Amazon is well known to be an absolute mammoth in the world of ecommerce, with a current market cap of over $2 Trillion that puts it among the top few of the world’s most valuable companies in existence.
While many people end up as buyers driving the market cap up further, savvy individuals have turned to the selling side with Amazon, taking up multiple roles such as opening up an FBA store or using the platform to resell.
In this guide, we’ll focus on how you can take advantage of Amazon’s print-on-demand department known as Merch on Demand. This inventory-free method of selling on Amazon allows its participants to cash in with designs that are printed on-demand as orders come in for physical merchandise such as apparel and accessories that Amazon fulfills.
So, whether you’re a graphic designer looking to monetize on your skillset or a creative entrepreneur looking for a rewarding side hustle that has the potential to grow to a significant source of income, this guide will shed light on how you can cash in with Merch on Demand.
We’ll break down how to get started and how to scale as an Amazon Merch on Demand seller, including exact examples and winning strategies that top sellers in this category are using to succeed.
What is Amazon Merch on Demand?
Amazon Merch on Demand, formerly known as Merch by Amazon, is a print-on-demand service offered by Amazon that allows creators to sell a variety of products that can be personalized with custom graphic designs directly on their marketplace.
Products eligible to be sold through Merch on Demand include apparel such as t-shirts and hoodies in addition to home goods and accessories like coffee mugs, posters, and towels. We’ll dive more in depth on the types of products and how exactly you get paid later on in this guide.
Amazon Merch on Demand, like Amazon FBA, allows you to manage and sell merchandise without holding any inventory, which is one of its main benefits. This is thanks to the print-on-demand (POD) business model that it operates on.
What is print on demand?
Print on demand is a fulfillment method that is a form of dropshipping. Most POD stores sell merchandise like T shirts. Unlike a traditional merchandise business that requires buying and storing of inventory that is often bought in bulk, POD fulfills orders only as they come, one-by-one, making for incredibly efficient operations.
This means that you can focus mainly on the design and marketing of the items while the POD platform will handle all aspects of production and fulfillment.
While the cost per product is higher than buying wholesale inventory in bulk, the price points are often still reasonable, with popular sites like Printify and Printful offering quality products at pricepoints that you can easily charge at least $5-10 more per item for, giving potential for a sustainable business.
For a deep-dive on this topic, check out: How to Start a Print on Demand Business-Ultimate Guide
How does Amazon Merch on Demand work?
Amazon Merch on Demand works just like any other print-on-demand business, but unlike other POD sources, you don’t need to buy the product at all to get started.
Instead of purchasing anything up front, you’ll earn a royalty on each sale made from your listings which are directly on Amazon’s platform.
Broken down simply, the process is straightforward:
1. Upload your design to Amazon’s platform
2. Choose your products
3. List on the marketplace and set prices
4. Amazon will handle production and fulfillment when orders come in
5. You collect royalties for each sale
Compared to other POD business models, Amazon’s Merch on Demand provides additional benefits that are unique to the program and make it particularly appealing.
The benefits of Merch on Demand:
Minimal up front cost
Unlike most businesses on Amazon that require at least some capital for inventory to start, Merch on Demand allows its program participants to sell merchandise that Amazon makes as the orders come in. The only costs associated are if you have a Professional Seller plan and potential cost for designs.
Inventory free selling
Because of the nature of the business model, you never need to worry about handling unsold inventory, storage costs, or fulfillment–Amazon handles absolutely everything, including printing, packing, and shipping. This makes Merch on Demand a great side hustle that you can test many different products and marketing strategies with.
Access to Amazon’s Massive Customer Base
Unlike all other POD solutions which put the responsibility of marketing completely on you, participating in Amazon’s Merch on Demand program means that you get to access the platform’s massive audience because each of your products will be listed on their marketplace. This means that prospective customers can discover your store organically through search which is a huge perk.
Gives customer’s the ability to customize
One unique perk that Merch on Demand offers is the ability for customers to customize products upon checkout. You can choose which colors and designs that customers can choose so they can customize their product to suit them exactly, including the ability to input custom text for personalization. This greatly increases conversion rate as the customer gets exactly what they want.
Professional production and fulfillment
You can trust Amazon’s quality standards for all Merch products, so this consistency and reliability means that your customers will be satisfied with the products that they purchase. Additionally, these premium grade products will command prices that are high enough to give you a good royalty rate.
Prime shipping advantage
Print-on-demand is known to have longer fulfillment times, but Merch on Demand benefits from Amazon’s superior logistics and manufacturing capabilities, meaning that your Merch is eligible for super-fast Prime shipping.
Getting started with Amazon Merch on Demand: The application process
The first thing you need to know if you wanted get started with Merch on Demand that it isn’t as open as other POD programs. Unlike the others that allow anyone to open an account, Amazon Merch requires approval before you can begin to upload designs.
Before we go over the steps for applying, let’s review the eligibility requirements:
Merch on Demand eligibility requirements
Because Amazon is doing sellers a big service by offering products, printing, and fulfillment up front with their Merch program, they will only work with select sellers.
Here’s what you need to qualify:
Basic requirements
- Amazon seller account
- Valid tax information (SSN for US individuals or EIN for businesses)
- Business bank account for receiving deposits
- Professional email address
- Phone number for verification
- Clean intellectual property record
Additional considerations
Amazon doesn’t approve everyone for entry to Merch on Demand. In order to increase your chances for getting in, you should consider the following in addition to the basic requirements:
- Design portfolio or relevant experience
Amazon wants to keep a high bar with products that they highlight in their Merch section, so having relevant experience will greatly help your odds of approval. - Professional online presence
While this is not a requirement, having a website or social media presence is particularly helpful and can speed up the approval process. - Clear understanding of their content policies
Amazon is well-known to have strict standards for sellers of any product on their platform, meaning that even if you do get approved initially, you can lose your account if you submit a single design that violates their policies. So before you get started, read through the policies of their Merch on Demand program.
Applying for Amazon Merch on Demand
Ready to get started? Here's how you apply to sell with Merch on Demand.
1. Creating your Account
- Go to merch.amazon.com
- Follow the steps to sign up for Merch on Demand with your existing Amazon account
- Verify your email and submit contact information
2. Completing your application
- Accept the terms and conditions
- Choose whether or not you’re applying as an individual or corporation
- Fill out your personal or business information
- Put in your bank details
- Complete tax information
3. Submit your Merch on Demand company
The final step once you’ve gone through basic account creation and the initial application steps is to complete the sign up form for your Merch on Demand Company.
Here, you’ll need to select the industry you’re in, the name of your organization, and include any additional information about yourself such as your experience and the types of designs you intend to create.
Here’s where you can input your website or social media presence–having a good presence and relevant experience can almost guarantee your approval.
4. Wait for review
Once you’ve completed this final sign up form, you can send your request, and from here, you just have to sit back and wait. The decision normally comes within 5-7 business days, though in some cases it could take longer based on current application volume.
If you’re approved, you’ll get an email with instructions on how to access your dashboard and start uploading designs.
However, if you’re rejected, Amazon’s policy currently states that there is no path to appeal or reapply if your initial application is denied. So, it’s important that before you jump in with your application, make sure you’re as prepared as possible with a plan and design ideas to help increase your odds of getting in.
How to sell with the Amazon Merch on Demand program
Now that you understand how to apply and get approved for Amazon’s Merch on Demand program, let’s dive into the specifics of what you can sell and how exactly you’ll make money doing it.
Different types of Merch on Demand products
Amazon Merch on Demand products fall into two main categories: Apparel and Lifestyle products.
Here are the products that you can sell within these categories:
Apparel
The core of most successful Merch stores on Amazon continues to be clothing items, which include the following:
- Standard T-shirts
- Premium T-shirts
- Long Sleeve Shirts
- Hoodies
- Sweatshirts
Home and Lifestyle
While apparel remains a strong category, particularly for easy text-based designs, you shouldn’t ignore the home and lifestyle category. The diverse set of products includes:
- Phone cases
- PopSockets
- Wall art
- Posters
- Coffee Mugs
- Tumblers
- Tote Bags
- Throw Pillows
- Towels
How to get paid by Amazon Merch
Merch on Demand by Amazon operates with a unique payment structure compared to other POD businesses. Similar to the structure of being an affiliate in their Associates program, you will get paid royalties for each sale that is made.
Here’s how the royalty structure works:
Royalties explained
Your royalty payment from Amazon’s Merch on Demand program will vary on two factors: the product’s listing price and Amazon’s production cost.
Amazon calculates your royalty based on the product purchase price, less applicable taxes and Amazon’s costs. Royalties vary by regional market, with different rates in the US compared to Europe.
Example current rates of royalties and how they can vary by listing price and category include the following (US rates November 2024):
Standard T Shirts:
- $15.99 listing = $1.93 royalty
- $19.99 listing = $4.89 royalty
- $25.99 listing = $9.32 royalty
Hoodies:
- $29.99 listing = $3.57 royalty
- $35.99 listing = $7.90 royalty
- $39.99 listing = $10.78 royalty
Phone Cases:
- $14.99 listing = $0.80 royalty
- $17.99 listing = $2.89 royalty
- $19.99 listing = $4.28 royalty
Tumblers:
- $20.99 listing = $2.94 royalty
- $21.99 listing= $3.08 royalty
- $22.99 listing = $3.22 royalty
Understanding the tier system
Because there’s no cost to produce the shirts, someone who’s new in the program might want to take advantage of this by listing too many items.
To prevent newer sellers from opening up massive storefronts that might not convert well, Amazon limits its Merch participants by tiers, which are as follows:
Initial tier: 10 designs
All new sellers will start out with an initial limit of 10 designs. As with every other tier, each design needs to be submitted for approval.
Second tier: 25 designs
After making 10 sales, your account will be upgraded to the second tier which allows you have up to 25 designs submitted for approval.
Higher tiers: Increased design limits (require individual approval by Amazon)
As your account matures and you continue to make sales and demonstrate design quality and customer satisfaction, it’s possible to move up even further in the ranks to increase to larger numbers which vary case by case.
3 tips for making more money with Merch on Demand
Getting approved for the program is just the first hurdle when it comes to succeeding with Amazon Merch. Amazon’s marketplace is well known to be highly competitive, so some people who get approved make little to no money and end up closing shop.
If you want to join the side of the winners with Merch on Demand, you’ll want to consider the following:
1. Optimal pricing
One of the biggest mistakes that new Merch sellers make is getting the pricing wrong. You have to balance between pricing low in order to compete with higher pricing to net better profits from higher royalties. Take time to test and find the sweet spot between those two, starting high and moving low while carefully analyzing metrics as traffic comes through.
Make sure to price according to competition and demand. Take advantage of Amazon’s best sellers ranking system to see how high similar designs are ranked, and do your best to rank amongst them and price competitively so you can capture a good share of the market.
- What is a premium pricing strategy? Everything you need to know about when and how to implement premium pricing
- Ecommerce pricing strategies used by the experts
2. Make a good design
The design is obviously one of the biggest factors to success, and beyond getting approval from Amazon, you also need to win the approval and purchase of customers. Unlike most platforms that allow any basic text designs to get by, Amazon’s marketplace demands a higher quality to stand out and convert.
What types of designs are allowed and not allowed?
Before you jump into making a design, it’s important to know which types of content are acceptable and what isn’t.
Here are the general guidelines that Amazon gives for content:
Accepted content:
- Original artwork and illustrations
- Generic phrases and sayings
- Humorous but non-offensive phrases
- Inspirational or positive religious messages
- Holiday or seasonal content
Prohibited content:
- Copyrighted content
- Offensive or inappropriate words or images
- Political figures or celebrities (will require direct permission)
- Violence
Best methods for making designs
If you have the eye and skil to make designs yourself, Canva or Adobe Express are great options. You can also outsource designs to a freelancer on a platform like Fiverr.
Take a look at what designs are currently selling on the marketplace, and aim to create those that are similar. However, more important than the design itself is the marketing. Since you’re on Amazon’s marketplace, this means you’re competing against all types of designs and sellers, including those that aren’t part of the Merch program.
So, if you want to succeed, you need to get down the basics of effective marketing so you can move up the rankings and gain customers organically.
3. Focus on marketing
Amazon’s massive customer base is a double-edged sword: although it has the potential for organic traffic, it also means competition. Here’s how you market your Amazon Merch effectively:
On-platform optimization
Optimizing your listing on Amazon is the first method you should use to lay a good foundation for effective marketing. Not only will the following help you increase your conversion rate, they can help move you up the marketplace ranking:
- Strategic keyword research and implementation
- Test different product titles
- Detailed product description highlighting benefits
- Proper category selection
Off-platform marketing
You shouldn’t leave it entirely up to Amazon to drive your sales. It’s important to expand your reach by marketing off the platform. Since Amazon’s best seller ranking is weighted heavily towards sales volume and positive reviews, you’ll want to do the following to drive people to your store from off the platform:
- Establish or leverage a social media presence that is aligned with your niche
- Use Pinterest to showcase and promote different designs
- Build up an email list of customers in your target audience to launch new and current designs to
- Consider paid marketing with targeted ads
Which Merch on Demand products sell best?
When it comes to moving product and generating consistent sales with Amazon Merch, not all items perform equally. While success relies heavily on your design quality and marketing efforts, some products and categories consistently outperform others across most niches.
Here are some of the top performing categories:
T-Shirts
The most popular product for POD across all categories and platforms remains t-shirts, and this holds true on Amazon Merch on Demand where they are amongst the highest performing products inside of the program.
Not only are t-shirts easy to create designs for, their demand is consistent throughout the entire year and their low price point makes for higher conversion rate as they fall into the impulse purchase category where customers won’t think too hard before making a purchase.
Although the lower price means smaller royalties, you can make up for this with volume if you end up ranking high in your niche with a well-designed tee.
Hoodies and Sweatshirts
The higher pricepoint of hoodies and sweatshirts also means higher royalties– a hoodie can easily have 5x the royalty of that of a t-shirt.
With these items, you should capitalize on seasonality, and if you have t-shirt designs that are already selling well, you can try the exact same designs out on a hoodie or slightly tweak them to see which converts better.
Personalized items and accessories
Items and accessories like tumblers, coffee mugs, throw pillows, tote bags and towels can all be sold as personalized items on Merch on Demand. With these, you can give customers the option to create the exact product they want, from the text that is to be printed or embroidered to the color and size of the product.
Although the competition is high for these with established sellers, these can be lucrative based on their solid royalty rate especially for premium versions of these items and accessories, and you can win by using off-platform marketing methods to drive people to your store.
4 examples of winning Merch on Demand products
Here are some examples of products that are currently winning on Amazon Merch on Demand:
1. Funny graphic tee
A graphic tee with a funny phrase or pun–particularly one catered to a middle aged or older audience–might not be appealing to you, but can perform surprisingly well on Amazon.
You can use Facebook ads and Pinterest to effectively find customers outside of Amazon so you can drive up your ranking on the platform.
2. Personalized luxury towel
Premium towels of all sizes, whether for the beach, bath, or hand towels, have become increasingly popular for customers, particularly those looking to give a gift for specialized occasions. Amazon Merch allows you to sell these items with custom embroidered text with classic, high quality designs.
Using marketing to find and target customers who are looking for a personalized gift for something like a wedding, house warming, or a corporate event while listing your store as the solution is a great way to create solid cashflow.
3. Printed hoodie
Hoodies with eye-catching designs can also perform well because of higher pricepoints which equate to better royalties. Your best bet is to cater towards a niche audience with unique and appealing designs that are hard to find in stores otherwise such as those shown above.
Keep in mind the seasonality when it comes to hoodies, so be sure to increase your off-platform marketing efforts as the weather turns colder so you can drive more sales and increase your ranking in Amazon’s marketplace.
4. Coffee mug with text
Another solid performer that has potential for high volume is a coffee mug with print on it. Since becoming eligible as a product on Merch on Demand, these have exploded in popularity with people giving these as gifts or getting them for themselves.
Posting your design on social media and utilizing targeted paid ads on Pinterest and Facebook can be a good idea while simultaneously optimizing your listing title, description, and images to make sure they are performing at their full potential.
Scaling your Merch on Demand business
Getting approved and picking a winning product is just the first step to getting your Amazon Merch business started. If you find that you have gained initial traction and feel you want to commit to pushing your business further, here are some strategies you can implement that top sellers implement to take their business to the next level:
Optimize listings
Rather than rushing to create new designs, you should focus on maximizing the potential of your current ones. Once you’ve established a baseline conversion rate or sales, take time to regularly review what your best-performing listings are and see if you can further optimize them with better keywords in the titles, more compelling descriptions, or even slightly different designs.
Test different products
Make sure to take advantage of the fact that there is no associated inventory cost in Merch on Demand by creating and testing your design on as many products as possible. A top performing t-shirt design can translate to a design that can be sold on a coffee mug for similar success.
You can use this mentality not just with your own winning products but by taking inspiration from competitors selling a design or saying on a one type of top selling product and putting your own spin on it while selling it on a different product.
Identify and expand winning designs
After you’ve collected enough sales data and history, in addition to testing different products, you should double down on winners.
Scaling what already works is a general business strategy that can be extremely effective for increasing revenue on Amazon Merch as you climb the rankings as there can be exponential returns to ranking higher and higher, especially if you reach the first page for target keywords.
Use paid advertising
While this is not a suggested strategy for those who are just starting out, once you’ve established a good foundation for organic sales that show that you have a compelling product that converts, you should take full advantage of paid advertising to help grow your reach and revenue even more.
You can advertise directly on Amazon with their Sponsored Products program using PPC (Pay-per-click) advertising that you can tweak and optimize based on analytics. It’s also worth using off-platform advertising–as we mentioned earlier, Pinterest and Facebook are two of the best performing platforms specifically for Merch on Demand.
Build a recognizable brand
At the end of the day, if you want a lasting business, you can’t simply be a product that is replaceable in the eyes of your consumer. The benefits of building and strengthening a brand include having higher conversion rates, repeat customers, and increased customer trust.
Having a recognizable brand also gives you the opportunity to cash in outside of Amazon as well on a platform that you control so you can potentially make even higher margins without being exposed directly to competition as you inherently are with Merch on Demand.
Avoiding common pitfalls
In addition to knowing what to do to grow your Merch on Amazon business to its full potential, it’s important to know common pitfalls that many new sellers make, which include the following:
Rushing your growth
One of the biggest temptations you’ll face when you gain access to higher tiers is to quickly fill all available design slots in the hopes of fast-tracking your growth. However tempting this may be, you should remember that success will come over time, and it’s important to build a solid foundation and steady sales that give you actionable data over time that you can focus on to strategically scale and grow.
Ignoring market data
You can access a wealth of data through many methods, including Amazon’s public Best Sellers Rank in addition to paid tools like Jungle Scout can help give you market data that can greatly affect the viability and success of your business.
Some sellers who are more design-focused might ignore this data, failing to research and optimize with keywords and other best practices that you should be implementing to help get your design in front of the right audience.
Inconsistent branding
While you can perform testing across designs and even niches in the beginning to see what works, you should quickly establish yourself as a consistently branded storefront that has similar products.
This makes it easier to upsell existing customers to buying related items from your store, driving up your average order value. Additionally, you will increase your ability to gain loyal customers who see you as a dedicated resource to a specific niche.
Neglecting customer feedback
Never ignore customer feedback. While there may be one-off complaints or criticisms that are made without reason, if you are getting consistent negative or constructive feedback, you should swallow your pride and make the changes the customers are asking for rather than sticking to what you originally have.
Ask for reviews and opinions of your first customers to get suggestions on what to improve about current designs or for ideas for future designs, and if enough people are saying the same thing, be sure to act on this feedback.
What are some other ways to make money on Amazon?
Amazon presents many ways to cash in as a seller on its thriving and massive marketplace. While Merch on Demand offers an appealing opportunity with its low-cost, zero-inventory, and creatively rewarding business model, there are many other ways to generate income with the platform:
Retail Arbitrage
Many sellers get their start on Amazon with retail arbitrage, that is, the process of buying products at a discount and selling them on Amazon where they can often fetch a profitable higher market rate.
This will require much more hands-on work than Merch, but it can provide fast profits with relatively low risk, especially if you’re selling proven, high-ranked products that you source at a profitable pricepoint.
Amazon FBA (Fulfillment by Amazon)
While Amazon’s FBA program requires up front investment for inventory, you have more liberty in terms of setting prices so the profit margin potential can be much greater compared to the royalties from Merch. The quick summary to this business model is that you ship your inventory in bulk to Amazon’s warehouses as instructed, and after that, they take care of all of the aspects of fulfillment, including returns and even simple customer service. Additionally, your products will be Prime eligible, which can justify higher prices that can help you recoup the greater fees in this business model compared to Fulfillment by Merchant (retail arbitrage).
If you want to learn more about making money with FBA, check out: How to Start Selling with Amazon FBA: Beginner’s Guide
Private label
If you have a good amount of working capital and some previous ecommerce experience, launching your own brand and product on Amazon, known as private label, can be a great way to establish a solid business on the platform.
Before making the investment into your brand, perform basic product and keyword research both on and off Amazon to determine the viability of your business, and from there, you can get started building out your private label business and listing it on Amazon’s marketplace.
This method has the greatest up front investment and longest period to seeing a potential return, but it also gives you the greatest potential upside is is perhaps the most realistic path to creating a sustainable and defensible seven figure business with the platform.
Learn Merch on Demand and other entrepreneurial ventures with Whop
Education is the most important factors to succeeding in any entrepreneurial venture or side hustle, whether it’s Merch on Demand, dropshipping, reselling, or any other viable opportunity today.
Sometimes the best way to fast-track your success is by joining a dedicated community of people that share the same goal as yourself. Whop is home to a curated selection of thoroughly vetted, expert-led communities that can help level up your entrepreneurial game with groups dedicated to many niches, including Amazon.
Check out the best and latest private groups on Whop that are dedicated to your success on Amazon.
