Where the money goes on a print-on-demand sale
You never hold stock: when a buyer orders, your print provider prints the product and ships it, and charges you its base cost plus shipping. Etsy takes its normal fees from what the buyer paid. Your profit is what is left.
Profit = price + shipping charged − Etsy fees − base cost − provider shipping
Example: a $24.99 T-shirt with free shipping
The base cost and shipping below are example figures. Copy the real ones from your provider's catalogue.
| Line | Amount |
|---|---|
| Buyer pays | $24.99 |
| Listing fee | $0.20 |
| Transaction fee (6.5%) | $1.62 |
| Payment processing (3% + $0.25) | $1.00 |
| Total Etsy fees | $2.82 |
| Provider base cost (example) | $9.50 |
| Provider shipping (example) | $4.75 |
| Profit | $7.92 (31.7% margin) |
If that order came from an Etsy Offsite Ad at 15%, another $3.75 would go to Etsy and the profit would fall to $4.17. The calculator shows this under every result.
Why print-on-demand margins are thin
- The base cost is fixed by someone else. You cannot buy materials cheaper in bulk, so the only levers are your price, the product you choose and the provider.
- Free shipping is not free. The provider still charges you shipping. With free shipping on Etsy, that cost must be inside your price; the free shipping calculator shows how much to add.
- Second items ship cheaper. Most providers charge less shipping for extra items in the same order, so bundles and multi-buy discounts can raise your profit per order.
- Leave room for ads and sales. A 15% Offsite Ads fee or a 20% sale can remove most of a 30% margin. Check a sale price with the discount calculator first.
Price for the profit you want
Switch to I want to keep and type the profit you want per order. With the example costs, keeping $8 needs a price of $25.08; keeping $10 needs $27.29. The Etsy pricing calculator does the same from a margin target.
Frequently asked questions
What is a good profit margin for print on demand on Etsy?
Many sellers aim for 25% to 40% after Etsy's fees and the provider's charges, so there is room for Offsite Ads fees and discounts. The right number depends on your costs; the calculator shows yours.
Who pays for shipping on a print-on-demand order?
The print provider charges you shipping for each order. You can charge the buyer shipping on Etsy or offer free shipping and build the cost into the price. Etsy's fees apply to shipping you charge.
Does Etsy charge fees on the provider's cost?
Etsy's fees are worked out on what the buyer pays, not on your costs. The provider's base cost and shipping simply come out of what Etsy pays you.
Do I need to enter sales tax?
No. In the US, Etsy adds, collects and pays the sales tax. Only Etsy's processing fee is charged on it; add the buyer's tax rate under Advanced to include that.
Sources
Etsy Fees & Payments Policy · Etsy Help: Payment processing fees by country
Last reviewed: November 2026 · By Muhammad Shujah Uddin Qazi · How we check rates · Fee changes tracker