Amazon’s (AMZN, $1,778.39) ‘Merch’ is the new tidal wave for the apparel industry
Against the backdrop of rising uncertainty and high expenses attached to global supply chains, apparel brands’ real challenge now is to get their merchandise closer to the point of sale.
Amazon Inc’s t-shirt printing service currently seems to be the go-to solution for many of them. Entertainment companies like Walt Disney (DIS) and Dr. Seuss are increasingly turning to Amazon’s platform are following this strategy where instead of approaching traditional stores, they are working by on-demand printing T-shirts that do not warrant wide distribution. They can now list overnight on Amazon all the merchandise on sale and then post booking they are ready to make it and ship it. This completely cuts out that whole traditional supply chains cost.
The benefit is mutual, as Amazon also gets to become a major player in the clothing industry in the process. When garments are produced on-demand, it prevents the pile-up of unsold products allowing brands to sell more stock at full price.
This format is called ‘Merch’ by Amazon that rids brands and content creators of maintaining an up-front inventory.
This model has succeeded in bringing royalty revenue from sales of licensed merchandise and services globally to $14.5 billion last year, up 2.6% from 2017.
For example, Dr. Seuss helps Amazon with design, but Amazon sources the clothing and handles the sales and distribution. Dr. Seuss Enterprises has increased sales through ‘Merch’ by 40% since opening its store on the site around 18 months ago. The on-demand service also allows brands to give frequent design updates and offer secondary characters that may not be available in traditional stores.
Beyond the United States, Amazon has launched a ‘Merch’ printing facility in Poland in mid-2018 that serves the British and German markets.
Aroon Indicator for AMZN shows an upward move is likely
AMZN's Aroon Indicator triggered a bullish signal on June 16, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 282 similar instances where the Aroon Indicator showed a similar pattern. In of the 282 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on June 11, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 23, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on AMZN as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on June 18, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMZN broke above its upper Bollinger Band on June 06, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.236) is normal, around the industry mean (4.190). P/E Ratio (33.953) is within average values for comparable stocks, (49.033). AMZN's Projected Growth (PEG Ratio) (2.691) is very high in comparison to the industry average of (1.411). Dividend Yield (0.000) settles around the average of (0.095) among similar stocks. P/S Ratio (3.447) is also within normal values, averaging (6.448).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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