Amazon withdraws from Google Shopping

On 28 April this year, Amazon reportedly withdrew from Google Shopping. This is quite significant, and for two main reasons.

Reason number 1
This first reason is, for now, based mainly on indications, but time will tell if these assumptions are correct. Some years ago, the EU decided it was anti-competitive for Google to only display visual ads from its own price comparison system. The visual shopping ads are those you see at the very top of Google’s search results, such as these:

As a result, it was decided that Google must allow other price comparison systems to bid for ad placements in Google Shopping. This opened the door for Amazon. By advertising on Google Shopping, Amazon has been able to gather insights about users and their behaviour, as well as information on bid prices and market trends.

Amazon is already seen as a kind of shopping search engine for products – it is where many consumers go directly when they know exactly what they are looking for. The shopping side of the search engine is where Google earns most of its revenue, making Amazon Google’s biggest competitor by far.

The knowledge Amazon has collected about user behaviour, market trends, and bid prices can now be used to enhance its own PPC system and make it even more attractive to consumers. Clever.

Reason number 2
It is also interesting that Amazon has withdrawn from Google Shopping because it will very likely lead to a decrease in ad prices. Amazon is a giant company with virtually unlimited resources, and this has pushed the cost of Google Shopping ads sharply upwards. So much so that many smaller advertisers have not been able to compete, simply because it has become too expensive.

If you are one of those who have set Google Shopping aside due to budget constraints, now is the time to act. Conditions are unlikely to be better than they are right now. Exciting times.

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

If you are interested, you can read more about Amazon in our blog posts:

What does it cost to sell on Amazon?
Amazon comes to Denmark – pros and cons!