Marketplaces Guide - Part 2: Make Money on Amazon

This is Part 2 of our Marketplaces Guide series. See also: Part 1: Etsy | Part 3: eBay | Part 4: Facebook Marketplace | Part 5: Instagram Shopping | Part 6: TikTok Shop

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Amazon moves more e-commerce volume than any other platform. With over 300 million active customers and unmatched buyer trust, it’s the marketplace most shoppers check first. For Print on Demand sellers, Amazon offers two distinct paths: the invite-only Merch on Demand program and traditional seller accounts with POD fulfillment through FBA or FBM.

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Why Amazon for Print on Demand

Amazon isn’t just another marketplace. It’s where most online shopping journeys begin.

Massive Built-In Traffic

Over 60% of online product searches start on Amazon, not Google. When someone wants a “funny fishing shirt” or “dog mom mug,” they often search Amazon first. Your designs can appear in front of buyers who are already ready to purchase.

Prime Trust Factor

Amazon Prime members convert at dramatically higher rates. They trust Amazon shipping, Amazon returns, and Amazon checkout. A POD product with Prime eligibility has a significant advantage over the same product on other platforms.

Different Buyer Intent

Amazon buyers are typically:

• Purchase-ready - They came to buy, not just browse
• Less price-sensitive on quality - Willing to pay more for Prime reliability
• Impulse-friendly - One-click purchasing removes friction
• Brand-agnostic - They trust Amazon, not necessarily individual sellers

The opportunity: Amazon buyers often pay more than Etsy buyers for similar products. The Prime badge and Amazon checkout build trust that lets you price confidently.

Search-Driven Discovery

Unlike social platforms where you need to drive traffic, Amazon’s algorithm surfaces products to interested buyers. Good keyword optimization and steady sales velocity create a flywheel effect - more visibility leads to more sales leads to more visibility.

Two Paths: Merch on Demand vs. External POD

Amazon offers fundamentally different approaches for POD sellers. Understanding both is critical for choosing your path.

Which Path is Right for You?

Choose Merch on Demand if:

• You want zero operational complexity
• Apparel-focused designs (t-shirts, hoodies, tank tops)
• Passive income approach
• You can get an invitation

Choose External POD + FBA/FBM if:

• You want more product variety (mugs, posters, home goods)
• You need full pricing control
• You’re already selling on Amazon
• You want to use existing POD provider relationships

Most successful POD sellers eventually use both approaches, targeting different product categories with each.

Getting Started with Amazon Merch on Demand

Merch on Demand is Amazon’s native POD solution. No inventory, no fulfillment hassles - just upload designs and earn royalties.

How to Get an Invitation

Merch on Demand is invite-only, but Amazon regularly accepts new sellers:

1. Go to merch.amazon.com and request an invitation
2. Complete the application with your business information
3. Explain your design background and intentions
4. Wait for approval (typically 2-12 weeks)

Pro tip: Applications mentioning existing design experience, e-commerce history, or established brands tend to get approved faster. Link to your Etsy shop, design portfolio, or existing POD work.

The Tier System

Merch on Demand uses tiers that limit how many designs you can have live:

• Tier 10 - Starting point, 10 design slots
• Tier 25, 100, 500 - Unlock as you sell
• Tier 1000, 2000, 4000+ - High-volume sellers

You advance tiers by making sales. The key to growth: fill your slots with quality designs and let the sales come. One sale doesn’t instantly level you up - Amazon looks at consistent performance over time.

Creating Your First Products

Once approved:

1. Upload your design files (PNG, 4500x5400 for standard tees)
2. Choose product types (t-shirts, hoodies, tank tops, etc.)
3. Select colors (each color counts against your tier limit)
4. Write your listing (title, bullet points, description)
5. Set your royalty target (Amazon calculates your price)
6. Submit for review

Amazon reviews every design for trademark issues and content policy compliance. Most designs clear review within 24-72 hours.

Understanding Merch Royalties

Unlike traditional selling, you don’t set prices on Merch. You set royalty targets, and Amazon calculates the sale price:

• Standard t-shirt, $3 royalty target = approximately $15.99 price
• Premium t-shirt, $5 royalty target = approximately $25.99 price
• Hoodie, $8 royalty target = approximately $39.99 price

Higher royalties mean higher prices and potentially fewer sales. Most successful sellers start with competitive royalties ($3-4 for standard tees) and increase as designs prove themselves.

Selling POD on Amazon with External Providers

Not in Merch on Demand? You can still sell POD products on Amazon using providers like Printful, Printify, Gooten, or Gelato.

FBA vs. FBM Fulfillment

The Hybrid Approach

Many successful POD sellers use a hybrid strategy:

1. Test with FBM - List new designs with merchant fulfillment
2. Validate winners - Identify which designs actually sell
3. Move to FBA - Order inventory of proven sellers for Prime eligibility
4. Scale intelligently - Keep testing new designs while scaling winners

This minimizes inventory risk while maximizing the Prime advantage for your bestsellers.

Setting Up POD Integration

For FBM (direct POD fulfillment):

1. Create a Professional Seller account on Amazon ($39.99/month)
2. Connect your POD provider (Printful and Printify both support Amazon)
3. Create product listings on Amazon
4. Link products to your POD designs
5. Orders automatically route to your POD provider

For FBA:

1. Order inventory from your POD provider
2. Have products shipped to Amazon FBA warehouses
3. Amazon handles storage, fulfillment, and customer service
4. Reorder when inventory runs low

Pro tip: Start with FBM to validate designs with zero inventory risk. Once a design proves itself with 10+ sales, consider ordering FBA inventory to unlock Prime.

Amazon Listing Optimization for POD

Amazon’s A9 algorithm determines which products appear in search results. For POD products, optimization is everything.

Keyword Research

Unlike Etsy where browsing matters, Amazon is search-driven. Your keywords determine visibility:

• Primary keyword - Include in title, most important
• Secondary keywords - Include in bullet points and backend search terms
• Long-tail variations - Address specific buyer searches

Use tools like Helium 10, Jungle Scout, or even Amazon’s autocomplete to research what buyers actually search.

Crafting Your Title

Amazon gives you 200 characters. Use them strategically:

Format: [Brand] + [Primary Keyword] + [Key Features] + [Audience/Occasion]

Example: “Fishing Dad Gifts - Funny Fisherman T-Shirt for Men - Reel Cool Father Tee Shirt”

Include:

• Product type (t-shirt, mug, hoodie)
• Primary design theme
• Target audience
• Gift occasions if relevant

Bullet Points That Sell

Bullet points should address buyer concerns and include secondary keywords:

• Fit and comfort - Material, feel, sizing advice
• Design details - What makes this design special
• Gift potential - Occasions and recipients
• Care instructions - Washing and durability
• Quality assurance - Satisfaction guarantee language

Backend Search Terms

Amazon provides 250 bytes for hidden search terms. Use them all:

• Include misspellings buyers might search
• Add synonyms for your main keywords
• Include related occasions and events
• Don’t repeat words already in your title

A+ Content (Brand Registry)

If you have Brand Registry, A+ Content lets you add enhanced images and formatted text below your description. For POD:

• Show design close-ups
• Display size charts visually
• Include lifestyle images
• Tell your brand story

A+ Content can improve conversion rates by 3-10% on average.

Understanding Amazon Fees for POD

Your path determines your fee structure.

Merch on Demand Fees

There are no fees. Amazon handles production, fulfillment, and customer service. You simply receive your royalty per sale. That’s the beauty of the program - no fees to calculate, no surprises.

FBM (Merchant Fulfilled) Fees

• Referral fee - 15% of sale price for most apparel
• Monthly subscription - $39.99 for Professional account
• Per-item fee - $0.99 per sale on Individual accounts (skip this, go Professional)

Example calculation for a $25 t-shirt:

• Referral fee: $3.75
• POD cost: $12
• Shipping: $4-5
• Your profit: ~$4-5

FBA Fees

• Referral fee - 15% of sale price
• FBA fulfillment fee - Varies by size/weight (typically $3-5 for apparel)
• Storage fees - Monthly charges based on volume
• POD wholesale cost - Your cost to order inventory

Example calculation for a $25 t-shirt:

• Referral fee: $3.75
• FBA fulfillment: $4.50
• Storage: $0.20 (estimated)
• POD wholesale cost: $8-10
• Your profit: ~$2-4 per unit

The margin is tighter with FBA, but Prime eligibility significantly increases conversion rates and sales volume.

Reality check: Amazon margins are often thinner than Etsy. The advantage is volume. A design selling 5 units per month on Etsy might sell 50 on Amazon due to the traffic difference.

Amazon vs. Other POD Platforms

Why Multi-Platform Matters

The same design appeals to different buyers on different platforms:

• Amazon buyer: Searches “dad birthday shirt,” wants Prime shipping, makes quick decision
• Etsy buyer: Browses “unique father gifts,” values handmade story, reads reviews carefully
• eBay buyer: Compares prices, sorts by “best value,” comfortable with longer shipping

Each platform reaches distinct audiences. Listing across platforms multiplies your exposure without multiplying your design work.

Building Your Amazon POD Strategy

Start with Your Best Designs

Don’t experiment on Amazon. List designs that already sell elsewhere:

• Proven Etsy bestsellers
• High-performing Redbubble designs
• Designs with consistent sales history

Amazon rewards sales velocity. Starting with proven designs gives you momentum.

Focus on Search Optimization

Unlike platforms where social sharing or favorites matter, Amazon is almost purely search-driven:

• Research keywords thoroughly before listing
• Optimize titles for primary search terms
• Use all backend search term space
• Monitor which keywords drive your sales

Consider Seasonality

Amazon traffic spikes dramatically during:

• Q4 (October-December)
• Mother’s Day/Father’s Day
• Back to school
• Valentine’s Day

Plan your listings to be live and optimized before these peaks. Upload holiday designs months in advance.

Manage Reviews and Ratings

Amazon buyers heavily weight reviews. For POD:

• Respond promptly to customer questions
• Address quality issues through your POD provider
• Follow up appropriately after purchases
• Monitor your seller metrics carefully

A 4.5+ star rating significantly impacts conversion rates.

Pro tip: If a POD product arrives with print defects, work with your provider to make it right. One bad review hurts more on Amazon than other platforms because of how prominently ratings display.

Common Amazon POD Challenges

Trademark Issues

Amazon aggressively removes trademark-infringing listings. Before uploading:

• Search the USPTO trademark database
• Avoid brand names, sports teams, entertainment properties
• Be cautious with phrases that might be trademarked
• When in doubt, skip the design

Merch on Demand suspensions for trademark violations can be permanent.

Intense Competition

Some POD niches on Amazon are saturated. To compete:

• Find underserved sub-niches
• Focus on specific audiences rather than broad markets
• Use unique design styles that stand out
• Optimize your listings better than competitors

Thin Margins

Amazon takes a significant cut regardless of your path. Protect your margins:

• Price confidently - don’t race to the bottom
• Use the right fulfillment method for each product
• Calculate fees accurately before setting prices
• Focus on volume to compensate for lower per-unit profit

The Waiting Game

Success on Amazon often takes time:

• Merch on Demand tier advancement is gradual
• New listings need time to index and rank
• Reviews accumulate slowly at first
• Algorithm momentum builds over months, not days

Selling POD products across multiple marketplaces? Listinger helps you manage designs, track listings, and coordinate your POD business across Amazon, Etsy, and beyond - all from one dashboard.