Many Amazon sellers have recently found themselves confronting an unexpected challenge: despite carefully optimized product listings and sufficient advertising budgets, their store traffic has stagnated or even declined. This puzzling phenomenon now has a clear explanation. Since July 23, Amazon has completely ceased its Google Shopping ad placements across three core markets—the United States, United Kingdom, and Germany—a strategic shift that has delivered a significant blow to sellers reliant on external traffic sources.
The Traffic Plunge: Sellers Face Unprecedented Challenges
Amazon previously invested heavily in Google advertising, with industry analysis suggesting Google Shopping ads contributed approximately 30% of Amazon's traffic. The abrupt closure of this critical traffic channel has resulted in dramatic declines in both visitor numbers and order volumes across affected marketplaces.
Sellers report precipitous drops in sales and traffic, with organic traffic suffering particularly severe contractions. Advertising cost of sales (ACOS) metrics have skyrocketed, dramatically increasing operational pressures. One beauty and personal care seller noted that even accounting for seasonal fluctuations, sales have dropped 10-20% compared to the same period last year. Another seller reported a 25% year-over-year sales decline across company accounts.
The most immediate impact has been the dramatic reduction in overall traffic, particularly organic visitors. Some sellers report that advertising now accounts for 85% of their orders—up from 45% previously—with organic order volumes collapsing. In extreme cases, organic traffic plunged from over 20,000 visits to just 300 within three days, representing a stark contrast to June's traffic levels.
Advertising performance has simultaneously deteriorated. Many sellers report substantial click volumes with minimal conversions, resulting in wasted ad spend. Some previously stable new products have seen ACOS metrics jump from 30% to 80%, leaving sellers uncertain how to adjust their advertising strategies effectively.
Confirmed: Amazon's Complete Withdrawal From Google Shopping Ads
Amazon's reduction in Google ad spending didn't occur overnight. Over the past year, the e-commerce giant has gradually scaled back its advertising commitments. Current data confirms Amazon's complete exit from Google Shopping ads. Previously participating in about 30% of Google Shopping auctions, Amazon disappeared entirely from the bidding lists after July 23.
Metrics show Amazon's display share in U.S. Google Shopping ads plummeted to nearly 0% by mid-July, confirming its complete withdrawal from the American market. This pattern repeated internationally, with Amazon terminating Google Shopping ad placements in the UK and Germany. Between July 17-23, Amazon's average shopping display share in these three markets crashed from 60% and 40% respectively to absolute zero—where it remains today.
Why Would Amazon Make This Strategic Shift?
Several factors likely influenced Amazon's decision to abandon this previously critical traffic source:
- Cost Control: With Google Shopping ad costs rising steadily, Amazon may have concluded the return on investment no longer justified continued spending.
- Strategic Realignment: The company appears to be prioritizing internal advertising channels and owned traffic sources over external referrals.
- Intensified Competition: As more merchants join Amazon's marketplace, the company may be attempting to enhance the value of its internal traffic by reducing external alternatives.
- Data Privacy Considerations: Given the competitive tension between Google and Amazon regarding user data, privacy concerns may have contributed to the partnership's dissolution.
Impact Analysis: Challenges and Opportunities for Sellers
Amazon's withdrawal from Google Shopping ads has created several immediate consequences for marketplace sellers:
- Reduced Traffic Channels: Products previously visible across Google search results now lack this critical exposure, dramatically decreasing referral traffic to Amazon stores.
- Increased Internal Competition: With external options limited, sellers must compete more aggressively for Amazon's internal advertising space, driving up costs and reducing conversion rates.
- Advertising's Growing Influence on Rankings: Amazon's recent adjustment of its Best Sellers Rank (BSR) algorithm now weights advertising performance more heavily in product placement decisions, making frequent ad adjustments potentially damaging to search visibility.
Adaptation Strategies: Navigating the New Reality
While challenging, Amazon's strategic shift presents opportunities for sellers to refine their approaches:
1. Precision Optimization of Internal Advertising
Sellers should concentrate budgets on high-converting keywords and brand advertisements, pausing underperforming keywords after one week without conversions. New products benefit from combining automatic and manual precision advertising—using automatic campaigns to gather data before transitioning top performers to manual campaigns with carefully calibrated bids.
2. Diversification of External Traffic Sources
Beyond deal platforms and influencer partnerships, sellers should establish brand presences across social media platforms like Facebook and Instagram. Regular content showcasing product applications and customer testimonials can effectively direct traffic to Amazon listings.
3. Enhanced Product Listings
High-quality images, compelling titles, detailed descriptions, clear value propositions, and authentic customer reviews collectively improve conversion rates from existing traffic.
4. Customer Service Excellence
Responsive, professional support builds customer loyalty and generates positive word-of-mouth, indirectly driving traffic through improved satisfaction metrics.
5. Data-Driven Continuous Improvement
Regular analysis of traffic sources, conversion rates, and advertising efficiency allows for ongoing optimization across all operational areas.
Amazon's advertising strategy change represents both disruption and opportunity. Sellers who adapt quickly by refining their internal advertising, expanding external channels, and enhancing conversion efficiency will be best positioned to thrive in this new environment.