Is Selling Tote Bags On Merch By Amazon Profitable
Last updated: April 2026 ·affiliate disclosure
Tote bags on Merch by Amazon generate net margins between 20% and 35% for most sellers after all fees. You won't get rich, but tote bags are consistent performers because they have moderate production costs, reasonable retail demand, and lower return rates than apparel. The real question isn't whether tote bags are profitable—they are—but whether the profit-per-unit justifies your time uploading designs and managing inventory.
Merch by Amazon Fees for tote bags Sellers
Merch by Amazon takes a base royalty of 40% of your set retail price on tote bags. So if you set retail at $20, Amazon takes $8 immediately. You then pay the production cost (roughly $4–$6 per bag depending on material and print quality), leaving you $6–$8 gross profit before any other expenses. You also absorb payment processing fees (around 3%) and any refunds or chargebacks, which typically eat another 1–2% of revenue.
Profit Margin Benchmarks
Good margins on tote bags run 30–35% net profit after all costs. This happens when you price retail at $18–$24, keep production costs under $5, and maintain a healthy sales volume (50+ units per month per design). Average sellers see 20–25% margins with retail prices of $15–$18 and lower sales velocity. Poor margins drop below 15%—this occurs when you underprice ($12–$14 retail) or work with premium materials that cost $6–$8 to produce.
Calculate your actual numbers
The margins above are averages. Your real profit depends on your specific price, costs, and volume.
Run Your Merch by Amazon Profit Calculation →Verdict: Is It Worth It?
Selling tote bags on Merch by Amazon is profitable but not scalable for most sellers. You'll make money on volume, but each design typically generates $2–$5 in monthly profit unless it becomes a consistent seller. If you can design 20+ tote bag variations and upload them across three months, you might hit $500–$1,000 monthly revenue from this category alone. For serious income, you need to stack multiple product types (t-shirts, hoodies, mugs) alongside tote bags.
Frequently Asked Questions
What are Merch by Amazon tote bag royalties?
Merch by Amazon takes 40% of your retail price as their base royalty on tote bags. If you set retail at $20, Amazon keeps $8 and you keep $12 before production costs. The actual royalty you receive after production is typically $5–$8 per bag sold.
What profit margins should I expect on tote bags?
Most sellers see net margins between 20% and 30% on tote bags after factoring in Amazon's 40% royalty, production costs ($4–$6), and payment processing fees. A tote bag with a $20 retail price might generate $4–$6 in actual profit per sale depending on design complexity and material choice.
How much can I earn selling tote bags on Merch by Amazon?
A single tote bag design typically generates $50–$200 per month in profit if it sells 15–40 units monthly. Most sellers launching their first design see 5–10 sales per month initially, earning $20–$60 in monthly profit. To reach $1,000 monthly revenue, you'll need 15–25 designs with consistent sales.
Are tote bags more profitable than t-shirts on Merch by Amazon?
Tote bags and t-shirts have similar margin percentages (20–35%), but t-shirts typically have higher sales volume because they appeal to broader audiences. However, tote bags have lower return rates and production costs are more predictable. Profitability depends more on your design quality than product type.
Tools that improve these margins
The right research tool helps you find products with better margins before you invest in inventory.
Try Helium 10 Free →Affiliate link — we may earn a commission at no cost to you.
Related calculators
Compare Tote Bags across platforms
Sell Tote Bags on other platforms — fee and margin breakdowns for the same product type.
| Platform | Calculator | Breakdown |
|---|---|---|
| Redbubble | Open calculator → | View full breakdown → |
We monitor platform fees quarterly and email you when something affects your margins.