Is Selling Embroidery On Etsy Profitable
Last updated: April 2026 ·affiliate disclosure
Most embroidery sellers on Etsy see net profit margins between 30% and 50% after all fees, but only if you're pricing correctly and managing production costs. You'll make money selling embroidery on Etsy, but it's not passive income—your profitability depends entirely on your material costs, labor time, and pricing strategy. A $25 embroidered item with $8 in materials and labor can net you $12-15 after fees. A $15 item with $10 in costs will barely break even.
Etsy Fees for embroidery Sellers
Etsy charges you 6.5% transaction fee on every sale, plus 3% + $0.20 payment processing fee. That's roughly 9.5% of your revenue going directly to Etsy on a $25 item. If you're using Etsy Ads, expect another 2-5% of revenue depending on your campaign performance. For a $25 embroidered item, you're paying about $2.38 in Etsy fees before you even consider your listing fee ($0.20 per item, renews every 4 months). Most embroidery sellers also pay for custom packaging and shipping labels, which cuts another 5-10% from your margin.
Profit Margin Benchmarks
Top embroidery sellers maintain 45-55% net margins by selling items priced $30-60 with material costs under $8 and fast production. Average sellers see 30-40% margins, pricing at $20-35 with $6-10 in material costs per item. Below-average sellers operate at 15-25% margins, usually because they're underpricing ($12-18) relative to their $8-12 production costs. Your margin depends more on what you charge than what you spend—a $40 embroidered hoodie with $12 in costs gives you better margins than a $18 item with $8 in costs.
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?
Yes, embroidery is profitable on Etsy if you treat it as a real business. You need to price items at 3x your material and labor cost minimum, focus on designs people actually search for, and be realistic about how long production takes. If you're hoping to make money without testing prices and managing costs carefully, you'll fail. If you're willing to optimize your supply chain and raise prices when items sell well, you can build a $2,000-5,000/month side business or more.
Frequently Asked Questions
What are the total Etsy embroidery fees I'll pay?
You'll pay 6.5% transaction fee + 3% + $0.20 payment processing, which totals about 9.5% of your item price. Add $0.20 listing fee per item and 2-5% if you run Etsy Ads. On a $30 item, expect $3.05-4.50 in fees before shipping and packaging costs.
What profit margins do embroidery sellers actually make on Etsy?
Good sellers see 45-55% net margins on items priced $30+. Average sellers see 30-40% margins. Poor margins (15-25%) usually come from pricing items too low relative to production costs. Your margin is determined by your price point, not your material costs.
How much do embroidery sellers make per month on Etsy?
Entry-level sellers make $300-800/month selling 20-40 items. Established sellers with optimized listings make $2,000-5,000/month. Top 5% of embroidery sellers earn $10,000+/month, but they've usually been selling for 2+ years and have 500+ reviews. Income scales directly with sales volume and price point.
Is selling embroidery on Etsy worth it compared to other platforms?
Etsy has higher fees (9.5%+) than Shopify (2.9% + $0.30) but gives you free traffic through search. You'll make more total profit on Etsy if you're starting out because you don't need to drive your own traffic. Switch to Shopify once you have 500+ repeat customers and your own marketing channel.
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