Amazon withdraws from Google Shopping

On April 28 this year, Amazon withdrew from Google Shopping. This is a significant shift with two main reasons.
Reason No. 1
This first reason is currently more based on clues, but time will tell if the assumptions are correct. Several years ago, the EU ruled that it was anti-competitive for Google to display only visual ads from its own price comparison system. Shopping ads are the ones you see at the top of Google search results, like these:

Because of this decision, Google was required to let other comparison systems also bid for visibility in Google Shopping. Amazon entered this space and gained access to valuable data about user behavior, prices, and market trends.

Amazon is already seen as a dedicated shopping search engine—a platform where consumers go when they know what they want. The shopping area brings Google its largest revenues, and Amazon is its number one direct rival.

All data collected by Amazon about users, trends, and prices can now be used to improve its own PPC system, making it even more attractive. Clever, isn’t it?

Reason No. 2
It’s also interesting that Amazon’s exit will likely decrease ad costs. With virtually unlimited resources, Amazon had drastically increased prices for Google Shopping ads. Many small advertisers were squeezed out as they could no longer compete.

If you also left Google Shopping due to budget reasons, now is a great moment to give it another shot. Conditions could not be better. We live in interesting times.

Read more about how we can help you get started on Amazon.

If you are interested, you can find other articles on our blog:

How much does it cost to sell on Amazon?
Amazon comes to Denmark – advantages and disadvantages!