Should You Use Amazon Merch On Demand?

Selling custom-designed apparel and accessories is a fun online business where you can let your creativity shine, but it often comes with some logistical challenges like managing inventory, dealing with shipping, and investing in costly printing equipment. That’s where Amazon Merch On Demand comes in, handling all these logistics for you. It’s a Print-On-Demand (POD) service that lets you upload your designs, list them on Amazon’s marketplace, and earn royalties every time an item sells, all without any upfront costs or purchasing inventory. Amazon Print On Demand takes care of the printing, packaging, shipping, and even customer service. In this post, learn about the pros and cons of Amazon Merch On Demand to help you determine whether this service is the right fit for your store.

Pros Of Amazon Merch On Demand

No Upfront Costs Or Inventory

One of the challenges in starting an online store is the initial investment. You typically need to buy apparel, pay for printing, and store the inventory. With Amazon Merch On Demand, you don’t have these costs. You can upload your designs and create product listings for free. Amazon only prints an item after a customer places an order. This zero-inventory model means you carry no financial risk, so you won’t be left with inventory you can’t sell.

Connect With Amazon’s Customer Base

Listing your product on Amazon instantly gives your store access to one of the largest audiences in the world. “Amazon has over 310 million users around the world,” so you can leverage Amazon’s customer base. Customers can find your products throughkeyword research, and if they have a Prime membership, they usually get free and fast shipping which is a top incentive for online shoppers.

Scalable Income Potential

Since there’s no limit to how many designs you can upload once you move up through the tier system, each new design is another chance to earn royalties. By consistently uploading new and unique products, and targeting the right niche, your earnings can grow, turning a side hustle into a potential lucrative revenue stream.

Hassle-Free Payments

One of the advantages of selling through Amazon Merch On Demand is the reliability of payments. Amazon handles all transactions, so you don’t have to deal with payment issues. Royalties from each sale are calculated automatically and deposited directly into your account on a regular schedule.

Insights & Analytics

Amazon provides data on your sales, popular products, and customer trends, so you can see what’s working and what’s not. This helps you create more of your popular designs, discontinue ones that aren’t selling, adjust pricing, and focus on niches that perform best.

Seamless Logistics & Operations

Amazon handles the entire fulfillment process. Once a customer makes a purchase, their massive ecosystem starts to work on fulfilling the customer’s order. Other Amazon Merch On Demand benefits include:

• Printing⎯Your design is printed on the product.
• Packing⎯The item is packaged for shipment.
• Shipping⎯Amazon sends the product directly to the customer.
• Customer Service⎯All inquiries, returns, and exchanges are handled by Amazon’s support team.

Since Amazon Merch On Demand takes care of these logistics, this lets you focus on what you focus on other aspects of your like creating new designs, marketing, administrative tasks, and more.

Cons Of Amazon Merch On Demand

Lower Profit Margins

Because it’s convenient, and Amazon handles the printing, packing, fulfillment and customer service, it takes a portion of the sale price. Your earnings come in the form of a royalty, which is the list price minus Amazon’s costs. These costs include materials, printing, fulfillment, customer service, and other operational expenses. This means that your profit per item is much lower than if you were to sell them from your eCommerce store and handle the fulfillment, or use another POD service that doesn’t take as much profit from each sale. You most likely will need to sell a higher volume of products to achieve the same level of income you might get from doing everything yourself.

High Competition

Since selling on Amazon has a low barrier to enter, it can be challenging for new creators to get visibility and sales. You’ll be competing with millions of other sellers⎯from solopreneurs to large companies, all vying for customers’ attention. Doing competitor and keyword research will be an important part of your strategy so you can find the right customers and untapped niches to help your business stand out.

Approval & Tier System

When you start selling, Amazon gives you a limited number of design slots, meaning you can only list a few designs at a time. As your products start selling, Amazon gradually increases your tier, allowing you to upload more designs and expanding your Amazon storefront. This system helps maintain quality on the platform while rewarding successful sellers with the ability to grow their business over time.

Limited Creative Control

While the platform makes selling easy, you’re also restricted to Amazon’s set product types, sizes, and printing specifications. You can’t customize packaging, add branded inserts, or choose alternative materials, so you can’t fully showcase your branding. For designers who want complete creative control over every aspect of their products, these limitations may feel too restrictive.

Dependence On Amazon

Your store and income are entirely dependent on Amazon’s platform policies, algorithms, and account health. Any account suspension or policy change can impact your business immediately, so it’s important to stay on top of their guidelines and be compliant at all times.

Limited Customer Interaction

Since Amazon handles all sales, shipping, and support, you don’t directly communicate with buyers. This means fewer opportunities to build relationships and get feedback.

How Do You Decide If Amazon Merch On Demand Is Right For Your Business?

Whether you should use Amazon Merch On Demand depends on your goals, resources, and expectations.

Amazon Merch On Demand good for:

• Beginners⎯If you’re new to e-commerce and want a low-risk way to test your designs, this is a great way to get started.
• Artists & Designers⎯If your primary focus is creating art, you can use it as a simple way to monetize your portfolio without getting overwhelmed with handling logistics.
• Passive Income⎯Once a design is uploaded and optimized, it can generate royalties for months or years with little additional effort. It’s a great way to create another income stream without being hands-on.
• Building A Brand⎯Established brands or influencers can use the platform to experiment with merchandise ideas before committing to a larger, direct-to-consumer business model.

You might want to consider other POD services if:

• Build A Strong Brand⎯Builidng your business with EverBee’s Store and integrating a POD provider like Printful, Printify, and more, will give you full control over your website, branding, and customer relationships.
• Higher Profit Margins⎯Selling directly to consumers or handling your own production and fulfillment typically results in higher profit margins per item.
• Customer Interaction⎯If custom packaging, thank-you notes, and building a loyal customer base are important to you, a direct-to-consumer model is mostly likely going to be a better choice.

Amazon Merch On Demand offers an easy, hands-off way to sell to customers, but it may not be the best fit for every business. For many, it’s the perfect way to create products that you can try and turn into a source of income without a major investment of time or money. However, the trade-off is lower profit margins, high competition, and limited ability for branding. Weigh these pros and cons and then decide what is the best way to get started with your online business.