The cost to produce a basic cotton shirt is surprisingly variable, ranging from as little as $5 to over $30 per unit. The final price isn’t just about fabric; it’s a sum of material, labor, design, and volume.
For entrepreneurs reading this, understanding these costs is the first step to pricing your products correctly and building a profitable online store on platforms like Shopify or BigCommerce.
Launching Your Apparel Brand Online
Once you understand your Cost of Goods Sold (COGS), the next critical step is choosing the right digital storefront to sell your shirts. Your ecommerce platform is your virtual factory floor, sales team, and checkout counter all in one. The right choice balances cost with the features you need to market and scale your apparel line effectively.
- Cost Structure: Be wary of hidden fees. Platforms like Shopify and BigCommerce have clear monthly subscriptions but may charge transaction fees unless you use their native payment gateways. Open-source solutions like WooCommerce and PrestaShop are “free” but require you to budget for web hosting, security, and premium extensions separately.
- Ease of Use: If you’re managing production costs, you need a platform that saves you time, not costs you more. User-friendly options like Wix, Weebly, and Squarespace offer drag-and-drop simplicity for beginners, allowing you to launch quickly without a developer.
- Scalability for Growth: Start small, but plan big. A platform like Shift4Shop can grow with you, while enterprise-grade solutions like Magento and Salesforce Commerce Cloud are built for massive volume but require significant technical resources. Ensure your platform can handle an expanding product line and increased traffic.
- Marketing & SEO Integrations: You can’t sell shirts if no one sees them. Your platform must have strong built-in SEO tools and integrate seamlessly with email marketing apps (Klaviyo, Mailchimp), social media channels, and analytics tools to help you attract and retain customers.
- Design Flexibility: Your brand’s look is everything. Assess the quality and customization options of platform-specific themes. Shopify and Squarespace are known for their professional, mobile-responsive design templates that can make a new brand look established.
FAQs
What is the average cost to produce a t-shirt for a small business?
For a small batch order (50-100 units) of a basic cotton tee, expect a per-unit cost between $8 and $15, depending on fabric quality, screen printing complexity, and manufacturer location.
How much should I mark up my clothing line for profit?
A standard retail markup for apparel is 2.5x to 4x your wholesale cost (which includes your COGS + overhead). This ensures you cover platform fees, marketing, and other business expenses while turning a profit.
Which ecommerce platform is best for a new clothing brand?
Shopify is the industry leader for a reason: it combines ease of use with powerful sales and marketing features specifically suited for fashion brands, making it an ideal starting point for most newcomers.
Is WooCommerce a good option for selling t-shirts online?
Yes, WooCommerce is a powerful and flexible option if you are already familiar with WordPress and don‘t mind managing hosting, security, and updates yourself. It offers immense customization but has a steeper learning curve than all-in-one SaaS platforms.
How can I reduce the cost of producing my apparel line?
Ordering in larger volumes is the most effective way to reduce your per-unit cost. Sourcing fabric yourself or using a print-on-demand service to eliminate inventory risk can also manage upfront costs.
Final Thoughts
Understanding the real cost of making a shirt is fundamental to building a sustainable apparel business. It allows you to price strategically and forecast your growth. This financial clarity, combined with the powerful tools offered by modern ecommerce platforms, provides a solid foundation for your brand.
Whether you choose the all-in-one convenience of Shopify or the customizable power of WooCommerce, the right platform will help you transform that first shirt from a production cost into a long-term profitable venture.