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Amazon’s sudden Google Shopping exit cut costs but slashed returns, revealing why cheaper clicks don’t always mean profitable sales.
After Amazon pulled its ads from Google Shopping on July 23, clicks became cheaper, and volumes rose, but the value of that traffic dropped. That’s according to a new study from Optmyzr, which analyzed 6,137 advertiser accounts.
By the numbers (all categories combined):
- 📈 Clicks: +7.8%
- 📉 CPC: -8.3%
- 📉 Conversion Value: -5.5%
- 📉 ROAS: -4.4%
Why we care. Less competition doesn’t automatically help advertisers, and more traffic doesn’t always mean better business. Amazon-trained shoppers still expected rock-bottom prices, fast shipping, and seamless buying. When competitors couldn’t deliver, conversion value fell.
Category winners and losers. Electronics was the clear winner. Retailers like Best Buy and Apple matched Amazon’s offer, driving +81% conversions and +7% ROAS. In other categories:
- Home & Garden, Sporting Goods, Tools, Apparel: Fell into the volume trap – more clicks, but lower value and weaker ROAS.
- Health & Beauty: Traffic converted, but at a lower per-sale value.
- Apparel & Accessories: The largest category by volume, but saw a -9.5% drop in conversion value.
Between the lines. Amazon wasn’t just another bidder – it was shaping shopper expectations across categories. When Amazon left, those expectations didn’t reset, the study suggests.
What to watch. Optmyzr plans a follow-up analysis to see if delayed ecommerce conversions change the results.
Bottom line. For PPC advertisers, cheaper clicks aren’t a win if they don’t turn into profitable customers. Without Amazon-level pricing and convenience, many brands risk falling into the volume trap.
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