Amazon just completely pulled out of Google Shopping ads, and if you’re not looking closely, you might miss the immediate impact it’s already having on revenue, traffic, and auction dynamics.

This went into effect on July 23rd. Within 48 hours, Amazon’s impression share dropped from roughly 60% to 0% in major global markets. That’s not a slowdown, that’s a complete exit. And yes, we’re already seeing the ripple effects across client accounts.

What’s Happening

Amazon has removed itself entirely from Google Shopping ads across key markets like the U.S., UK, Germany, and Japan. No warning. No gradual pullback. Just gone.

Here’s what’s changed:

• Complete Exit: Amazon disappeared from Shopping auctions between July 21–23, across multiple markets and verticals.
  
• Auction Rebalancing: With Amazon gone, a major share of shopping traffic and auction pressure has vanished.
  
• Global Impact: This wasn’t a U.S.-only move. It was executed globally and nearly overnight, catching the entire PPC community off guard.
  
• Zero Clarity from Amazon: No statement has been issued. Some believe it’s a test of Shopping incrementality. Others think Amazon is preparing to expand its own internal ad network.
  

This is one of the biggest shifts in Shopping we’ve seen in years, and it directly changes the auction for almost every retailer running Google Ads.

Why It Matters

Amazon was a heavyweight in the Google Shopping auction. They consistently drove up CPCs and dominated top-of-page placements, especially on high-converting branded terms.

Now that they’re gone, here’s what’s changing:

• Auction Relief: Without Amazon bidding aggressively, we’re seeing CPCs drop in some categories by double digits.
  
• Increased Visibility: Smaller brands now have access to placements they couldn’t touch before, especially on mobile.
  
• Higher CTRs: Without Amazon in the way, brands are serving to more relevant audiences and seeing CTRs rise.
  
• Room for Optimization: This shift creates space for brands to test new Shopping campaigns, push into more branded queries, or scale budgets at better returns.
  
• Temporary or Not, You Win Either Way: If Amazon returns, you’ve still gained performance insights. If they don’t? You just got handed market share.
  

Even if your CPCs haven’t dropped yet, this change will impact almost every auction, directly or indirectly.

What We’re Seeing Internally

We’re already tracking real effects in client accounts. On July 23rd, the exact day Amazon pulled out, we saw immediate shifts, particularly in our Amazon-linked Shopping clients.

For a large Amazon client, the numbers are crystal clear:

• Traffic from Amazon dropped 15%
  
• Revenue dropped 23%
  

At the same time, branded Shopping campaigns for their DTC saw the following improvements:

• Clicks up 10%
  
• CTR up 7%
  
• CPCs down 14%
  

That’s not a coincidence. That’s a direct consequence of Amazon’s absence from those auctions.

But it’s not all upside, as we also haven’t seen a noticeable lift in thai client’s DTC revenue, despite better branded ad performance. 

And smaller Amazon clients? No clear movement, likely because their Shopping volume isn’t big enough to feel the shift.

There are three possible outcomes playing out here:

• Best Case: That traffic and revenue reroutes through DTC and we capture it at a better margin.
  
• Middle Case: The traffic reroutes, but site conversion doesn’t match Amazon’s, so we lose out on volume.
  
• Worst Case: Competitors fill Amazon’s gap and capture what used to be our traffic.
  

This is why we’re watching accounts closely, and why every advertiser needs to know how this impacts their position in Shopping.

Next Steps

Amazon’s exit is a signal to move fast. Whether it’s permanent or temporary, this kind of auction reset doesn’t happen often.

Here’s what you should do now:

• Audit Impact: Check your Shopping auction insights and performance starting July 23rd. Flag any unexpected CPC or impression changes.
  
• Reallocate Budget: If you’ve got products that Amazon typically competed on, now’s the time to push those hard, especially on branded terms.
  
• Update Messaging: If Amazon was your retail partner, consider how this affects availability messaging and how customers interact with your listings.
  
• Monitor DTC Funnels: Watch closely for changes in branded search, DTC clickthroughs, or Amazon conversion loss. Set up alerts if needed.
  
• Have an Answer Ready: If clients or stakeholders see this headline and ask what it means, have a clear explanation. This is a rare, high-impact shift that should be met with strategy, not surprise.
  

Need help auditing your Shopping data post-Amazon exit or building a short-term strategy to capitalize on it? Let’s set up a call and put together a plan to turn this into a competitive win.