Summary
Amazon's sudden exit from Google Shopping globally has shaken digital advertising. CPC rates have collapsed by up to 30%, leaving room for Shopify brands to reallocate budgets and explore higher-ROI channels. For many, this is a wake-up call to invest in UGC-driven shoppable video experiences that build long-term trust and higher conversion rates.
What Happened?
Reports confirm that Amazon has pulled out of Google Shopping worldwide, cutting off its paid presence and triggering an industry-wide drop in CPC prices. According to early data, advertisers are already seeing 30% lower CPCs on Shopping campaigns via Search Engine Land.
For smaller eCommerce brands, this is both a challenge and an opportunity:
- Challenge: Increased competition among D2C players vying for visibility.
- Opportunity: Lower CPCs mean your paid budget stretches further - but only if you pair it with high-converting landing experiences.
Why PPC Alone Won't Cut It
Even with cheaper clicks, Shopify merchants can't rely solely on paid traffic. As acquisition costs fluctuate, the real differentiator becomes conversion rate.
Shoppers don't just want ads - they want proof and trust.
That's why UGC is now outperforming polished branded content. Nielsen reports that 92% of consumers trust UGC more than traditional ads via Nielsen.
Video-first UGC increases time-on-site and reduces bounce rates, creating compounding effects on every paid click.
The Shift to UGC + Shoppable Video
Instead of sending cheaper clicks to static product pages, the winning strategy in 2025 is to integrate UGC-powered shoppable videos directly into your Shopify store:
- Authenticity drives trust: Real customers > stock images.
- Video matches social shopping expectations: Shoppers are conditioned by TikTok and Instagram Reels.
- Personalization scales automatically: With Tellos, every shopper gets a feed tuned to their interests, boosting conversion rate.
👉 Install Tellos on Shopify in minutes
What Shopify Brands Should Do Next
- Reallocate part of your PPC savings into content. Cheaper CPCs are a gift - invest in UGC and video.
- Turn UGC into conversion assets. Instead of keeping UGC on social, repurpose it into shoppable carousels and landing pages.
- Automate the workflow. Manual video tagging is time-consuming. Tellos AI does the rest - fetching, tagging, and personalizing video automatically.
Final Take
Amazon leaving Google Shopping might look like an ad-tech story, but it's really a signal for Shopify brands: don't chase clicks, chase conversion engines.
Cheaper ads won't last forever - but building UGC-powered shoppable video experiences on your store will.
Ready to future-proof your store? Add Tellos to your Shopify store today
FAQ
Q: Why did Amazon exit Google Shopping?
A: Amazon has historically had a tense relationship with Google Shopping, and in 2025 they decided to cut spend globally, leading to CPC drops.
Q: How much did CPC drop after Amazon's exit?
A: Advertisers reported an average 30% decrease in CPCs across Google Shopping campaigns via Search Engine Land.
Q: What should Shopify brands do about it?
A: Take advantage of the cheaper clicks - but invest simultaneously in UGC-driven shoppable videos to lift conversion rate.
Q: Does Tellos integrate with Shopify?
A: Yes - Tellos has a Shopify app for easy installation: https://apps.shopify.com/tellos-shoppable-videos