What is Merch by Amazon?
Merch by Amazon helps you increase revenue through the sale of t-shirts designed by you and produced, sold, and shipped by Amazon. Merch by Amazon is a simple way for you to get started selling your merchandise from a product page on Amazon.com. You provide a design for a t shirt and Amazon will produce the product for any design that makes a sale for you using their raw materials. Even if it only sells one. You provide a design that people like enough to buy and Amazon do the rest.
What is Amazon FBA?
You sell it, Amazon ship it. Amazon has created one of the most advanced fulfilment networks in the world, and your business can benefit from their expertise. With Fulfilment by Amazon (FBA), you store your own products in Amazon’s fulfilment centres, and they pick, pack, ship, and provide customer service for these products.
Fees and differences between the two
There are a few differences between the two, the main being that with FBA you have to order the stock and get it sent to the Amazon fulfilment centre, with Merch by Amazon you only need to create a design and open a product listing and everything else is sorted by Amazon. This can lead to reduced Amazon warehouse fees as the product is only produced by Amazon once sold.
Fees with both differ as Merch by Amazon has a set cost price for the t-shirts plus a listing fee, which means anything above this will be your profit. Whereas with FBA you will have costs for your stock, Amazon warehouse fees, pick and pack fees and any advertising you decide to do on Amazon.
That makes FBA sound more expensive, but you will be able to get a much cheaper price for your product from the supplier, so the costs can work out cheaper. FBA gives you the option to sell anything you want whereas Merch is T shirts only.
The main disadvantage of using FBA compared to Merch is that you can only sell the products you have purchased where as with Merch by Amazon you can create up to 25 designs without even making a sale!
Benefits of Using Amazon
Using Amazon ahead of your own sales platform has great advantages, with the main one being that all of the products are sent from their fulfilment centres, meaning that you won’t need your own storage space or to pack any of the products when making a sale.
Amazon also offer a free return option which can help with customer service.
It also offers reviews, which are critical to your products success. You can contact customers that you have sold to asking to leave reviews on Amazon.com which in turn will shoot your product further up the product rankings.
Amazon also offers paid advertising which is a great, as it’s another source of advertising. When you sell product’s, most people will use targeted Facebook ads, but you can also do this with Amazon as well. This means you will have two sources of targeted ads for your product, you can set as many of these as you want and can cost anywhere from $0.10 – $2.00.
In summary for simplicity of business choose Merch particularly if you have creative designs but if have a bit of capital to invest you might want to you back yourself with the FBA system.