What Happened?
As of July 23, 2025, Amazon has officially halted all investment in Google Shopping. While Amazon had been slowly winding down this channel, a complete exit came as a surprise. It is already sending shockwaves through the digital media landscape. For many advertisers, this change presents a rare moment of advantage, particularly for those running Google Shopping campaigns.
At Code3, we immediately pulled cross-client data to understand what this means in practice.
Spoiler: it’s a BIG DEAL.
Why Does This Matter?
1. Amazon was a massive player in the auction
Best estimates suggest Amazon accounted for up to 60% of Google Shopping impressions. Their presence inflated competition, drove up CPCs, and limited visibility for smaller brands.
2. The impact varies by business model
- Brands selling on both Amazon and DTC: Amazon's presence likely cannibalized Google Shopping traffic and revenue from DTC sites.
- DTC-only brands: Amazon was a heavyweight competitor in the auction, often outbidding smaller players and dominating real estate.
- Amazon PDPs: Google Shopping likely acted as an external traffic driver to product detail pages (PDPs) on Amazon, supporting organic discovery.
Code3's Hypothesis
We expected to see:
- Decline in Google Shopping CPCs due to reduced competition
- Lower Amazon PDP traffic as a key external traffic driver disappeared
What the Data Says
We analyzed Friday to Monday performance before and after Amazon’s exit, using statistically significant data across the Code3 client portfolio.
Google Shopping: Hypothesis Confirmed
- CPCs dropped 8% across Google Shopping campaigns
- Impressions increased 11%, suggesting more share of voice for brands
- Clicks surged 21%, fueled by a 9% increase in CTR (This is likely due to less competition in the auction and improved ad positioning for remaining players)
Note: PMAX campaigns did not follow this trend. CPCs actually increased. We are investigating why this deviation occurred and will report back.
Amazon PDPs: Hypothesis Confirmed
- Impressions declined 14% on Amazon PDPs
- Clicks declined 9%
The removal of Google Shopping likely reduced offsite traffic flow to PDPs, which diminished total traffic
What To Do Now
For Brands Selling on Amazon
- Monitor traffic patterns on PDPs week over week. If declines continue, it is likely due to the loss of this traffic source.
- Evaluate your media mix. If Code3 manages both your Amazon and DTC businesses, this is a prime moment to shift investment.
- Not managing DTC with us? Ask your internal or external DTC teams how they are reallocating Google Shopping dollars and ensure they are capitalizing on this window.
For DTC-Only Brands
- This is a moment to go on offense. You are getting:
- More impressions
- Higher click-through rates
- Lower CPCs
- In short, 2015 paid search economics are back for now. Push hard while this lasts and stretch your ROAS further than you have in years.