Digitized embroidery design files can be either purchased or created with industry-specific embroidery digitizing software. Embroidery file formats broadly fall into two categories. The first, source formats, are specific to the software used to create the design. For these formats, the digitizer keeps the original file for the purposes of editing. The second, machine formats, are specific to a particular brand of embroidery machine. Here, the files are available for use with particular embroidery machines and are not easily edited or scaled.

Many embroidery designs can be downloaded in popular machine formats from embroidery web sites. However, since not all designs are available for every machine's specific format, some machine embroiderers use conversion programs to convert from one machine's format file to another, with various degrees of reliability.

A person who creates a design is known as an embroidery digitizer or puncher. A digitizer uses software to create an object-based embroidery design, which can be easily reshaped and edited. These files retain important information such as object outlines, thread colors, and original artwork used to punch the designs. When the file is converted to a stitch file, it loses much of this information, rendering editing difficult or impossible.

Almost any type of fabric can be embroidered, given the proper stabilizer.

Machine embroidery commonly uses polyester, rayon, or metallic embroidery thread, though other thread types are available. 40 wt thread is the most commonly used embroidery thread weight. Bobbin thread is usually either 60 wt or 90 wt. The quality of thread used can greatly affect the number of thread breaks and other embroidery problems. Polyester thread is generally more color-safe and durable. We use high quality embroidery thread that is produced by Madeira.

Other associated costs are thread, stabilizer, purchased designs, needles, bobbins, and other miscellaneous tools and supplies.