One of the issues for smaller bands is covering the upfront costs of purchasing merchandise, and at the same time predicting what kinds of merch their fans will want to buy.
Cafepress.com or Zazzle.com are both options that can alleviate some of these concerns. By using these sites bands can set the prices of their merch and offer a broad range of products - mugs, stickers, posters, as well as clothing - all with no upfront costs at all! The site handles mailing products out to your fans too, which removes this hassle as well. You can set the price at the cost of the goods (based on what the website charges) or at a profit.
Of course, you will still need to have some merch with you at shows, but having the diversity of products this site offers with so little additional work is definitely worth it.

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