Amazon is reportedly designing software named Amazon Sponsored Links for placing ads online, a product which is very similar to Google AdWords and Microsoft's advertising model.
Google AdWords places keyword targeted ads in its search result, and it generates nearly 50bn in advertising revenue for the search giant.
According to Wall Street Journal, Amazon is planning to replace the ads that are supplied by Google with its new ad placement platform, and it is about to test the new platform to its potential ad partner.
Amazon page is home to several types of ads including keyword based text ads that are placed by Google, third party ads and Amazons own product ads.
The retail major is eyeing $1bn in ad revenue in 2014 which is up by $700m last year.
Amazon has been one of the driving forces behind Google's AdWords, but it has been a competitor to the search giant in several markets like in cloud and smartphone.