What is Amazon Merch On-Demand?

Hero Image Amazon Merch on Demand
by AMZScout T.posted on 31.01.2024

Did you know there’s a way to earn more than a thousand dollars per month on Amazon without producing or purchasing products? All you need to do is create an interesting design using a feature called Amazon Merch on Demand, which is the focus of this article. With the right marketing strategy and great ideas, you can achieve substantial income using this business model.

From the basics to market research, this article will equip you with all the essentials you need for a successful Amazon Merch on Demand journey.

What is Amazon Merch on Demand?

Amazon Merch on Demand, also known as Merch by Amazon, is a print-on-demand service offered by Amazon that allows users to design and sell custom prints on items of clothing, phonecases, and other things. Here's a breakdown of how it works:

1. Design Creation: Creators upload their original artwork or design to the Amazon Merch platform. This artwork can be placed on a variety of products, such as T-shirts, hoodies, phone cases, and more.

2. Product Listing: After uploading their design, creators select the type of product they want to sell, set their price, and create a product listing. Amazon then publishes a product page on its marketplace, making it visible to millions of potential customers.

3. Printing and Fulfillment: When a customer purchases a product with the creator's design, Amazon handles all aspects of production and shipping. They use print-on-demand technology, meaning the product is made after it's ordered, reducing waste and inventory costs.

4. Royalties: Creators earn a royalty for each product sold with their design. The royalty amount will depend on the product's price and production cost.

5. No Upfront Costs: One of the key benefits of Amazon Merch on Demand is that there are no upfront costs for creators. They don't need to invest in any inventory or manage physical products, making this method a low-risk and worthy option for starting a merchandise business.

6. Brand Exposure: This feature allows creators to showcase their brand or designs to a large number of customers on Amazon.

Now that we understand how Amazon Merch on Demand works, let's quickly learn how to launch a business using this model.

How do you start selling with Amazon Merch on Demand?

Amazon is a highly competitive platform. Sellers must find unique and appealing designs to help them stand out among thousands of competitors. In addition, success often relies on following trends, which can change rapidly. Keeping up with these trends requires doing constant market research. In the following section, we’re going to cover the main steps needed to start a Merch on Demand business on Amazon.

Step 1. Find Fresh and Popular Design Ideas

Generating innovative ideas is the cornerstone of a successful Amazon Merch on Demand business. Unique and creative designs set your products apart from competitors, helping you stand out in a crowded marketplace. This section will introduce a systematic approach to doing this. 

Perform Research on an Initial Product Idea 

First, you will need to narrow down the field of search and find the best ideas for your designs. The AMZScout Product Database can help you with this step. Here’s how to use the database and extract ideas for future designs:

1. Go to the AMZScout Product Database.

2. Enter keywords related to your design in the search bar (for example, ‘yoga’, ‘gaming’, or ‘Christmas’).

3. Use filters to refine your search. 

  • Select a product category (for example, T-shirts).

  • Set the price. For instance, you can set the price at a minimum of $20 to ensure solid profits.

  • Specify any other criteria you like. These may include things like monthly sales exceeding 300, estimated revenue, listing quality, etc.

4. Browse through the results. Find designs that resonate with your style and audience.

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Brainstorm New Product Ideas with the Product Database

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Check the potential of your product idea 

To check the viability of your chosen designs, sellers need to explore sales data and revenue estimates more deeply. This part of the guide will show you how to use the AMZScout PRO Extension step-by-step so you can gain an understanding of key metrics like sales data, competition, trends, and others needed to evaluate your product ideas.

1. Install the AMZScout PRO Extension. Start the free trial. You’ll be granted 15 queries to test the tool.

2. Open any Amazon page where products similar to your ideas are listed.

3. Activate the AMZScout PRO Extension in your browser. Click on the icon you see in the bottom left corner of the screen.

4. View and analyze the displayed sales datait. The following information will help you evaluate products similar to your chosen design: 

  • Check how profitable the product or niche is. The top of the screen displays key information about the niche, including net margin, estimated sales, and revenue. You can see info about certain products within that particular niche in a table below.

    Open AMZScout PRO Extension
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  • Investigate the performance within a niche. Click on “Niche Score” to see the general niche performance and view the number of sales to evaluate the level of demand in that niche.

    Where to find the AMZScout Niche Score
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  • Check niche history. Click “Niche History” to view past data and see how ranking, price, and number of sales have changed throughout each season.

    Where to find the AMZScout Niche History
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  • Check product sales history. Click “Product History” to see how the ranking, price, and number of sales for each product have changed over the time.

    How to check AMZScout Amazon Product History
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Check Amazon Best Sellers Category

One effective way to find additional product ideas is by checking the Amazon Best Sellers category. To get design inspiration from Amazon, follow these steps:

1. Access Amazon Best Sellers: This lists the top-selling products across various categories.

2. Focus on relevant categories: Since you're interested in Amazon Merch on Demand, focus on categories that are closely related to apparel and accessories. These may include “Clothing, Shoes & Jewelry”, “Novelty & More”, and “Sports & Outdoors” for sports-related designs.

3. Identify popular trends: Look for patterns in the best-selling items. Pay attention to popular themes, colors, graphics, slogans, and styles. Notice what makes these items appealing – you may notice features like humor, inspirational quotes, unique artwork, or something else. 

4. Consider seasonality: Be aware of seasonal trends and upcoming events or holidays. For example, designs related to Christmas, Halloween, or summer vacation might be more popular during certain times of the year. You can use the PRO Extension, as mentioned earlier, to check seasonal trends in the Niche History graph.

5. Check trends regularly: They can change rapidly. Make it a habit to regularly check the Best Sellers list to keep your designs up-to-date and in line with current customer interests.

Check Pinterest

Sellers who create designs for Amazon Merch on Demand can also find it beneficial to use Pinterest as a source of inspiration. Many creators observe and absorb current trends and popular styles on this platform. 

1. Observe current trends: Look actively for popular designs, slogans, and image examples on Pinterest.

2. Monitor highly engaging design ideas: Focus on designs with high likes and repins, as they indicate consumer interest and preference.

3. Identify key elements: Take note of elements like color palettes, typography, graphic styles, and themes (for example,  eco-consciousness, retro vibes).

5. Adapt and apply to your designs: Find a creative way to incorporate these trends into your own Amazon Merch on Demand products. Make them visually appealing and market-relevant.

Use similar designs just for inspiration and to help you understand how successful they are. Make sure to create your own unique design without copying anyone else's work.

Step 2. Create an Amazon Account

To start selling on Amazon Merch on Demand, you will need a standard Amazon account. This is necessary because it serves as the foundation for accessing various Amazon services, including Merch by Amazon. Here’s a brief outline of the process:

1. Navigate to Amazon's website. 

2. Go to the sign-in page: This option can be found at the top-right corner of the homepage. Click on it.

3. On the sign-in page, find “Create your Amazon account”.

4. Enter in your details: These include your name, email address, and a password. Choose a strong, unique password for your account to ensure security.

5. Verify your email: Open your email inbox, find the email message from Amazon, and click on the verification link to confirm your email address.

6. Customize your account settings: This includes managing your addresses, payment methods, account preferences, and more.

7. Start Using Your Amazon account.

Your account is now ready to use. You can start browsing, purchasing products, and enjoying the various services Amazon offers.

Step 3. Apply to become a seller on Amazon Merch on Demand

To start an Amazon Merch on Demand business, you need to create a specific Merch by Amazon account. This is different from a regular Amazon shopping account or an Amazon Seller account. Here’s the process:

1. Go to the Merch by Amazon website. Since this program is by invitation only, you need to apply for an account. 

2. Sign in with your Amazon account. Enter your email or phone number and Amazon password. If you don’t already have an Amazon account, create one.

3. Click on the “Request Invitation” button.

4. Fill out the application. You will be asked to provide information about your business, including your business contact information, bank account for payments, and tax identification number. You will also be asked about your experience with design and eCommerce.

5. Submit your application: After filling out the necessary information, submit your application. Approval times can vary. Some applicants may wait a few weeks to a few months.

6. Wait for approval: Amazon will review your application. This process can take some time due to the high volume of applications.

Once approved, you can start uploading your designs, setting up your product listings, and selling products on the Amazon platform.

Note: Being accepted into the Merch by Amazon program can be competitive. Amazon looks for applicants who offer unique designs or have a strong marketing plan. Make sure your application clearly states your experience and intentions in order to increase your chances of being accepted.

Getting a Positive Reply from Amazon: Insider Tips

Getting a positive response for initiatives like Merch on Demand can be challenging. However, with the right approach and understanding of Amazon's expectations, you can increase your chances of success. Here are some insider tips to guide you:

Follow content policies.

First and foremost, following Amazon's content policies is non-negotiable. Avoid using copyrighted or trademarked material, don’t use offensive content, and respect intellectual property rights. Amazon takes these policies seriously, and non-compliance will result in having your application rejected.

Conduct market research.

Conduct thorough market research to identify which products are trending, what customers are looking for, and how your offerings can fit into existing gaps. Use info on Amazon Best Sellers, study customer reviews, and explore alternative platforms to gauge market demand. Tailoring your approach based on market research demonstrates to Amazon that you are serious about offering value to their customers.

Create high-quality and professional designs

When it comes to Merch on Demand, the quality of your designs can make or break your application. Invest time and resources in creating high-quality, professional, and unique designs. Consider using professional design software and professional design services to keep your submissions top-notch.

Focus on these key areas and enhance your profile as a reliable contributor to the Amazon platform. Remember, Amazon’s primary aim is to maintain a high standard of quality and customer satisfaction. So, you should align your efforts with these objectives for a favorable outcome.

How much can I earn with Amazon Merch on Demand?

In this section, we'll discuss the potential profitability of using Amazon Merch on Demand and how prices are set. 

Upfront Costs

Unlike many other merch on demand services, Amazon doesn’t require any upfront costs. You submit your design and start enjoying profits right after receiving your first orders.

Base Product Cost

Amazon has predefined prices for each product. The platform charges for materials, production, and fulfillment, including dealing with returns and fraud. They also charge for packing and shipping. In the US, taxes aren’t added to the base cost, but in Europe and Japan, they're already included in the price shown.

Product Price and Seller's Royalty

In Amazon Merch on Demand, the price of a product is determined by the seller, who sets the retail price above the base cost provided by Amazon. The difference between the retail price set by the seller and the base cost is the royalty the seller earns.

Let's see the portions Amazon and the seller receive using a real example.

Example

If a seller prices a T-shirt at $25.99, they earn 35.86% of that amount, which is $9.32 as their profit. The exact profit can vary based on the sale price, region of sale, and the type of currency used. Amazon keeps the initial cost to pay for making the product, and the seller gets their profit from every sale.

As you can see, selling with Amazon Merch on Demand does not include any upfront costs. This allows sellers to focus on creating and marketing their designs without the burden of initial expenses. By understanding these fees, sellers can strategically price their products.

Conclusion

In conclusion, Amazon Merch on Demand presents a fantastic opportunity for creative individuals to design and sell custom merchandise with ease. Designers, artists, and entrepreneurs can turn their creative ideas into profitable products without worrying about inventory or upfront costs. In this article, we have navigated through the essential steps to help you kickstart your Merch on Demand business, covering everything from market research and design creation to understanding Amazon's fee structure. Embrace this opportunity to showcase your creativity and build a brand that resonates with a global audience.

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