Merch by Amazon is Amazon’s newest platform. They sell t-shirts based on the print on demand model. There are tons of other print on demand services out there, so I didn’t understand what the big fuss was.
I finally applied for an invitation in February 2016 and got approved in March. I’m not a graphical artist, but I learned how to create simple text based designs. I created 25 of them and uploaded them for free to the platform.
In my first week I’ve only made $43.87 profits. But I’ve now realized what the big fuss was all about. I didn’t have to buy any inventory (Amazon printed the t-shirts themselves) and I didn’t have to pay for any advertising.
If you are familiar with other print on demand platforms (like Teespring), you know that you have to pay for ads to drive traffic, otherwise no one will see your t-shirts.
If you sign up for an Amazon Seller Account (FBA), you have to pay $39.99 for a monthly membership fee. You benefit from having your products listed on Amazon, but you have to handle the inventory, shipping, customer service, etc.
My first week profits weren’t impressive, but I was very excited to make my first $43 with 100% free organic traffic and no costs at all. I was even more excited because of the potential I saw in this. It proved to me that if I can make $43 with 25 t-shirts and no advertising, then all I have to do is publish more designs.
I did some simple math. I can create a design in 5 minutes. If I work for 2h a day I can create 25 new designs each day, that’s 7 x 25 = 175 designs a week. The new designs should bring in 7 * 25 * $43.87 = $7,677.25.
But there was one issue with this plan. You can’t upload unlimited designs. At first you have a limit of 25 designs. After you sell 25 t-shirts you are allowed to have 100 slots. After you sell 100 you are upgraded to 500 and so on.
Now it became more important for me to tire up so I could publish more designs, rather than squeezing the maximum profits from each sale. So I lowered the prices as a first strategy. This is not necessarily the best strategy to get more sales, but I’ll explain that later.
My Father’s Day sales went crazy. I made around $2,000 in profits only from those. But after it passed, my income seemed to get stuck at $1500/month level. It was great because I wasn’t uploading any more designs and it was just passive income. This made me lazy.
Until one day I realized I have so many empty spots and I’ve snapped out of the laziness. But I knew I needed a system to maximize profits, since tiering up was not the main goal anymore.
I’ve plaid a lot with price strategies, I’ve read physiological studies about pricing and tested everything I could think about. I kept track of all the tests so I could find the best approach.
After refining this, I compared the gut feeling (more like random) prices I was using and the system. The result:
- 100 t-shirts priced randomly – Profits: $217.83
- 100 t-shirts priced with the system – Profits: $453.21
Basically I managed to double my profits without any more designs, just pricing.
To give you a better idea of the impact, I’ve earned $4,327.44 in July and $7,892.43 in August just by changing the prices. I was very obsessed with pricing and didn’t upload any new designs during this time.
Although I’ve already accepted this is a numbers game and I needed more designs, I noticed that only 10% of my designs actually had any consistent sales. My next goal was to figure out what those had in common and if there’s a way to increase the percent of t-shirts that sold.
After analyzing everything from niches, keywords, how the Amazon search bar works, how Amazon does suggestions for products, best sellers from others and much more, I came up with a research system.
It took me 2 months of refining it, but it managed to increase my sale rate from 10% to 25%.
In September I was making around $4,000 a week and ended the month with $12,347.89 in profits. My biggest month so far was December when sales went up like crazy because of the holiday season. Before Christmas I was making 5 times more sales than usual. Now it got back to normal, but I can’t complain about the extra “Holiday Bonus”.
Looking back, this business proved to be much more fun, a lot more straightforward and way less time demanding than FBA and Teespring. With FBA you have to worry about buying inventory and customer service. With Teespring you have to worry about paying for ads.
There is nothing similar that I can compare this program to. It’s crazy, just being at the computer, making simple designs, uploading them and just waiting for passive income. All my traffic is 100% organic. I do not pay for advertising. My costs are $0. Then someone comes and pays $20 for a t-shirt and I get $7. It’s really insane. There’s also no customer service. I don’t have to pay for inventory. I don’t have to deal with suppliers from China or Amazon storage fees.
And there’s still so much room for expansion. When I get tiered up again, I will have space to upload even more designs. I’m also hopeful that in 2017 Amazon will expand the program to produce hoodies, hats and sweaters.
This is the biggest opportunity I’ve seen in a very long time. And it has only just begun.
If you haven’t applied, there is a waiting list. The best thing is to do it today. Don’t get frustrated that you have to wait. This is what happens to everybody, but it’s much better to do it today and catch the next batch of approvals.
P.S. I used to do 1 on 1 consulting, mostly because I love helping people (and the extra $500 per session wasn’t bad either). But it got tiring going over the same stuff over and over again. So I’ve created a course that covers everything:
– Writing your application letter: when Amazon does a batch of approvals you want to catch their attention and approve you instead of others by having a solid application
– Introduction to the platform: how to use it at full potential
– Text Based Designs in 5 Minutes: learn how to create text based designs in 5 minute without buying any software or hiring expensive designers
– Advanced Blueprint: the systems I developed in months of testing that boosted my sales and profits and much more
– pricing strategies
– keyword research
– protecting your business
– scaling your business
– 2 FREE extra bonuses (worth $760)
This way it can reach more people since it doesn’t require my time for consulting. Also people who didn’t afford $500 can have access to this information now.
Discounted Price: $9.99
P.S.S. If you’re not satisfied with the information, you have a 100% Money Back guaranteed for 1 year, because I believe in my system.
P.S.S. The program is available worldwide. You can sell from all over the world, your country of residence doesn’t matter.