Definitely not passive if you are doing the work yourself. I just can't bring myself to hire a VA and risk my account. Same with designs. I guess I'm a control freak.
I think if you can hire the right team and have the right system it can be fairly hands off after a while. But you better have some backup accounts.
I may hire a VA at some point though to upload designs to Redbubble and TeePublic.
RE: Is Merch by Amazon Passive Income?