Selling on Amazon is a lucrative business. According to Investopedia, almost 30% of the online sales generated in the United States in the first quarter of 2021 came from Amazon. (Source: Investopedia)
It is not a secret that there is a lot of money to be made by selling your products on this e-commerce platform. However, not everyone has the initial capital to get the ball rolling right off the bat.
Between purchasing your initial inventory, paying for account registration, and covering the Amazon FBA costs, it can set you back anywhere from around $1500 to $3000 to start your own AMZN store.
Needless to say, this is not a small amount of money. Not everyone can afford this, especially when you are just starting.
AMZN realized this and tried to look for alternatives for those without a huge initial capital to work with. This is where alternative methods to earn within the platform such as Merch by Amazon starts to come in.
Before we dig deep into this topic, what is Merch by Amazon anyway? And what are the tips on how to succeed in Merch by Amazon?
In this article, we’ll answer these questions and talk about the unique selling method called “print on demand”. Hopefully, this knowledge can help both newbie and experienced sellers find an alternative to Amazon FBA.
Ready to learn how to succeed in Merch by Amazon? Then let’s jump right in.
Table of Contents
What is Merch By Amazon?
Simply put, Merch by Amazon is a Print on Demand (POD) platform created by AMZN for creative individuals. If you want to earn money and sell your merchandise using your designs, Amazon Merch can help you with that.
As a no-cost business model that is fully supported by AMZN, you can never go wrong with Merch by Amazon. You can start selling on AMZN without even spending a single dime.
All you have to do is create your designs, upload them on the website, and wait for someone to make a purchase. This is what makes Print on Demand such a powerful tool for creatives.
What Is Print On Demand?
Print on demand is a unique way of selling custom merchandise or products that feature your designs. You can put your design on shirts, mugs, pillows, bathing towels, or even rugs. Anything you can think of!
How Does Print on Demand through Merch by Amazon Work?
Here’s how ‘Print on Demand’ works on AMZN:
- You create a design for a product (could be a shirt, pillow, etc)
- You upload your design to the website.
- The website will provide you with the product templates to help with print dimensions.
- You market the product to customers.
- When a customer orders the product featuring your design, the third party (in this case, AMZN) prints your product on-demand.
- AMZN fulfills and ships the order.
- You get royalties from each sale you make.
By allowing artists to simply upload their artwork without an initial cost of selling, Merch by Amazon becomes a viable selling model for those without a huge capital to work with.
As soon as the artwork is uploaded, you just need to add the product description, product type, and colors. AMZN will handle the creation of the product page as well as the fulfillment of the orders.
All you have to do is create more designs and market your products to potential customers. That is how to succeed in MBA without having to churn out a huge initial capital.
Is Merch By Amazon Worth It?
The question “how to succeed in Merch by Amazon” is asked constantly by our readers. But before we answer that, we must first talk about the reasons why you should use Amazon Merch.
Below are 5 reasons why using this platform is a no-brainer for creative artists and designers:
No Physical Inventory Needed
The first and most obvious reason why Merch is a great business model is the lack of physical inventory requirements. Unlike selling on FBA, you don’t have to invest a huge startup capital in procuring inventory. You also don’t have to deal with inventory risks such as overstocking and running out of stocks.
When you use Merch by AMZN, your designs are your inventory. You don’t need to stock up on shirts, mugs, or hoodies. AMZN will be providing all of these for you. All you have to do is create your design and market it to the right audience.
Earn From Royalty Percentage
Under Merch, you’ll earn a royalty percentage on every product sold using your designs. The royalty percentage is based on a bunch of different factors such as purchase price, materials used, production costs, and fulfillment.
Fulfillment costs will include picking and packing your products. Shipping your product to the customer is also part of this.
The standard percentages of royalties differ from one product to another. It can be anywhere from 15% up to 40% depending on the purchase price and product used. For more information on royalties, visit Amazon’s Merch Royalty resource page.
Prime Shipping
One of the best ways to increase your conversion rates in AMZN is by offering Prime Shipping. And the great news is that Prime Shipping comes by default in Merch by AMZN.
Because customers can get their products faster, they will be more enticed to purchase from your store. Offering Prime Shipping is one of the best strategies for how to succeed in Merch by Amazon.
No Need To Own A Warehouse
One of the most expensive overheads that sellers need to pay is warehouse rental. Even if you are using Amazon FBA for the fulfillment of orders, you still need to pay for the space occupied by your products.
Since you won’t be housing any physical inventory, there is no need for you to own a warehouse with Merch. All you have to do is upload your designs and wait for someone to make a purchase. That’s all there is to it.
Reach More Customers
It is not a secret that AMZN is one of the biggest online e-commerce websites in the world. According to data by Statista, the AMZN marketplace is estimated to have over 300 million active users as of 2021. (Source: Statista)
Around 65% of the entire US population has browsed the AMZN marketplace at least once per month in order to purchase products. With the global reach of AMZN, you can sell to someone from the other side of the world. All of this is achieved without even having a single inventory.
Easy to Track Your Sales
Since AMZN Merch allows you to access their dashboard, tracking your income from sales is easier.
With in-house analysis tools that show insights into what designs work best, you can grow your revenue fast. You can also plan for different designs that work well in certain seasons such as Christmas or Thanksgiving.
Related: How To Do Dropshipping on AMZN
How To Succeed in Merch By Amazon?
So how to succeed in Merch by Amazon? This involves a whole new different way of doing things compared to direct selling. But the tips below will help you get started in the right direction:
Sustain Your Creativity
To succeed in a print-on-demand platform, the first thing that you need to have is sustained creativity. If your creative juice isn’t flowing, you won’t be able to make effective designs.
Remember that people could have seen the designs you have before. So try to visit pages such as Reddit and DeviantArt to get inspiration
Avoid Copyright Infringement
You must avoid copyright infringement. I can’t stress the importance of this one. Stepping over the intellectual properties of brands can lead to suspension, or even termination, of your account. Make sure that the designs and phrases that you use aren’t copyrighted.
And whatever happens, don’t even try to steal someone else’s design. AMZN will find out, and it won’t be pretty if they do. You might even get a lawsuit, which is something you don’t want to deal with.
Perform A/B Tests Constantly
One thing about being a creator is that you often think that your decisions are absolute. However, this couldn’t be further from the truth. Some designs look horrible on paper but sell like hotcakes. Some designs look so nice but don’t convert as much.
To avoid guessing what works and what doesn’t, always A/B test your designs. It could be as simple as changing the font, font color, adding shadows, or adding outlines. The more that you test your designs, the more data you can accumulate.
Ultimately, this data will give the missing information you need for your new product ideas. Doing consistent A/B Testing is how to be profitable in Merch.
How Many Designs Can You Submit?
To provide the best possible experience for customers, the initial number of designs a content creator can upload is capped at 10. This means that to move up to the next tier, you must first sell at least 10 products using your designs. Tier levels include 10, 25, 100, 500, and so on.
Before you ask “how to succeed in Merch by Amazon”, increasing your tier level should be first on your list. One interesting thing to note is that the admission to the next tier isn’t based on sales alone. The overall quality of the designs and products sold by the content creator is considered as well.
How To Sign Up on Merch By Amazon?
Ready to start how to start with Merch? Then being accepted into the program is something that you should first settle.
Here are the steps involved in signing up for this Print on Demand program by AMZN:
- Visit the Merch by Amazon landing page and sign click “Sign Up”
- On the next page, you will be prompted to enter some information. This includes business contact info, valid bank account with routing numbers, Social Security number, and other tax identification numbers. Some countries are currently not accepted for registration. To see the full list, check this link.
- Provide a reason why you should be accepted into the platform. You also need to fill up the different requirements such as tax id numbers for non-US citizens.
- Add your previous selling experience to help speed up the process of your approval. The thing about this program is that they do not accept everyone. They are picky when it comes to applications. So if you have experience selling on other Print-on-Demand platforms or creative designs portfolios, now is the time to tell AMZN about it.
- Once you submit your request, all you have to do is what. Keep in mind that not everyone will be accepted into the program. It might take days or even weeks to get a prompt reply.
How To Submit A Product Design On AMZN Merch?
The next step on how to succeed in Merch is to upload your product designs. There are several products that you can use for your designs. It could be shirts, hoodies, dresses, and even mugs.
On your Dashboard, just click on Create and you will get a list of starting products to choose from. AMZN will provide you with the template to help get you started. All you have to do is click “upload your artwork” on your product of choice.
Once you are done uploading your designs, the next step is choosing which products to use the designs on. You can Select or Deselect the products you want. You can also choose the marketplace where you want to sell the products.
In the Designs tab on your dashboard, you can edit different variables about your product. This includes Fit Type, Color, List Price, and more. The estimated royalties that you will be getting per sale are also included here.
Finally, you are now ready to sell your product. Amazon will create the product listing associated with your designs. This listing page allows you to market your products by adding links directly to your blog or website.
You can also promote via e-mail, social media, or any other online platform that can drive traffic to your listings. If you have the money, running AMZN Pay-per-click ads is also a great way to direct traffic to your products.
Conclusion
Merch by Amazon offers a unique way to help artistic designers and creatives to make money on the platform. The great thing about it is that no inventory is required. AMZN will provide all the products to print on demand. They will even fulfill your orders and ship them directly to your customers. All you need to do is upload your designs and market your products.
If you need help in marketing your products through optimized listings and automated AMZN Pay-per-click campaigns, Zonbase can help you. With 13+ tools and services that aim to help sellers increase their sales and maximize their profits, Zonbase is a software solution that can show you how to be successful Merch by Amazon.
Get a Zonbase free trial today and see what this amazing software suite can do for your business.
