

There’s speculation this could be a tactic to gain leverage in negotiations around advertising fees or data-sharing agreements with Google.

How Big Is the Impact?

This isn’t Amazon’s first hiatus from Google Shopping: a similar, smaller-scale pause happened in 2020, but this time, the scale is different.

• Amazon’s Shopping ad impression share has dropped to zero across 20 international markets.
• Estimated past share by market: U.S. (~60%), U.K. (~55%), Germany (~38%).
• CPCs have declined by 1–4% on average, with sharper drops in specific categories.
• Retail competitors like Walmart, Target, and Home Depot have quickly stepped in, gaining up to 20% more impression share in the wake of Amazon’s exit.

What This Means for Advertisers

Amazon’s absence is already creating opportunities, but they won’t last forever. Here's how to take advantage now:

• Reevaluate and Optimize CPCs

Lower competition means lower costs. Now is the perfect time to audit campaign performance, refine segmentation, and consider lifting budget caps to gain momentum.

• Watch Search Term Trends

Amazon’s exit is quickly shifting search behavior. Pay attention to your query reports to uncover new patterns, gaps, and terms that were previously harder to win.

• Strengthen Product Feed Quality

Better visibility starts with better feeds. Focus on product titles, high-quality images, and complete descriptions to capture attention while CPCs are low.

What's Next?

The duration of Amazon’s exit is unclear. In 2020, their pause lasted just three months, but this feels more strategic and potentially long-term. Google is already working to counterbalance the loss by expanding its advertiser base and leaning more heavily into AI enhancements. But in the short term, the auction landscape has changed, and smart advertisers can win big by moving fast.

Ready to Act?

Performance marketers know that this kind of shift doesn’t happen often. The window to gain visibility, efficiency, and share is open now. Let’s make the most of it.

Want help navigating the new shopping ad landscape? We’re here when you’re ready. Contact us today.