Embroidery stitches is a means of determining the cost of embroidery by an embroiderer. The stitch count is a result of whether your logo is full of stitches like all patches or if your logo has a lot of empty space from which the garment shows through. The dimensions of your embroidered logo is another factor in getting to the stitch count.
Embroidery machines are expensive, whether the equipment has a single head from which there may be up to fifteen sewing needles or if it is a fourteen head, multi-ton monster. Embroidery sellers factor in the cost of their machine, maintenance and operators and divide that by the projected life span of the machine in determining their cost of sewing your customized logo.
That goes down to a single factor and that is the number of stitches sewn, which equals a known price. True to Size Apparel sells an embroidery service of only $2.99 to the customer for each logo consisting of 5,000 or fewer embroidery stitches per item.
You may want to take a quick read of the Embroidery Buyer's Guide at True to Size Apparel. There are some unethical companies that sew what is known in the trade as a "thin" embroidery, as a cheater may use a long or "satin" stitch to cut down on the stitch count to get to a lower price OR there may actually be fewer stitches throughout the logo, which means the rich look is watered down by the near visibility of the fabric.
True to Size Apparel is so particular about quality that they can actually create the digitized file to optimize the result when the fabric is known, as cotton sews a bit differently than polyester.