Amazon disappears from Google Shopping: causes and consequences

At the end of April, Amazon stopped advertising via Google’s product search engine. Possible backgrounds and consequences for dealers and Google.

Amazon has withdrawn from the Google Shopping product search engine without giving any reason. According to the digital marketing agency Merkle , the US group has not been switching product listing ads (PLA) since the end of April, which indicates that Amazon is leaving. The step is understandable because Amazon has long since become a product search engine itself. While merchants could benefit in the short term, Google is more likely to suffer from Amazon’s withdrawal.

Amazon on Google Shopping

According to Merkle, Amazon invested most of its Google Shopping budget in the Home & Living category, but was also active in other categories such as furniture, office supplies and gift items.

Since April 28, there should be no more activity from Amazon, product listing ads can no longer be seen. The digital agency Merkle claims to have recorded a decline in Amazon’s activities by the end of the quarter. The US group has remained active in the Google Adwords sector.

Amazon as a product search engine

Amazon has long since replaced Google as a product search engine not only in the USA but also in Germany. According to Amazon, the very special clientele of Prime customers now includes more than 100 million people worldwide. For comparison: Germany had around 82.7 million inhabitants in mid-2017.

But that’s not all, Prime members are as good as lost to other online shops – they buy almost exclusively from Amazon. One possible interpretation of the lack of advertising from Amazon is a conscious decision against Google Shopping. And this decision could be driven by two factors: Amazon as a search engine is now independent from Google Shopping and does not want to upgrade the competition – and at the same time avoid wastage. Why external services pay money for users who already belong to Amazon.

Google Shopping is losing Amazon customers

One consequence for Google Shopping could be the loss of some users: Amazon customers who still use the Google service because Amazon is also present there. They will go now – whether this is a factor that matters is a question that is still difficult to answer.

Amazon sees its range and access to customers as an integral part of its business model. If another provider tries to take advantage of it, it can trigger countermeasures. In the USA, Google has started to provide Google Shopping with a shopping cart and thus uses the customer and product range for its own purposes – this could have contributed to the possible decision to withdraw.

Amazon has withdrawn from some affiliate networks and bargain portals in the past, but so far not from all of them: For example, Amazon offers can still be found at Idealo.

Traders can benefit in the short term

The digital agency Merkle expresses the assumption that the budget released by Amazon could free up advertising space on Google Shopping and thereby increase click prices and conversion rates.

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