Last week, several U.S. media outlets reported that Amazon suddenly slashed its Google Shopping Ads spending over a two-day period. Some commentators said that, looking at the overall data, Amazon had essentially stopped all Google Shopping Ads entirely. At first glance, this may not seem closely related to Amazon’s marketplace sellers, but it’s important to remember that Google is still the undisputed king of traffic and data. Is Amazon doing this to cut costs, or does Amazon now have customer data that is larger and more precise than what Google Shopping can offer? Is this good news for Amazon’s third-party sellers? What impact will it have on Amazon’s on-site traffic and conversion rates? In today’s article, we will analyze these questions in depth.
Part One – Why did Amazon stop buying Google ads?
According to multiple reports from Digiday and TipRanks, Amazon almost completely halted its spending on Google Shopping Ads in the first half of 2025. Marketplace Pulse tracking shows that, compared with the peak levels in 2023 and 2024, Amazon’s ad spend on Google Shopping Ads plunged to a historic low in 2025—virtually to zero.
However, Hui Creative believes the following points deserve close attention:
First, unlike in past years when U.S. media focused on the possibility that Google might unilaterally pause Amazon’s ads, this time it is an active move by Amazon. Judging from Amazon’s overall share price and cash flow, it does not appear to be driven by budget constraints.
Second, this adjustment does not look like a short-term seasonal move but rather a strategic shift. It is very possible that we will see Amazon refrain from running Google Shopping Ads for a long time.
At the same time, we can see that the ads Amazon stopped are concentrated solely in the Google Shopping format. Other ad types such as search are reportedly still being placed as usual.
Citing several industry insiders, Digiday suggests Amazon may want to pull more traffic back on-site to better control the consumer journey and maximize ad attribution visibility and profit.
Part Two – Understanding the types and roles of Google ads
For most Amazon sellers, Google ads can feel expensive and deliver relatively low conversion rates. What many don’t realize is that one of the reasons Jeff Bezos was able to grow Amazon from zero to over 40% of all U.S. online orders and traffic—and make Amazon Advertising the second highly profitable business after AWS—was heavy reliance on Google.
Before we dive deeper, here is an overview of the main types of Google ads and when e-commerce sellers tend to use them:
1. Google Search Ads
1) Format: Text ads appearing at the top or bottom of Google search results when users query keywords.
2) Best for e-commerce sellers: Capturing high-intent searches such as “buy XXX product” or “XX brand official site.” Promoting brand terms and bestsellers.
3) Tips:
· Focus on high-converting keywords (e.g., brand plus model).
· Run brand protection campaigns to prevent competitors from taking your traffic.
· Link to your Amazon product page or your own site’s product page with UTM tracking.
· Use RLSA to show search ads to past site visitors.
2. Google Display Ads
1) Format: Image and banner ads shown across the Google Display Network.
2) Best for: Brand awareness, new product launches, seasonal promotions.
3) Tips:
• Warm up inventory before major events like Prime Day.
• Target audiences precisely by interest, purchase intent, geography, and device.
• Run remarketing to bring back product viewers.
• Keep banner creatives consistent with your brand.
3. Google Shopping Ads
1) Format: Product image, title, price, and link displayed at the top of search results and in the Shopping tab.
2) Best for: Direct-to-consumer websites (Shopify, WooCommerce, etc.) linking directly to product pages. Amazon sellers can use them indirectly to build brand demand.
3) Tips:
• Use Smart Shopping to point to a brand or landing page if you don’t have a full site.
• Upload structured product data to Google Merchant Center.
• Combine high-intent keywords with geo-targeting to control cost.
4. YouTube Ads
1) Format: Video ads before, during, or after YouTube content.
2) Best for: Brand storytelling and product education.
3) Tips:
• Create short, high-impact videos (under 15 seconds).
• Pair with remarketing to reach users who have shown interest.
• Target e-commerce-related audiences.
• Use Video Action Ads with clickable CTAs to your Amazon page or site.
5. Performance Max
1) Format: Automated campaigns running across Search, Display, YouTube, Gmail, and Maps.
2) Best for: Sellers with limited time to manage multiple ad channels or early-stage brands.
3) Tips:
• Provide product images, videos, and copy for Google to optimize automatically.
• Good for quickly identifying viable audiences.
• Ideal for launches and seasonal events.• Set Target ROAS for profitability.
6. Google Remarketing Ads
1) Format: Ads targeting users who have visited your site or product pages.
2) Best for: All sellers aiming to increase repeat purchases or recover abandoned carts.
3) Tips:
• Build audiences via Google Analytics or Merchant Center.
• Tailor creatives to user browsing behavior.
• Leverage Gmail, YouTube, and Display placements.
From this, it’s clear that Amazon’s pause in Google Shopping Ads—while maintaining Search and Video Ads—suggests Amazon now has a strong grip on consumer data across markets like the U.S., Canada, the U.K., the EU, Japan, and Australia. This signals growing confidence even against a traffic giant like Google.
Part Three – Shifts in U.S. consumer search habits
In the past, Google was the first stop for e-commerce searches. Amazon’s adjustment to Shopping Ads makes a recent trend even more apparent:
Studies show that consumers in the U.S. and Europe increasingly begin their product searches on Amazon instead of Google. Statista data reveals that by 2024, over 60% of U.S. online shoppers chose Amazon as their first search destination rather than Google.
At the same time, content-driven platforms like TikTok, Reddit, and Pinterest are capturing younger users’ attention.
Although Google still controls the world’s largest search ad network and major traffic pools like YouTube, its dominance in e-commerce search is being challenged by Amazon, TikTok, Temu, and others.
Hui Creative believes Amazon’s move is about more than just saving money:
• Strengthening the closed loop: Keeping the user journey fully within Amazon’s ecosystem for better tracking and optimization.
• Reducing competitor exposure: Avoiding situations where Google Ads expose shoppers to Temu, Walmart, Target, or independent sites.
• Consolidating ad spend on-site: Growing Amazon’s Sponsored Products, Video Ads, and DSP offerings, which are more controllable.
Part Four – What opportunities does this create for Amazon sellers?
Historically, Amazon has been one of Google’s largest ad customers. Many sellers who found Google’s ROI low were competing against Amazon’s massive ad budget.
With Amazon stepping back from Google Shopping, sellers who could benefit include:
- Sellers running both a direct site with Google Shopping Ads and Amazon listings — CPCs may drop and conversions improve.
- Sellers in high-value or restricted categories — Google Shopping often drives significant high-intent traffic to their sites.
- Amazon sellers ready to launch a direct site — Especially those with high average selling prices, narrow categories but many SKUs, and existing Amazon traction.
- Sellers on other platforms — Walmart, Lowe’s, Target, Temu, and SHEIN may see a boost as they fill Amazon’s vacated ad space.
About Hui Creative
Hui Creative Services Inc is a cross-border e-commerce marketing agency specializing in helping global sellers grow on platforms such as Amazon, SHEIN, TikTok Shop, and emerging marketplaces. With over 10 years of industry experience, we have helped more than 3,000 new sellers start from scratch and grow into top-ranking brands. Our expertise covers marketplace strategy, content optimization, paid media, and compliance, serving clients across North America, Europe, and Asia.
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Email: info@leadspro.ai
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