Merch by Amazon is a service that offers product printing on demand. It allows small business owners, influencers, and ambitious go-getters to start a business without investing any money. But, in a saturated market filled with competition and on a platform with thousands of other businesses, the question remains: Is Merch by Amazon Worth it?
Merch by Amazon is a good way for well-known businesses to create and sell their merchandise. The profit percentages for different products range between 13-37%. It is best suited for established brands and businesses, but small businesses may benefit from its no-risk model.
We’ve spent some time researching how Merch by Amazon works and whether or not it’s worth investing your time in when starting a small business. So, whether you’re looking to establish a name for yourself or your brand, or you’re interested in an opportunity to make a few extra dollars every month, this article is for you.
Is Merch By Amazon Worth It For Small Businesses?
Starting a small business can be complicated and requires a lot of forethought. It also requires an investment of your time and money to get the ball rolling. Of course, any small business owner or entrepreneur knows that there is an element of risk to starting your own business as well.
But what we told you that you could get rid of the risk and the monetary investment altogether? Essentially, all you would need for success is to come up with creative ideas and put in a few hours of your time to get your business off the ground.
Well, that’s exactly what many entrepreneurs are doing when they seek out a print-on-demand service provider. Essentially, these companies will print your merchandise as soon as an order comes in. And the best part is that they handle packaging and shipping for you, too.
Merch by Amazon is no different. Hosted by one of the biggest e-commerce sites in the world, Merch by Amazon has gained a lot of traction among businesses over the last few years. But is it worth it when starting a small business? Well, yes and no.
First, let’s look at whether or not this business model will be profitable for you in the long run.
Is Merch By Amazon Profitable?
Making money with Merch by Amazon may not be as straightforward as it seems. You will need to seriously consider a number of different factors before deciding whether or not the platform and business model is for you.
Firstly, Amazon is a massive e-commerce site. And as such, it is filled with millions of different products. So, it’s easy to get swallowed up in the crowd. Even if you come up with an incredible design that ticks all the latest trend boxes, you may come up short.
While some entrepreneurs are willing to put their designs out there and let the cash trickle in – if it ever does – there are thousands of people who want to make their business as profitable as possible.
To make your business stand out in comparison to all the business owners listed on Amazon, you’ll need some brand recognition. This is one of the only ways to ensure that your business will make a steady stream of income.
To do this, you’ll need to be well-known by your customers. Merch by Amazon is a great steppingstone for bloggers or influencers that already have a following. But that’s because they have an established audience to promote their product to.
If you’re just starting out, you’ll need to establish your brand and put some effort into your marketing. Starting a Facebook or Instagram page is a great way to start. Still, you won’t make any money unless your advertising is top-notch.
You’ll also need design ideas that are unique and sought-after. Generic designs don’t sell. So you’ll need to have a few good ideas to make this business model work for you.
Another factor to consider when you’re thinking about using the Merch by Amazon service is that you will not make 100% of the profits. Instead, you’ll make royalties on each shirt, hoodie, sweatshirt, or PopSocket that you sell.
The amount of profit you make also depends on what you’re selling and your set price point. If you’re selling PopSockets, you’re going to take home a much smaller amount than if you were selling hoodies or sweatshirts.
Currently, the royalties for Amazon merch sit between 13 and 37%. That means that you will only make a maximum of 37% of each item that you sell.
This is a bit of a catch-22 because your customers may not want to buy your merch if you set your prices too high. On the other hand, if your prices are too low, you may end up only making a few cents or dollars per item. And if your merch isn’t selling enough units, you won’t be making that much money.
Should You Use Merch By Amazon?
Merch by Amazon can be a tricky platform to navigate, but with the right amount of hard work and dedication when it comes to designing your products and establishing your brand, you can definitely make a steady profit off of your sales.
It’s a low-risk option for many small business owners who want to get a feel for e-commerce and can save you a lot of money on stock, packaging, and shipping.
If you’re willing to invest your time into advertising your product, and your designs are original and unique, you may have a successful business.
It’s important to remember that you may not be making as much profit as you could if you run your own business.
By comparing your predicted profits when using Merch by Amazon and your profit potential after buying stock, packaging, and paying for shipping, you’ll be able to determine what would be best for you – and your business – in the long run.
Merch by Amazon is an incredible way to dip your toe into the water when you’re starting a small business. With almost no risk and no upfront investment, it’s a good first step into becoming an e-commerce business.
There’s no reward without sacrifice, though, so you’ll need to make sure that your customers want what you’re selling. Putting in the time and dedication to market your products will make all the difference.
Bryan E. Robinson is the former owner of TshirtGrowth. He has sold t-shirts since 2006 through dropshipping, screen printing, vinyl printing, DTG, Print on Demand, and more. Bryan has created his own t-shirt designs through Photoshop, Canva, and other platforms, as well as worked with freelancers to create many of his designs. Besides t-shirts, Bryan has over 18 years of experience in online marketing with eCommerce, B2B SaaS, B2C products, and more.