Merch by Amazon Calculator
Calculate your Merch by Amazon royalties for t-shirts, hoodies, sweatshirts, and more. See exactly how much you'll earn per sale based on your list price.
Product Details
Used to calculate tier progression eligibility
Number of live designs currently uploaded (max 10)
How Amazon Merch Royalties Work
Your Royalty = List Price - Base Cost. Amazon handles all production, fulfillment, and customer service. Tier progression based on 12-month rolling sales and design slot usage (typically need 80% slots filled).
Your Royalties
Decent Royalty Rate
Royalty Per Unit: $0 (28%)
Your royalty rate is decent. Most successful MBA sellers target 20-30% royalty rates. Consider testing slightly higher list prices.
Base Cost
$0
Amazon's production + fulfillment
Royalty Per Unit
$0
Your earnings per sale
Total Royalty
$0
From 3.5136718749999996 sales
Royalty Rate
0.0%
Decent rate
Pricing Sweet Spot
$0
Recommended range: $0 - $0
Sweet spot royalty: $0 per sale
Earnings Projections
Account Tier
Tier 10
Design Slots: 5 / 10 (50% full)
Daily Upload Limit: 2 designs
Next Tier: 25 (Need 10 more sales)
Royalty Breakdown
List Price $17.99 = Amazon Base $12.87 + Your Royalty $5.12
Royalty Rate: 28%
Understanding Merch by Amazon Royalties: Complete Guide to Print-on-Demand Profits
What is Merch by Amazon?
Merch by Amazon (also called Amazon Merch on Demand) is Amazon's print-on-demand platform where creators upload designs that are printed on apparel and accessories only when customers order them. Unlike traditional e-commerce, you never handle inventory, shipping, or customer service - Amazon handles everything from production to delivery.
The program operates on a tiered system based on sales performance. New sellers start at Tier 10 (10 design slots) and can progress to Tier 25, 100, 500, 1000, and beyond by making sales and following program guidelines. As of 2025, Amazon has updated the tier system to focus on recent sales (last 12 months) rather than lifetime sales, emphasizing active, high-quality sellers.
Merch by Amazon gives you access to Amazon's massive customer base with Prime shipping, customer trust, and the world's best e-commerce infrastructure. The trade-off is lower profit margins compared to running your own store, but the convenience and built-in traffic make it one of the most accessible passive income opportunities for designers and creators.
How Merch by Amazon Royalty Calculation Works
Amazon uses a simple royalty formula. You set the list price (what customers pay), and Amazon deducts their base cost (production, fulfillment, and fees). The difference is your royalty:
Royalty Formula
- •List Price: The price you set (customer pays this amount)
- •Base Cost: Amazon's cost for production, printing, fulfillment, and platform fees
- •Your Royalty: List Price - Base Cost = Your Earnings Per Sale
- •Royalty Rate: (Your Royalty / List Price) × 100 = Percentage You Earn
Example: Standard t-shirt with $19.99 list price and $10.15 base cost → You earn $9.84 royalty (49.2% royalty rate)
Base costs vary by product type and include everything: blank product cost, printing/production, packaging, fulfillment, shipping to customer (including Prime shipping), payment processing, and Amazon's platform fee. You never see these individual fees - only the final base cost.
Pricing Strategies for Maximum Profit
Setting the right list price is critical for Merch by Amazon success. Price too low and you barely profit. Price too high and customers won't buy. Here's how to find the optimal price point:
Recommended Pricing by Product Type
- •Standard T-Shirts: $19.99-$22.99 (most popular range). Base cost ~$10.15. Target 40-50% royalty rate for competitive pricing with good margins.
- •Premium T-Shirts: $22.99-$25.99. Higher quality justifies premium pricing. Base cost ~$11.85. Aim for $11-14 royalty per sale.
- •Hoodies: $34.99-$39.99. Base cost ~$19.25. Hoodies command higher prices and larger royalties ($15-20 per sale typical).
- •Sweatshirts: $29.99-$34.99. Base cost ~$16.50. Good margin opportunity with $13-18 royalty potential.
- •Long Sleeve Shirts: $24.99-$27.99. Base cost ~$12.70. Popular in fall/winter with seasonal demand spikes.
- •PopSockets: $14.99-$17.99. Base cost ~$6.50. High-volume product with strong impulse buy potential. Target younger demographics.
Dynamic Pricing Strategy
Successful Merch by Amazon sellers don't set prices once and forget them. Use this testing approach:
- •Start Higher: Launch new designs at the upper end of the typical range. It's easier to lower prices than raise them. Monitor for 2-4 weeks.
- •Track Conversion Rate: If you're getting views but no sales, price might be too high. If you're getting sales immediately, you might be priced too low.
- •Niche Premium Pricing: Unique designs for passionate niches (specific hobbies, professions, fandoms) can command 20-30% higher prices than generic designs.
- •Seasonal Adjustments: Raise prices during peak demand seasons (holidays, back-to-school). Lower during slow periods to maintain sales velocity.
- •Competitor Research: Search Amazon for similar designs in your niche. Price within $2-3 of top sellers, adjusting based on your design quality.
Understanding the Tier System (2025 Updates)
Merch by Amazon uses a tiered system that determines how many designs you can have live at once. As of 2025, Amazon updated the tier system to focus on recent performance rather than lifetime sales:
Tier Progression Requirements (2025)
- •Tier 10: Starting tier for all new sellers. 10 live designs maximum. Focus on quality over quantity to advance quickly.
- •Tier 25: Requires selling a percentage of your Tier 10 slots within the last 12 months. Demonstrates consistent sales capability.
- •Tier 100+: Higher tiers now based on 12-month rolling performance, not lifetime sales. Must maintain sales velocity to keep tier status.
- •Active Catalog Requirement: Designs without sales in 18 months are automatically removed. Keep catalog fresh with trending, relevant designs.
- •Quality Matters: Copyright strikes, policy violations, or poor customer reviews can slow tier advancement or even result in account suspension.
Maximizing Merch by Amazon Profits
Success on Merch by Amazon isn't just about uploading designs - it's about strategic optimization across multiple factors:
Profit Optimization Strategies
- •Amazon SEO is Critical: 90% of sales come from Amazon search. Use relevant keywords in titles, bullet points, and descriptions. Research what customers actually search for in your niche.
- •Target Specific Niches: Generic "funny shirt" designs face massive competition. Target specific communities (nurses, dog owners, specific hobbies) for better conversion rates.
- •Evergreen vs Trending: Balance evergreen designs (always relevant) with trending topics (seasonal, events, viral moments). Evergreen provides stable income, trending can spike rapidly.
- •Enable Multiple Product Types: Upload designs across t-shirts, hoodies, long sleeves, and PopSockets simultaneously. More products = more opportunities without extra design work.
- •External Traffic: Drive traffic from Pinterest, Instagram, TikTok, or YouTube. External sales improve Amazon ranking and create sales momentum.
- •Monitor Best Sellers: Use Amazon's Best Sellers list and tools like Merch Informer to identify trending niches. Adapt successful themes (don't copy) to your style.
- •Quality Over Quantity: 10 excellent, well-researched designs outperform 100 rushed, generic designs. Invest time in market research and design quality.
Common Merch by Amazon Profit Mistakes
Mistakes That Kill Profits
- •Pricing Too Low: Setting t-shirts at $15.99 leaves you with ~$5.84 royalty. Most successful sellers use $19.99-$22.99 for standard shirts. Don't compete on price alone.
- •Poor Keyword Research: Generic keywords like "funny shirt" or "cool design" get lost in millions of results. Use specific, long-tail keywords your niche searches for.
- •Copyright Violations: Using trademarked logos, characters, brand names, or celebrity likenesses gets your account terminated. Original designs only.
- •Upload and Forget: Successful sellers continuously upload new designs, update keywords based on performance, and remove low performers. Active management required.
- •Ignoring Trends: What sold well last year might not sell this year. Monitor trending topics, seasonal events, and cultural moments for timely designs.
- •Low-Quality Designs: Pixelated images, poor typography, or amateur design work won't sell on Amazon. Invest in learning design fundamentals or hire professional designers.
- •Filling All Slots Immediately: New Tier 10 sellers rushing to upload 10 designs often upload low-quality work. Start with 5-7 excellent designs and save slots for iteration.
Merch by Amazon vs Other Print-on-Demand Platforms
Understanding how Merch by Amazon compares to Redbubble, Printify, Printful, and TeeSpring helps you decide where to invest your design efforts:
Merch by Amazon Advantages
- •Amazon Traffic: Access to hundreds of millions of Amazon shoppers with purchase intent. No other platform matches Amazon's traffic volume.
- •Prime Shipping: Customers trust Prime 2-day shipping. Increases conversion rates compared to 5-10 day shipping on competing platforms.
- •No Upfront Costs: Zero fees to join, no monthly subscriptions, no per-listing charges. Only pay when you make sales (Amazon takes their cut from base cost).
- •Completely Hands-Off: Amazon handles production, quality control, shipping, customer service, returns. You only upload designs and set prices.
- •High Royalty Potential: 30-40% royalty rates possible with proper pricing, competitive with or better than Redbubble and marketplace platforms.
Merch by Amazon Disadvantages
- •Invitation-Only or Long Wait: New account approvals can take weeks to months. Some regions require waiting for open enrollment periods.
- •Tier Restrictions: Starting at 10 designs limits earning potential. Takes time and sales to unlock higher tiers for more design slots.
- •Strict Content Policies: Amazon aggressively enforces copyright and trademark rules. Account termination risk if you violate policies.
- •No Customer Data: Amazon owns the customer relationship. You can't build an email list or retarget buyers like you can with Shopify.
- •Algorithm Dependency: Amazon controls search rankings and buy box placement. Algorithm changes can impact visibility and sales.
- •Limited Product Customization: You work within Amazon's product templates and mockups. Less flexibility than platforms like Printful.
Final Thoughts
Merch by Amazon offers one of the best opportunities for passive income in the print-on-demand space. The combination of zero upfront costs, massive Amazon traffic, and Prime shipping credibility creates an unmatched platform for designers and creators. While tier restrictions and strict policies create barriers, the earning potential for quality designs is substantial.
Use this calculator to experiment with pricing strategies before listing your designs. Most successful Merch by Amazon sellers target 20-30% royalty rates as their baseline ($9-12 royalty on standard t-shirts), adjusting higher for premium products or unique niche designs. Don't compete solely on price - focus on creating designs that resonate with specific target audiences willing to pay for quality and uniqueness.
Merch by Amazon works best as part of a diversified print-on-demand strategy. Upload designs to Merch for Amazon's traffic and trust, while also selling on Redbubble for additional exposure and Etsy with Printify for higher margins on promoted products. Multi-platform selling maximizes income while reducing dependency on any single platform's algorithm or policy changes.
Additional Frequently Asked Questions
What list price should I use for Merch by Amazon products?
For standard t-shirts, successful sellers typically use $19.99-$22.99 to achieve 40-50% royalty rates ($9-12 profit per sale). Premium t-shirts work well at $22.99-$25.99. Hoodies perform at $34.99-$39.99 with $15-20 royalties. The key is targeting 20-30% minimum royalty rate while staying competitive. Research similar designs in your niche on Amazon and price within $2-3 of top sellers.
How much money can I make with Merch by Amazon?
Earnings vary dramatically based on tier level, design quality, and niche selection. Beginners at Tier 10 with quality designs typically earn $100-500/month within their first 6 months. Tier 100-500 sellers with optimized listings earn $1,000-5,000/month. Top sellers at Tier 1000+ with proven niches can earn $10,000-50,000+/month. Success requires consistent uploads, strong SEO, niche targeting, and patience - most sellers take 3-6 months to gain traction.
Does Merch by Amazon have any fees for sellers?
No direct fees for sellers. Amazon includes all costs (production, printing, fulfillment, shipping, payment processing, platform fees) in the base cost. You simply set your list price, Amazon deducts their base cost, and you keep the royalty. There are no monthly subscriptions, listing fees, or transaction fees like Etsy or Shopify. The program is completely free to join and use - you only earn money when products sell.
How do I get accepted to Merch by Amazon?
Merch by Amazon is invitation-only or opens for applications periodically. Apply at merch.amazon.com with a complete application showing design experience, portfolio samples, and business information. Approval times range from 2 weeks to 6+ months depending on application volume. Once accepted, you start at Tier 10 with 10 design slots. Focus on approval by demonstrating professional design skills, originality, and understanding of copyright/trademark compliance in your application.
How long does it take to make your first sale on Merch by Amazon?
First sales typically occur within 2-8 weeks for sellers who optimize Amazon SEO and target specific niches. Generic designs with poor keywords can take 3-6+ months or never sell. Speed to first sale depends on: keyword optimization (specific long-tail keywords vs generic), niche targeting (passionate communities vs oversaturated markets), design quality (professional vs amateur), and pricing competitiveness. Upload all 10 Tier 10 slots with well-researched designs before expecting consistent sales.
How do I advance through Merch by Amazon tiers?
As of 2025, tier advancement is based on 12-month rolling sales performance, not lifetime sales. To advance from Tier 10 to Tier 25, sell a percentage of your designs within 12 months while maintaining good account standing (no copyright strikes or policy violations). Higher tiers require consistent sales velocity and active catalog management. Amazon automatically reviews accounts for tier-ups, but progression can take weeks after meeting requirements. Focus on quality designs with strong SEO rather than rushing to fill all slots with mediocre designs.
Can I sell the same designs on other platforms?
Yes, Merch by Amazon allows you to sell identical designs on Redbubble, Etsy, Printify, Printful, TeeSpring, and other platforms simultaneously. There is no exclusivity requirement. Most successful print-on-demand sellers use a multi-platform strategy, uploading designs to 3-5 platforms to maximize exposure and income while reducing platform risk. Just ensure all designs are 100% original and you own the rights - never upload copyrighted content, trademarked logos, or celebrity images anywhere.
What products are available on Merch by Amazon?
Merch by Amazon offers standard t-shirts, premium t-shirts, long sleeve shirts, sweatshirts, pullover hoodies, tank tops, raglans, v-necks, and PopSockets as of 2025. Amazon periodically adds new products (they've tested zip hoodies, phone cases, and other accessories). Standard and premium t-shirts remain the most popular and competitive products. Hoodies and sweatshirts offer higher royalties per sale. PopSockets appeal to younger demographics and make great impulse purchases. Enable your designs on all relevant products to maximize opportunities.
How important is Amazon SEO for Merch success?
Amazon SEO is absolutely critical - 90%+ of Merch sales come from Amazon internal search, not external traffic. Use specific, relevant keywords in your title, bullet points, and description that your target niche actually searches for. Research keywords using Amazon autocomplete, Merch Informer, or Google Keyword Planner. Avoid generic keywords like "cool shirt" or "funny design" - use long-tail niche terms like "nurse appreciation week shirt" or "golden retriever mom sweatshirt." Front-load important keywords in titles.
What are the most profitable niches on Merch by Amazon?
Profitable niches combine passionate audiences with low competition. Pet owners (specific breeds), professionals (nurses, teachers, engineers), hobbyists (fishing, knitting, gardening), and family roles (dog mom, grandma, aunt) consistently perform well. Holiday and seasonal niches spike during relevant periods (Christmas, Halloween, back-to-school). Avoid oversaturated generic niches like "funny quotes" or "motivational sayings." Use research tools to identify niches with 1,000-10,000 monthly searches but fewer than 5,000 competing listings for the sweet spot.
Can I promote my Merch by Amazon listings?
Yes, you can drive external traffic to your Merch listings from Pinterest, Instagram, TikTok, YouTube, or blogs. External sales help improve Amazon search rankings and create sales momentum. Use Amazon Associates affiliate links if you want to earn additional commission on sales you drive. Some sellers create Pinterest accounts specifically for their Merch designs, pinning products with keyword-rich descriptions. However, most Merch sales come from Amazon internal search, so prioritize SEO optimization before investing heavily in external promotion.
How do Merch by Amazon payouts work?
Amazon pays Merch royalties approximately 60 days after the month of sale via direct deposit or check (depending on your region). For example, January sales pay out in late March. Minimum payout threshold is $100 for most regions. Royalties appear in your Merch dashboard within days of sale, but the 60-day delay accounts for potential returns and processing. Track earnings in your Merch account dashboard. Plan for 60-90 day cash flow delay when calculating business finances and taxes.
What happens if my design gets a copyright strike?
Copyright or trademark strikes on Merch by Amazon are serious and can result in immediate account termination, especially for repeat violations. If you receive a takedown notice, Amazon removes the infringing design and may issue a warning or suspend your account. Three strikes typically results in permanent ban. Avoid using any trademarked brands, logos, character names, celebrity images, or copyrighted phrases. When in doubt, don't use it. Stick to 100% original designs and text you create yourself. The risk isn't worth losing your account.
Should I focus on Merch by Amazon or build my own Shopify store?
Use both strategies for different purposes. Merch by Amazon is ideal for passive income (Amazon's traffic and trust, zero upfront costs, hands-off operation) but offers lower margins and no customer data. Shopify with Printify gives higher margins (40-60% vs 20-40%) and customer ownership, but requires driving your own traffic through ads or social media. Start with Merch if you have limited time/budget and want hands-off income. Add Shopify once you have traffic sources (Instagram following, email list, blog) to maximize margins on promoted designs.