Your startup shouldn't have merch

PostHog describes its merchandise program as a demanding, costly operation rather than an easy branding opportunity, cautioning startups that producing attractive, well-fitting products and distributing them globally involves substantial design, sourcing, fulfillment, ecommerce, and customer-support work. Beginning with manual shipping by a founder in 2020, the company used five fulfillment partners over five years, encountering unfulfilled orders, inaccurate inventory data, API failures, slow production, expensive international shipping, and poor support before moving to its current provider, Micromerch. Merch has primarily served specific purposes such as sales incentives, startup-plan welcome kits, and recruiting outreach, but shipping costs—especially for inexpensive items such as stickers—have often made broad giveaways impractical. Product development has also required extensive sampling and quality control because items have had sizing, materials, availability, and production problems. PostHog now spends roughly $60,000 monthly on a program supported by about 1.5 staff members, with little meaningful revenue, but continues because merchandise creates enjoyment, strengthens community identity, and extends its established brand.

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