Whether you’re a seasoned Amazon merchant or just starting, it’s essential to be aware of the different fees associated with Merch by Amazon.
This blog post will outline the Amazon Merch fee and provide some other FAQs to help you become a more knowledgeable seller, so keep reading!
What Are Amazon Merch Fees in 2023?
Merch fees are costs associated with using the Merch by Amazon program in 2023. With this program, sellers can offer self-designed products on Amazon, while Amazon handles fulfillment. Once an order is made, sellers earn royalties of up to 37% of the purchase price (minus Merch fees and taxes). In addition, this program has no associated start-up fee.
To learn more about the merch fees associated with this program and how you can get started with Merch by Amazon, keep reading!
What Is Merch by Amazon?
Merch by Amazon is a print-on-demand platform for t-shirts and other types of clothing.
Although anyone can create and sell shirts on Merch by Amazon, they must apply and be accepted first. Once approved, sellers can upload their designs for sale onto the site.
When a customer purchases a product with your design, Amazon will pay royalties directly into your account.
Once an item sells out, you’ll need to load more inventory so customers can continue to buy your merch.
Since Amazon handles all the printing and shipping of your orders, creating great original designs is all you need to worry about!
Are There Any Start-Up Fees for Using Merch by Amazon?
Currently, there are no start-up fees for sellers to upload their designs to Merch by Amazon.
What Are Merch Fees Associated With Using Merch by Amazon?
Since Amazon handles many of the business aspects of production, shipping, and fulfillment of orders, sellers must pay associated fees.
To prepare and deliver products to your customers, Amazon handles fulfillment which includes picking and packing products when customers order them, as well as shipping.
In some cases, tax is calculated at checkout, such as for US orders, but not others – so sellers must ensure it’s included in the international purchase price.
How Do Sellers Make Money With Merch by Amazon?
Overall, Merch by Amazon is a great way to start a business with low upfront costs and risks.
With no minimum order quantity (MOQ), sellers can test different designs, see what sells well, and adjust their inventory accordingly.
In addition, sellers can keep all profits from their sales, minus Amazon’s costs and other applicable fees. Royalties are calculated based on the product’s sale price.
Since Amazon has predefined prices for each product, depending on the pricing of each item, sellers can expect to earn a royalty fee of 13%-37%.
Check out all costs and Royalty fees here. Amazon services fees are deducted from your total payout each month.
If this sounds confusing or complicated, don’t worry!
Merch by Amazon has an automatic payment system designed to make it easy to track and earn money with your designs.
For additional information, sellers can learn more about how it works here.
Who Should Use Merch by Amazon?
In general, Merch by Amazon is ideal for influencers, bloggers, and other creative people.
In fact, any company that wishes to reach a large audience and advertise its products may benefit from the program.
However, this doesn’t mean you can’t start with Merch by Amazon if you don’t have an audience yet.
How Do Sellers Get Started With Merch by Amazon?
With Merch by Amazon, sellers have a fantastic opportunity to build brand recognition while leveraging the power of Amazon’s platform.
To sell products on Merch by Amazon, sellers must complete the following steps:
Step 1: Get Approved
When you decide that you want to become an Amazon Merch seller, the first step is applying for approval.
To be confirmed, sellers must apply through the Merch by Amazon website and then wait for them to review your application and provide feedback.
If accepted, Amazon will send you an email with instructions on creating your account. Once approved, there are two options for getting started:
- Create a new store from scratch with Merch by Amazon’s design tool
- Import designs from another T-shirt printing service
Step 2: Selecting Perfect Products
One of the most critical steps in setting up your new merch store is selecting which products you’re selling on Merch by Amazon.
In addition to t-shirts and hoodies, merchants can make designs for various products, including:
Step 3: Managing Your Inventory
Managing your inventory on Merch by Amazon is as simple as adding, editing, and removing products!
Merch by Amazon has a simple and easy-to-use interface for managing all aspects of your store.
Through this interface, sellers can update their products with just a few clicks of the mouse, which makes it easy to manage all your inventory in one place.
Likewise, sellers can add new products, edit existing ones, or remove those they no longer want to sell.
Step 4: Marketing Products on Merch by Amazon
There are two types of marketing you can do on Merch by Amazon: promotions and featured apparel.
By using tools like the promote tab or the featured apparel section, sellers can quickly market their products.
Sellers can find the promote tab on the left side of their screen and will show up in search results, product pages, and on people’s posts when they share their Merch by Amazon products.
Furthermore, customers can directly purchase your products without leaving their News Feed.
With the featured apparel section, Amazon showcases new products for shoppers to browse.
This is a great way to increase exposure for your designs as well as get more eyeballs on your work.
In addition, sellers can control what they post here, from the images to the description text.
Furthermore, sellers that market their products through this affiliate program are eligible to earn an additional 7% on purchases! For more information on this program, click here.
Overall, Merch by Amazon is an excellent opportunity for entrepreneurs looking to start a business with little risk and the lowest upfront costs.
With no start-up fees and fulfillment managed by Amazon, this program could let you see some severe profits without much work. Remember that merch fees can significantly eat your bottom line, so make sure your margins are high enough to make it worthwhile.