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 and material costs. You can make money on Etsy selling embroidery, but profitability depends heavily on your production costs, pricing strategy, and sales volume. A seller with $5 material costs selling a design for $25-35 can hit 40-50% margins. However, many new embroidery sellers underestimate costs and fees, ending up with 15-25% margins or breaking even.
Etsy Fees for embroidery Sellers
Etsy charges you three main fees on every embroidery sale. First, there's a $0.20 listing fee per item (but listings last 4 months, so this is minimal). Second, Etsy takes 6.5% transaction fee on your sale price. Third, payment processing costs you 3% + $0.20 per transaction. Together, these fees total roughly 9.5-10% of your sale price before shipping. If you use Etsy Ads (which many embroidery sellers do), you'll pay an additional 5-15% depending on your daily budget. This means your true platform costs range from 15-25% of revenue.
Profit Margin Benchmarks
Good margins: You're hitting 45-55% net profit if your material costs are under 20% of sale price, you limit Etsy fees to 10%, and you're not using heavy ad spend. Average margins: Most embroidery sellers see 30-40% net profit after accounting for materials (25-35% of sale price), fees (15%), and occasional shipping overages. Poor margins: You're below 20% net profit if materials run 40%+ of your sale price or you're heavily discounting to compete. At $20 average order value with 35% margins, you need 150-200 monthly sales to hit $1,000 profit.
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 control costs and set prices correctly. You won't get rich—$2,000-4,000 monthly profit is realistic for a serious part-time operation—but it beats most Etsy categories. The barrier to entry is low (a $300-500 machine gets you started), and repeat customers are common. Your real challenge isn't profitability; it's scaling sales without driving margins down through discounting or ad spend.
Frequently Asked Questions
What are the total Etsy embroidery fees I should expect?
You'll pay approximately 10% in direct Etsy fees: 6.5% transaction fee, 3% payment processing, and $0.20 per order. If you run Etsy Ads, add 5-15% more. Most profitable embroidery sellers assume 15-20% total fee burden when pricing.
What profit margins should I target selling embroidery on Etsy?
Aim for 40-50% gross margin after materials and Etsy fees. If your material cost is $5 and Etsy fees are $2.50, you need to sell for at least $15-18 to hit this. Below 30% margins, you'll struggle to justify the time and stress of running the business.
How much do Etsy embroidery sellers actually make per month?
Active embroidery sellers earning $2,000-5,000 monthly profit typically move 150-300 orders monthly at $20-35 average order value. Top sellers in this category make $5,000-15,000 monthly, but they've usually been selling 2+ years and have built email lists or social followings.
Is embroidery more profitable than other Etsy product categories?
Yes. Embroidery typically yields 35-50% margins compared to 20-35% for print-on-demand or digital products. However, embroidery requires more time per order, so hourly profit matters more than margin percentage. At $50/hour labor cost, you need decent order volume to stay profitable.
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