This video covers the design best practices for designing print on demand products
It's straight from the Amazon Merch resources tab
(You should spend some time in here, especially if you're new to Amazon Merch)
You'll see some tips on how to prepare your digital designs to be printed on "real life" products
And they go as far as to give tips on how to prepare designs based on how they will look in the digital mockups generated after you Merch product is published
(I disagree with their guidance from a sales-perspective... assuming, your end goal is to make as many sales as possible)
Check the video out for more info! It will help you reduce returns & increase customer satisfaction.