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CafePress does what you're looking for if you're looking for a "print on demand" solution.

Many people have their own separate website that "presells" the product before sending the customer to cafepress. You can even buy a script that will put all of the shopping info on your site and then the customer just goes to cafepress for the secure checkout process.

There are other companies with "print on demand" capabilities like spreadshirt, zazzle, printfection, etc.

Another alternative would be to setup the website to do all the selling and order taking, and then after the order is placed, you would purchase the product from cafepress/spreadshirt, etc and have it shipped to the customer (although the packaging materials would still be from the fulfillment company).
 

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You can sometimes find which shirts they use by looking at the RN number in the neckline label.

This may or may not lead you to the original manufacturer. If it does, you'll need to contact the manufacturer (most likely by phone) and see if you can order similar shirts.
 

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Is DTG the latest technology and the reason why it's not as popular as screen printing or is it just cost?
Yes, it is newer technology. Part of the reason why it's not as popular (yet) as screen printing is the cost, but I think the main reason is the print quality still hasn't matched the same level as screen printing. Many people feel that it will be there pretty soon though.
 

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the print quality isn't there? Can you give a comparison?
Your best bet would be to get a sample from the various places that do the different types of printing.

If you buy a full color printed black t-shirt from www.cafepress.com, you will see an example of one of the direct to garment printers. If you buy a t-shirt from www.threadless.com, you will see an example of a screen printed t-shirt.

So stores like American Eagle and such use DTG but their print isn't quite as good as screen printing?
Stores like American Eagle use screen printing. Most shirts you see in a retail outlet are screen printed. Some may use speciality printing like flock or crystals, but for the most part, they are screen printed t-shirts.
 
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