Stop Guessing Your Profits
Print on Demand (POD) is a game of volume and thin margins. A $5 profit per shirt sounds okay until a single return wipes out the profit from 5 other sales.
The Trap: "Gross" Profit
Selling for $25 with a $15 cost looks like a $10 profit. But after Etsy/Shopify fees ($2.50) and payment processing ($1.00), you're left with $6.50.
The Reality: "Net" Profit
Real profit accounts for the "Invisible Tax": monthly subscription fees (Canva, Midjourney), listing renewals, and the occasional misprint refund.
Scenario: You sell a Bella+Canvas 3001 on Etsy using Printify.
Revenue: $19.99 + $4.99 Ship ($24.98 Total)
Costs: -$10.50 Shirt - $4.50 Ship ($15.00 COGS)
Fees: -$1.62 Transaction - $0.20 Listing - $1.00 Payment
True Profit: $7.16 (28% Margin).
Note: If you run Ads at a $5 CPA, your profit drops to $2.16.
Margin FAQ
Etsy charges fees on the shipping cost and the tax you collect. They also charge a $0.20 listing fee every 4 months. Shopify has monthly fees but lower per-transaction take fees.
1. Bundle items (sell 2 for discount) to save on shipping.
2. Use
"streetwear" mockups to justify a higher price point.
3. Move to a private supplier
once you hit 50+ sales/day.