Embracing Cost-Conscious Entrepreneurship: Exploring Amazon Merch on Demand for Beginners
Not everyone has the desire or financial resources to invest in launching a private label Amazon business. Fortunately, Amazon offers an innovative solution that allows sellers to start selling products on their platform without the need for significant upfront investments. Known as Amazon Merch on Demand (also referred to as Merch by Amazon), this print-on-demand service enables you to sell your unique product designs without incurring any initial costs.
In this article, we will delve into the workings of Amazon Merch on Demand, its advantages, and provide a step-by-step guide on signing up and getting started. Additionally, we will share some valuable best practices for successfully selling Amazon merch.
Setting up an Amazon Merch on Demand account is a straightforward process, even if you lack artistic skills, graphic design expertise, or a large social media following.
The setup process is relatively simple. Upon creating an account and receiving approval, you can easily upload your artwork and select the desired product category for selling.
After reviewing and approving your design, Amazon takes charge of creating a listing for your product. From there, once a customer makes a purchase, Amazon handles the entire workflow, including printing, shipping, and customer service. As a result, you earn royalties from each sale without having to manage these aspects personally.
The Popularity of Amazon Merch on Demand Extends to Big Brands
It’s remarkable how Amazon Merch on Demand has gained widespread popularity, even among prominent brands. In fact, you might be surprised to discover that the Baby Yoda shirt you purchased on Amazon was likely created through Amazon Merch.
If you’re eager to delve deeper into the world of selling on Amazon, we invite you to explore our comprehensive guide for a wealth of valuable information.
Benefits of Selling on Amazon Merch on Demand
Selling on Amazon Merch on Demand offers several advantages that set it apart from other selling methods on Amazon. Here are some key benefits:
- Low barriers to entry: One of the most significant advantages of Merch on Demand is the low entry cost. You can start without any upfront investment or with minimal funds, allowing you to list products for sale quickly.
- Royalty earnings: Similar to Amazon KDP (Kindle Direct Publishing), Merch on Demand enables you to earn royalties from the sales you generate. For each sale, Amazon shares a percentage of the revenue with you. The specific royalty rates can vary, and we will discuss them in detail below.
- No inventory purchase required: As a print-on-demand model, you don’t need to worry about stocking inventory or dealing with unsold products. Amazon takes care of printing and shipping orders as they are received, eliminating the need for upfront inventory investment.
- Prime shipping eligibility: Since Amazon handles the printing and shipping process, all orders fulfilled through Merch on Demand are eligible for Prime Shipping. This ensures your customers can enjoy fast and reliable delivery.
- Access to a vast customer base: By listing your merchandise on Amazon, you gain access to the massive customer base the platform offers. With millions of potential customers, your products can reach a wide audience, increasing your sales opportunities.
These benefits make Amazon Merch on Demand an attractive option for individuals looking to start selling their designs and products with minimal financial risk and maximum reach.
The royalty rates for selling merch on Amazon can vary depending on factors such as the product’s price. While specific rates can be found on Amazon’s FAQ page, here are examples of royalty rates for both the US and UK marketplaces:
- US Marketplace:
- For products priced up to $15, the royalty rate ranges from around 12% to 17%.
- For products priced between $15 and $20, the royalty rate ranges from approximately 15% to 20%.
- For products priced between $20 and $25, the royalty rate ranges from about 17% to 22%.
- For products priced above $25, the royalty rate can go up to approximately 20% to 37%.
- UK Marketplace:
- For products priced up to £10, the royalty rate ranges from about 12% to 17%.
- For products priced between £10 and £15, the royalty rate ranges from roughly 15% to 20%.
- For products priced between £15 and £20, the royalty rate ranges from around 17% to 22%.
- For products priced above £20, the royalty rate can reach approximately 20% to 37%.
Once a sale is made and your product is sent to the customer, you earn a royalty for the sale. The amount of royalty you earn is the price of the product minus applicable taxes and Amazon’s costs.
Amazon’s costs include:
- Materials
- Production
- Fulfillment
- Customer service
- Returns
- Exchanges
- Resources required to detect and prevent fraud
Amazon Merch on Demand sets certain limitations on the number of designs you can create and sell simultaneously. Initially, when you’re starting out, you’re allowed to submit up to 10 designs. However, as you gain traction and demonstrate the quality of your designs and products through sales, Amazon gradually increases your “tier,” which refers to the number of designs you can submit.
The progression of tiers in Amazon Merch on Demand is as follows:
- Tier 10: This is the starting tier, allowing you to submit up to 10 designs.
- Tier 25: Once you make 10 sales, you progress to Tier 25, which allows you to submit up to 25 designs.
- Tier 100: After achieving 25 sales, you advance to Tier 100, enabling you to submit up to 100 designs.
- Tier 500: With 100 sales under your belt, you reach Tier 500, which permits you to submit up to 500 designs.
These tier advancements are based on your sales performance and serve as a measure of your success on the platform.
The process of signing up for Merch on Demand is as follows:
To get started with Merch on Demand, you can sign up with your existing Amazon account or create a new account if you are new to Amazon.
To initiate your Merch on Demand journey, you have the option to either sign up using your current Amazon account or create a new account if you are new to Amazon.
Here is what you need to sign up for a Merch on Demand account:
After choosing your preferred account option, you will be prompted to provide all the necessary information to complete the account setup process. Please ensure that you fill out all the required fields accurately and thoroughly.
In case you don’t have a registered business (corporation), you should select “Individual” as the Business Type during the sign-up process. After completing the sign-up, Amazon will review and approve your account before you can commence uploading and selling products.
Amazon will provide you with an estimated timeframe for their decision-making process, so it’s important to refrain from contacting Amazon to inquire about the approval status of your account.
Once your account is approved, you can start creating products to sell and embark on your selling journey.
To initiate the product creation process on Amazon Merch, follow these steps:
After your account is approved, Amazon Merch on Demand will direct you to your personalized dashboard, which is designed to provide you with an overview of your selling activities. This dashboard typically features the following components:
Once you access your Amazon Merch Dashboard, you gain the ability to perform various actions such as creating new designs, managing existing ones, and analyzing your sales. The dashboard provides you with valuable insights into your account status, which includes the following information:
- Available submissions: This indicates the number of designs you can create within your current tier.
- Published products: This displays the number of live designs you have listed on Amazon through Amazon Merch.
- Tier: Your tier represents your “seller level” and determines the maximum number of designs and products you can submit.
- Product potential: This metric illustrates the number of potential products you could be selling if you added all available products to each design.
Step1: To begin creating your first product, you can follow Step 1, which involves clicking the ‘Create’ button directly from your Dashboard. This will initiate the product creation process and allow you to start crafting and listing your merchandise.
Presently, Amazon Merch on Demand offers a diverse range of products on which you can showcase your graphics and designs. Some of the products you can choose from include:
- Shirts: T-shirts, long-sleeve shirts, and tank tops.
- Sweatshirts: Hoodies and sweatshirts in different styles.
- Pop Sockets: Customizable grips for smartphones and tablets.
- Phone Cases: Protective cases for various phone models.
- Pillows: Decorative pillows for home or office.
- Tote Bags: Reusable bags for shopping or everyday use.
Step 2: of the product creation process on Amazon Merch, you will need to upload your artwork. If you are uncertain about your editing skills or need assistance, Amazon Merch on Demand provides downloadable templates to simplify the process. These templates serve as helpful guides, ensuring that your artwork is properly formatted and aligned with the product specifications. By utilizing these templates, you can enhance the ease and accuracy of creating your designs for Amazon Merch.
Note: It is crucial to ensure that your artwork adheres to Amazon Merch’s guidelines, which prohibit objectionable content and copyright infringement. These guidelines are in place to maintain high-quality standards and accurately represent the products to customers.
For Merch designs, the uploaded artwork files should generally:
- Be in the sRGB color space, which is the standardized RGB color space for digital graphics.
- Be transparent PNG files.
- Not exceed 25MB in size.
To create high-quality designs, consider the following tips:
- Use high-resolution images and vector files to avoid pixelation and maintain sharpness.
- Format the design to suit the specific garment or product. Placement may differ for different types of products (e.g., v-neck shirt vs. crewneck).
- Be mindful that colors can appear more vibrant on a computer screen than when printed. Avoid subtle color differences that may affect the final printed result.
Step 3: Once your design is ready, proceed to choose the colors, set prices for each marketplace, and enter essential product details such as the title, bullet points, and description.
Amazon will automatically list your products in all available marketplaces for Amazon Merch on Demand. During the listing creation process, you have the option to either allow Amazon to translate your listings or provide your own translations for each language.
Step 4: Publish your listing! Once you’re ready, you can proceed to publish your listing. Upon publication, your listing will go through eight different statuses as Amazon reviews your creation. These statuses include:
- Draft: This is the initial state of your design while you’re still working on it. It remains in draft until you submit the design.
- Under Review: After submitting your design, it undergoes a review process to ensure compliance with Amazon Merch’s content policy.
- Rejected: If your design does not meet Amazon Merch’s content policy, it will be marked as ‘Rejected.’
- Started Process: When your design is approved, Amazon initiates the process of adding it to their library.
- Processing: Shortly after the process begins, your product transitions to the ‘Processing’ status as Amazon starts creating your listing.
- Pending Your Approval: You have the option to review a sample of your design. Once you provide your approval, the status changes from ‘Pending Your Approval’ to ‘Live.’
- Live: Once your listing is created, it enters the ‘Live’ status, indicating that it is active and available for sale.
- Removed: Designs that don’t generate sales within the first 180 days of going live or violate Amazon’s content policy are removed.
It’s important to note that updating certain aspects of your Merch listing, such as price, title, brand, or description, will restart the status process. However, the previous version of the listing will remain live on Amazon.
Tips for success selling Amazon Merch designs:
- Find a niche: Target specific audiences or interests with your designs, such as creating pop sockets for beauty influencers or t-shirts for fishing enthusiasts.
- Outsource artwork: Consider hiring freelance graphic designers from platforms like Fiverr or 99Designs for professional-quality artwork. Alternatively, utilize public domain images that don’t require licensing but are still recognizable to shoppers.
- Follow trends: Stay updated with current trends on social media and incorporate popular content, images, memes, or concepts into your designs.
- Use social media: Build a strong presence on social media platforms to connect with potential customers and promote your brand and new design releases.
- Advertise: Consider leveraging Amazon’s portal promotions section or utilizing PPC (pay-per-click) advertisements to increase the visibility of your listings.
- Consolidate: Regularly evaluate your designs and remove low-selling ones to make room for fresh and innovative ideas.
If you have experience as a successful Amazon Merch on Demand seller, we welcome you to share your insights and strategies in the comments below!
