DTC brands are shifting to Amazon as Google’s AI results cut organic traffic and Meta and Google ad prices keep climbing

by | Aug 25, 2026 | Latest E-commerce News & Updates

DTC brands that once treated Amazon as optional are now calling it their fastest-growing channel, with beauty agency Market Defense telling clients to expect Amazon at 30% to 40% of their business, up from the 15% it advised a few years ago, according to Catherine Perloff at The Information. Google's AI-generated results have eaten into the organic traffic brand sites used to get, and paid traffic got more expensive too, with Google search ad prices up 27% and Instagram up 21% since Q2 2021 against 11% for Amazon sponsored ads, per Tinuiti. The Honest Co. stopped selling through its own site in late 2025 and now points shoppers to retailers, with CEO Carla Vernon calling Amazon its largest customer. Amazon says over 75,000 independent sellers each topped $1M in sales last year.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: AmazonGoogleMeta

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