Debunking 9 Myths About Embroidery on Demand Before You Start Your Business

In a world that thrives on personalization, embroidery on demand has carved out a charming little niche—somewhere between the warmth of handmade and the scalability of tech-enabled production. It’s tempting to see embroidery as a nostalgic craft finally catching up with the 21st century. Many aspiring entrepreneurs are drawn to the idea of starting an embroidery-on-demand business, especially with the rise of platforms that support custom orders and fulfillment.

However, this path is often paved with assumptions—some naïve, some overly optimistic, and some flat-out misleading. Many of these myths circulate on YouTube tutorials, beginner guides, and even from print on demand veterans who assume embroidery works the same way. But embroidery is not simply printing with thread. And launching an embroidery on demand brand is not just “opening a shop and watching sales flow.”

If you’re thinking of starting your own embroidery venture, this article aims to peel back the assumptions and present a grounded view. Below, we unravel some of the most persistent myths around embroidery on demand—and offer you the reality check you need.

Myth 1: Embroidery on Demand Works Just Like Print on Demand

This is perhaps the most common and most damaging myth. On the surface, embroidery on demand seems like a sibling to print on demand: upload your design, sync it with a shirt, connect it to Etsy or Shopify, and let the fulfillment center do the rest. But while print involves ink on fabric, embroidery involves machine-stitched thread. This difference is not just technical—it’s philosophical.

Embroidery files aren’t just images. They’re complex stitch maps that require digitizing—a separate process from graphic design. Even the best-looking JPEG or PNG can’t be used directly in embroidery. You need a file specifically crafted for embroidery machines, often created by a professional digitizer or specialized software. This digitizing process takes into account fabric type, stitch density, underlay, pull compensation, and thread pathing.

That means you can’t just upload 100 designs and expect instant scalability like you might with printing. Every design requires a human or software-assisted interpretation that has physical consequences in real life. Thread tension, garment structure, hoop stability—all become variables that determine the success or failure of a piece.

Myth 2: Any Design Can Be Embroidered

This idea usually comes from people with graphic design backgrounds who assume a beautiful illustration or detailed logo will translate perfectly onto fabric. In truth, embroidery has many limitations—especially in detail, color gradients, and small text.

Unlike print, embroidery cannot render photographic quality or tiny shading. Thin lines may disappear or break. Fonts smaller than 0.25 inches tall become unreadable. Designs with lots of colors require color changes on the machine, increasing time and cost.

Additionally, the physical movement of the needle introduces what’s known as push and pull. The fabric stretches slightly under the pressure of the needle and thread, often distorting fine details. Unless the design is carefully digitized to compensate for this movement, it may come out warped or uneven.

Many beginners learn this the hard way—spending money on test garments only to realize their designs aren’t embroidery-friendly at all. Creating embroidery-ready designs is both an art and a science, and ignoring this will cost you.

Myth 3: Embroidery Machines Are Set-And-Forget

The idea that you can run a business by owning or outsourcing to an embroidery machine that just “does the job” without oversight is dangerously optimistic. Whether you own the machine or use a fulfillment partner, the embroidery process still requires skilled oversight at many stages.

If you’re operating your own machine, you’ll need to learn:

• How to hoop garments correctly (bad hooping leads to shifting or puckering)

• Threading and tension balancing

• Routine maintenance and troubleshooting

• Understanding different stabilizers for various fabrics

• Interpreting stitch-outs and making digitizing adjustments

Even if you outsource, your job doesn’t end at uploading a DST or PES file. You’ll need to test every new design on the actual garment type. You’ll need to communicate with digitizers or your production partner about corrections. If a customer complains that their custom hoodie has crooked lettering, you can’t just blame the machine. The business owner is still responsible for quality control.

Embroidery is physical labor. Machines jam. Threads break. Needles bend. These are not one-click issues—they’re part of the process. If you want passive income, embroidery might not be the vehicle you’re looking for.

Myth 4: Outsourcing Solves Everything

Many embroidery on demand entrepreneurs try to bypass the complexity by using fulfillment services like Printful or Printify. This works—up to a point. Yes, these services can handle embroidery and offer a plug-and-play model. But outsourcing doesn’t eliminate the need for embroidery literacy.

Why? Because your customer still expects consistency and quality. And even the best fulfillment centers can misinterpret poor digitizing, or mess up placement and tension. Unless you know what embroidery should look like and how files should be constructed, you won’t be able to give clear feedback when problems arise.

Also, embroidery has slower turnaround times than printing. Fulfillment partners may take 5–10 business days, and their product catalog is more limited. You won’t get the flexibility of choosing different thread textures, metallics, specialty patches, or unique garment placements unless you work with a boutique embroidery studio or do it yourself.

In short, outsourcing isn’t a magical solution. It only works well if you’re an informed partner who can speak the same language.

Myth 5: Customers Don’t Notice the Difference

Here’s a subtle but dangerous myth. Some sellers assume that customers—especially in the fast fashion world—don’t know or care about embroidery quality. This may be true for mass-produced goods, but when you’re offering personalized embroidery, your customers are often looking for something special.

They’ll run their fingers over the thread. They’ll notice if the stitches are uneven. They’ll definitely notice if the design puckers after the first wash or the name they requested is slightly slanted. Embroidery is tactile—it invites touch and scrutiny in ways that print does not.

Moreover, embroidery usually carries a higher price point. If you’re charging $40–$60 for a custom embroidered sweatshirt, customers expect it to feel premium. Failing to deliver that experience leads to bad reviews and refund requests.

The upside? Good embroidery can make your brand unforgettable. Customers will keep garments that feel thoughtfully crafted. But only if you respect the medium enough to get it right.

Myth 6: Embroidery Is Too Old-School to Be Trendy

Some aspiring founders avoid embroidery because they think it lacks the boldness or novelty of printed apparel. But embroidery is far from outdated—in fact, it’s at the heart of several modern fashion trends.

From minimalist text on dad caps, to aesthetic embroidery on Y2K-style baby tees, to quirky meme patches on tote bags, embroidery has adapted beautifully to the personalization era. On TikTok, small embroidery shops routinely go viral for their stitched recreations of anime quotes, pet portraits, or cottagecore designs. Major brands like Nike, Gucci, and Acne Studios regularly incorporate embroidery in limited-edition collections.

What’s changed is not the technique—it’s the context. Embroidery is no longer just a grandma’s hobby. It’s an aesthetic choice that communicates care, texture, and individuality. As the world grows tired of fast fashion, embroidery’s handmade appeal becomes a competitive advantage.

Myth 7: Starting an Embroidery Business Is Cheap

This myth is especially prevalent on YouTube, where creators often minimize startup costs to increase views. “Start your embroidery business for under $500!” they say, pointing to entry-level machines and thread bundles.

The truth? While embroidery can be more affordable than starting a brick-and-mortar store, it’s not “cheap.” Here’s a quick breakdown of what you may actually need:

• A decent embroidery machine: $1,000–$3,000 for a single-needle; $8,000+ for a multi-needle

• Digitizing software: $300–$1,500 unless you outsource each file

• Thread and stabilizers: Ongoing cost

• Blanks (shirts, hats, totes): Inventory or test garments

• Branding and packaging: If you want a premium feel

• Education: Time or money spent learning digitizing, machine operation, or design for embroidery

If you choose to outsource, you avoid machine costs but trade them for higher per-unit prices and platform fees. Either way, entering this space means treating it as a real business—time, money, and care included.

Myth 8: You Can Skip the Sampling Phase

Once a design is digitized, it’s tempting to skip sampling—especially if you’re trying to launch a large collection or run a holiday campaign on a tight deadline. But embroidery is not a digital mock-up. What you see on screen is never 100% how it will stitch out.

Sampling allows you to check placement, stitch density, thread color accuracy, fabric behavior, and overall look. Even a great design can fail on certain garments. A sample may reveal that your hoodie’s fabric is too thick, or that your thread choice looks dull in daylight. You’ll avoid customer returns and one-star reviews by testing thoroughly first.

Professional embroidery businesses consider sampling non-negotiable. If you want to build a brand that lasts, so should you.

Myth 9: It’s Too Late to Start

With the rise of embroidery shops on Etsy and TikTok, many people assume the market is saturated. But embroidery—like any creative medium—is not about being first. It’s about having a voice.

Customers don’t want just embroidered things. They want embroidered things that reflect their identity—whether it’s their pet’s name, favorite anime quote, or personal aesthetic. Your brand’s tone, storytelling, product curation, and customer experience matter more than the number of competitors.

What’s more, the embroidery space is fragmented. There’s still room for niche offerings—eco-friendly embroidered apparel, custom bridal gifts, bookish designs, heritage patterns, zodiac art, and more. If you bring something genuine and thoughtful, your audience will find you.

But they won’t find you if you’re too scared to start.

Conclusion: The Real Beauty of Embroidery

Embroidery is not easy. It doesn’t promise quick money or viral sales. It demands patience, testing, technical knowledge, and respect for a medium that has survived for centuries because of its tactile, emotional power.

But that’s also why it’s beautiful.

Unlike fast print-on-demand brands that disappear in months, embroidery businesses—especially the ones run with heart—can build loyal communities, long-lasting products, and deep creative satisfaction.

If you’re considering starting an embroidery on demand business, let go of the myths. Replace shortcuts with skills. Replace assumptions with sampling. Replace quick wins with lasting value.

The embroidery world doesn’t need more shops. It needs more thoughtful shops. If you’re willing to be one of them, your thread may stitch more than fabric—it may stitch a future.