Amazon Merch on Demand
Merch by Amazon operates on a print-on-demand dropshipping basis, allowing you to sell your product designs without managing inventory or handling shipping. Just like Printful, Merch by Amazon takes care of the printing and production process for you.
This platform is great for those looking to earn profit without dealing with customers and investing in building a brand or a storefront.
How does it work?
As a content creator on Merch by Amazon, your role is to design graphics for various platform products. Once a customer purchases an item with your design, Amazon takes care of the production, fulfillment, and shipping, allowing you to focus on creating designs.
Source: Amazon Merch on Demand
To join Merch by Amazon, you need to apply for an invitation. The approval process can sometimes extend up to six months, and Amazon does not publicly disclose the specific criteria for acceptance. Once you’re in, you become a content creator and can earn royalties (commissions) from the merch you design and sell.
The system operates on tiers, with new sellers typically starting at tier 10. This tiered structure dictates the number of designs you can upload and sell. You can progress to higher tiers with fewer restrictions as your sales grow.
Royalties are calculated as a percentage of the sale price. Still, the actual amount may vary depending on factors like the product category, the selling price you set above the base cost, and any applicable tax and shipping charges.
Example royalties. Source: Amazon Merch on Demand
Amazon predetermines the royalty rate, which is transparent. However, you need to understand this rate structure to price your products right, depending on the demand, and estimate your potential earnings.
For example, if you offer the lowest possible price for a t-shirt, $13.07, Amazon will keep that money, and you’ll get $0 in royalties. That means you must balance competitive pricing with a desirable royalty. If you see competitors selling similar t-shirt designs for $19.99, you can choose a slightly lower or higher price point.
When you decide on the price, you’ll see a table showing the royalty for each sale you’ll get.
Source: Amazon Merch on Demand
Pros
1. Passive income stream. Once your designs are uploaded and approved, you can earn royalties from sales even without marketing effort. Once you upload a product, it’ll stay on Amazon as an evergreen listing.
2. Amazon handles customer service, efficiently addressing any queries or issues that may arise from your product buyers.
3. Creative control and niche targeting. Your success is influenced by the uniqueness and appeal of your designs and your knack for identifying and catering to profitable niches, which is perfect for creative minds.
4. Global reach and a huge audience. Merch by Amazon gives you access to multiple international marketplaces, expanding your potential customer base beyond your local region.
5. Brand association. You benefit from Amazon’s brand recognition and trust, which can lead to higher conversion rates without the need for you to invest effort in showcasing your trustworthiness.
6. Seamless integration with Amazon’s ecosystem. Being a part of Amazon, Merch on Demand products can benefit from Amazon Prime, which offers customers expedited shipping options and a sense of security in their purchases.
7. Analytics and insights. Amazon provides detailed reports and analytics, helping you understand customer preferences and improve your designs for better sales performance.
Valuable read: How to Be a Successful Amazon Seller
Cons
1. Product earning restrictions. Merch by Amazon has a royalty structure. When you set the price of your products, Amazon determines what royalty you’ll be paid if that product sells at that price point.
2. You start at 10 product capacity. The number of product uploads is restricted by your tier level. This limitation can hinder the ability of new sellers to quickly expand their product offerings and test different designs in the market.
3. Amazon owns all the listings. You can’t add your brand or name to Merch by Amazon product listings. This limitation is a significant drawback for sellers looking to establish and grow their brand identity.
Source: Amazon store
4. Complex sign-up process. Not everyone who applies for Merch by Amazon gets approved. The opaque nature of the approval process can lead to uncertainty and frustration for creators who are eager to start selling but find themselves stuck in limbo.
5. Competitive market. To thrive on Merch by Amazon, you’ll need to discover keywords that shoppers are searching for yet aren’t swarmed by competitors. It’s a delicate dance of dodging copyright and trademark landmines and adhering strictly to Amazon’s regulations.
6. Limited promotional control. As a seller on Merch by Amazon, you can’t create your own promotions, discounts, or coupons. That makes it challenging to run marketing campaigns to help increase your products’ visibility and boost sales, especially during crucial shopping seasons or events. Note that this doesn’t mean you can’t promote your products on social media channels.
Printful
Printful is a global print-on-demand company that lets you create and sell high-quality custom products online without upfront costs or minimum order requirements. It operates as a white-label solution, meaning the products you sell will carry your brand, not Printful’s.
This platform is ideal for entrepreneurs, artists, and small businesses looking to expand their reach without the burden of inventory management.
Source: Printful
