is selling embroidery on etsy profitable
Last updated: April 2026 ·affiliate disclosure
Most embroidery sellers on Etsy see net margins between 35% and 55% after all fees, assuming you're pricing competitively and your materials cost is controlled. Profitability is real—but only if you treat it like a business, not a hobby. You'll need to move volume (15-30 units monthly minimum to justify the effort), keep material costs under 25-35% of selling price, and understand exactly what Etsy takes before you price a single item.
Etsy Fees for embroidery Sellers
Etsy charges you 6.5% transaction fee on the item price plus 3% + $0.20 payment processing fee on the total (item + shipping). On a $35 embroidery piece with $5 shipping, you lose $2.28 + $1.21 = $3.49 in fees. If you use Etsy Ads, expect another 5-15% of your revenue gone. Add Etsy Shop fees ($0.20 per listing monthly) and you're looking at 9.5-10.7% of gross revenue disappearing before you factor in labor, materials, or shipping costs.
Profit Margin Benchmarks
Good margins: You're selling custom embroidery hoops at $45+ with material costs under $12, netting you 55-60% before labor. Average margins: Standard pieces at $25-35 with $6-8 material costs give you 40-45% margin. Poor margins: Generic items priced under $20 or custom work quoted too low eat into your bottom line fast—you'll see 20-30% margins, which doesn't justify the hand labor involved. The difference between good and poor comes down to pricing power and material sourcing, not luck.
Calculate your actual numbers
The margins above are averages. Your real profit depends on your specific price, costs, and volume.
Run Your Etsy Profit Calculation →Verdict: Is It Worth It?
Embroidery on Etsy is profitable if you commit to volume and systems. You can make $15-25/hour in net profit per piece if you price right and your materials are dialed in. The reality: most hobbyist embroiderers underprice their work by 40-50%, killing profitability. If you're willing to do 20+ sales monthly and raise prices to $35+, yes—this works. If you're testing the waters with 2-3 sales monthly at $15 items, you're wasting time.
Frequently Asked Questions
What are the total Etsy fees for selling embroidery?
You pay 6.5% transaction fee + 3% + $0.20 payment processing. On a $35 sale with $5 shipping, that's $3.49 in fees total (9.8% of gross). Add $0.20/listing per month and optional Etsy ads (5-15% of revenue) and your total fees range from 10-25% depending on advertising spend.
What profit margins can embroidery sellers expect on Etsy?
Net margins typically range from 35-55% after Etsy fees but before labor costs. If your materials run $8-12 per piece and you sell at $35-45, you're hitting 40-50% margins. Custom work and higher-priced items ($50+) can push margins to 55-60%, but only if material costs stay controlled and you're not underpricing labor.
How much do Etsy embroidery sellers actually make?
Full-time sellers doing 20-30 sales monthly at $35-40 average price net $400-600/month after Etsy fees and materials. That's $15-25/hour in profit if you're spending 1-2 hours per piece on production and admin. Part-time sellers with 5-10 sales monthly make $100-250/month—not enough to justify the effort unless you're building a brand.
Are Etsy fees killing embroidery seller profitability?
Etsy fees (9.5-10.7% of revenue) are manageable if you price correctly—a $35 item absorbs the hit easily. The real profit killer is underpricing. If you're selling $15-20 items, yes, fees hurt. If you're at $35+, fees become background noise. The data shows sellers who price under $25 rarely survive long-term on Etsy.
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