Amazon Merch and Custom Programmes
Sourcing physical inventory is a barrier to entry for many aspiring Amazon sellers. You need capital to purchase stock, warehouse space to store it, and the risk of being stuck with unsold inventory. What if you could sell products without holding any stock at all?
Amazon offers two programmes that eliminate this challenge: Merch by Amazon and Amazon Custom. Both allow sellers to offer products without managing inventory, fulfillment, or logistics. Amazon handles everything behind the scenes.
Merch by Amazon: Print-on-Demand Apparel
How It Works
Create and sell custom-designed products such as t-shirts and hoodies without holding stock. Amazon handles printing, fulfillment, shipping, returns, and customer service. You design the product, upload your design, create a listing, and Amazon manages the rest.
This is fundamentally different from traditional inventory-based selling. With Merch by Amazon, products exist only when a customer orders them. There’s no warehouse, no stockroom, no risk of overstock.
The Process
- Apply for Merch by Amazon (starting with Limited tier, graduating to Standard tier with sales volume)
- Upload your design (PNG or JPEG, meeting Amazon’s specifications)
- Select products (t-shirt, hoodie, long-sleeve, etc.) and styles
- Set your price (Amazon sets minimum and maximum, you choose within that range)
- Create an Amazon product listing
- Customer orders → Amazon prints → Amazon ships → You receive royalties
Benefits for Entrepreneurs and Creators
Zero Inventory Risk. You don’t purchase a single shirt before a customer orders. This eliminates capital requirements, warehouse space, and overstock risk entirely.
Low Financial Barrier to Entry. You can test niche designs and audiences without significant financial risk. If a design doesn’t sell, you’ve lost nothing but the design time.
Global Reach. Your designs are available to Amazon’s 310+ million customers across 21+ marketplaces. This global distribution would cost thousands to set up yourself.
Minimal Operational Work. Amazon handles printing, quality control, fulfillment, shipping, returns, and customer service. You handle design and marketing.
Passive Income Potential. Once a design is live, it can generate royalties indefinitely. A popular design continues earning without additional effort from you.
Use Cases
- Diversify Income. If you have an existing audience (YouTube channel, social media following, blog), Merch by Amazon allows you to monetize that audience without inventory.
- Test Niche Markets. Test whether a specific audience (dog lovers, engineers, musicians) will buy apparel before committing to inventory.
- Build Apparel Brands. Creators and artists can build apparel-focused brands without the overhead of traditional manufacturing.
- Corporate Merchandise. Companies can offer branded merchandise without inventory management.
- Seasonal or Limited Designs. Test designs for specific seasons or events without overcommitting to inventory.
Royalties and Pricing
Amazon sets royalty rates by product type. For a standard t-shirt, you might earn £2-4 per sale after Amazon’s costs. Higher-priced items have higher royalties. You set the price within Amazon’s recommended range, and your royalty is the difference between what the customer pays and Amazon’s production cost.
This model requires volume to generate meaningful income. A single popular design might generate £5-20 monthly. A portfolio of 20 popular designs might generate £500+ monthly. Success requires both good design and marketing to drive awareness.
Amazon Custom: Made-to-Order Personalized Products
How It Works
Amazon Custom allows sellers to offer personalized and customizable products. Unlike Merch by Amazon (which focuses on fixed designs), Amazon Custom specializes in products that can be customized to each customer’s specifications.
Types of Customization
- Text Customization. Names, dates, initials, custom quotes. Anything text-based a customer wants engraved or printed.
- Image Customization. Upload logos, photos, or other images to be printed on the product.
- Product Configuration. Customers choose color, material, size, or other variations of the base product.
The Professional Requirement
Amazon Custom is available only to professional sellers who have applied and been approved for the programme. This is not open to all sellers automatically. You must meet approval criteria and provide business verification.
Additionally, all products in Amazon Custom must be made to order. You cannot stock pre-made inventory. Each order is customized and produced specifically for that customer.
No Returns Policy
Because products are made to order and personalized, they cannot be returned unless defective. This is a critical distinction from standard products, which are returnable within 30 days. Customers understand this when they order custom products. They’re getting something made specifically for them.
Use Cases
- Personalized Gifts. Custom mugs, photo frames, jewelry. Products customers purchase as personalized gifts.
- Corporate Gifts. Businesses ordering customized merchandise with their logo or message.
- Events and Promotions. Custom apparel for events, weddings, or fundraisers.
- Sports and Teams. Personalized sports merchandise with names and numbers.
- Pet Lovers. Personalized pet products with pet names or custom photos.
Fulfillment Responsibility
Unlike Merch by Amazon, where Amazon handles all production, Amazon Custom can vary. In some cases, Amazon arranges production through partners. In others, you may arrange production yourself. The key is that Amazon handles the customer interface and payment. You handle the customization, production, and fulfillment (or arrange fulfillment partners).
Comparing Merch by Amazon and Amazon Custom
| Feature | Merch by Amazon | Amazon Custom |
|---|---|---|
| Design Type | Fixed design, multiple product variants | Customer-customized, made to order |
| Seller Level Required | Any seller (starts Limited tier) | Professional sellers only (application required) |
| Production | Amazon prints, ships, handles returns | You arrange production and fulfillment |
| Returns | Standard Amazon return policy | No returns unless defective |
| Inventory | Print-on-demand, zero stock needed | Made-to-order, zero pre-stock |
| Customization | Limited (fixed design variants) | Extensive (text, images, configuration) |
| Skill Required | Design, marketing | Design, production setup, fulfillment |
Success Factors for Both Programmes
Design Quality
Whether Merch by Amazon or Amazon Custom, design quality determines success. Your designs need to appeal to a specific audience and solve a specific problem or express a specific identity. Generic designs rarely succeed.
Understanding Your Audience
Successful designers know exactly who their audience is. Dog lovers, engineers, yoga instructors, coffee addicts. Specificity drives conversion. Designs created for “everyone” convert poorly because they don’t resonate deeply with anyone.
Marketing and Promotion
Amazon doesn’t automatically promote new designs. You need to drive awareness. This means leveraging existing audiences (social media followers, email lists, YouTube channels), running Amazon Advertising campaigns, or partnering with influencers in your niche.
The most successful Merch by Amazon sellers are those with existing audiences they can tap. A YouTube channel with 100K subscribers can drive significant sales to well-designed merchandise. A design with no external promotion may never gain visibility.
Pricing Strategy
Your price affects both conversion rate and profitability. A £10 design might convert at higher rates than a £25 design, but the revenue per sale is lower. Test different price points and monitor both conversion rate and total revenue. The goal is to find the price point that maximizes revenue, not just conversion rate.
Is This Right for You?
Merch by Amazon and Amazon Custom are ideal if you:
- Have design skills or access to a designer
- Have an existing audience or community to market to
- Want to test product markets with minimal financial risk
- Are interested in passive or semi-passive income from designs
- Prefer operational simplicity (especially Merch by Amazon)
These programmes are less ideal if you:
- Are unwilling to invest in marketing and promotion
- Expect significant income from a handful of designs
- Lack design skills and budget for professional designers
- Need to produce physical products not covered by these programmes
For many sellers, these programmes serve as a complement to traditional inventory-based selling, not a replacement. You can offer custom apparel while selling your core products, diversifying revenue and customer engagement.
Frequently Asked Questions
- How much can I earn with Merch by Amazon?
- Royalties per design vary but typically range from £2-4 per t-shirt sale. Success depends on design quality and marketing. A single popular design might earn £5-20 monthly. A portfolio of 20 designs might collectively earn £500+ monthly. Income scales with audience size and design portfolio.
- Is Merch by Amazon available immediately?
- No. You must apply for the programme and typically start in Limited tier with a product cap. As your sales volume increases, you can graduate to Standard tier with higher limits. This progression ensures you’re building an actual audience before scaling.
- Do I need design skills for Merch by Amazon?
- You need either design skills yourself or access to a designer. Many successful sellers hire designers on Fiverr or 99designs. The design cost is typically £10-50, which is low risk if the design generates even modest sales.
- What products can I customize with Amazon Custom?
- Amazon Custom supports a range of products including apparel, home décor, mugs, photo frames, and more. The programme is expanding, so check Amazon’s current product list to confirm what’s available in your market.
- Do I need a storefront for these programmes?
- No. Merch by Amazon and Amazon Custom operate as individual listings within your seller account. You can sell both alongside traditional inventory-based products without needing a separate storefront.
Start Your Print-on-Demand Journey
Merch by Amazon and Amazon Custom represent a fundamentally different approach to selling on Amazon. Rather than managing inventory, you manage design and marketing. This appeals to creators, artists, and entrepreneurs who want to reach Amazon’s massive audience without the overhead of traditional sourcing and fulfillment.
VendLab helps sellers integrate these programmes into their broader Amazon strategy. Whether you’re exploring print-on-demand as a primary business or complementing your existing inventory sales, our team can guide you through strategy, design, and optimization.
Contact VendLab today to explore your print-on-demand options, or learn more about our complete Amazon consulting services.
Go Deeper: How to Grow Your eCommerce Business
This article draws on insights from How to Grow Your eCommerce Business by Trevor Ginn, founder of VendLab. The book covers everything from product sourcing and listing optimisation to advertising, international expansion, and building a sustainable multi-channel online business.