Amazon has abruptly pulled out of Google Shopping ads worldwide, as reported by several sources. The move gives competing retailers a potential opportunity to grab lower cost-per-click (CPC) rates, more engagement and greater market share. 

Amazon is a huge revenue source for Google, and its ad presence drives up auction prices for others, according to Mike Ryan, head of e-commerce Insights at Austria-based Smarter E-commerce.

Ryan says it’s unclear why Amazon made the “colossal” move or how long it was last. Amazon has previously reduced its ad presence on Google Shopping, but never before down to zero. 

“I have not seen an ad stop this dramatic from Amazon since the acute phase of the pandemic lockdowns, which coincided with a 20% drop in cost-per-click (bear in mind there were many confounding variables, that’s why I say ‘coincided’),” he said in an analysis posted on LinkedIn. “Whatever the cause, the news of Amazon’s exit is sure to make competing retailers rejoice.”

He posted a chart showing Amazon’s median shopping impression share dropping off a cliff between July 17 and 23 across three key markets: the U.K., the U.S. and Germany.

Josh Duggan, co-founder of U.K.-based e-commerce and paid media consultancy Vervaunt, also says Amazon has completely disappeared from the auction since the middle of last week, based on the approximately 13 million daily impressions his company tracks.

He notes that it’s a big shift, as Amazon would typically appear in about 30% of shopping auctions. However, in a detailed analysis posted on Monday (July 28), Duggan points out that a precipitous drop like this is not without precedent, as Temu and Shein pulled spend in the U.S. some months ago amid the tariff uncertainty.

In looking at the week-over-week change since Amazon turned off Google Shopping ads, he found that among advertisers where Amazon’s impression share was less than 30%, there was a small decrease in CPC – 5% on average – and a significant rise of 60% in click-through rate (CTR). 

Among advertisers where Amazon’s impression share is typically higher than 50%, a vast majority (92%) saw CPCs decrease by 10% on average, but CTR increased by just 3%.

“Overall, the impact is most significant for advertisers who compete directly with Amazon on product, price or range,” Duggan said. “With Amazon no longer visible, there’s a clear opportunity for challenger brands to capture more engagement and share.”

Still, he adds, even if Amazon stays away, CPC levels are likely to return to prior levels as the remaining advertisers continue to compete within the auctions. 

Ryan points out that while competing retailers might benefit from Amazon’s absence, while it lasts, the move is less positive for brands and sellers that benefit from Amazon’s advertising on their behalf.