What Is Gross Profit in Print-on-Demand?

Want to go deeper? Check out our full guide: How to Calculate POD Profits (Step-by-Step). Or, if you’re looking for marketing-adjusted margins, read What Is Gross Profit After Marketing (GPAM) in POD?. For automated tracking, PodVector shows live gross profit and more for Shopify + Printify/Printful sellers.

Definition of Gross Profit

Gross profit is the money your POD business keeps after subtracting the direct costs of production—like blank t-shirts, hoodies, mugs, and printing—from your sales. It doesn’t include ads, transaction fees, refunds, or shipping. Gross profit is your first indicator of whether your products are priced high enough to make sense.

Formula for Gross Profit

The basic formula is:

Gross Profit = Total Sales – Cost of Goods Sold (COGS)

And if you want the margin:

Gross Profit Margin = (Gross Profit ÷ Total Sales) × 100

Example Calculation

Imagine your Shopify + Printify store sells 100 t-shirts this month at $25 each.

• Total Sales: $2,500
• COGS: 100 × $9 (blank + print) = $900
• Gross Profit: $2,500 – $900 = $1,600
• Gross Profit Margin: $1,600 ÷ $2,500 = 64%

This means your gross profit is $1,600, or a 64% margin. Pretty strong on paper—but remember, this doesn’t include ads, refunds, or platform fees.

Why Gross Profit Matters in POD

Gross profit matters because it sets the foundation for your entire POD business. Here’s why:

• Pricing check: It shows if your products are priced high enough above production costs.
• Scaling potential: High gross profit margins give you room to spend on ads and still make money.
• Survivability: Without strong gross profit, you’ll never have enough room for refunds, discounts, or marketing.

Gross Profit vs Net Sales

Net sales are your total sales minus discounts and refunds. Gross profit goes further by subtracting COGS. If your net sales look high but your gross profit is thin, your products may be underpriced or too expensive to produce. (See our full article: Gross Profit vs Net Sales in POD (Explained).)

Gross Profit vs GPAM

Gross profit ignores marketing. GPAM (Gross Profit After Marketing) subtracts ad spend to show what’s left after customer acquisition costs. For ad-driven POD businesses, GPAM is often more important than gross profit alone.

Gross Profit vs Operating Profit

Operating profit (sometimes just called “profit” in POD apps like PodVector) goes beyond gross profit. It subtracts not only COGS and marketing, but also shipping, refunds, and transaction fees. That’s why operating profit is the most realistic “bottom line.”

Benchmarks for Gross Profit Margins

So what’s a “good” gross profit margin in POD?

• 40–60%: Typical range for t-shirts and apparel.
• 50–70%: Common for mugs, posters, and smaller accessories.
• Below 35%: Dangerous. You won’t have enough room for ads and fees.

Strong POD brands usually aim for at least 50% gross margins to leave room for marketing and still land at a 5–10% operating profit margin.

How to Improve Gross Profit

• Raise prices: Even a $1–$2 increase per item can shift margins significantly.
• Use higher-margin products: Switch from low-margin apparel to higher-margin items like posters, jewelry, or accessories.
• Negotiate provider rates: In Printify/Printful, some providers may offer better costs at higher volume.
• Push AOV up: Bundles and upsells make COGS a smaller % of each order.

How to Track Gross Profit

Manual Method

1. Export sales from Shopify.
2. Export COGS from Printify/Printful.
3. Subtract COGS from total sales.
4. Divide by total sales for margin %.

This works, but it’s slow—especially if you sell across multiple platforms.

Automated Method

PodVector automatically syncs Shopify + Printify/Printful data and calculates gross profit in real time. You’ll see gross profit per product, order, and time period—without spreadsheets.

FAQs

What is a good gross profit margin for POD?

50%+ is a good target. Below 35% is risky because ads, refunds, and fees will wipe you out.

Is gross profit the same as profit?

No. Gross profit only subtracts COGS. Operating profit subtracts ads, shipping, refunds, and fees too.

Does Shopify show gross profit?

Not by default. Shopify reports sales and refunds, but you need apps or manual spreadsheets to match COGS to products. Tools like PodVector do this automatically.

Should I focus on gross profit or operating profit?

Gross profit is the first step. But to know what you really make, you need operating profit (which includes all costs). Use both.