Merch by Amazon (MBA) is a print-on-demand service that allows creators to create and sell custom merchandise like t-shirts, sweatshirts, hoodies, and more.
Designs are submitted to Amazon and prices are set for the products. Then, when a customer makes a purchase, you earn a royalty. But for anyone thinking about getting started with Amazon MBA, the question is, “Is Merch by Amazon worth it?”
The short answer is “yes”, MBA can be a great way to make money. And in this Merch Jar guide, we’ll be breaking down the basics of the program and looking at how much you can make.
Let’s dive in.
Royalty rates are the percentage of a sale that you can earn from Merch by Amazon. The royalty rates vary based on the category and list price of the product, as well as Amazon’s costs. Lower-priced items may yield smaller royalties, while higher-priced items can provide a more substantial income per sale.
Merch by Amazon operates on a tier system.
Starting at a lower tier, you can work your way up by demonstrating consistent sales and compliance with platform guidelines. Higher tiers grant you the ability to upload more designs, significantly impacting your earning potential.
Here’s a quick breakdown:
Amazon MBA isn’t just a numbers game—the quality of the products you upload is also important.
High-quality images and designs are more attractive to customers, which can lead to higher sales numbers and larger royalty payments. Designs that resonate with a specific audience or current trends are more likely to attract customers.
Your niche selection plays a massive role in determining your success on Amazon MBA.
Choose designs that speak to and target specific audiences, whether it’s cat lovers or gamers. Doing this will ensure you have a focus that resonates with customers and can lead to increased sales and chances of being featured prominently on the platform.
Properly optimizing your listing with relevant keywords can improve its visibility in search results, making it easier for potential customers to find and purchase your products.
That's why, at Merch Jar, we're passionate about helping businesses succeed on Amazon. Our software is designed to help you manage and automate your keywords and listings so that you can reduce human-error and keep pace with rapidly changing trends.
Amazon's search and recommendation algorithms can influence how often your products are shown to potential customers. Meeting Amazon's quality and service standards is essential.
By understanding and considering these factors, you can maximize your earnings and success on the Merch By Amazon platform.
Neil Lassen, after struggling to find a job, discovered the opportunity to sell print-on-demand t-shirts on Amazon through Merch By Amazon. With minimal risk and no upfront costs, he quickly signed up and started creating simple merch designs. In his very first week, he made his first sale and received royalties without having to drive traffic or pay for anything.
Elaine runs a website where she teaches others about earning with Merch by Amazon.
She shared her experience of selling over $128,295 worth of products, making a $53,000 profit in the first 10 months. However, no screenshot confirming her claims was found on the Side Hustle School podcast.
Benny Hsu, a successful entrepreneur and podcaster, found his fortune through Amazon's MBA program. Starting with selling t-shirts, he faced challenges and failures but persevered with innovative strategies. By the end of 2019, Benny sold 802 products and earned around €2,546.90 ($3,000).
As you’ve probably gathered, there isn’t really an answer to this question. Your MBA revenue is highly dependent on the number of products you have for sale, your quality designs, and the extent to which you promote and market them.
But rather than leaving you with such a vague answer, let’s add in some hypothetical figures.
With Amazon MBA, your profit is determined by:
With Amazon MBA, your royalty rates determine your revenue. Royalty rates are generally between 15% and 25% of the purchase price of an item.
So, if you sell a t-shirt for $15, you’ll make a royalty of around $2.25 to $3.75 as a result. If you sell 100 of these shirts per month, that will give you a total of $225 to $375. Now imagine a product catalog of 100 t-shirt designs, each selling at the same monthly rate. That could give you a monthly royalty income of $22,500 to $37,500!
As you can see, volume is incredibly important. You’re not making a ton per sale, but a lot of sales can quickly add up to a healthy revenue stream.
Many normal business expenses don’t apply to selling products with Amazon MBA. You don’t need to pay up front for inventory, warehousing, shipping, or even customer service. Amazon takes care of all that for you and deducts it from your royalties.
That said, there are some expenses you’ll need to consider when selling products with Amazon MBA:
Subtracting these expenses from your revenue will give you your profit.
Managing ads for massive product catalogs manually is incredibly difficult. Optimizing them manually is even harder. So, it’s best to invest in a good automated ad tool that can manage all of your ads for you and help you maximize your ROI.
At Merch Jar, we give sellers the tools to fully automate their Amazon Ads strategy with smart triggers based on key metrics, bulk actions, and automatic keyword management. Your ads will always be performing at their best, freeing you up to focus on creating new designs and products.
Merch by Amazon is incredibly easy to get started with, but it takes some time to master. It’s important to invest the time to learn how the platform works and what strategies work best for you. This will save you a lot of money in wasted ad spend and help ensure that your campaigns are successful.
Trends and niches are your friends. They help connect you to less competitive markets with avid buyers that are already interested in the products you sell. Keep an eye on the latest trends and niches to stay ahead of your competition, so you can target the right people for your business.
Monitor your product performance regularly. If a design is not performing well, consider removing it to focus on your bestsellers.
Cultivate a loyal customer base by consistently delivering high-quality designs. Happy customers are more likely to follow your store and return for more.
Merch by Amazon may initially appear to be an effortless way to generate income, but the reality is far from it. Balancing the demands of growing your own business, creating designs and ideas, can be mentally draining. That's why having a helping hand is invaluable.
At Merch Jar, we help Amazon MBA sellers put advertising on autopilot with a suite of tools to automate the entire process. With our help, you can focus on what matters most—creating great designs that make your customers happy and growing your empire of products.
Ready to start your Merch by Amazon journey? Get started for free.