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July 2025 marks a bold shift in digital retail as Amazon completes a meticulously planned, global withdrawal from Google Shopping ads; a move directly tied to its evolution as the internet’s most influential product search engine.

A Gradual Exit, Documented by Data

Amazon’s pullback from Google Shopping was far from abrupt. The process began with a sharp reduction in ad spend in May 2025, slicing U.S. investment by 50%. The real inflection point arrived between July 21 and July 23, 2025, when Amazon’s Shopping ad impression share plummeted from 60% to zero in the U.S., 55% to zero in the UK, and similar drops in Germany and Japan.

Across 48 hours, Amazon eliminated its decades-old presence across all major Google Shopping markets. Market analysts confirm the advance planning: before the July blackout, Amazon had spent months reducing its Google Shopping investments and retooling its internal traffic strategies. Experts cited the event as the largest single withdrawal from Google’s ad auctions since the company’s 2020 lockdown pause.

Why Did Amazon Do This? Internal Power and AI Ambitions

Amazon’s decision rests on two major shifts:

1. Harnessing Direct Search Behavior

With over 4 billion product searches per month, Amazon has become the world’s second-largest search engine, trailing only Google. By exiting Google’s paid ecosystem, Amazon is betting that consumers will increasingly start and finish their purchase journeys directly within its app.

2. AI-Powered Discovery

In 2024 and 2025, Amazon expanded its search capabilities with features that parallel Google:

  • Multimodal Search: Allows users to combine text and image queries within the app.
  • Find-on-Amazon: Enables shoppers to upload images (even from external sources) to find visually similar products, turning social inspiration into instant Amazon leads.
  • Augmented Reality Shopping: Extends Amazon’s AR experiences to everyday items, deepening product engagement and encouraging in-app exploration.
  • Rufus, the AI Search Assistant: Rolled out to U.S. shoppers in July 2024, providing context-aware suggestions that guide purchase decisions seamlessly.

Breaking the Walled Garden with Agentic AI

In early 2025, Amazon began beta testing “Buy for Me,” an AI tool that completes purchases from third-party websites without users leaving the Amazon app. Soon after, the “See More” search feature surfaced external brands and links, even at the cost of direct sales.

Together, these innovations signal Amazon’s intent to aggregate product discovery and conversion under its own search flow—transforming the marketplace into a retail search hub rather than just a marketplace.

Strategic Takeaways for Amazon Sellers

Amazon’s transition is an assertion of platform independence:

  • Advertising Independence: Amazon seeks to regain margin and full customer ownership by forgoing Google’s paid traffic, reducing dependence on outside ecosystems.
  • Customer Acquisition: The shift emphasizes that you must optimize for Amazon’s internal search algorithm (now powered by advanced AI and behavioral models in the A10 engine) instead of splitting loyalty (and budgets) across ad networks.
  • First-Party Data Leverage: With more product journeys starting natively, Amazon strengthens its ecosystem’s feedback loop, fueling better recommendations, retargeting, and customer relationships.

TL;DR

Strategic Development Implication for Sellers
Amazon exits Google Shopping ads globally Increased visibility opportunities for you on Google Shopping; reduced CPC pressure

Amazon dominates the product search starting point

You must prioritize Amazon SEO, optimizing titles, keywords, and external traffic to succeed
Search-driven growth on Amazon

Your listings need to align with A10 criteria: relevance, conversions, reviews
Beta “See More” feature brings external products into Amazon search Broadens your access to non‑Amazon exposure within Amazon app search results

Amazon Will No Longer Be Just a Marketplace

Amazon’s phased Google Ads exit, preceded by AI-native search innovations and the “Buy for Me” tool, positions it as the default starting point for product discovery and transactions in the digital era. The company’s ability to attract, convert, and retain shoppers entirely within its expanding interface signals a fundamental new state for digital commerce, where Amazon is every bit as much a search engine as a marketplace, and perhaps the most consequential product search source.
For Amazon sellers, the message is clear: to compete in 2025, your strategy must optimize for Amazon’s unique search capabilities and leverage its emerging AI-driven commerce tools for maximum visibility and conversion. CedCommerce aims to enable sellers to optimize for Amazon’s evolving search landscape with listing, advertising, and marketplace solutions, contact us today.

Source: Search Engine Land

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amazon amazon marketplace google shopping sell on amazon