The customer service is terrible, and I believe that they may actually carry "seconds" which is why the fabric is so cheap. I've probably ordered $2,000 worth of merchandise from them in the past year, and countless times I've received fabric with small holes, flaws, dye problems, etc.
The final straw for me was a large piece of chambray I ordered. It looked fine when I got it, but when I washed and dried it according to the instructions from the fabric.com Web site, it came out with a GIANT flaw right down the middle of the fabric. It literally runs 3/4 of the length of the fabric, making it unusable.
When I contacted fabric.com about this, they wouldn't do a thing about it. They said they would have taken it back had I not washed/dried it. Um... well, the washing/drying is what made it fall apart! How could I possibly have foreseen the future and known that this was going to happen? They told me that I should have washed/dried a 4" by 4" square first, if I wasn't sure how the fabric would react to my "chosen method of laundering." Again, 1) the "chosen method of laundering" was the method fabric.com told me to use, and 2) the flaw appeared in the MIDDLE of the fabric - laundering a small swatch from the edge wouldn't have proven anything.
After much arguing about how this return policy makes no sense in my particular case, they finally said they would give me a $10 credit. This didn't even begin to cover the cost of the crappy fabric, but whatever, fine... except when I went to use the $10, it was not in my account. I contacted customer service again, and they said they didn't give me the credit because I told the last agent I didn't want it, and therefore they can't give me a credit after I refused it. Luckily, I had a transcript of the chat from the first agent, so I had solid proof that I NEVER refused the credit. They said that "as a one-time courtesy," they would put the credit on my account. That seriously infuriated me. "As a one-time courtesy"? Really? Giving me something you said you were going to give me in the first place is now a courtesy? Should I count myself so blessed and fortunate that you are giving me a measly $10 after I've spent $2,000 with you?
They really made me feel like I was trying to scam them out of something! I can't believe that they would treat a customer this way, particularly one that spends so much money with them. So, I've decided never to shop this site again. Even though the prices are good, the frustration and low-quality merchandise mean it's not worth the savings.