In July 2025, Amazon surprised the digital ecosystem with a decision that shook the foundations of online marketing: withdrawing completely from Google Shopping.

This decision, carried out within hours between July 21 and 23, removed Amazon's advertising presence from one of the world's most powerful and competitive traffic acquisition channels.

What prompted this move? What consequences does it have for Google, the digital ecosystem, and especially sellers who depend on Amazon traffic and sales?

What Exactly Happened?

Until mid-July 2025, Amazon was one of the leading advertisers on Google Shopping, especially in markets such as the United States, Germany, the United Kingdom, and Japan. According to Smarter Ecommerce data, Amazon held a 60% impression share on Google Shopping in certain categories. Within two days, however, that figure dropped to zero.

The withdrawal was neither partial nor gradual, but a global, simultaneous, and complete disconnection. Amazon stopped running its sponsored product ads on Google Shopping, also known as PLA or Product Listing Ads, ending a presence it had maintained for more than a decade.

Possible Reasons Behind the Decision:

1. Incrementality testing

Amazon is known for running large-scale experiments. One widely accepted theory is that this is an "incrementality test", an experiment designed to measure how much traffic and sales Google Shopping ads generate compared with organic traffic or traffic from other channels.

If Amazon determines that a significant share of Google-driven conversions would have occurred without paying for those ads, it may conclude that the advertising investment is not profitable.

2. Strengthening its advertising ecosystem

In recent years, Amazon has built its own advertising network, known as Amazon Ads. With tools such as Sponsored Products, Sponsored Brands, and DSP, it has captured an increasing share of brand and agency budgets. Leaving Google Shopping could be part of a strategy to concentrate resources within its own ecosystem, where Amazon controls the data, audience, and performance.

3. Negotiating with Google

Another possibility is that Amazon is using its withdrawal as leverage to negotiate more favorable terms with Google or demonstrate its market power. By abruptly cutting millions of dollars in spending, Amazon directly affects Google's advertising business.

4. Margin and efficiency optimization

Cost per click (CPC) on Google Shopping has increased across many verticals. Because Amazon operates on tight margins in certain categories, it may have decided that competing for this traffic is no longer worthwhile when it can reach audiences through its own platform.

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What Is the Impact on the Digital Ecosystem?

  • Less Competition on Google Shopping

    Amazon's departure had an immediate effect on the advertising landscape. Several analyses report lower CPCs across various categories, with reductions ranging from 5% to 40% depending on the sector and country.

    This means competing brands such as Walmart, Target, Shein, and Wayfair have been able to increase their presence at a lower cost.

  • Redefining the Google-Retail Relationship

    This move represents a break in the functional alliance between Google and Amazon and could change how retailers view the need to invest in Google Shopping.

    Confidence in Google as a primary acquisition channel could be affected.

  • Digital Budget Reallocation

    Agencies and brands are reassessing their strategies.

    Some of the budget previously allocated to Google could move to Amazon Ads, TikTok, Meta, or even campaigns on vertical marketplaces.

    This could reshape digital investment flows during the second half of 2025 and beyond.

Consequences for Amazon Sellers

Amazon's withdrawal from Google Shopping has direct implications for sellers who depend on the marketplace. Although most did not advertise directly on Google Shopping, many benefited from the free or shared traffic Amazon acquired through the channel.

1. Less incoming traffic from Google

Amazon used to capture some external traffic from Google and redirect it to product pages on its site. With these ads gone, certain products may receive fewer external visits, potentially reducing sales, especially for highly competitive products.

2. Greater need for direct investment

Sellers will need to take a more proactive role. Those seeking to offset lost visibility should consider:

- Investing more in Amazon Ads (Sponsored Products, Brands, Display)

- Using Amazon Attribution to track external campaigns

- Running their own Google Search or Shopping campaigns, linking to their own sites or Amazon

3. More internal competition on Amazon Ads

If Amazon channels more traffic through its own advertising system, sellers may face greater competition for keywords and promoted placements within the marketplace. This may result in higher CPCs on Amazon Ads.


4. A window of opportunity for agile sellers

On the other hand, those who adapt quickly can gain an advantage. Lower competition on Google Shopping may allow sellers with their own online stores to acquire more traffic at a lower cost and with less competitive pressure.


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Recommendations for Sellers

Audit
your traffic. Identify how much of your sales came from external traffic. Use tools such as Amazon Attribution or Google Analytics if you have your own store.
Explore
complementary channels. TikTok, Meta Ads, or email marketing can help diversify your dependencies.
Consider
investing directly in Google Shopping. If you have your own store, you can capture some of the space Amazon has left open.
Strengthen
your presence on Amazon Ads. Prioritize high-return campaigns and monitor cost per click.