How much do podcasts make on average?

Knowing how much money do podcasters make varies across the growing podcast industry. Very successful podcasts can make millions, but they all usually start with only a handful of listeners.

A common factor that many high-earning podcasters share is that they generate income through multiple monetization methods for stability and long-term growth. 

Podcasters who monetize with affiliate revenue, paid subscriptions, advertising, and sponsorships can earn anywhere from $500 to $900 per 10,000 downloads per episode.

Investing in quality podcasting equipment and software, a studio, and planning an engaging episode format takes time before yielding results. Initial expenses can be significant, posing a barrier before artists can earn a profit from their podcast content.

Top-earning podcasters

The highest-earning podcasts started from scratch and slowly grew into what they are now. Since everyone’s journey is different, it’s best to look at high earners as a reference point rather than a step-by-step guide for growing your own podcast.

Here are some of the most popular podcasts and their success stories.

• Joe Rogan

The Joe Rogan Experience remains one of the top podcasts, regularly featuring diverse guests from celebrities to scientists.

In 2020, Rogan signed an exclusive licensing deal with Spotify, reportedly worth over $200 million, with annual earnings estimated at around $60 million.

• Bill Simmons

Bill Simmons, founder of The Ringer and host of The Bill Simmons Podcast, has significantly influenced sports media.

In 2020, Spotify acquired The Ringer for approximately $200 million, pushing the podcast host’s net worth to an estimated $100 million in 2024.

• Dax Shepard

Actor and comedian Dax Shepard hosts Armchair Expert, a podcast exploring the “messiness of being human.”

In July 2024, Shepard signed an $80 million deal with Amazon’s Wondery, moving his podcast from Spotify.

Popular podcast monetization strategies

Podcasters can generate income internally through the podcast itself, or externally through related services and sales. Most successful podcasts make money through a combination of monetization methods on top of producing engaging content.

Determining which monetization method has the most potential depends on multiple factors:

• Podcast theme and content niche.
• Audience size and potential growth.
• Content schedule and frequency.
• Market saturation and competition.

Growing an audience of loyal listeners over time will unlock opportunities to earn via additional revenue streams using advertising and various podcast marketing strategies.

Let’s look at the most popular ways to monetize your podcast.

Selling merchandise

Develop a revenue stream from podcast listeners by selling branded products.

Mugs, t-shirts, and hoodies are some of the most popular items that’ll help amp up your podcast revenue.

Selling podcast merch with Print on Demand is effective and easy to implement. It requires no upfront investment, and the automated fulfillment process is perfect for generating passive income.

Affiliate marketing

Promote other companies’ products through podcast affiliate marketing.

This marketing model lets podcasters receive a commission for every listener who clicks and purchases from the their unique affiliate link.

Affiliate revenue from trusted businesses, like Shopify and Squarespace, is a reliable way to promote products to podcast listeners.

Check out the Printify Affiliate Program and learn how to earn more money by promoting an affiliate link.

Advertising and sponsorships

Making money with a podcast sponsorship or advertising involves partnering with businesses to promote their products or services within a sponsored segment.

Advertisers might pay per user click or impression, while sponsors can provide initial or long-term financial support in return for future promotional opportunities.

Podcasters can prepare advertising space through ads at the beginning or middle of their episode, known as pre-roll or mid-roll ads. Alternatively, use dynamic ad insertion to target specific listener demographics.

Join podcast advertising networks to connect with advertisers interested in reaching a specific audience.

Aligning partnerships with your podcast’s theme is crucial to keep listeners engaged and remain authentic while generating ad revenue.

Crowdfunding and donations

Donations through crowdfunding or direct payments require a loyal audience that supports your podcast’s content and believes in your brand message.

Many podcasters create crowdfunding events or ask for donations through platforms such as Patreon and PayPal.

Offer incentives to encourage listener donations, such as exclusive content or additional benefits, like early episode previews or access to a private chat community.

Digital products and services

Many podcasters produce exclusive paid content or sell additional services for additional income.

Think online courses, consulting services, or digital products related to your podcast niche, like topic research guides or eBooks.

It’s a smart way to repurpose content drafts or share your insights and expertise through premium, high-value content.

Make it happen today!

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Tips for a successful podcast

Creating a popular podcast means balancing quality and budget.

If you have the resources, consider outsourcing expert help and upgrade your tools once you generate higher podcast earnings.

Invest in quality

• Purchase quality podcasting equipment like microphones and headphones. Rent studio space if possible, or prepare an at-home audio booth.
• Invest time editing and mixing your recordings to sound polished and professional.
• Research your topics extensively to add value to listeners. Create an engaging podcast series to keep them coming back.

Pick a theme

• Choose topics you’re interested in and know how to research effectively.
• Practice a format that fits your personality, like solo shows, interviews, or panel discussions.
• Pick a suitable theme for which you can produce consistent content for optimal listener engagement.

Listen to your audience, but remain unique

• Pay attention to constructive feedback while maintaining your own style and voice.
• Continually improve your episodes by staying up-to-date with trends and listener interests.
• Focus on researching your target podcast audience and how they consume your content.

Prepare for monetization

• Use analytics tools on your podcast hosting platform to gather valuable insights into your performance.
• Maintain an engaged audience to maximize revenue. Advertisers pay a premium for large podcasts with thousands of downloads.
• Build a strong personal brand to attract relevant sponsors.

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Challenges in podcast monetization

While some achieve great success, other podcasters struggle to stand out in a crowded market. 

Here are key challenges to consider:

Podcast market saturation

With over 5 million active podcasts, persuading advertisers can be difficult. Finding a unique topic that isn’t already covered is tough, but you can differentiate your show by exploring untapped niches.

Attracting and keeping sponsors

Sponsors often hesitate to invest in average podcasts with fewer than 10,000 downloads per episode.

They also closely monitor performance, so make sure your content aligns with a sponsor’s target audience and create relatable and advertiser-friendly episodes.

Lack of data

Podcasts often lack the detailed metrics advertisers use to measure performance, like listener demographics. This makes it harder to demonstrate your value to potential sponsors.

Supplement your pitch using data from other marketing channels, like social media and email campaigns.

Sell custom merchandise on your podcast with Printify

Start selling custom merchandise on your podcast to attract more listeners and make money with no additional costs. Work exclusively online and earn passive income with Print on Demand.

POD is an eCommerce business model that helps you easily design and sell high-quality apparel and accessories to your audience worldwide.

Printify has over 1,000 unique products to support your podcast journey. The process is easy: 

1. Sign up for free.
2. Pick a product from our Catalog.
3. Add designs to create merchandise.
4. Integrate your online store.
5. Set prices and promote the merch on your podcast.

Start with zero initial investment and no inventory – we’ll handle all production and shipping. Get inspired with our list of podcast merch ideas and start generating podcast income.

FAQ

To summarize

There is no one-size-fits-all answer to how much podcasters get paid. Factors like how many listeners tune in impact how podcasters generate revenue.

Ultimately, artists must create interesting podcast content while leveraging sponsorships, donations, podcast advertising, and affiliate revenue to make money podcasting.

Creating your own merchandise with a print-on-demand service like Printify is an excellent way to supplement your podcast earnings and strengthen your brand for more monetization opportunities.

Make it happen today!

Start selling

There are countless ways to make money online from the comfort of your home. And, no – you don’t need some difficult remote job. Even total beginners can earn money online with just an internet connection and dedication.

In this article, we’ll go over how to make money online for beginners step by step. We’ll share best practices for earning money online, the secrets to making passive income, and list resources to get you started. 

How to make money online for beginners without investment

We made a list of the best ways for beginners to make money online without investment so you can start earning big from home. From freelancing and selling products to streaming or teaching, there’s a way to turn your skills and resources into a thriving online business.

1. Open a print-on-demand store

Opening a print-on-demand (POD) online business with Printify lets you sell personalized products like custom hoodies, stickers, consumer products, home decor, and even custom-printed pint glasses without holding inventory or spending anything upfront. Design and list unique items, and when customers make purchases, Printify’s partner network handles the printing, packaging, and shipping.

Startup time: A few days to set up your online store and design products.

Requirements: None

Best for: Entrepreneurs and creatives looking to start an online retail business with minimal upfront investment.

Tips: Success in POD depends on choosing the right products and niches. Make great designs and stay updated with market trends, use high-quality images, and create a good digital marketing strategy to reach your target customers. 

Where to get started: Printify. Create an online store using one of our popular integrations, such as Shopify, Etsy, or WooCommerce.

2. Start a dropshipping business

Dropshipping is an online business model where you sell products without holding inventory. When a customer makes a purchase, the item is shipped directly from the supplier to the customer, eliminating the need for storage or fulfilling orders yourself. Like those eBay listings with products that come to you straight from China.

Startup time: A few days or weeks to set up an online store and find reliable suppliers.

Requirements: Basic knowledge of eCommerce platforms and marketing.

Best for: Entrepreneurs looking to start an online retail business with minimal upfront investment.

Tips: Success in dropshipping depends on choosing the right products and suppliers. Research trends, invest in digital marketing, and use automation tools to streamline the order management process. Customer service is super important, so take time to build a consistent, friendly communication style with shoppers.

Where to get started: 15 Best dropshipping suppliers

3. Start selling online courses

If you have specialized skills or knowledge in any particular subject, consider sharing your insights through online courses as a side hustle.

Startup time: A few weeks to create course content and join educational platforms.

Requirements: Expertise in a subject and the ability to create engaging content.

Tips: Focus on quality content and engaging presentation. With many free courses available, make sure yours stands out with structured, valuable information. Add unique insights, practical examples, and engaging visuals to your course. Promote your course on social media and through your network to attract students.

Where to get started: Skillshare, Teachable.

4. Participate in market research

Provide feedback through surveys, focus groups, and product testing. Companies use this data to improve their products and services. Answering research questionnaires is convenient for beginners who want to make money online from home.

Startup time: Less than an hour to sign up on market research platforms and complete your profile.

Requirements: None

Best for: Individuals looking for a flexible, low-effort way to earn extra money.

Tips: Sign up for multiple survey sites to increase opportunities, be honest in your responses, and complete your profile to get matched with more research. Join reputable platforms to avoid scams.Where to get started: Survey Junkie, Swagbucks, Pinecone Research

5. Become a content creator

If you’re overflowing with creativity, creating high-quality content is a great way to earn income online with the potential to become a full-time business. Use social media platforms like Instagram and TikTok to earn cash online by being charmingly creative with various types of content, from self-promotions to sponsored posts. 

Startup time: A few days to set up your chosen platform and start creating content.

Requirements: Moderate. Requires creativity, consistency, and an understanding of the platform you choose.

Best for: Creatives who enjoy making videos, writing, or sharing unique ideas to engage an audience.

Tips: Focus on a niche you’re passionate about, use eye-catching visuals, and interact with your audience to build a loyal community.

Where to get started: WordPress, Wix, or Squarespace for blogging. YouTube and Twitch for streaming and videos. Instagram and TikTok for short videos, Reels, and creative posts.

6. Try affiliate marketing

Partner with brands to promote products or services and earn a commission for each sale made through your referral link or sponsored post. It’s a popular way to make money online by leveraging your audience on blogs, social media, or other websites.

Startup time: A few days to sign up for affiliate programs and integrate referral links into your content.

Requirements: Content creation skills and the ability to drive traffic to your links.

Best for: Bloggers, influencers, and website owners with an engaged audience.

Tips: Choose high-quality products that align with your niche, create honest and detailed reviews, and use multiple channels to promote your affiliate links. Build trust with your audience to increase conversion rates. 

Where to get started: Printify Affiliate Program, Amazon Associates, CJ Affiliate, ShareASale.

7. Become a virtual assistant

Virtual assistants offer services and online support through chat or email, handling online tasks like customer service, data entry, and social media account management. It’s an ideal gig if you have excellent time management and communication skills.

Startup time: A few days to set up profiles on freelance websites and apply for jobs.

Requirements: Internet access, organizational skills, and proficiency in communication tools, plus any other specialized knowledge clients may need.

Best for: Organized people with strong multitasking abilities and a desire for flexible, remote work.

Tips: Highlight your skills and experience in your profile, seek feedback to improve, and manage your time efficiently to handle multiple clients. This role can vary widely depending on the client’s needs, so be flexible and adaptable. Building a good reputation will attract more clients, increasing your income. 

Where to get started: Fiverr, Upwork.

8. Offer design services

Designing is a great way to earn money online and includes creating graphics, logos, websites, or marketing materials. It requires creativity, design software proficiency, and an understanding of client needs.

Startup time: A few days to build a portfolio and set up profiles on freelance platforms.

Requirements: Design skills and knowledge of design tools.

Best for: Creatives with a knack for graphic design, web design, or branding.

Tips: Build a strong portfolio and keep up with design trends. Network with other designers, seek feedback to refine your work, and offer competitive pricing to build a client base.

Where to get started: Fiverr, Upwork, Dribbble.

9. Freelance writing and editing

Make money online for free by freelance writing. Create or refine content for blogs, websites, marketing materials, and more. This requires strong language skills, creativity, and attention to detail.

Startup time: Online freelancing needs a few days to build a portfolio and set up profiles on freelance platforms.

Requirements: Excellent writing and editing skills.

Best for: People with a talent for writing, grammar, and a keen eye for detail.

Tips: Consistently deliver well-written content, get familiar with different styles and niches, join writing communities for support, and offer competitive rates to attract your first clients. 

Where to get started: Dribbble, Fiverr, Upwork.

10. Video editing

Create and enhance video content for various online platforms, including social media, YouTube, and marketing campaigns. This requires proficiency in specialized software, creativity, and attention to detail.

Startup time: A few days to build a portfolio and set up profiles on freelance platforms.

Requirements: Video editing skills and knowledge of commonly used tools.

Best for: Creatives with a knack for storytelling through video and proficiency in video editing software.

Tips: Create a strong portfolio showcasing your best work, network with other video editors, keep up with trends, and offer competitive rates to attract initial clients.

Where to get started: Upwork, Fiverr, Freelancer, and Behance.

11. Sell stock photos

Selling stock photos to earn money online involves taking high-quality images and uploading them to stock photography websites. Businesses and individuals purchase these photos for different uses, providing you with a steady stream of passive income.

Startup time: A few days to take and edit photos, then upload them to stock photo websites.

Requirements: Photography skills and an understanding of what makes a marketable image. 

Best for: Photographers looking to monetize their work and hobbyists wanting to make extra income from their photography.

Tips: Focus on high-demand categories, use high-quality equipment, upload new images regularly, and optimize your photos with relevant keywords and descriptions.

Where to get started: Shutterstock, Adobe Stock, iStock, Alamy.

12. Transcribe recordings

Transcribe meetings, podcasts, or various audio and video content to make money online without startup costs. This work involves listening to audio files and accurately typing out the spoken words.

Startup time: Just a few hours to set up accounts on transcription platforms and familiarize yourself with transcription guidelines.

Requirements: Fast typing and good listening skills.

Best for: Individuals with good listening and typing skills looking for flexible work-from-home opportunities.

Tips: Use transcription software to improve efficiency, invest in good headphones, and practice regularly to increase speed and accuracy.

Where to get started: TranscribeMe

13. Do data entry tasks

Becoming a data entry specialist is one of the easiest ways to make money online for beginners. It involves entering information into a database or computer system. 

Startup time: A few hours to find and apply to job listings.

Requirements: Good attention to detail.

Best for: Beginners looking for straightforward online work that doesn’t require specialized training.

Tips: Double-check your work for errors, follow the client’s instructions and preferences, use data entry software to increase efficiency, and set up a distraction-free workspace to focus.

Where to get started: Indeed, FlexJobs.

14. Podcasting

Podcasting is a creative way to make money online by producing audio content on topics you’re passionate about. With a growing audience for podcasts, you can earn through sponsorships, listener donations, and ad revenue.

Startup time: A few days or weeks to get recording equipment, plan episodes, and publish your podcast.

Requirements: Good communication skills, basic audio editing knowledge, and consistency.

Best for: People who enjoy speaking, storytelling, and sharing knowledge or opinions on various topics.

Tips: Consistent, high-quality content and great promotion are key to growing your listener base. Invest in a good microphone, use editing software to enhance audio quality, and promote your podcast on social media and through collaborations.

Get started: Buzzsprout, Podbean, Spotify for Podcasters.

15. Become a social media manager

Manage and grow social media accounts for businesses or individuals. This role includes creating content, engaging with followers, and analyzing performance metrics to improve online presence.

Startup time: A few days to set up profiles on freelance platforms and start networking.

Requirements: Knowledge of social media platforms, content creation, and analytics.

Best for: Individuals with strong communication skills, creativity, and an understanding of social media trends.

Tips: Build a strong personal social media presence as a portfolio, offer competitive rates initially, and use social media management tools to streamline your work. Stay updated on trends and algorithms and tailor content to the target audience.  

Where to get started: Fiverr, Upwork, Hootsuite, Buffer.

16. Answer online surveys

Filling out online surveys involves providing your opinions and feedback on various topics. Companies use this information for market research, and you earn money or rewards for participating. It’s an easy way to make extra cash with minimal effort.

Startup time: Most survey sites require a few hours to sign up and complete your profile.

Requirements: None

Best for: People looking for a flexible, low-effort way to earn extra money.

Tips: Sign up for multiple online survey sites to increase opportunities, complete your profile to match with more online surveys, and participate consistently. Only join reputable platforms to avoid scams.

Where to get started: Survey Junkie, Swagbucks, Pinecone Research.

17. Create and sell digital products

Sell eBooks, printables, software, or an online course that can be sold repeatedly with minimal ongoing effort. It’s a scalable way to earn passive income by using your expertise and creativity.

Startup time: A few days to weeks to create the product and set up a sales platform. 

Requirements: Moderate design skills.

Best for: Creatives, educators, and professionals looking to monetize their knowledge and skills.

Tips: Focus on a niche you’re passionate about, invest in good design and content, do thorough market research, and use social media and email marketing to drive sales.

Where to get started: Etsy, Gumroad, Shopify.

18. Twitch streaming

Twitch streaming involves broadcasting live content, such as gaming, music, or creative activities, to an online audience. Streamers earn money through subscriptions, donations, and sponsorships. It’s a popular way to monetize your hobbies and build a community.

Startup time: A few days to set up your streaming equipment and create a Twitch account.

Requirements: Basic technical skills and ability to make engaging content.

Best for: Gamers, musicians, and creatives who enjoy live interaction and have a charismatic personality.

Tips: Stream regularly, engage with viewers through chat, use social media to promote your streams, and collaborate with other streamers to grow your audience. Use quality equipment to create an enjoyable viewing experience for your audience. 

Where to get started: Twitch, Streamlabs, OBS Studio, Discord.

19. Test websites and apps

Test websites, software, and mobile apps by using and reviewing digital products, then provide feedback on usability, functionality, and design. Companies use this feedback to improve their products. It’s an easy way for beginners to make money online with minimal effort.

Startup time: A few hours to sign up on testing platforms and complete initial assessments.

Requirements: Basic computer skills.

Best for: Individuals looking for flexible, low-effort ways to earn extra money online.

Tips: Be thorough and honest in your feedback, complete tests promptly, and sign up for multiple platforms to increase opportunities.

Where to get started: UserTesting, TryMyUI, Userlytics, Enroll. 

20. Sell handmade crafts

Create and sell unique, handcrafted items such as jewelry, home decor, or artwork. This is a great way for artisans and artists to monetize their creativity and reach a broad audience online.

Startup time: A few days to create your crafts and set up an online store.

Requirements: Crafting skills and some knowledge of eCommerce platforms and marketplaces, your own website (optional).

Best for: Artisans and hobbyists who enjoy making handmade items and want to turn their passion into profit.

Tips: Focus on creating unique, high-quality products, post appealing photos on social media to showcase your work, tailor your marketing to your target audience, and participate in online craft fairs to gain exposure.

Where to get started: Etsy, Shopify, Amazon Handmade.

21. Become a YouTuber

Create and share video content on YouTube, which can cover a wide range of topics such as vlogging, tutorials, reviews, or entertainment. Earn by landing sponsorships, selling merch, and getting collabs with other YouTubers.

Startup time: A few days to set up your channel and create initial content.

Requirements: Video production skills, creativity, and consistency.

Best for: Individuals who enjoy creating videos, have a specific niche or passion and are comfortable in front of the camera.

Tips: Consistency and quality content are key to building an audience. Understanding YouTube’s algorithm and engaging with your viewers can enhance your channel’s growth. Invest in good equipment, plan your content, use SEO and other marketing strategies for video titles and descriptions, and promote your videos on social media.

Where to get started: YouTube, TubeBuddy, Canva, Patreon.

22. Translation

Translate documents, websites, books, and more. It’s an ideal way to make money online if you’re proficient in multiple languages.

Startup time: A few days to sign up on freelance platforms and showcase your translation skills.

Requirements: Proficiency in at least two languages and strong writing skills.

Best for: Bilingual or multilingual people with excellent language skills and attention to detail.

Tips: Accuracy and cultural nuances are crucial in translation. Specializing in a niche can increase your marketability and let you set higher rates. Build a strong portfolio, get certifications if possible, and use CAT (Computer-Assisted Translation) tools to improve efficiency.

Where to get started: ProZ, Upwork, Fiverr.

23. Sell things you no longer need

Selling stuff online is a good way to declutter your home and earn some extra cash. This can include clothes, electronics, furniture, and more. 

Startup time: A few hours to gather items, take photos, and list them on selling platforms. 

Requirements: Basic knowledge of online marketplaces.

Best for: People who want to declutter their homes and make money online.

Tips: Price items competitively, use multiple online platforms to reach a broader audience, and ensure items are clean and in good condition before listing. Good photos and honest descriptions can help sell items faster. Be prepared to handle buyer questions and shipping logistics.

Where to get started: eBay, Facebook Marketplace, Poshmark.

24. Become an online tutor

Offer tutoring services over the internet in topics you’re knowledgeable about to make money on your spare time. This can range from academic subjects like math and science to languages and music. An online tutoring business is a flexible way to earn more money while helping others learn.

Startup time: A few days to sign up on tutoring platforms and create your profile.

Requirements: Expertise in the subject you wish to teach and good communication skills.

Best for: People with teaching experience or subject matter expertise who enjoy helping others learn.

Tips: Consistent, high-quality teaching can lead to more referrals and repeat students. Prepare lesson plans and materials in advance to enhance the learning experience. Highlight your qualifications and experience in your profile, offer a free trial lesson to attract students, and ask for feedback to improve your teaching methods.

Where to get started: Wyzant, Preply, VIPKid.

25. Resell domain names

Purchase valuable or in-demand domain names and sell them at a higher price. This is a lucrative way to make money online if you have an eye for trending topics and keywords.

Startup time: A few days to research, purchase domain names, and list them for sale.

Requirements: Knowledge of market trends, domain valuation, and negotiation skills.

Best for: Individuals with an interest in digital real estate and an eye for market trends and valuable keywords.

Tips: Success depends on choosing the right domain names. Be patient, as some domains may take time to sell. Understand the legalities and best practices of domain reselling. Research trending topics, use domain appraisal tools to estimate value, and network with potential buyers in niche forums and online marketplaces. 

Where to get started: GoDaddy Auctions, Flippa, Namecheap Marketplace, Sedo.

What’s the easiest way for beginners to make money online?

Selling custom merch online with Print on Demand (POD) is risk-free and easy to start – all you need is some time and creativity. 

And the best part? With time and dedication, a POD store can move beyond just a side hustle and become a full-time income source. 

Step 1: Sign up

Sign up for Printify for free and enter a fun name for your business.

Step 2: Pick your products

Browse our ever-expanding Catalog of over 1000 products to find the perfect merch for your store and customer base. 

Filter products by the fulfillment location, material, or printing method. Choose your favorites and click Start designing.

Step 3: Design your merch

Use our free, beginner-friendly Product Creator to upload an existing image, add photos and text, create patterns, adjust sizing, switch colors, or even generate AI images.

Step 4: Connect a store

Once you’ve chosen a sales channel for your listings and created a store page, integrate it with Printify under My account – My stores – Add new store. 

Printify integrates with leading online marketplaces and eCommerce platforms like Wix, Etsy, Shopify, and many more to streamline listing and order fulfillment.

Step 5: Create listings and start selling

Write detailed product descriptions, use high-resolution photos or the mockup photos we provide, and list your custom merch in your online store to start selling.  

Once a customer orders from you, our Print Providers will print and ship the items directly to their doorstep. You won’t pay a penny up front for production since every item is created on demand.

FAQ: How to start making money online for beginners

Make money online as a beginner today

It’s completely possible to make money from the comfort of your own home with the skills and knowledge you already have. With an internet connection and some creativity, anyone can start a successful online business and achieve financial freedom!

What taxes do Etsy sellers need to file?

Once you start selling on Etsy and making a profit, your store qualifies as a business and has to comply with national tax laws and regulations.

If you don’t intend to profit, your Etsy store might qualify as hobby income and is not taxable.

Every Etsy seller working as a business is subject to the following taxes:

Tips for tracking your business expenses and claiming tax deductions

Having an accurate view of all your business expenses will help you budget essential business costs and lower the total sum needed to pay income taxes. However, the IRS requires that business deductions are proven as ordinary and necessary:

Ordinary – expenses that are common and accepted in the specific business industry.

Necessary – expenses that are used for your business to succeed and function properly.

Many of your expenses can qualify as tax deductions, but you’ll need to keep documents that claim them as legitimate, protecting you from audits and tax consequences. Often, an independent business owner uses a business account to track their costs separately.

The IRS considers the following as appropriate proof of a deductible business expense:

• Credit card payments, receipts, and statements
• Account statements and invoices
• Cash register tapes
• Cash slips for cash payments
• Receipts for entertainment, travel, transportation, and gift expenses
• Canceled checks

The costs of running an Etsy business might include the following expenses:

• Home office or studio space
• Inventory expenses
• PayPal and other bank fees
• Listing and advertising fees
• Education and business tools
• Insurance and retirement plans
• Postage and shipping supply costs

Keep records of all business expenses to make filing your taxes easier. Use your deductible estimates to assess and pay taxes for eligible income and self-employment tax forms.

Overview of common tax forms

Let’s take a look at some tax forms any business owner on Etsy should be aware of.

Does Printify collect sales tax?

Etsy is registered as a marketplace facilitator in most states with sales tax requirements. This means that Etsy automatically remits sales tax. To avoid double-taxing, your Etsy income from partnered Printify integrations is exempt from sales tax charges.

Etsy taxes: FAQ

Final thoughts

Etsy is an excellent online marketplace for self-employed people. Etsy Payments sales take transaction fees and sales taxes into account, and the platform provides adequate information and resources for shop managers to pay self-employment tax and file forms in due time.

Make sure to claim expenses to limit overtaxing and follow up on any new net income threshold requirements as your business scales and grows in profit. Pay as you go and research any additional tax advice on official IRS government websites or from a tax expert.

Make it happen today!

Start selling

Etsy is one of the best marketplaces for launching your print-on-demand store, especially if you’re a newbie seller.

In this article, we’ll cover everything you need to consider when selling on Etsy, like fees and applicable costs, to see exactly what percentage Etsy takes for its eCommerce services. 

Let’s dive in!

Managing marketplace fees with Etsy payments

Signing up and opening a shop on the Etsy marketplace is free. However, three mandatory Etsy seller fees will apply once you add product listings and start making sales.

Etsy fees are processed through the Etsy Payments system, and all transactions will be automatically registered and deducted from your Etsy account. Understanding and managing your account payments is crucial to learning how to sell on Etsy.

Your customers can use Etsy Payments to purchase your products via multiple payment options:

• Credit cards
• Debit/bank cards
• Etsy gift cards
• Etsy Credits
• PayPal
• Apple Pay
• Google Pay
• Country-specific payment options

Basic Etsy fees

How much does Etsy charge to sell? We’ll look at all the seller fees and use the insights to create a profit estimate and see exactly how much it costs to sell on Etsy with Print on Demand.

Region-specific fees

Etsy may apply additional mandatory fees depending on your store’s listing currency, applicable taxes, and Etsy platform operations. These fees affect on-site transactions and vary depending on the Etsy sellers’ region.

Optional fees

Other Etsy fees are optional but offer advantages for store advertising, product personalization, as well as other store customization features.

Subscribe to these options if you have a particular campaign idea in mind or if your business model relies on one of these unique sales methods. However, these options will change how much an Etsy shop (per month) is going to cost you in the long term.

Percentage Etsy charges to sell

What percent does Etsy take in total? Based on everything listed, the marketplace can take an average of 20% to 25% of the total purchase price made by the end customer.

We’ve made a cost-to-sell percentage estimate to visualize your potential end profit when selling print-on-demand (POD) products on Etsy. 

This example will showcase a US merchant selling Printify’s bestselling Unisex Jersey Short Sleeve Tee from Monster Digital to a customer in California, sold at the current 7.25% Californian clothing sales tax.

Your final cut will depend on the profit margin you add to the initial product manufacturing price, shipping, and estimated Etsy fees (20%). We’ll use a 30% profit margin and see how Etsy fees affect the final revenue.

Cost description	Calculation (USD)
Listed buyer’s price (incl. shipping)	+21.7
Etsy Listing fee	-0.20
Etsy Transaction fee (incl. Shipping)	-1.41
Etsy Payment Processing fee	-0.90
Sales tax paid by buyer	-1.57
Total Etsy fees charged	-4.08 (19.1%)
Profit from Etsy withdrawal	+17.62
Printify Production fee	-9.82
Printify Shipping fee	-4.00
Total Printify order costs	-13.82
Final profit	+3.80

For European sellers, additional VAT fees will apply, increasing total Etsy fees to around 30%. To limit shipping costs, choose a local Print Provider for your on-demand products.

Financial pros of selling on Etsy marketplace

An Etsy listing costs $0.20 – that’s how much you need to start. Etsy is an entry point for eCommerce selling, and you can closely follow your expenses to understand if it’s working for you or not.

If you’re a beginner eCommerce seller or have a niche customer base, watch our video on how to open a print-on-demand shop on Etsy. Without an existing audience, Etsy can help you find who your products speak to most. This is crucial for establishing a successful marketing strategy to increase brand awareness and traffic growth.

Financial cons of selling on Etsy marketplace

The initial operating costs on Etsy are relatively low, especially for sellers with a small number of sales. However, as your business grows, the cumulative effect of Etsy’s higher listing and transaction fees comes into play. This could result in higher expenses compared to selling in bulk on other eCommerce platforms.

Here’s a cost-to-sell comparison between selling on an Etsy store and opening your own store domain with Shopify (Shopify Basic Subscription). Note the difference between the number of items sold and total monthly fees between both platforms:

	Etsy	Shopify
Item cost	$15.00	$15.00
Items sold	10 ($0.20*)	10
Listing fee	$0.20	–
Transaction fee	$9.75 (6.5%)	$3.00 (2%)
Processing fee	$4.75 (3%+$0.25)	$4.65 (2.9% + $0.30)
Subscription fee	–	$29
Total monthly fee	$16.50	$36.65

	Etsy	Shopify
Item cost	$15.00	$15.00
Items sold	100 ($0.20*)	100
Listing fee	$0.20	–
Transaction fee	$97.50 (6.5%)	$30 (2%)
Processing fee	$45.25 (3%+$0.25)	$43.80 (2.9% + $0.30)
Subscription fee	–	$29
Total monthly fee	$162.75	$102.80

*Items sold fee on Etsy is an additional listing fee that applies to every subsequent sale of that item. This is not the same as the initial listing fee or later renewal fee for a new or updated listing stock.

**The Shopify Basic plan costs $29/month if paid annually but $39/month for monthly subscription payments.

FAQ

Closing thoughts

How much does it cost to have an Etsy shop? Having an Etsy storefront is free. However, once you start a business, you’ll need to consider listing and sales fees from your transactions.

When researching how much Etsy charges for selling, start by identifying your regional sales tax rates. Then, look into any other region-specific fees that might apply to your store: payment processing fees, regulatory operating fees, and Etsy transaction fees.

Calculate your mandatory payment processing and Etsy transaction fee based on your product price. Set your pricing at a profit margin that compensates for an average of 20%-25% per sale taken by Etsy.

How much does the average Etsy seller make?

Earnings vary widely, even among active sellers. For example, there’s CaitlynMinimalist, who records over 49,000 purchases a month on a regular basis, but she’s only one highlight among thousands of other Etsy sellers.

If we take a closer look at some real-life examples among successful Etsy sellers, who use Printify as their Print on Demand partner, Cassiy Johnson reported making a yearly profit of $63,000 before taxes.

Still, it’s not a get-rich-quick scheme; you’ll need to invest much of your own time and effort to start earning money on Etsy.

This involves conducting market research, optimizing your store and product listings, and engaging your audience, which can make or break average Etsy stores.

Is selling on Etsy worth it?

Etsy is an excellent place to start and grow a business. However, to ensure your business is profitable, it’s important to learn how to sell on Etsy and consider all the pros and cons.

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Things to sell to start a successful Etsy shop

Who are Etsy sellers?

According to an Etsy seller survey carried out by Statista in 2022, 97% of respondents run their Etsy shop from home, and 82% are run by just one person.

This shows that Etsy is a great place to start your own business without needing a physical shop location.

Another 54% indicated that they are multi-channel sellers, highlighting the importance of reaching customers across various platforms to maximize sales potential and business growth.

Etsy selling tips from top Etsy shops

Take great photos

Invest in good lighting and staging to capture compelling product images and incorporate lifestyle photos to help potential buyers visualize using them in real-life scenarios.

If you sell print-on-demand products, use our Product Creator to create high-quality product mockups.

Mistakes to avoid with your Etsy store

Skipping research

Many Etsy sellers overlook valuable resources like the Etsy Seller Handbook, community forums, and tutorials, which can result in missed opportunities and unnecessary setbacks.

Be sure to learn the ins and outs of the marketplace before becoming an active seller.

Understanding Etsy fees

Although each fee might seem small on its own, they can quickly add up to much larger sums – Etsy can take an average of 20% to 25% from every sale you make.

Here’s a quick overview of the fees you can encounter on this sales channel.

What should the profit margin be for your Etsy products?

Your profit margin is the percentage of revenue you keep after deducting all costs linked to producing and selling products.

To simplify your Etsy income calculations and save precious brainpower, use our Etsy Calculator.

While you have the freedom to set retail prices as high or low as you wish, we recommend maintaining a minimum profit margin of 40%-50% to actually make money on Etsy.

How to make money on Etsy with Print on Demand?

Create your Etsy shop

To successfully sell on Etsy, register an account, then open a shop by clicking Get started.

You’ll need to create your first product listing manually through your Etsy account to be able to launch your shop.

Be sure to set up your payment and billing information – link your bank account and fill out all the necessary details.

Once your shop is open, take the time to customize it to reflect your brand’s unique identity.

Final thoughts on starting an online business with Etsy

Starting an Etsy shop can be a rewarding experience, but it’s important to approach it with realistic expectations and a solid strategy.

How much can you make on Etsy? That depends on various factors like your chosen customer base, what products you sell, and, most importantly, how much time and dedication you can invest in creating and running your Etsy store.

Streamline order fulfillment and reach your financial goals with Printify!

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Start selling

Does Spotify pay for podcasts?

New podcasters looking to partner with Spotify to make money are unlikely to get a licensing agreement without a significant listener base and popularity, like The Joe Rogan Experience.

Unlike Spotify Payouts for musicians, Spotify usually doesn’t pay podcasters – creators have to rely on payments from listeners or sponsorship and advertising deals. 

However, podcast hosting platforms constantly compete to offer creators ways to reach more listeners and monetize their audience directly within the platform. Here’s a run-down of the possible ways major podcast streaming platforms enable creators to generate income from quality content:

	Private-label dropshipping business
Spotify	– Ad programs – Fan support tools – Spotify podcast subscriptions 100% of earnings minus processing fees)
YouTube Music	– Channel memberships – Fan support tools – Ad monetization (~$1-$2 per 1,000 views)
Google Podcasts	No existing payment infrastructure (exc. Google AdSense)
Apple Music	Apple podcast subscriptions (70% of earnings minus applicable taxes)
Amazon Music	No existing payment infrastructure (exc. Amazon Influencer Program, Art19 ad-rolls)

How to make money with Spotify podcasts

To earn money podcasting on Spotify, get your audience engaged. Develop a monetization method that offers listeners merchandise, memberships, or exclusive content. You can also apply for an ad network, affiliate marketing, or podcast sponsorship.

Here are six ways experienced podcasters make money from podcasts on Spotify.

What are Spotify’s podcast paid subscriptions?

Spotify offers a paid subscription program that allows creators to charge their audience for podcast content monthly – on Spotify as well as other listening platforms. Spotify pays 100% of the earnings minus any applicable transaction fee

How to make money on Spotify selling physical products

Promoting and selling print-on-demand merch offers various opportunities. You can increase the podcast’s reach and offer physical value to listeners that other monetization methods don’t tackle. The best part – it can be done as quickly as setting up a donation page.

The steps to sell merchandise with Printify:

1. Create an account. Sign up for free to access the Printify product fulfillment network.
2. Select a product. Choose your merch – custom t-shirts, custom mugs, hats, and more – from the Printify Catalog.
3. Add a design. Upload a podcast logo, slogan, or artwork using the Printify Product Creator (previously known as Mockup Generator).
4. Set a retail price. Go to the My products page and click to edit a selected product’s pricing, tags, and description.
5. Create a listing. Build an eCommerce shop to list your products (e.g., Shopify store or Etsy marketplace) and add your products through Printify’s eCommerce integrations.
6. Promote merchandise. Invite listeners and track orders while Printify fulfills and delivers merchandise on your behalf.

Conclusion

While Spotify doesn’t typically pay podcasters directly, it offers multiple monetization tools to help creators succeed in developing an audience and creating ways to make money in the digital medium – Paid Subscriptions and Ad programs.

However, by combining merchandise, affiliate sales, exclusive content, online courses, ads, sponsorships, and listener donations, podcasters have reached millions of listeners and maximized their earning potential to support quality content.

FAQ: Spotify podcast monetization strategies

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Once you’ve set up an online store, it’s time to price your t-shirts to attract customers while making a high enough profit. This article will help you plan a t-shirt pricing strategy, factoring in your brand, competitors, and target customer base.

We’ll cover how to determine product expenses with the print-on-demand fulfillment model and how Printify can give you an advantage when setting up your custom t-shirt price list.

Evaluate your expenses

To start pricing t-shirts for profit, you must first consider your expenses. A retail business has two types of costs: fixed and variable.

Fixed costs remain mostly stable, regardless of your production volume. These are your overhead expenses and may include:

• Monthly utilities
• Internet access
• Office space
• Employee salaries
• Platform subscriptions
• Product listing fees
• Web domain hosting

Variable costs are the expenses you pay to create products. The more you produce, the higher the costs. Variable costs will help you calculate the final retail price and total profit margin of your t-shirts. 

They’re not a regular thing, and they usually happen during specific times, like when you’re developing a new product and need to hire a freelance designer. Fulfillment costs also fall under this category, as they cover shipping and other logistics – but only when something actually sells. 

Here are the common variables when it comes to selling t-shirts online:

• Design costs – These are the costs of hiring a talented designer to bring your t-shirt vision to life.
• Production costs – This covers printing your design onto each t-shirt, including materials and labor.
• Platform fees – These are the fees charged by your selling platform, like Shopify or Etsy, for listing and selling your products.
• Shipping costs – The price of getting those awesome t-shirts safely to your customers’ doorsteps.
• Marketing costs – This includes any expenses you incur promoting your apparel business, like social media ads or influencer partnerships.
• Taxes – Don’t forget about those pesky taxes! These will vary depending on your location and business structure.

What are the costs of Print on Demand?

With a print-on-demand service, you don’t have to worry about stocking inventory or buying expensive printing equipment. Products are only made when customers order, so you only pay for what you sell.

Printify makes POD even easier, with no upfront costs, automatic order fulfillment, and a transparent pricing structure.

Printify offers dozens of bestselling blank shirts for printing, all with a set production cost and shipping price in our Product Catalog. Our pricing calculator makes setting prices and profit margins easy.

How to price custom shirts for retail

Before we get into pricing estimates, let’s look at a few factors successful sellers use to gauge how high they’re willing to set their prices.

• Target audience – What is the customer willing to pay you?
• Competitors – What selling prices do other merchants set?
• Fixed costs – What are the monthly expenses of running your business?
• Variable costs – How much does each t-shirt cost to produce, promote, and sell?
• Customer experience – Does the quality of the product have the potential to make sales?

We can divide these factors into two opposing categories: existing market estimates and your own t-shirt business expenses. To price t-shirts successfully, you must find a balance – a competitive pricing sweet spot.

T-shirt profit margins

In retail, the markup you add to compensate for expenses and earnings is called a profit margin percentage. The higher the percentage, the more you get. However, you’re less likely to attract customers if you charge higher prices.

Cost of manufacturing + profit margin = final retail price

What is a good profit margin for custom t-shirts? We recommend retailers shoot for a minimum profit margin of 40% for their t-shirt business. 

This is usually enough to pay for fixed and variable costs, keep prices competitive, and make enough profit to continue growing your store.

As an example, the following formula shows a retail price calculation for Gildan’s Unisex Heavy Cotton T-Shirt with a combined manufacturing and shipping cost of $14.06:

$14.06 (base cost) x 40% (profit margin percentage) = $5.62 (final profit)

$14.06 (base cost) + $5.62 (final profit) = $19.68 (final retail price)

You can round up your shirt’s retail price to $19.99, resulting in a profit margin of $5.93. Use this formula to create a basic profit estimate for any t-shirt.

How to update your custom t-shirt pricing on Printify

If you’ve decided to sell t-shirts with Printify, updating your shirt pricing is simple. Log in to your existing Printify account, or sign up for free. Once you’ve created a custom shirt, follow these steps to update pricing:

1. Go to the My Products page on your Printify account dashboard.
2. Choose one of your t-shirts on the list and scroll down to Pricing.
3. Apply your new retail price for an individual variant, or use the bulk pricing feature. For the latter, select multiple products or click Select all, update new costs through Edit Price, and check any relevant details from the pop-up menu to sync with your online store.
4. Click Publish at the bottom of your product page.
5. Go to your store to see the updated price.

Our best-selling custom t-shirt price list

To compete in the ever-growing t-shirt market, you have to know what sells best. Let’s look at some of the bestselling t-shirts offered in our Catalog for an optimal retail price breakdown. Keep in mind that with Printify, the shipping cost isn’t calculated into the final retail price since customers will pay that separately.

T-shirt Name	Manufacturer	Production Cost (USD)	Shipping Cost paid by customer (USD)	Suggested Price (USD)
Unisex Jersey Short Sleeve Tee	Bella+Canvas	$11.42	$4.29	$19.03
Unisex Heavy Cotton Tee	Gildan	$9.77	$4.29	$16.28
Men’s Short Sleeve Tee	Delta	$13.67	$5.19	$22.78
Unisex Garment-Dyed T-shirt	Comfort Colors	$14.69	$4.29	$24.48

Interested in more bestselling picks? Go to the Printify Catalog and select t-shirts from our Bestsellers category.

Then, scroll down to see our Print Provider options with detailed production and shipping costs. It’s best to select a Print Provider that fulfills products in your target audience’s region.

Some t-shirt pricing strategies

Before you sell, ensure that your rates can compete with existing markets, grow your business, and reflect the quality of your t-shirts. Here are a few popular t-shirt pricing tips and strategies to implement depending on your specific goals.

Value-based pricing

A value-based strategy sets your average price based on how much money customers think your shirt is worth. This framework is often used by specialty stores or luxury brands and requires a lot of research, customer service, and continuous improvement to be successful.

Communicate with your audience and research competitors to create a buyer persona. Learn about customer wants and needs and add those designs and features to your t-shirts for a competitive advantage.

Competitor-based pricing

Set a t-shirt price that’s similar to your competitors’ prices. This will ensure you have as much potential to make sales as other stores in your selected product niche and category.

Research other marketplaces and find retailers with similar product catalogs. Gather the average t-shirt price and use that as a benchmark for your products. Once you’ve gathered the data, you can match, increase, or lower your price depending on your growth.

Dynamic pricing

With dynamic pricing, you aim to change your t-shirt costs for different customer demographics and sales channels. This strategy establishes a baseline to reach more customers, changing prices depending on what works best at any time. Basically, you price your t-shirts not based on a fixed value but on a fluid scale that responds to real-time market conditions and customer behavior.

Sell on different marketplaces and see what works in the long run based on market trends and customer demands. Offer occasional sales, holiday season promotions, or increased costs at different times to keep prices dynamic and evaluate your sales throughout the year.

Psychological pricing

Use psychological trends to set a shirt price that customers are more willing to buy. First, while customers know that $0.99 is only one cent short of a dollar, it will still appeal more to them subconsciously.

Add limited-time offers and discount percentages or manufacture limited deals that give off a sense of urgency. Use math to make prices more appealing. For instance, instead of creating a 50% discount, use bundle pricing – offer a buy one, get one free deal.

Threshold pricing

This is one of the more effective pricing techniques for eCommerce stores. With the threshold pricing formula, you add a price break off the original cost to customers willing to spend a bit more than they normally would.

Offering free shipping, bulk deals, coupons, or other discount pricing features if a customer adds a certain number of items to their cart or has reached a specific upper price limit can significantly increase your sales.

Penetration pricing

In highly saturated markets, penetration pricing is a method where you sell at a price cheaper than the market average to get more traffic from new customers.

While this method can often lower your profit margins, it will develop a customer base for future growth as you slowly increase costs for a sustainable income.

Other things to consider with t-shirt pricing

Our recommended profit margins are not one-size-fits-all. Test various margins and see what sells best and gives you a nice profit. Start selling online the smart way by tracking your expenses, conducting market research in your niche, and adding more value to your products.

Respond to new fixed and variable costs of your business model

As your store grows, change your t-shirt prices based on new estimates. If you’ve added advertising fees, designer fees, a new hourly wage, and other fixed expenses, they should be covered by the profit margin while still having decent profits.

Variable costs can change based on market conditions. For instance, supply chain issues can affect production costs and shipping expenses, which you will have to either absorb or increase your total costs at buyers’ expense.

Consider your sales goals

Always consider what is more important for you at any point in your custom apparel journey.

You can have one or multiple objectives at a time:

• Increase overall profits
• Sell as many t-shirts as possible
• Grow your store traffic and site clicks
• Create seasonal campaigns for events
• Focus on product quality and brand image
• Increase your social media followers or viewers

Set a goal for the future. Decide on the monthly revenue you want to achieve and plan your pricing strategy accordingly. You don’t always need to strive for the maximum – consider increasing traffic before raising your desired profit margin.

Do market research

Keep track of competitors on your eCommerce platform and other sales channels. Reseach new trends in pricing, product tags, descriptions, and promotions to update your costs accordingly.

Choose whether to sell on a marketplace or an eCommerce platform. Marketplaces will always have more competitive prices, while your own store domain will rely more on a quality brand image.

Develop a niche target audience

Find an audience that will value your t-shirts the most. Very rare and niche products can be more expensive than average, so research how much your audience is willing to pay and find an undervalued niche with limited merchandise available to them.

Create a quality brand

Want to increase your t-shirt prices? Win over a loyal following that will buy anything associated with you. Think of how you can add more value by creating your own content and displaying more real-world use cases for your t-shirts.

FAQ

Conclusion

By following these pricing tips and experimenting on your own, you’ll find your business’s pricing sweet spot. 

To make things as easy as possible, set your t-shirt prices following these pricing tips from Printify. We offer a transparent production and shipping cost list, not to mention a Catalog full of products waiting for your incredible designs. 

With Printify’s print-on-demand service, you can save money since there are no overhead costs. Plus, we offer t-shirts and other products at a lower cost than anywhere else on the market. Price your products right, and you’ll be well on your way towards your dream lifestyle.

All successful businesses expand. But with that desirable growth comes the reality of international legal compliance. As your orders cross various borders, they will be subject to the value-added taxation of that country. 

The purpose of this article is to help merchants understand the recent legislative changes to value-added tax (VAT) in the EU and the tools we’ve presented for the situation. 

In short, starting October 1, 2021, Printify is charging VAT on orders in the European Union, Norway, and the United Kingdom. At the same time, we’re streamlining legal responsibilities, speeding up order transit, and providing necessary information for merchants to reclaim VAT expenses.

Please note that this article is not meant to serve as tax, legal, or accounting advice, instead it has been prepared for informational purposes. We recommend consulting your own tax, legal, and accounting advisors before acting. 

Meanwhile, we have partnered with VAT experts to help clarify questions on print-on-demand eCommerce in Europe, and help set up VAT registration and reporting.

1. What is VAT?

These are regulatory measures applied on transactions, tilted toward balancing the global economy. These tariffs also generate income streams for publicly beneficial purposes. 

A value-added tax is a transactional tax charged on the sale of goods and services – often between 5-27% of an order’s total cost. This system has been adopted by over 115 countries, providing a common framework for invoicing, registration, and other aspects of international business. 

As this tax is applicable at each stage of an order’s production, it is applied relative to the net value of the value of goods sold within producing countries – taking into account local tax rates. Generally speaking, all goods and services moving across borders or sold locally are subject to VAT.

All products within the Printify catalog are subject to VAT. This includes sample orders and items purchased without the intention of resale.

2. How is VAT different from USA sales tax?

VAT and sales tax are really just different sides of the same regulative coin in different parts of the world. 

In America, sales tax is primarily applied to the sale of goods. However, these measures are distributed unequally by state and local governing bodies with significant degrees of immunity for various parties. Read more about Printify and US sales tax on our blog here.

In contrast, originally invented in Europe, VAT is almost universally applied to all goods and services.

3. Are VAT rates equal in all European Union jurisdictions?

No. VAT rates are different between each country. However, the VAT rules are harmonized under the European Directive. For more information, please see EU VAT regulations. 

4. How is VAT calculated and charged?

The answer to this question depends on what country the order is created in, where it is shipped to, and the VAT ID used in that transaction. Concrete examples are provided at the end of this article, but let’s break down the factors first:

5. What are the one-stop-shop (OSS) And import-one-stop-shop (IOSS) Systems?

Print-on-demand merchants constantly move orders across borders. Before OSS and IOSS, it was necessary to manage several legal processes within each country an order traveled between. But with the introduction of OSS and IOSS systems in July 2021, everything is streamlined by a single (one-stop) registration, avoiding a lot of paperwork. 

6. Do I have to charge VAT to my customers?

Generally speaking, goods and services moving are subject to some form of taxation – particularly when crossing borders. So, when one of your orders travels, it will likely incur some form of VAT (in the EU), sales tax (in America), or other tariffs. Things can become much easier to manage under the OSS or IOSS systems. 

Keep in mind that all goods on Printify catalog are taxable in Europe. If you have questions about your registration obligations, we suggest you consult a tax advisor.

7. How to prepare for VAT collection on Printify?

The whole process can be broken into four stages:

1. Submit your VAT ID(s) on your Printify account – here’s our Help Center article on how to do it,
2. The VAT on your orders will be charged based on your provided VAT ID,
3. On a regular basis, receive and review your VAT invoices from Printify orders,
4. Submit the necessary documentation to tax authorities and include your VAT invoices to reclaim your tax returns.

8. How to set up VAT collection on my sales platform?

• Shopify
  Learn more (EU)
  Learn more (UK)
• Etsy
  Learn more
• WooCommerce
  Learn more
• eBay
  Learn more
• BigCommerce
  Learn more 
• Wix
  Learn more
• PrestaShop
  Learn more
• Printify API

9. Examples of VAT calculation

We know that taxation in general is a complex subject. To help you better understand it, we have prepared a table containing the main principles of tax calculation in Europe along with some illustrative examples. 

Keep in mind that there are three main variables dictating which VAT rate will be applied to a specific order: ship-from country (print provider’s location), ship-to country (your customer’s location), and your VAT ID (country where you have registered for VAT collection purposes).

Ship-from → Ship-to	Are you registered for VAT in Europe?	VAT rate	Example
EU → EU	Yes You have the ship-from country VAT ID	Ship-from country rate	T-shirt, USD 10, DE → IE. DE 19% VAT is charged. Merchant pays USD 11.90 and can claim back VAT USD 1.90 in DE. Final cost is USD 10.
EU → EU	Yes You have any other EU country VAT ID	0% VAT rate	T-shirt, USD 10, DE → IE. 0% VAT is charged. Merchant pays USD 10. Final cost is USD 10.
EU → EU	No	Ship-to country rate	T-shirt, USD 10, DE → IE. IE 23% VAT is charged. Merchant pays USD 12.30. Final cost is USD 12.30.
EU → EU (within the same country)	Irrelevant	Ship-to country rate	T-shirt, USD 10, DE → DE. DE 19% VAT is charged. Merchant pays USD 11.90. If registered in DE, can claim back VAT USD 1.90 in DE and final cost is USD 10. If not registered in DE, final cost is USD 11.90.
Rest of the world → EU	Irrelevant	Ship-to country rate	T-shirt, USD 10, US → IE. IE VAT 23% is charged. Merchant pays USD 12.30.
Any country → the UK	Irrelevant	Ship-to country rate	T-shirt, USD 10, PL → UK. UK VAT 20% is charged. Merchant pays USD 12.00.
Any country → Norway	Irrelevant	Ship-to country rate	T-shirt, USD 10, PL → NO. Norwegian VAT 25% is charged. Merchant pays USD 12.50.

10. Where can I get tax advice?

Keep in mind that Printify does not provide legal, tax, or compliance advice. Instead, we strongly encourage you to reach out to licensed tax consultants. Printify merchants will also receive a reduced registration fee, read more here.

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While we are not tax consultants or CPAs, in this article, we try to help you understand sales tax for your business and your peace of mind.

They say the two things guaranteed in life are death and taxes. That is why every year, like clockwork, tax filing finds us and sends us all into a minor panic. But we have good news for you: since October 2020, Printify has been applying sales tax to the states where we are registered to collect. It doesn’t mean you are no longer required to collect taxes in the states you have sales tax nexus, but you don’t have to worry about sales tax compliance in other US-based destinations.

We have also outlined essential information about sales tax in this article. We partnered with the experts at TaxJar for more resources. You will no longer need to waste hours scouring the internet, trying to figure out sales tax. While we recommend a tax expert for specialized sales tax advice, we hope this article gets you one step closer to understand sales tax and closer to some well-deserved peace of mind.

What is sales tax?

A tax is a percentage of the sales price of an item put in place by the government to be remitted whenever the item is sold. The tax collected is then used for public facilities and services such as schools, hospitals, public infrastructure, etc. Sales tax is a percentage collected on retail purchases by the seller and remitted to the state government. Unlike federal taxes, the sales tax is governed by each state, making their laws to collect it, which may differ from one state to another.

Sales tax is also known as the “pass-through tax” because even though a business charges sales tax, they don’t keep it. The business is required to collect it and remit it, “pass it through” to the relevant state government. Sales tax is a consumption tax, which means it is only charged when the end consumer buys goods or services.

It is important to remember that sales tax is not profitable, it is the law, and getting your business sales tax right is necessary. Sales tax is based on economic and physical nexus in certain states. Nexus rules apply both to Printify selling to merchants, as well as merchants making sales to the final consumers*.

The POD platform business model operates through two distinct transactions. The first transaction occurs between Printify and the merchant, where we sell the ordered products to the merchant. The second transaction takes place when the merchant sells products to their customers, and it becomes their responsibility to handle taxes based on their nexus and other applicable requirements. In the United States, the place of taxation is determined by the location of the purchase, specifically the states where the merchant’s customers are located and where the products are delivered.

How do you qualify for sales tax?

Nexus 

What is a sales tax nexus? This is when you have a physical presence or a substantial connection to a state that requires you to comply with their tax laws. You need to collect sales tax from sales in a state where you have sales tax nexus.

How do you get nexus with a state?

You may acquire sales tax nexus if you qualify for any of these four factors:

• Physical presence: Your location may create a sales tax nexus. This includes formal and informal retail premises such as a brick-and-mortar store, an office, a home office, a garage, or even your kitchen table if you conduct business from there.

• Your business employees: You may create nexus if you have hired professionals, such as salespeople, or social media consultants for your business. This includes employees working remotely, who may be in different states, and create nexus there. In some states, affiliates (indirect services) may also give you sales tax nexus.

• Your business warehouse/storage: Where you store your inventory may also give you nexus. This means if most of your inventory is stored by your Print Provider in a particular state, such as California, you may have nexus in the state. Note that Print on Demand from a Print Provider’s fulfillment center does not give you nexus.

• Economic nexus: If you make enough sales in dollars or transactions that meet the requirements of a particular state, you may have economic nexus in that state. The tricky part about economic nexus is that it is determined by individual states and may differ from one state to another. Economic nexus is the primary reason Printify is required to collect sales tax.

Where is Printify registered to collect and remit sales tax?

Printify is required by law to collect sales tax in states where we have nexus, on sales (including costs associated with shipping) to our merchants. Below is a map showing all the states where Printify is registered for sales tax purposes and therefore collects and remits sales tax. Find additional information on state and local sales taxes.

How will Printify charge sales tax, and how will it be calculated?

1. Based on your customer’s destination (ZIP code) – Printify uses your customer’s shipping address to calculate sales taxes.
Please note that Printify collects sales taxes for the specific states that we are registered for in the USA, including orders for international sellers where the destination is within the USA.

2. Based on orders coming in from specific sales channels or API – Printify calculates and collects sales taxes based on resale certificates provided by the merchant.

3. For all sample orders – the sales tax is displayed at checkout and collected by Printify. The tax is also based on the resale certificates you, as the seller, have provided.

How to register and collect sales tax?

Register for collecting sales tax (sales permits): You cannot collect sales tax without a sales tax permit. Once you’ve determined that you have nexus with a state, the next step should be to register for a sales tax permit with the state to start collecting sales tax. 

How to get a resale certificate after you have registered for collecting sales tax?

Apply for a resale certificate

As a Printify seller, we recommend requesting a resale certificate from state authorities. Alternatively, if you’re already registered for the tax/sales permit in your state/multiple states, preparing MTC or SSTGB certificates on your own following the comprehensive guide we have put together here.

A resale certificate (also known as a sales tax exemption certificate) is different from a sales tax permit as it allows you to buy products without paying sales tax on our end if you plan to resell them and collect the sales tax through your business. This means that Printify will not collect sales tax from you.

How do I set up sales tax through my sales channel?

Some states in the US have made laws that require online marketplaces to collect and remit sales taxes on behalf of their third-party seller transactions. This means any sales you make via these marketplaces will be taxed for you automatically. Unless you have nexus in these states, you will not be required to do any additional remitting.

However, if you have nexus in these states, you will be required to file a “Zero tax return” or register for a non-reporting sales tax status. Additionally, it is advisable to keep a sales tax permit in states where you have nexus as the marketplaces only remit the taxes for sales made through the marketplace. We advise that you reach out to sales channel representatives or tax consultants for the appropriate information and setup.

How to file a return for sales tax

If you are registered for sales tax purposes and collect sales tax, you are required to file a return that indicates how much sales tax you have collected and remitted. Follow the guidelines on the TaxJar map to file a return for each state. TaxJar connects all marketplaces you sell and then creates return-ready tax reports in the manner in which a state wants to receive it. If you are tax registered, you are required to file a sales tax return whenever you have a filing due, even if you did not collect any sales tax to avoid penalties.

So, what should you do about the sales taxes?

Now, when you hopefully understand the theoretical part about sales tax a bit better, what does it all mean in practice, and what should be your next steps?

1. Check if/where you have a sales tax nexus.
2. If you have nexus, we recommend consulting a sales tax advisor but the steps will most likely include:
   • Choosing and setting up a tool for tax calculation and collection;
   • Applying for a sales tax permit for each state you have nexus in;
   • Submitting a resale certificate for each state you charge sales tax in – to purchase products without paying sales tax if you plan to resell them. This means that Printify won’t charge sales tax in those states;
   • If you collect taxes, you will also need to report and remit them, thus, use your chosen tool for tax reporting and follow their guidelines.
3. If you don’t have nexus and haven’t uploaded a valid resale certificate, Printify will charge sales tax on your item and shipping cost for orders shipped to states where Printify is registered. No other actions needed.

Examples for tax calculation

To make sales tax easier to digest, we have prepared a few examples of tax calculations depending on the product category, sales channel, merchant documentation, and order destination. 

Examples are calculated in accordance with sales tax rates and regulations on August 18, 2020.

For easy comparison, we picked examples of orders with a single item going for the same cost at $20 and shipping cost at $10.

All sales tax calculations are performed by licensed tax automation software that considers all relevant information and state-specific rates and exemptions. Please, note that for orders going to California, the sales tax is calculated based on the final retail price, not item cost.

Where can I get sales tax advice?

We at Printify are not tax experts or specialists and cannot give you any tax or legal advice. We strongly recommend you consult a tax specialist or CPA to get information on sales tax and regulations. That is why we have partnered with the specialists at TaxJar:

TaxJar is a leading technology for eCommerce businesses to manage sales tax. TaxJar features tools that make eCommerce easier for everyone by helping merchants spend time on their business and not sales tax.

• All of your sales tax data in one place: TaxJar instantly prepares your state return-ready reports from all of the places you sell, with one-click integrations with the top platforms, services, and marketplaces. See it all in one place.
• Seamless and automatic filing: With AutoFile, your tax forms will be automatically submitted when they are due. Never miss a deadline again.
• Real-time sales tax rates and calculations: Upgrade to TaxJar Professional, and the TaxJar API will instantly provide accurate sales tax rates at checkout.

If you would like to learn more in-depth information on sales tax, here’s an Online Seller’s Guide to eCommerce Sales Tax.

A nonprofit explained

A nonprofit organization, or NPO – as the name suggests, is an organization that reinvests its surplus funds back into its mission instead of distributing it to shareholders.

The ultimate goal of an NPO is not to generate income but to impact societal change.

To fulfill these noble missions – nonprofits need funding. Money is often a critical resource for nonprofits, covering operating expenses and driving the ability to take action directly related to goals the NPO sets.

Finding stable ways to generate income to cover these expenses while also trying to raise money for fundraising activities is difficult. Even so, you’re up for the challenge and motivated that your efforts will pay off in the long run. 

That said, balancing your income-generating activities is vital for maintaining tax-exempt status. If you haven’t done this yet, don’t worry, we’ll cover that in a bit.

As we dive deeper into this topic, we’ll also explore how selling products can serve as an effective unrelated business income strategy for NPOs to generate funds while staying true to their mission.

Unrelated business income tax and other regulations

In the United States, the Internal Revenue Service determines your NPO’s validity and tax status.

For an NPO to qualify as a government-recognized and tax-exempt organization, you must meet the conditions set out by Section 501(c)(3) of the Internal Revenue Code.

The NPO qualifications are as follows:

• Created for charitable, scientific, religious, literary, or educational purposes.
• Not created for the benefit of any individual or private interests.
• Has a democratically-elected governing body.
• Has bylaws in place that state its purpose and an overview of how it will be run.

If you register as an NPO in the US and meet all IRS requirements, you’ll receive tax-exempt status, freeing you from the federal and state corporate tax rate.

Despite your organization’s exemption, when your nonprofit sells goods or services that aren’t directly related to your mission, you may have to deal with unrelated business income tax.

For example, suppose a nonprofit organization dedicated to finding homes for street cats starts selling t-shirts. In that case, the income from these sales might be considered unrelated to the organization’s primary mission, subjecting it to the unrelated business income tax.

Even though NPOs have a tax exemption, you’ll need to file form 990-T if you generate $1,000 gross income from unrelated business activities. You’ll also need to pay the estimated tax if you anticipate your tax for the year to reach or go over $500.

Unrelated business income regulations and tax exemption requirements may vary in other countries. It’s essential to understand the rules in your country of operation to be sure that the nonprofit meets all the legal requirements in your income-generating activities.

These regulations may focus on your NPO’s creation, governance, and purpose, similar to those set out by the IRS in the US.

Selling products with a tax-exempt status

Selling nonprofit merchandise could be a profitable side hustle for your NPO.

An online merchandise store for nonprofits can turn into a valuable revenue stream that supports your mission, aids the nonprofit’s sustainability, and further amplifies the positive impact your organization has on society.

While the unrelated business income tax is something to watch out for, it doesn’t mean that nonprofit organizations should shy away from selling products. Instead, it highlights the need for preparation – from careful planning to scheduling a consultation with a tax professional.

Benefits of selling custom merchandise for an NPO

Selling custom merchandise as an NPO with a tax-exempt status offers substantial benefits that could transform your whole operation.

Let’s go over some key advantages for nonprofit organizations to consider before gaining unrelated business income on eCommerce platforms.

Generate income

Many nonprofits struggle with generating income on a tax-free basis and maintaining steady financial backing to carry out all of the activities to reach their goals.

Income-generating activities like a one-week fundraising effort can bring in significant sums of money. Still, these are generally short-term campaigns that often require a lot of resources to organize and don’t guarantee long-term NPO sustainability.

Alternatively, selling custom merchandise can help you makemore money, reach new audiences, and support your initiatives. It also reduces your reliance on generating income from large one-time donations or grants.

Increase brand awareness

Custom merch is not only great to sell, but it’s also a powerful branding tool that will help spread awareness of your organization and its mission.

• Advertise your retail store on social media platforms. Consider using high-quality product photos, compelling descriptions, and clear calls to action in your posts. 
• Boost your reach by encouraging your followers to share posts and photos wearing or using your merch. 

Having your supporters wear t-shirts or hoodies with your logo has a high potential to attract new backers and loyal supporters to your NPO.

Provide an outlet for supporters

Not everyone has funds or time to donate, even if they support your cause. By offering everyday necessities like t-shirts, coffee mugs, or totes, you provide a tangible way for people to support your organization’s mission.

Each purchase offers financial gain for your organization while helping your supporters feel closer to the cause.

By providing a simple way to support your nonprofit, you’ll likely engage more people, broadening your audience and creating lasting relationships with those who believe in your mission.

Selling merch is an inclusive strategy that enables others to make a difference with their purchases while increasing your revenue.

Create additional revenue streams for your nonprofit with Printify

Thanks to print-on-demand services like Printify, selling products has never been an easier income-generating activity for nonprofit organizations.

Create custom items and generate product sales with ease by setting up your eCommerce store with Printify.

Sign up

It only takes a few minutes to create a Printify account, but it opens up a whole world of opportunities to generate income for your NPO. Register an email address and password, or use your Gmail account to sign in.

Once you’ve signed up, you’ll be taken to your Printify dashboard. From there, navigate to the user icon in the top right to My account. Add your business information and billing address, then go to Payments to add a payment method.

Find products

Browse our Product Catalog to find the best products for your target audience.

It’s not just t-shirts. Our selection ranges from apparel and accessories to home decor and electronics with over 850 customizable products, ready to be branded with your NPO logo.

Once you’ve found a product you’d like to add to your store, open the product page and click Start Designing.

Start designing

Upload your own designs or create new ones with our beginner-friendly Product Creator (formerly known as Mockup Generator). We offer free design tools and graphics, which you can use and adjust to your liking. 

If you don’t feel like designing, take a look at our integration with Shutterstock to find high-quality premade designs to use on your NPO merch.

You can even hire an expert in graphic design to prepare visuals for your products, website, or fundraising campaigns.

Connect your store

Choose a sales channel that best aligns with your NPO. Printify integrates seamlessly with some of the most popular eCommerce platforms and marketplaces, including Shopify, WooCommerce, Etsy, and eBay – see our complete list of automated integrations.

Once your online store is up and running – manage your products, and monitor sales while Printify takes care of the printing and shipping.

What to know when selling products

Selling products as a nonprofit will require a bit of groundwork, but it comes with substantial perks.

Customized merch enables you to provide a steady stream of income and increase brand visibility for your NPO. Most importantly, it offers supporters a tangible way to contribute to your cause.

Follow these steps for a smooth journey into the world of customized merch:

1. Find products that align with your NPO’s mission.
   Don’t sell plastic balloons if your goal is to save the planet.
2. Find your target audience.
   Learn who your supporters are and what they would be interested in buying.
3. Order product samples.
   Although our products are of high quality, it’s best to make sure you’re happy with them first before selling them.  
4. Sell your merchandise.
   Come up with a marketing plan to successfully sell your merch on social media or other eCommerce platforms.
5. Track and adjust.
   Monitor your sales, track what items are popular, and use this data to refine your product selection.

In conclusion

Can nonprofits sell merchandise? Absolutely. But you’ll need to prepare – go over the necessary tax regulations to make sure you raise funds in accordance with the law.

With careful planning and Printify at your disposal, you can turn an idea into a reliable source of funds, fueling your organization’s mission.

Increase your NPO’s visibility today!

Start selling