This is a critical question to answer if you are starting an online clothing store. The cost to produce a basic cotton t-shirt typically ranges from $5 to $20+ per unit, with the final price heavily dependent on order quantity, fabric quality, and manufacturing location. For a brand on Shopify or BigCommerce, understanding this cost breakdown is essential for setting a retail price that ensures profitability.
Breaking Down the Cost of T-Shirt Production
The price you pay per shirt is the sum of several variables, not just a simple flat fee from a factory. A clear grasp of these components will empower you to make smarter sourcing decisions and accurately calculate your profit margins.
Order Quantity (MOQ): This is the biggest cost driver. Factories offer significant economies of scale. Ordering 500 shirts will have a much higher per-unit cost than ordering 5,000. Minimum Order Quantities (MOQs) are standard practice, especially with overseas producers.
Fabric Quality and Type: A cheap, lightweight cotton blend will cost a fraction of a premium, heavyweight 100% organic ring-spun cotton. Fabric choice directly impacts the shirt’s feel, durability, and perceived value.
Manufacturing Location: Labor costs vary dramatically. Production in countries like Bangladesh or Pakistan is often cheapest, while US-based or European manufacturing demands a higher price but offers faster turnaround and often stricter ethical compliance.
Design Complexity: A simple one-color print is inexpensive. Costs rise with each additional color, the size of the print, and the technique used (e.g., screen printing vs. DTG). Embroidery is a more costly alternative.
Trims and Labels: Don’t forget the cost of neck labels, wash care labels, hang tags, and packaging. For larger brands, these custom items add a small but notable amount to the total Cost of Goods Sold (COGS).
The “Landed Cost”: The factory’s price is just the beginning. You must add freight shipping, import duties/tariffs, insurance, and any customs brokerage fees to calculate the true total cost to get the shirt to your warehouse.
FAQs
What is the average cost to screen print a t-shirt design?
Screen printing costs are typically $2 to $5 per shirt for a basic one-color design on a front print, with the price decreasing per unit for larger order quantities.
Is it cheaper to print on demand or bulk order t-shirts?
Print-on-Demand (POD) has $0 upfront cost and no inventory risk but a very high per-unit cost ($10-$25). Bulk ordering is cheaper per shirt but requires a significant upfront investment and inventory storage, making it better for established brands.
How much should I markup my t-shirts for retail?
A standard retail markup is 2x to 2.5x your total landed cost (wholesale), and then 2x that wholesale price for the MSRP. For a direct-to-consumer brand on Squarespace or Wix, a common strategy is to markup 4x to 5x the landed cost to cover operational expenses.
What are the hidden costs of clothing production I might forget?
Beyond the shirt itself, remember costs for tech packs, shipping samples back and forth, quality control inspections, payment transfer fees, and potential costs for fixing errors or dealing with lost shipments.
Which is better for a t-shirt brand, Shopify or WooCommerce?
For beginners, Shopify is often easier with its all-in-one hosting and dedicated apps for POD and inventory. WooCommerce offers more pricing flexibility and control for brands that have technical expertise and want to deeply customize their store.
Final Thoughts
The cost to produce a cotton t-shirt is a moving target. The key to profitability is meticulous calculation of every expense, from the fabric roll to your customer‘s doorstep. Use this knowledge to source wisely, whether you‘re testing a concept with a POD service on Shopify or placing a large bulk order overseas.
By mastering your production costs, you build a foundation for a sustainable and scalable apparel business on any platform, from BigCommerce to Shift4Shop.