Print-on-demand margins look healthy until you subtract the print partner's cost, shipping and marketplace fees. A $30 shirt can easily net less than $8 once everything is counted.
This example uses Etsy as the storefront, but the same math applies to any POD platform: enter the print cost as the item cost and the shipping you charge and pay.
Formula
POD profit = sale price + shipping charged − fees − print cost − shipping cost
POD sellers usually pay a per-item print cost that includes packaging, plus shipping to the buyer. Offsite ads are common in POD, so include an ad rate to see the effect on margin.
How to calculate it
- Enter the retail price and the shipping you charge the buyer.
- Enter the print partner's cost per item as the item cost.
- Enter the actual shipping cost you pay.
- Add an ad rate if you use marketplace advertising.
- Raise the price above break-even until the margin meets your target.
Worked example
Running a representative sale through the FeeScope engine gives:
Open the free calculator with your own numbers →
FAQ
What is a good print-on-demand profit margin?
Many POD sellers target a $8–15 profit per item rather than a fixed percentage, because print and shipping costs are largely fixed.
Why is my POD profit so low?
Print cost plus shipping plus Etsy's fees can exceed half the retail price on cheap items. Raise the price or choose lower-cost products.
Should I offer free shipping?
Free shipping can improve conversion, but you still pay the shipping cost and the transaction fee is charged on the item price. Test the net margin either way.
Do ads kill POD margins?
They can. A 12–15% offsite-ad rate on a low-priced item is a large share of profit, so factor it into your price.