Print on demand (POD) looks like a low-risk business model — no inventory, no upfront cost. But many sellers underprice and make almost nothing. Here is how to calculate your real profit and price correctly from the start.
Use the Print on Demand Profit Calculator to model your numbers before listing.
The POD Cost Stack
Every sale has four layers of cost:
- Base product cost — what Printful or Printify charges you per unit (e.g. £8.50 for a t-shirt)
- Fulfilment shipping — what your POD provider charges to ship to the buyer (e.g. £3.99)
- Platform fees — Etsy's 6.5% + listing fee + payment processing, or Shopify's payment processing
- Any ads spend — Etsy Ads, Meta Ads, Google Shopping
Your net profit is your selling price minus all four layers.
Example: Etsy T-Shirt at £24.99
| Cost | Amount |
|---|---|
| Printful base cost | £8.50 |
| Printful shipping (included in price) | £3.99 |
| Etsy transaction fee (6.5% of £24.99) | £1.62 |
| Etsy listing fee | £0.20 |
| Etsy payment processing (~3% + £0.25) | £1.00 |
| Total costs | £15.31 |
| Net profit | £9.68 (38.7%) |
A 38.7% margin at this price is workable, but leaves limited room for Etsy Ads. Run ads at more than £5 per day and you may be paying to break even.
What Margin Should You Target?
| Margin | Verdict |
|---|---|
| Under 20% | Too thin — one ad or return wipes it out |
| 20–30% | Viable if you have high volume and no ads |
| 30–50% | Good — leaves room for promotions and ads |
| 50%+ | Excellent — usually only achievable at higher price points or premium positioning |
The 2.5× Rule
A simple starting point: price at 2.5× your base product cost. If a hoodie costs £15 from Printful, start at £37.50. Then add your platform fees, shipping costs, and check what margin you actually land on.
For Etsy, 3× base cost is safer once you account for Etsy Ads.
Platform Comparison for POD
Etsy: Largest audience for POD products. Fees are moderate but stack up: listing fee, transaction fee, payment processing, and optional Offsite Ads fee (12-15% if a sale comes from an Offsite Ad). Good for custom, personalised, and niche designs.
Shopify: No referral fees, just payment processing (~2.9% + 30p). You keep more per sale, but you must generate all traffic yourself. POD on Shopify works well if you have an existing audience or run paid ads profitably.
Amazon Merch on Demand: Amazon pays you a royalty after deducting the product cost, fulfilment, and Amazon's margin. You set a list price and receive the difference. Highly competitive — differentiation through design is essential.
Biggest POD Pricing Mistakes
- Ignoring shipping in the margin calc — Printful shipping is a real cost even if buyers see free shipping in your listing
- Not accounting for Etsy Ads — if you run ads, you need 40%+ margin to stay profitable
- Pricing against cheap competitors — POD cannot compete on price with mass manufacturing; compete on design and personalisation
- One-size pricing — a premium design in a niche market can command 2× the price of a generic version of the same product
Calculate your real profit before listing with the Print on Demand Profit Calculator.