Australian brands selling physical products eventually face the same question: should advertising budget go to Google, to Amazon, or to both?
The two get compared as if they’re alternatives. They aren’t really. They reach people at different moments, with different intent, and they build different things — which means the honest answer depends less on which platform performs better and more on what kind of business you’re trying to have.
The Fundamental Difference
Google Ads reaches people searching anywhere on the web. That includes people researching, comparing, or looking for a solution before they’ve decided what to buy.
Amazon Ads reaches people already inside a shopping environment with a card saved and a purchase in mind. Intent is higher, and the distance between click and checkout is shorter.
That sounds like Amazon wins. But there’s a trade-off underneath it that doesn’t show up in the ad metrics.
Who Owns the Customer
This is the part worth thinking hardest about.
A sale through Google Ads to your own store gives you the customer’s email address, their purchase history, and permission to market to them again. You can build email flows, run retargeting, and grow lifetime value.
A sale through Amazon gives you the revenue. Amazon keeps the customer relationship. You don’t get the email address, you can’t build a list, and your ability to bring that person back depends on Amazon showing them your product again — possibly next to a competitor’s ad.
Neither is wrong. But a brand built entirely on Amazon is renting its customer base, and the rent goes up.
| Google Ads | Amazon Ads | |
|---|---|---|
| Buyer intent | Mixed — research to purchase | High — already shopping |
| Customer data | Yours | Amazon’s |
| Brand building | Strong | Limited |
| Competition on your listing | None | Competitor ads appear on your page |
| Margin impact | Ad cost only | Ad cost plus referral fees and FBA |
| Setup effort | Higher — needs a landing page | Lower — listing already exists |
Where Amazon Makes Sense
Amazon suits products people search for by category rather than by brand. If someone types “stainless steel drink bottle” rather than your brand name, you’re competing on product attributes and reviews, which is exactly what Amazon’s environment is built for.
It also suits businesses without the infrastructure to fulfil at volume, since FBA handles storage, picking and returns.
And it’s a reasonable way to test demand for a product before investing in a store, ads and a landing page.
Where Google Makes Sense
Google suits anything where the buying decision needs explanation — considered purchases, products with a story, anything where the reason to choose you can’t be conveyed in a listing.
It’s also the only option for services, custom products, and anything Amazon doesn’t allow.
Most importantly, it’s how you build something you own. Traffic to your own store compounds into a list, a retargeting audience and a brand people search for by name. Our guide to Google Ads for Australian Shopify stores covers how to set that side up properly.
The Margin Question Nobody Runs
Comparing return on ad spend across the two platforms is misleading, because Amazon’s costs don’t stop at the ad.
Referral fees typically run around 15%, FBA fees apply on top, and storage costs accrue. A campaign showing a 4x return on ad spend might be delivering a thinner contribution margin than a Google campaign showing 3x.
Run the comparison on contribution margin per order, after all platform costs. It changes the answer more often than not.
Running Both
For most established product brands, both is the right answer — but with distinct roles rather than a split budget.
Amazon captures demand from category searchers who were never going to find your site. Google builds the brand, captures your own brand searches, and grows the customer base you actually own.
One pattern worth watching for: once your brand grows, people start searching your brand name on Amazon, and competitors bid on it. Defending your own brand terms on Amazon becomes a cost of doing business there.
If you’re building the owned side, the store itself has to be worth sending traffic to — our complete guide to starting a Shopify store in Australia covers the foundations.
Where to Start
This week: Work out your contribution margin per order on each channel you already use, after all fees. Not return on ad spend — margin.
This month: Check whether customers search for your product by category or by brand. Category searching favours Amazon; brand searching favours Google and your own store.
Next 90 days: If you’re Amazon-only, start building something you own — even a simple store with email capture changes your position over time. If you’re Google-only and sell commodity-style products, test a small Amazon presence before committing.
Frequently Asked Questions
Which has a lower cost per sale?
Amazon usually shows a lower cost per sale on paper, because intent is higher. After referral and fulfilment fees the gap narrows considerably, and sometimes reverses.
Can I run both without doubling my budget?
Yes, and splitting an existing budget is usually more informative than adding to it. Give each channel enough to produce readable data — spreading too thin tells you nothing about either.
Does selling on Amazon hurt my own store?
It can cannibalise brand searches, since some customers who’d have bought direct will buy on Amazon instead. Whether that matters depends on the margin difference and how much you value owning the customer.
Is Amazon Australia worth it compared to the US?
The Australian marketplace is smaller but also less saturated in many categories. Competition is lower, which cuts both ways — less competition, less traffic.
How long before either channel shows results?
Amazon campaigns produce data quickly because purchase intent is immediate. Google takes longer to optimise, particularly if you’re also improving the landing page it points at.
Related Reading
- Google Ads + Shopify: How to Drive More Sales to Your Australian Store
- Landing Page Conversion Rate: How to Double Enquiries Without Increasing Ad Spend
- How to Start a Shopify Store in Australia: The Complete 2026 Guide
The question isn’t which platform performs better. It’s whether you’re buying revenue or building an asset, and most brands need some of both.
HHP Design manages Google Ads and Amazon Ads for Australian brands. Get in touch to discuss your channel mix.