Amazon Steps Back from Google Shopping

In our recent blog, we covered how geopolitical tensions and new US import rules pushed Temu to pull out of Google Shopping ads. This move temporarily eased Shopping auction intensity. Many advertisers in the US saw lower CPCs and better impression share in Temu heavy categories.

Now, just a few months later, another heavyweight has stepped back.

Amazon has exited Google Shopping auctions across 20 international markets, including the US, UK and Germany. It’s a seismic shift that’s altering the performance landscape for retailers and brands.

Amazon’s global pullback

As of late July, Amazon has stopped bidding on Google Shopping ad auctions across 20 markets.

According to industry experts, Amazon typically appears in 30% of Shopping auctions across many retail sectors. This is one of the most significant auction exits in Google Shopping history and represents millions of impressions suddenly back in play.

What it means for retailers

For performance marketers and retailers running Shopping campaigns at scale, this is a window of opportunity. Just like we saw after Temu’s exit, Amazon’s withdrawal may ease competition in auctions especially in categories where they’ve historically dominated.
That could translate to:

• Lower CPCs
• Higher impression share
• More efficient campaign performance

Next steps to consider

Check auction insights
Leverage the Auction Insights Report, see where your competitors are and aren’t showing up.

Expand your targeting
Create a “catch-all” campaign to ensure all available products are targeted.

Revive products with low Impressions
Launch new, flighted campaigns for products that have not received any impressions in the past 30 days.

Watch your budget pacing
Utilise the Budget Depletion Dashboard to prevent campaigns from being limited by their budgets, which helps capture any increases in demand.

 

Temu has already returned to the US Shopping auctions and Amazon could come back just as quickly. Whether this is a long term shift or a short term test, now is the time to ensure you don’t miss out on the opportunity to push performance.

Get in touch with our experts at Productcaster for more insights and tailored guidance!

Written by Komal Ahmad

Resources:
https://searchengineland.com/temu-pulls-us-google-shopping-ads-454260
https://searchengineland.com/amazon-pulls-out-of-google-shopping-ads-459509