Merch by Amazon: How Does it Work?

Amazon offers aspiring e-commerce sellers plenty of opportunities to sell on their platform, and one of these is their in-house t-shirt printing service, Merch by Amazon. If you’re looking to start your own online business, but you don’t have a lot of coins to drop, Merch by Amazon is a great option.

Merch by Amazon is the platform’s print-on-demand service where you can upload your original designs and have them printed on t-shirts and other merchandise. Amazon prints your designs upon order, and you earn royalties for every purchase. It’s a great business model for those who want to test the waters of e-commerce or for those who want to diversify their earnings with merchandise-driven royalties.

This article will discuss how Merch by Amazon works and how you can utilize it to your advantage.

Getting started with Merch by Amazon

The idea behind Merch by Amazon is pretty simple; you create a design, upload it to Merch by Amazon, and let the platform take care of the rest. Amazon covers everything from printing, packaging, and shipping, so all you need to do is develop unique designs that can generate sales.

Amazon has a wide range of merchandise where you can print your designs. Here’s a list of the products they have on offer:

• T-shirts
• Hoodies
• V-neck shirts
• PopSockets
• Phone cases
• Tote bags
• Sweatshirts
• Tank tops
• Raglans
• Pullovers

Amazon continues to expand its product range for printed merchandise, so we should see new products become available soon.

Why you should consider Merch by Amazon

There are plenty of reasons to sell on Merch by Amazon. For starters, the barrier of entry is relatively low. You don’t need huge capital to get the ball rolling. All you need is reliable graphics software to create your designs. Canva, Inkscape, and Placeit are great examples, as these allow you to create shirt designs for free. You can also invest in Adobe Photoshop or Illustrator if you want more control over the design creation.

Merch by Amazon works great because it eliminates most sellers’ concerns. Things like inventory management, product sourcing, and quality control can be challenging to navigate when you’re first starting. With Merch by Amazon, you benefit from the platform’s well-rounded service by addressing these issues right away.

You never have to worry about running out of stock or dealing with customer returns because Amazon handles the entire logistics process. Perhaps the most significant selling point of Merch by Amazon is that it gives you access to millions of customers worldwide. Amazon is a global brand, and with its established customer base, you have the potential to generate a solid passive income for you and your business.

But that doesn’t mean you can sell hundreds of thousands of printed merchandise right away. Amazon’s Merch limitations mean you only get to upload ten designs first. As you generate more sales and the quality of your designs improves, Amazon will raise the limit to 25, 100, 500, and up. Apart from that, Merch by Amazon is a simple and easy way to make money with the world’s largest e-commerce website.

How much can you earn off of royalties?

When you sell on Merch by Amazon, you’re entering an agreement with Amazon where they buy the rights to your designs and pay you with royalties. Each time you sell merchandise on Amazon, you get a percentage of that sale in return. The royalty amount you earn will depend on various factors, including shipping costs, packaging costs, return and exchange fees, and fraud protection.

You can get a better idea of how much you can earn at Merch by Amazon by visiting their royalties resources. Bear in mind that while Merch by Amazon enables you to make money on the side, you won’t reach Amazon business-level profits. After all, all you’re doing is uploading designs, and Amazon takes care of the rest.

The best approach would be to incorporate Merch by Amazon as part of your overall business strategy. Some independent Amazon sellers operate their e-commerce business and Merch by Amazon to supplement their income. When you create unique designs that sell, you’ll be able to generate a solid passive income with Merch by Amazon.

How to join Merch by Amazon

Merch by Amazon operates on an invite-only system, meaning that you will need to apply for an invitation before you can start uploading t-shirt designs. You’ll need to provide all the necessary information Amazon requests and wait for the approval. The invitation process usually takes anywhere from 60 days to 3-4 months. Amazon made applying for their Merch by Amazon program slightly tricky to filter out genuine sellers from bad ones.

The two-step process for joining Merch by Amazon is as follows:

Step 1: Business information

Amazon requires you to submit business information to process an invite. They’ll ask for things like your:

• Business contact information
• Personal contact information
• Tax identification numbers
• Social security numbers
• Bank account and routing number

Step 2: Invitation request

Once you have all the necessary details, log in with your existing Amazon account and go to Merch by Amazon’s sign-up page. From there, click the ‘Begin Application’ button to get started with the next page, where you’ll fill up the information requested in the box.

The first page will ask for your full address, phone number, business and email address, business name, and country. The second page will ask for your bank account details, and page three is about a tax questionnaire.

After completing the first three pages, you’ll end up on the request invitation form. Here, you’ll fill up details like organization name, industry type, your website, and any additional information you may want to add. Click the ‘Send Request’ button and wait for Amazon to contact you!

How to generate sales with Merch by Amazon

Like any other business platform, Merch by Amazon requires careful planning and consideration. To generate sales and attract your target audience, keep these following tips in mind:

1. Be on the lookout for trending designs

Staying on top of industry trends is crucial to succeeding in Merch by Amazon. Social media platforms like Facebook, Twitter, Instagram, and TikTok will give you a good idea of trending topics that you can use to fuel your design creations.

You want to create designs that will stand out and connect with the particular audience you’re targeting. Keep your ideas fresh and unique, and you’ll be able to generate sales with your designs.

2. Evaluate the performance of your designs

When starting with Merch by Amazon, you’re limited to ten submissions. What’s great about this is that you can track the individual performance of your creations to see which ones generate the most sales. After two to three weeks of uploading your designs, check if any of them are underperforming. If you’re struggling to make a sale, consider replacing them with a more innovative design idea.

3. Identify your target market

The Amazon platform is vast, and it caters to a wide range of customers with varying tastes and preferences. Thus, you must narrow down your target market to create shirt designs that match their interests.

For example, if your target demographic is Gen-Z, you may want to create designs that have a bit of pop to them. Or, if your target is Gen-X, your shirt designs should be more subdued and laid-back. When you know your ideal customers, you’ll find it easier to create designs that sell on the Amazon platform.

4. Establish an online presence

To succeed in Merch by Amazon, you need to establish an online presence. Most customers nowadays use the internet to look for products and services, and it would be a waste not to take advantage of this opportunity. Build a website that’s simple, intuitive, and brand-focused. Up your social media game and connect with your target audience.

There are plenty of ways to establish your presence online, and you can achieve this by posting relevant content like blogs and videos. The more visible your brand is, the easier it’ll be for customers to find your products.

5. Advertise, advertise, advertise

It would be best if you showcased your shirt designs so that people could discover them. With advertising, you’re putting your creations out there for your customers to see. Whether posting on Facebook groups or pinning on Pinterest, you want to promote your designs to generate more sales.

You can also take advantage of sponsored ads to gain more visibility on the Amazon platform. Sponsored ads allow you to bid for specific keywords and display them at the top of the results page. Structure your ad campaigns accordingly, and watch how many people buy your merchandise.

Conclusion

Many e-commerce experts believe that Merch by Amazon is the next big thing, and it’s easy to see why. With an accessible business model that caters to designers and creatives, selling merchandise on a global platform is destined for success. When executed correctly, Merch by Amazon can turn into a solid passive income that you can use to supplement your other e-commerce businesses.

Make sure to follow the tips we’ve outlined and give Merch by Amazon a shot. Who knows, maybe your new design will be the next big hit on Amazon’s platform.

As an e-commerce seller, you want to measure the financial performance of your business and ensure maximum profitability. If you require professional bookkeeping services, feel free to contact us, and we’ll get in touch with you shortly.