digitaldrops

Passive Income

A calm guide to starting a print on demand business

How to start a print on demand business: choosing Printful or Printify, Etsy fee math, licensing for fonts and AI art, US taxes, and a tiny first listing.

To start a print on demand business, you make original designs and upload them to a printing partner such as Printful or Printify. You then connect that partner to a shop on Etsy or Shopify, or you sell through a marketplace that prints for you (Zazzle, Spring or Amazon Merch). Order a sample, then list. Nothing is printed until someone buys, so you can begin on free plans and spend very little.

Upfront work: two to four weekends to make your first 10 to 15 designs, order samples, write listings and set up one shop. Ongoing work: a few hours every week on new designs, promotion and customer messages, for as long as the shop runs.

How the model works

You create the artwork. Your partner prints it, packs it and ships it under your shop’s name. The customer pays your retail price, the partner charges you its base cost, and what’s left after platform fees is yours.

There is real demand. Grand View Research, a commercial research firm, estimates the global print on demand market at $13.1 billion for 2026. A big market also means crowded shelves, though. The designs that sell are usually the ones made for one specific person.

It’s worth asking yourself which of two shapes suits you. With a supplier plus storefront (Printful or Printify feeding Etsy or Shopify), you get more control and more margin, but also more setup. With a royalty marketplace (Zazzle, Spring, Amazon Merch), the work is lighter and the platform keeps a larger share.

Product ideas that sell

A small audience you can clearly picture is easier to reach than “everyone who wears shirts.”

  • Single-breed line art totes, for owners who already buy everything with their breed on it.
  • A houseplant care poster with light and watering notes, for first-apartment plant owners.
  • Hobby inside-joke tees for sourdough bakers, birders or crossword solvers, bought for themselves and as gifts.
  • Quiet, clever mugs for night-shift workers, usually bought by friends and family.
  • Personalized classroom wall prints with a teacher’s name, for parents shopping for end-of-year gifts.

If you’d like more ideas that pair well with print on demand, see these small AI business ideas for digital products.

Choosing a print partner

Tees are the usual first product because buyers understand them right away. They’re also the most crowded category, so the design and the niche have to do the selling.

On Printful’s pricing page, the free plan costs $0 a month and allows unlimited stores. It also gives 20% off sample orders, with one sample order a month of up to three items. The Growth plan is $24.99 a month and becomes free once you reach $12K a year in sales. It offers up to 33% off product pricing and a 14-day free trial. Branding costs extra: $0.99 for an inside label, $2.49 for an outside label, and $2.95 to $6.50 once per design for embroidery digitization.

Printify’s free plan covers five stores and unlimited designs, and the company states there are “no platform fees, listing fees, or hidden charges.” Premium is $39 a month billed monthly, or $24.99 a month billed yearly, with up to 20% off all products. Printify requires users to be at least 18.

Always order a sample before you list. When it arrives, check the print placement, how the colors look on fabric, and whether the size chart matches the fit.

Where your items are printed matters more now. The duty-free de minimis exemption has been suspended indefinitely for shipments other than international mail, so orders shipped into the US from abroad may face extra customs charges. Printful says most of its orders avoid cross-border tariffs because it fulfills locally. For US buyers, choose products made in the US.

Where to sell

PlatformWhat it costs youYour control
Etsy$0.20 listing, 6.5% transaction fee, 3% + $0.25 processing, 15% Offsite Ads fee on sales from those ads (12% for $10K+ shops)Medium
ShopifyMonthly plan plus payment processing (see Shopify’s US pricing page)Full
ZazzleYou set a royalty of 5% to 50%. A 35% to 50% marketing fee comes out of gross royalties depending on the product department, plus a 5% fee if your rate is above 10%. $50 minimum payout by PayPalLow
SpringFee built into the base cost of physical products. $25 minimum payoutLow
Amazon MerchRoyalty rates tied to the outside traffic you bringLow

Selling on Etsy

The Etsy fees above come from Printify’s breakdown of Etsy fees. New shops may also pay a one-time setup fee. Offsite Ads become mandatory once a shop passes $10K a year in sales.

Etsy treats print on demand items as “designed by a seller.” You have to name your production partner in your shop settings and disclose it on the listings it applies to. Read Etsy’s Creativity Standards before you list. Several 2026 seller guides say AI-assisted designs need disclosure too. Account owners must be 18 or older. Sellers aged 13 to 17 can sell only through a parent or guardian’s account, and the shop has to say so.

Here is a worked example built on assumptions, not quotes. Say you sell a tee for $28 and charge $5 shipping. We assume your supplier charges $13 for the shirt and $5 to ship it (your supplier’s catalog has the real prices). On the $33 order, Etsy takes about $2.15 in transaction fees, $1.24 in processing and $0.20 for the listing. That leaves you roughly $11.40. If the sale came through Offsite Ads, the 15% fee takes another $4.95, and you keep about $6.45.

Selling on Shopify

Shopify gives you your own storefront. Shopify’s own print on demand guide features Printful, Printify and Gelato as suppliers. You keep full control of your branding and customer emails. The trade-off is that you bring every visitor yourself.

Sales tax works differently here too. In the 45 states plus DC that have a statewide sales tax, marketplaces like Etsy and Amazon collect it for you. Those rules don’t cover sales on your own site, so registering becomes your job once you cross a state’s threshold. Most states use $100K, while California, Texas and New York use $500K. Confirm the rules with your state’s tax agency. Separately, Printful charges you sales tax on orders unless you upload a resale certificate under Dashboard, then Billing, then Tax information.

Selling with Amazon Merch

With Merch on Demand, Amazon prints and ships the item and pays you a royalty. Since June 1, 2026, royalty rates have depended on “royalty incentive groups.” Seller guides report that your group is set from a trailing two-month average of your sales from outside (non-organic) traffic, and updated monthly. Read Amazon’s own Merch pages for the current rates and sign-up rules before you plan around it. It works best as a second channel.

Licensing, quietly but firmly

You can start with almost no money. A free design tool like Canva is enough to begin, and this honest look at ChatGPT and Canva covers where those tools help and where they fall short.

The rules on rights are strict. Fonts need a license that covers merchandise for sale, and stock images need terms that allow printing on products. AI art adds a twist. The US Copyright Office protects AI output only where a human author has decided enough of the expressive elements, and prompts alone don’t count. That makes a purely AI-made design easy for others to copy. Printify’s terms also ban uploads that infringe anyone’s rights, including AI-generated content. Before you use a phrase, check it in the USPTO’s free Trademark Search. Avoid characters, logos and band names you don’t own.

A quiet word on taxes

This is general information, not tax advice. Check your own situation with a tax professional.

Print on demand income is taxable even if you never receive a form. Platforms issue a 1099-K only for payments over $20,000 and more than 200 transactions, as the IRS explains. Royalties of $10 or more are reported on a 1099-MISC, and Zazzle won’t pay you until you give it your legal name, address and SSN or EIN. Self-employment tax is 15.3% once net earnings reach $400. Estimated payments are generally required if you expect to owe $1,000 or more. To decide whether you run a business or a hobby, the IRS weighs 11 factors, such as keeping businesslike records and making a real effort to earn a profit.

The not-so-passive part

The printing is automated, but the rest isn’t. Designs need steady promotion through Pinterest pins, social posts or an email list. Customers write to you, not to the factory, about sizing, delays and misprints. Bestsellers need updating when a supplier drops a color or a blank. For a wider view of how much effort “passive” products really take, see passive income streams, explained for digital makers.

Platforms can also close accounts. Printify’s terms let it cancel registrations “for any reason,” so keep backups of your design files and records.

Be wary of coaching programs, too. The FTC banned Ascend Ecom, which sold AI-powered “passive income” stores, after consumers lost at least $25 million. A real print on demand shop costs very little to start, and you build it yourself.

Ship a tiny version

Before this week ends, make one design, put it on one product and list it on one platform.

  1. Pick one niche from your own life and make a single design, using a font you have a commercial license for.
  2. Search the phrase in USPTO Trademark Search.
  3. Put the design on a tee or tote in Printful’s or Printify’s free plan, then order one sample.
  4. When the sample looks right, list it on Etsy with your production partner disclosed, priced so the fee math still works.

Then leave it alone for 30 days and notice what people click on. One small listing will teach you more than another week of planning.

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