Understanding Fees and Competitiveness

Hi there 👋 I'm a newbie on POD and I'm from the UK. I want to start selling apparel from Printful on Etsy. But I don't understand all these fees and expenses. For instance, a simple beanie on Printful costs 12.95£ + VAT 3.33£ + Embroidery Digitization 3£ + Shipping 3.29£. So I already have to spend 22.57£. And even that's not all. Then there will be a bunch of Etsy fees that I would have to pay. And I'm not even talking about my own profit. Therefore, my question is: how can I be competitive with other sellers when they are selling the same beanies for 15£ and how is it possible? I would be more than appreciated if someone could clarify this for me 🫡