Per Unit
Monthly (150 units)
What is POD (Print on Demand) Profit?
POD profit is the net revenue remaining after subtracting all costs associated with selling print on demand products through Shopify. These costs include the blank product cost from your supplier, printing/decoration fees (DTG, embroidery, sublimation), custom branding and packaging inserts, shipping from your print provider to the customer, and Shopify platform and payment processing fees.
Unlike traditional ecommerce where you purchase inventory upfront, POD allows you to sell without holding stock. However, the per-unit costs are higher, making accurate margin calculation essential for profitability.
How to Calculate POD Profit
Follow these steps to calculate your print on demand profit accurately:
- Enter your Selling Price ($) - the price customers pay on your Shopify store
- Enter your Blank Product Cost ($) - what you pay for the base product (t-shirt, hoodie, mug, etc.)
- Enter your Print/Decoration Fee ($) - cost for printing, embroidery, or decoration
- Enter your Branding/Packaging ($) - custom packaging, inserts, or branded labels
- Enter your Shipping from Supplier ($) - cost to ship from print provider to customer
- Enter your Platform Fee (%) - typically 2.9% for Shopify Payments
- Enter your Monthly Units Sold - expected monthly sales volume
POD Profit Formulas
Platform Fee = Selling Price × Fee%
Total Cost = Product Cost + Print Fee + Branding + Shipping + Platform Fee
Net Profit = Selling Price - Total Cost
Profit Margin = (Net Profit ÷ Selling Price) × 100%
Monthly Profit = Net Profit × Monthly Units
Real-World Example
Scenario: Custom t-shirt store on Shopify, 150 sales/month
Input: Price: $34.99, Product: $8.50, Print: $6.00, Branding: $1.00, Shipping: $3.50, Platform: 2.9%
Results:
- Platform Fee: $34.99 × 2.9% = $1.01
- Total Cost: $8.50 + $6.00 + $1.00 + $3.50 + $1.01 = $20.01
- Net Profit: $34.99 - $20.01 = $14.98/unit
- Profit Margin: 42.8%
- Monthly Profit: $2,247
Top POD Products by Margin
- T-Shirts: 30-45% margins, highest volume products
- Hoodies/Sweatshirts: 25-35% margins, higher AOV
- Mugs: 40-55% margins, low production cost
- Phone Cases: 35-50% margins, popular accessories
- Tote Bags: 40-60% margins, low base cost
Frequently Asked Questions
What is a good POD profit margin?
Good POD profit margins are 30-45% after all costs. T-shirts typically yield 30-40%, hoodies 25-35%, and accessories like mugs and phone cases can reach 40-55%. Higher margins require strategic supplier selection and volume optimization.
How do I choose a POD supplier for Shopify?
Popular POD suppliers for Shopify include Printify (network of print providers, competitive pricing), Printful (premium quality, integrated with Shopify), Gelato (global production network), and Gooten (variety of products). Consider quality, shipping times, and margin when choosing.
What additional costs affect POD profitability?
Hidden costs include: returns (5-10% rate for apparel), Shopify subscription ($39-399/month), marketing spend, custom domain ($12/year), and chargebacks. Always factor in 10-15% for returns when calculating margins.
Can you make money with POD on Shopify?
Yes, successful POD sellers can earn $1,000-10,000+ monthly. Key factors: niche selection, quality designs, effective marketing, and consistent optimization. Start with a focused product line and scale as you learn what sells.
What's the best POD strategy for beginners?
Start with Printify for lower costs and supplier variety. Choose a specific niche rather than general designs. Focus on one product category initially. Build an email list early and reinvest profits into Facebook/Instagram ads.