Print on demand replaces bulk inventory with made-to-order production. You upload artwork, list products on your store, and a print partner manufactures and ships each item after a customer pays you. This guide shows real profit margins on a $25 shirt and a mug, how automated fulfillment works, where return liabilities sit, and which partner fits your store. All prices reflect US list prices checked on 2026-10-03.
Worked example: what a $25 shirt and a mug really make
These store scenarios are hypothetical, but the rates are real. Both examples assume a US buyer paying through standard card processing at 2.9% + 30¢ (the standard rate on Shopify Payments Basic, Squarespace Core, and Stripe). The store operates on a free print-on-demand plan ($0/month).
A graphic T-shirt at two prices
Consider a custom tee using the Unisex Jersey Short Sleeve Tee. In Printify catalog, this shirt has an $8.77 base fulfillment cost. Standard domestic shipping from US providers like Monster Digital costs $4.75 for a single item (2 to 5 business days). Sourced vendor costs before card fees total $8.77 + $4.75 = $13.52.
- Sold at $25.00 total ($20.00 retail price plus $5.00 shipping, or $25.00 with free delivery). Card fees are 2.9% of $25.00 ($0.73) plus 30¢ = $1.03. Total costs are $13.52 vendor cost + $1.03 card fee = $14.55. Net profit is $25.00 - $14.55 = $10.45 (a 41.8% margin).
- Sold at $30.00 total ($25.00 retail price plus $5.00 shipping). Card fees are 2.9% of $30.00 ($0.87) plus 30¢ = $1.17. Total costs are $13.52 vendor cost + $1.17 card fee = $14.69. Net profit is $30.00 - $14.69 = $15.31 (a 51.0% margin).
| Cost component | Sold at $25 | Sold at $30 |
|---|---|---|
| Customer payment | $25.00 | $30.00 |
| Base garment cost | -$8.77 | -$8.77 |
| Vendor shipping fee | -$4.75 | -$4.75 |
| Card fee (2.9% + 30¢) | -$1.03 | -$1.17 |
| Profit per shirt | $10.45 | $15.31 |
| Profit margin | 41.8% | 51.0% |
On Printful, standard flat-rate shirt shipping in the US is $4.95 (20¢ more), and garment prices vary across its catalog of 567 products.
A ceramic mug at two prices
For rigid drinkware, consider an 11oz custom ceramic mug. Printify lists custom mugs starting at $4.93 on its Free plan. Standard domestic mug shipping starts at $6.39 due to protective packaging. Vendor costs before card fees total $4.93 + $6.39 = $11.32.
- Sold at $16.00 total ($10.00 mug plus $6.00 shipping). Card fees are 2.9% of $16.00 ($0.46) plus 30¢ = $0.76. Total costs are $11.32 vendor cost + $0.76 card fee = $12.08. Net profit is $16.00 - $12.08 = $3.92 (a 24.5% margin).
- Sold at $20.00 total ($15.00 mug plus $5.00 shipping). Card fees are 2.9% of $20.00 ($0.58) plus 30¢ = $0.88. Total costs are $11.32 vendor cost + $0.88 card fee = $12.20. Net profit is $20.00 - $12.20 = $7.80 (a 39.0% margin).
| Cost component | Sold at $16 | Sold at $20 |
|---|---|---|
| Customer payment | $16.00 | $20.00 |
| Base mug cost | -$4.93 | -$4.93 |
| Vendor shipping fee | -$6.39 | -$6.39 |
| Card fee (2.9% + 30¢) | -$0.76 | -$0.88 |
| Profit per mug | $3.92 | $7.80 |
| Profit margin | 24.5% | 39.0% |
On Printful, single-product shipping for an 11oz mug to US addresses is $6.69 ($3.50 for an additional mug).
When Printify Premium pays for itself
Printify Premium costs $24.99 a month billed annually ($299.88 a year), or $39 a month on monthly billing. It unlocks up to a 20% discount on catalog items and up to 33% off new arrivals.
On the $8.77 shirt, a 20% discount cuts $1.75 from production, reducing base cost to $7.02. On the mug, Printify lists starting pricing of $3.68 on Premium versus $4.93 on Free, saving $1.25 per unit:
- Annual billing ($24.99/month): For shirts saving $1.75 each, divide $24.99 by $1.75 to get 14.28 units. At 15 shirts a month, the discount saves $26.25 (15 × $1.75), beating the fee by $1.26. For mugs saving $1.25, divide $24.99 by $1.25 to get 19.99 units. At 20 mugs a month, the discount saves $25.00 (20 × $1.25), covering the plan.
- Monthly billing ($39/month): For shirts saving $1.75, divide $39 by $1.75 to get 22.28 units, breaking even at 23 shirts a month ($40.25 saved). For mugs saving $1.25, divide $39 by $1.25 to get 31.2 units, breaking even at 32 mugs a month ($40.00 saved).
| Billing option | Shirt break-even ($1.75 saved) | Mug break-even ($1.25 saved) |
|---|---|---|
| Annual ($24.99/mo) | 15 shirts/mo ($26.25 saved) | 20 mugs/mo ($25.00 saved) |
| Monthly ($39/mo) | 23 shirts/mo ($40.25 saved) | 32 mugs/mo ($40.00 saved) |
Rule of thumb: Under 15 sales a month, stay on the Free plan ($0/month). Upgrade to Premium on annual billing only when monthly sales consistently top 15 shirts or 20 mugs.
Run it with your own numbers: customer payment - vendor base price - vendor shipping - card fee (2.9% + 30¢) - storefront fee. The profit per order calculator models your profit per item, and the guide to online payments, fees and chargebacks details payment fees.
How the print-on-demand order flow works
An automated order passes through six steps:
- Listing creation: Upload artwork to the mockup tool, place it on a blank product, set your price, and publish to your store.
- Customer purchase: A buyer orders on your site, paying your retail price and shipping fee.
- Automated order sync: Your store transmits order specifications (garment SKU, size, color, artwork file, and shipping address) via API.
- Wholesale payment charge: The print service bills your card for base manufacturing, shipping, and any sales tax.
- Manufacturing and packaging: The facility prints the item, inspects it, and packages it with a packing slip bearing your store name.
- Carrier dispatch and tracking sync: The provider hands the package to a carrier (USPS, UPS, FedEx, or DHL) and tracking syncs back to your store.
You never hold inventory, manage warehouse space, or pack parcels.
Printful: for consistent apparel quality and owned factories
Printful operates owned facilities across the US (Charlotte and Dallas), Mexico, Canada, the UK, Spain, and Latvia. Direct facility ownership enables Printful to enforce a 3-step quality check across all locations.
- Free plan ($0/month): Connect unlimited store channels with access to 567 catalog products. Includes a 20% sample discount (one order per month of up to three items).
- Growth plan ($24.99/month): Includes a 14-day free trial, and is free for a year once sales hit $12,000. It offers up to 33% off product pricing, 9% off branding services, 25% off sample orders, and free embroidery sample digitization.
- Fulfillment speed: Production averages 2 to 5 business days. Standard domestic shipping in the US and Canada takes 3 to 4 business days.
- Custom branding: Inside apparel labels cost $0.99 per garment, replacing manufacturer tags with your logo. Outside collar labels cost $2.49 per item. Custom pack-in flyers can be stored for monthly storage and picking fees.
Printful fits sellers prioritizing consistent garment finishing, inside collar labels, and European or North American shipping. See our Printful vs Printify comparison for side-by-side details.
Printify: for lower base costs and supplier flexibility
Printify connects merchants to over 70 independent print providers across 140+ facilities worldwide. Instead of printing in-house, Printify lets you compare providers on base cost, turnaround speed, and location.
- Free plan ($0/month): Connect up to 5 stores per account with unlimited product designs across 2,000+ catalog products.
- Premium plan ($24.99/month billed annually, or $39/month monthly): Connect up to 10 stores per account with up to 20% off all catalog items and up to 33% off new products. Premium plans are non-refundable; unsubscribe before your renewal date to avoid charges.
- Fulfillment speed: Production turnaround spans 2 to 7 business days depending on the provider. Standard domestic shipping takes 2 to 5 business days. Express Delivery delivers within 2 to 3 business days combining production and transit on eligible US items.
- Custom branding: On-demand packaging inserts start at $0.15 per unit with no minimums and no storage fees. Custom neck labels start at $0.55 on eligible apparel.
Printify fits founders seeking lower base prices, wide product variety, and supplier choice. Read more in our guide to Printify pricing explained.
Returns, refunds, and who pays when things go wrong
You are the merchant of record. Your customer holds a contract with your store, not with Printful or Printify. Handling customer service, order tracking, and refund requests is your direct obligation.
Manufacturing defects and carrier damage
When items arrive damaged, misprinted, or defective, fulfillment services cover replacement costs:
- Printful: Covers free reprints or account refunds for damaged, misprinted, or defective items reported within 30 days of receipt. Lost transit packages must be reported within 30 days of the estimated delivery date.
- Printify: Under its Merchant Protection policy, Printify provides free reprints or account refunds for damaged or defective items reported through the dashboard with photo or video evidence within 30 calendar days of delivery.
Buyer remorse and customer sizing errors
Neither Printful nor Printify accepts returns or issues refunds when a buyer changes their mind or orders the wrong size. Because products are made to order, returned items cannot be restocked.
If a buyer requests an exchange for a different size, you have two options:
- Strict made-to-order policy: State on product pages and store policies that all items are custom-printed upon ordering. Clarify that returns cannot be accepted for buyer remorse or size errors, but that defects are replaced immediately at no cost.
- Merchant-funded sizing buffer: Offer size exchanges to shoppers, but build a 5% to 10% price buffer into your retail prices to fund replacement orders out of pocket.
Under the FTC Mail Order Rule, if you state no delivery window, you must have a reasonable basis to expect shipment within 30 days. If delays exceed that window, you must notify the customer and offer a refund.
For policy templates, consult our guide to legal pages and policies for an online store. Print services also charge sales tax on wholesale orders unless you upload an approved state resale certificate; see business basics for a US online store.
This guide is general information, not legal or tax advice.
Who should pick something else
Print on demand removes inventory storage, but it is not the right model for every business:
- High-volume sellers: Selling hundreds of identical shirts monthly makes commercial screen printing 50% to 70% cheaper per unit than print on demand.
- Custom cut-and-sew apparel: Print on demand prints onto pre-manufactured blanks from brands like Bella+Canvas and Gildan. If your garments require custom patterns or unique dyes, you need traditional manufacturing.
- Fast next-day delivery needs: Manufacturing takes 2 to 5 or 2 to 7 business days before shipping starts. Buyers expecting rapid delivery will face disappointment.
- Custom unboxing: Neither Printful nor Printify supports colored tissue wrapping, wax seals, or custom gift boxes.
- Founders unable to manage customer service: Buyers contact you directly. If you cannot handle sizing questions or tracking updates, sell digital downloads instead.
Common mistakes first-time POD sellers make
- Pricing without shipping in mind. Sourcing an $8.77 shirt and selling it for $15 with free shipping causes losses once $4.75 shipping and card fees are deducted. Always model landed costs before pricing.
- Skipping physical samples. Screen mockups look different from ink printed on cotton fibers. Order samples at provider discount rates (20% off on Printful Free) to inspect fabric weight, sizing, and print sharpness before public launch.
- Overlooking split shipments. If a customer orders a mug and a sweatshirt together, they ship in separate parcels with separate shipping fees, cutting order profit.
- Paying for subscriptions too early. Subscribing to Printify Premium ($24.99/month on annual billing) before reaching 15 shirt sales a month adds unnecessary fixed overhead. Start on a $0 plan and upgrade once sales data justifies the fee.
- Neglecting fulfillment payment cards. Automated order fulfillment halts immediately if your linked payment card is declined, creating customer delivery backlogs.
How to launch your first print-on-demand product this week
Follow these five steps to set up your catalog cleanly:
- Create free accounts: Register on Printify and Printful with your business email. Both provide design tools and full catalogs on free $0/month plans.
- Design your initial product: Select a proven blank (such as the Bella+Canvas 3001) or an 11oz ceramic mug. Upload high-resolution artwork at 300 DPI into the provider mockup tool.
- Calculate your profit margin: Apply the profit formula: retail price plus shipping charged, minus vendor base cost, vendor shipping, and card processing fees (2.9% + 30¢). Aim to clear at least $8 to $12 per garment before marketing costs.
- Order a sample: Buy a sample unit to inspect print quality, color accuracy, fabric feel, and packaging condition before launch.
- Connect your storefront: Install the print provider app inside your store platform admin (such as Shopify, Squarespace, or Wix) or link your Etsy shop. Publish your listing, verify retail prices display correctly, and place a live test order.
For storefront registration, banking, and business licensing, read how to open an online store and download our free launch checklist.
Sources (checked 2026-10-03)
- Printful: pricing, Free and Growth plan pricing, branding fees, sample discounts, and facility metrics
- Printful: shipping speeds & pricing, production times, shipping tiers, shirt and mug shipping rates, and fulfillment center locations
- Printful: return policy, 30-day claim policy, manufacturing error guarantees, and buyer remorse terms
- Printful: ecommerce integrations, supported store platforms and marketplace connections
- Printify: pricing, Free, Premium, and Enterprise plans, catalog size, provider network scale, t-shirt fulfillment cost example, and production cost footnote
- Printify: custom mugs, mug base pricing starting at $4.93 and $3.68 on Premium
- Printify: shipping rates, print provider network list, production timelines, and domestic US shirt and mug shipping speeds
- Printify: custom branding, neck label pricing, packaging insert costs, and on-demand branding features
- Printify Help Center: refunds and returns, Merchant Protection terms, defect reporting windows, and return address settings
- FTC: Mail, Internet, or Telephone Order Merchandise Rule, 30-day shipping requirement and merchant delay notice rules
