It wouldn't fit a Corgi, but they have long hot dog bodies. Mine pulls his sweater off and runs and hides. He hates dog sweaters. He also chews on his squirrel Halloween costume. Doesn't like that either.
Welsh corgis are cool.
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How big to make it depends on what type of dog you're making it for. You could make it small enough for a chihuahua or large enough for a St. Bernard...though I've no idea why a St. Bernard would need a sweater.
It is cute and I think if you made them for a specific size/type of dog they would sell. Maybe you need to do some market research and see what's selling. A site like etsy might be a good place to start looking.
Happiness is catching that dropped stitch while it's still fixable..