A conversation with Candace Deede, VP Retail Media, and Jessica Ortiz, VP SEM.
Amazon's sudden withdrawal from Google Shopping auctions is deeply significant. Industry experts are calling the move by Amazon "colossal," but what does it actually mean for brands? Jessica Ortiz, VP SEM, and Candace Deede, VP Retail Media, discuss the data we’re seeing and what brands should expect in the coming months.
Stella Rising: In late July, Amazon vanished from Google Shopping auctions across 20 international domains. Jess, from a search perspective, what are you seeing, now that we’ve had a few weeks to assess things?
Jessica Ortiz: With Amazon’s complete withdrawal from Google Shopping, the short-term impact has been dramatic: CPCs are down 10–20% period over period, and our beauty and retail clients are seeing stronger conversion rates, increased site traffic, and meaningful revenue lifts through their DTC channels.
The bigger challenge, however, is what happens after the click. Customers acquired through this shift arrive with Amazon-level expectations—two-day shipping, frictionless returns, and a seamless experience. Unless brands can deliver on that standard, the long-term value of this new traffic may not fully translate into sustained growth.
At the same time, while search advertisers benefit, Amazon and its sellers may see some impact on their topline, given the potential role Shopping traffic played in driving revenue. Candace, what are you seeing on the Amazon side?
Candace Deede: I wanted to look beyond just the search metrics. Everyone's talking about cheaper clicks, but what's happening to actual sales on Amazon? I dove into our account data, comparing late July through August with our year-to-date performance before Prime Day.
SR: What did you find?
Candace: At the macro level, it wasn't as dramatic as I expected. Our overall year-over-year growth dropped from 35% to 29%—significant, but not catastrophic. But then I started looking brand by brand, and that's where it got really interesting.
SR: This is where the story gets nuanced, right?
Candace: Exactly. Take one of our larger beauty clients—before Amazon's pullout, they were cruising at 27% year-over-year growth on Amazon. Since the exit? They're only up 4%.
Jessica: For that same client, on the paid search side, we see positive momentum. August shows improved click-through rates, with an 18% decline in CPC and 19% lift in revenue since Amazon’s departure.
SR: Are all brands seeing similar impacts?
Candace: That's the fascinating part—absolutely not. Another large beauty client is performing better post-pullout. They went from 45% YoY growth to 70%. Though I should mention, they've been making major strategic pivots, moving from a DTC focus to more emphasis on their partnership with Sephora—there are external factors at work.
SR: Any other lessons on the Amazon side within beauty?
Candace: I see the impact as hitting prestige beauty brands harder so far. Looking at our other premium clients—three are seeing declines in business. Meanwhile, some of our mass market clients are actually benefiting.
SR: Interesting! If we take a step back, then, how does this impact a multi-channel approach?
Jessica: It’s important, as ever, that brands don’t think in silo. Most of our client brands have told us that DTC is a priority. This pullout might actually force a healthier channel rebalancing. If DTC picks up what's lost on the Amazon side, that's ultimately better for brand equity and margins.
SR: So, what should brands do right now?
Jessica: First, treat this as an opportunity window by investing more aggressively in your Google shopping presence. With Amazon out of the auction, there's real room to capture traffic that would typically go straight to Amazon. This competitive advantage won't last forever, whether Amazon comes back or other players fill the void. To effectively capture this traffic and drive to conversion, it’s critical to ensure your feed is fully optimized and pricing is competitive.
Candace: For brands on Amazon, the focus needs to shift to strengthening performance inside Amazon’s own ecosystem. On the Sponsored Ads side, that means doubling down on Sponsored Product and Sponsored Brand campaigns in key category searches to capture shoppers once they’re on Amazon. On the DSP side, it’s about rebuilding the awareness funnel Amazon used to fuel through Google, so leaning into in-market and lifestyle audiences, dynamic retargeting, and optimizing toward cost per NTB order and YoY NTB growth. The goal is to keep the funnel full, maximize every engaged shopper, and ensure NTB growth offsets the potential loss of external demand
And please, don't let your channel partners operate in silos, either. This is exactly the kind of market shift that requires integrated, unified thinking. Your Amazon team, your search team, your DTC team—they all need to be talking.
SR: Any predictions on whether this is temporary or permanent?
Candace: That's the million-dollar question. Looking at our data, I think brands need to adapt their strategies regardless of Amazon's long-term plans. The impact is real enough that you can't just wait and see.
Jessica: Agreed. And honestly, what's become clear is that the impact varies dramatically by category and brand positioning. We're going to need a few more months of data—especially through back-to-school and into Q4—to really understand the full picture.
Candace: But here's what we know for certain: premium brands are feeling this more than mass market, the beauty category is seeing shifts, and there's a real opportunity for brands willing to move quickly and think strategically about their channel mix.
Jessica: Though it feels like we say this all of the time, the landscape is shifting faster than ever. This Amazon situation is just the latest example of why brands need to be agile and data-driven in their approach.
As this situation continues to evolve, our teams are monitoring the data closely and working with clients to capitalize on the changing landscape. Want to understand how these shifts might impact your brand? Connect with us to develop a strategy that works in this new reality.
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