brian
business 0 Comment

What is Print on Demand on Etsy?

Print on Demand (POD) is a low-risk eCommerce model where you design custom products like t-shirts, mugs, posters, or tote bags — and a third-party supplier prints and ships the items directly to customers only after an order is placed. This means no inventory, no upfront product costs, and no need to handle shipping logistics.

Etsy, one of the world’s largest online marketplaces for handmade and customized products, is a popular platform for print-on-demand sellers. With over 89 million active buyers and more than 100 million listings, Etsy provides creators with access to a massive, global audience.

How to Sell Print on Demand on Etsy

Selling print-on-demand products on Etsy involves a few essential steps:

  1. Create Your Etsy Seller Account: Go to Etsy.com and open a shop by signing up as a seller.

  2. Connect to a POD Provider: Partner with a POD fulfillment company like Printify, Printful, or Gooten. These services integrate directly with Etsy.

  3. Design Your Products: Create custom designs using tools like Canva, Photoshop, or Illustrator. Apply them to products like t-shirts, hoodies, mugs, or wall art.

  4. Upload Products to Your Etsy Store: Sync your designs to Etsy via your POD provider. Add compelling product descriptions, titles, tags, and images.

  5. Set Competitive Pricing: Factor in the base cost of the product, shipping, Etsy fees, and your desired profit margin.

  6. Promote Your Shop: Use Etsy SEO, social media marketing, and possibly Etsy ads to drive traffic to your listings.

  7. Fulfillment Happens Automatically: When a customer places an order, your POD provider prints and ships the product directly to them.

Sounds pretty easy, right? But the reality of selling POD products on Etsy isn’t always as smooth as it looks on YouTube tutorials or blog guides.

Below are five crucial truths about selling print on demand on Etsy that you need to know before you start.

Are you considering Etsy print-on-demand as your next side hustle? If you’re looking for a low-cost, flexible business that could generate passive income, Etsy probably seems like a dream. But before you dive in, there’s a lot more to the story.

As someone with a background in finance and entrepreneurship, I decided to experiment with Etsy’s print-on-demand model. After over 50 hours of setup and research—and plenty of hard-earned lessons—I want to share the real truth about Etsy print-on-demand.

Here are five things I wish I knew before starting my Etsy store, especially if you’re hoping to turn this into a sustainable income stream.

1. Most Sellers Make Little or No Money

You’ll see tons of YouTubers claiming they make $5,000/month on Etsy. While some truly do, that’s far from the norm. In fact, according to Etsy’s own 2022 data:

  • There were 5.4 million “active” sellers, but an “active seller” includes those who didn’t even make a sale—just incurred a fee.

  • The average gross merchandise sales per active seller was only $2,169 per year.

  • Most sales are concentrated among top-performing shops, meaning the majority of sellers earn far less—or nothing at all.

If you’re going in expecting fast profits, you’ll likely be disappointed. Etsy isn’t a lottery ticket. It’s a grind, and most creators don’t see meaningful returns.

2. Success on Etsy Takes Significant Time and Effort

Yes, Etsy is easy to set up. But succeeding? That’s a whole different ballgame.

To start generating real sales, many successful shop owners recommend having hundreds of listings. Why?

  • Massive competition: With over 100 million items listed, standing out is difficult.

  • No guarantee of success: You won’t know what sells until you try.

  • Quality matters: Every listing needs compelling SEO, descriptions, titles, and mockup images.

If you’re not prepared to treat it like a part-time job upfront, Etsy print-on-demand may not work for you.

3. Etsy Fees Add Up Fast

Here’s a breakdown of the common fees that eat into your profits:

  • $0.20 listing fee per item (renewed every 4 months).

  • 6.5% transaction fee on the item + shipping.

  • 3% + $0.25 payment processing fee.

  • 15% offsite ad fee, if someone buys your product after clicking an external ad (you can opt out, but only if you sell under $10,000/year).

  • Value Added Tax (VAT) on international orders, depending on the buyer’s country.

These can quickly kill your margins if you don’t price your products strategically. And yes—you can lose money even if you’re making sales.

4. Sales Tax Is More Complicated Than You Think

Etsy collects and remits sales tax for most U.S. states. But if you’re using a third-party supplier for your print-on-demand products, there are two separate transactions:

  1. You buy the product from your supplier (and may pay sales tax).

  2. You sell it to your customer (Etsy collects sales tax on your behalf).

To avoid paying sales tax on the supplier purchase, you’ll need to get a resale certificate. This requires registering as a sales tax vendor in your state and filing regular tax returns—even if Etsy already handled your customer’s taxes.

It’s a small but important detail that adds to the administrative burden.

5. Your Profit Per Hour Might Be Shockingly Low

Let’s do a reality check. Say you sell $5,000/year worth of products on Etsy (which is already more than double the platform’s average). Let’s assume you have a 20% profit margin. That leaves you with $1,000 profit.

Now consider:

  • You created 100 listings, spending 1 hour each = 100 hours

  • You spent additional time on research, SEO, design, communication, and customer service

That’s already $10/hour, at best—and realistically, it’s probably lower.

This is not passive income unless you scale up massively and systemize everything.

So… Is Etsy Print-on-Demand Worth It?

Here’s the honest verdict:

  • If you’re committed to learning the platform, testing designs, and putting in consistent effort, Etsy can be a viable business over time.

  • If you’re only dabbling or looking for quick cash, it’s probably not going to work.

Etsy print-on-demand isn’t a get-rich-quick scheme. It’s a slow build that requires patience, creativity, and strategic thinking.

Final Thoughts

Before starting an Etsy print-on-demand shop, be honest with yourself. Are you ready to invest the time and energy it takes to stand out in a saturated marketplace? Can you handle the fees, taxes, and upfront work without seeing immediate returns?

If yes—go for it. Just go in with open eyes, realistic expectations, and a solid plan.

If you found this article helpful, share it with a fellow creator and consider subscribing to my blog for more no-fluff advice on side hustles, online entrepreneurship, and passive income ideas.

TAGS;

Etsy print on demand
Print on demand etsy
Best print on demand for etsy
Print on demand companies for etsy
Etsy print on demand partners

Write a comment