Print-On-Demand vs dropshipping – which is the better business model? If you’re an entrepreneur, looking to start an online business, you’ve probably faced with this crucial question. Both of these business models are great options as you launch an online store, but choosing can be difficult if you don’t know the standout differences between the two. Because that will make a world of difference in your profitability, presence in the market and customer loyalty. So what is ideal for you? Let’s breakdown all of your demands through the article. In the blog we explore dropshipping and print on demand with their props & cons, branding options, reachability to help newcomers to determine the right option for them to achieve their goals.
BASICS OF PRINT-ON-DEMAND
• INTRODUCTION
Print on demand is an order fulfillment e-commerce business model by a third-party supplier, which prints your custom designs on various products, including t-shirts, tote bags, phone cases, and more.
Unlike traditional methods of creating and stockpiling inventory, Print on demand enables the printing or manufacturing of products as and when required. A third-party provider handles the printing, packaging, and shipping directly to the customer. This innovative approach eliminates the requirement for upfront expenses and excessive inventory, thereby offering entrepreneurs and businesses a cost-effective and flexible solution.
The print-on-demand market is predicted to expand at an annual growth rate of 26.1% between 2022 – 2030.
• HOW PRINT-ON-DEMAND WORKS
To start a print-on-demand business, all you need is time and creativity. The Print on Demand (POD) model operates through a collaborative trio: the seller, the POD service, and the customer. The steps of how Print-On-Demand works are:
1. Design: Create a product design.
2. Choose a niche product: Select a niche product to print on.
3. Set up an online store: Then integrate a POD service by creating a account in a Print-On-Demand platform like Printify, Printful, Gelato, Redbubble etc.
4. Upload design: Send the design to the Print-On-Demand service. Then list the products & promote them, you are the seller.
5. Customer orders: Receive orders through your store.
6. Production: POD service prints and prepares the product.
7. Shipping: POD service ships directly to the customer.
8. Payment: Receive payment or profit, minus POD fees of making & shipping charges.
Note: More about of Print-On-Demand best websites & it’s full tutorial, workings, profit earnings— Check our blogs, link in below at the end of this blog useful links section.
PROS OF PRINT-ON-DEMAND
• LOW START-UP COSTS
Print-On-Demand companies handle all the printing of your in-demand products, saving your thousands of money investing in technology for printing.
Aside from saving money on printing technology, you’ll also enjoy the cost benefits of partnering with a print on demand company. Because they hold all the inventory for their white-label products. You won’t have to stock physical products or rent space to store your inventory. You only pay for the product making or sometimes you also don’t need this. Just enjoy your profits. Also no need of any upfront costs.
• PRODUCT CUSTOMIZABILITY & CREATIVE FREEDOM
Print-On-Demand is perfect for artists, designers or anyone with a knack for creativity. You can create unique designs and select the products what you want to sell. From tote bags to t-shirts, wall art, hoodies, phone cases, and more, stores that work with this Print-On-Demand company can effectively offer their customers also impressive customization options for the products they want.
Offering your own custom products will differentiate you from the competition and create a strong, memorable brand. With total creative freedom, you can connect with your audience through your own designs and build a loyal following.
Thus, with a print on demand business model, you can test and experiment with new designs without the risk of wasting money on a poor-selling item that customers don’t want.
• NO MINIMUM ORDER OR ANY INVENTORY MANAGEMENT
With print on demand suppliers, orders are only fulfilled once customers place them, so you won’t ever deal with minimum order requirements.
The Print-On-Demand service handles everything from production to shipping, allowing you to focus just on marketing and design.
• SCALABILITY
You can easily scale your business faster as demand increases since you are cutting substantial costs by not managing inventory or printing equipment. This also means you can offer competitive product prices and stand out against other brands in your niche.
Aside of this, if you want to introduce new products in your store, like tote bags or t-shirts, just a few clicks of the mouse can add new inventory to your online store with your prepared designs. This makes a opportunity to reach your brand in various niches easily.
CONS OF PRINT-ON-DEMAND
• LOWER PROFIT MARGINS
Since you’re outsourcing production, each item will cost more than if you produced it in bulk. So, when compared to alternative fulfillment strategies (such as purchasing in bulk or wholesale), your profit margins will be smaller. This is so because the costs of printing, packaging, and hiring production staff are all included in the item price when Print on Demand businesses sell a particular product.
• DEPENDENCE ON PRINT-ON-DEMAND PROVIDERS
You rely heavily on the provider’s production and shipping speed. Print on Demand requires more time for order processing and fulfillment because products are produced after an order is placed. Any delays on their end directly impact your customer service.
Not only that, You’re also restricted to the product types and quality offered by the POD service.
BASICS OF DROPSHIPPING
• INTRODUCTION
Dropshipping is an e-commerce business model where sellers can market and sell ready-to-use products via e-commerce platforms like Shopify etc. Unlike other businesses, you need not produce goods and navigate shipping and delivery. Like POD, this business model doesn’t require inventory, but some suppliers may have order minimums or a required monthly sales volume. However, you don’t have the option to customize your items.
Do you know, the global dropshipping market is valued at $351.8 billion as of 2024, which is a 23.6% increase from the year prior.
• HOW DROPSHIPPING WORKS
Dropshipping offers a great benefit for both retailers and suppliers, enabling them to concentrate on their respective areas of expertise. The steps of how dropshipping works are:
1. Partner with a supplier: First choose a reliable supplier.
2. Create an online store: Then create a store where you showcase products without holding inventory.
3. Customer places order: Receive orders through your store.
4. Forward order: Send order details to the supplier.
5. Supplier ships: Supplier ships product directly to the customer.
6. Customer receives: Customer gets the product without your involvement.
7. You focus on marketing: You just concentrate on sales and promotion. You gain profits from each order automatically.
Note: More about of Dropshipping best websites & it’s full tutorial, workings, profit earnings— Check our blogs, link in below at the end of this blog useful links section.
PROS OF DROPSHIPPING
• MINIMAL UPFRONT COSTS
Since a dropshipping supplier holds all the products rather than keeping your own inventory, there are minimal upfront costs should you choose the dropshipping route.
Similar to POD, you won’t have to worry about buying products in bulk, having the space to hold your inventory, or dealing with shipping costs.
You can quickly launch a store with minimal capital, choosing from countless available products.
• FLEXIBILITY
Dropshipping provides access to a wider range of products to choose from. So, as a company, you’ll want to be able to offer the latest trends in your store, whether you have a clothing line, jewelry collection, beauty products, or any other inventory.
Dropshipping makes it simple to pivot to other products because your supplier can offer those items quickly. This will entice customers to become loyal shoppers because they know your store has the latest and greatest.
• NO DESIGN SKILLS ARE REQUIRED
There are no design skills required in a dropshipping business model because the supplier is responsible for creating and manufacturing the products. The supplier will also handle the packaging and shipping of the products directly to the customer.
• INCREASED PROFIT MARGINS & RESELLING
Dropshipping allows for lower costs per item as it often involves dealing with wholesalers who offer better rates.
Also in dropshipping, if a returned product is in good condition, it can be resold to another customer.
• FASTER ODER FULFILLMENT
With dropshipping, since the items are already printed, and ready, order fulfillment and shipping are more efficient than in other business models. They’re just waiting to be purchased on the consumer end. Once an order is made, the dropshipping supplier is responsible for shipping the products and it takes time lesser than other businesses.
CONS OF DROPSHIPPING
• GREATER COMPETITION & DIFFICULTY IN DIFFERENTIATION
When something is easy and efficient, it gains popularity quickly making high competition. Thus, the dropshipping industry is very competitive since entrance barriers are lower.You’ll find the market is saturated with similar products. Sellers may find it difficult to stand out against the competition in their dropshipping niche. With steep competition and limited ways to stand out, many businesses struggle to create connections with their target audience.
• LACK OF CUSTOMIZATION
Building a strong brand and fostering loyalty amongst customers can be a significant challenge without the ability to offer unique or customized products.
• NO CONTROL OVER ORDER PRODUCTION & FULFILLMENT
Handing over order fulfillment is a huge relief for some business owners but has downsides. But as you are not directly involved in shipping products to customers, you are unable to provide personalized or value-added services to enhance the customer experience.
So, without quality control in the fulfillment process, you aren’t holding the reins as products ship out to your customers. That means there is a possibility of significant margin for error. Like product quality may be inconsistent; This may have lost a loyal customer.
• POTENTIAL MINIMUM ORDER REQUIREMENTS
Some dropshipping companies have minimum order requirements for every business to meet profit margins. Particularly if you are a new company, it’s difficult to know how much product you’ll need to meet the demands of your growing customer base. This can lead to ordering more products than you need. It leads losing money, or not ordering enough and missing out on potential sales.
• UNSUSTAINABILITY
Unlike the POD service, here maintaining sustainability is a big issue. Since the products are already manufactured and orders aren’t fulfilled individually, dropshipping often results in over-calculating the demand for a product, leading to excess and waste. It occurs specially for worldwide dropshipping suppliers.
HEAD-TO-HEAD COMPARISON OF PRINT-ON-DEMAND & DROPSHIPPING
Here’s a quick overview with comparison of the print-on-demand and dropshipping business models.
| PRINT-ON-DEMAND | DROPSHIPPING | |
| Difficulty Level | Low to moderate | Moderate to high |
| Inventory Management | No inventory management. Suppliers print and ship products as orders come in. | No inventory management. Suppliers ship products as orders come in. |
| Costs | No upfront investment in inventory. | No upfront investment in inventory. |
| Product Customization | High level of customization. Create and sell products with your custom designs. | Very limited or no customization options. |
| Product Selection and Quality | Large product selection. Popular items like t-shirts, mugs, socks, stickers, decor, and more. Quality varies depending on the POD supplier, production processes, and printing methods. | Large product selection. Get products that aren’t available with POD, like kitchen appliances, office supplies, tools, and sports equipment. Quality depends on the third-party suppliers and can be challenging to maintain. |
| Branding Options | Possible to include custom branding on packaging and products. Easier to create a more personalized customer experience. | Most dropshipping suppliers don’t offer branding options. More difficult to build your own brand. |
| Control and Flexibility | Freedom to create and adjust designs and select printing methods. Easy to add new products, adjust profit margins, and expand a business. No control over the production process. | No control over product design or quality. Easy to add new products, adjust profit margins, and expand a business. No control over the production process. |
| Competition | Less competition because you sell products with custom designs. | High competition since other dropshipping sellers will likely offer the same products. |
| Minimum Order Requirements | No order minimums. | Some companies have order minimums or require a minimum monthly sales volume. |
| Shipping Time | Production time is a little longer since every product is created on demand. Shipping time varies depending on the method and destination. | Fast fulfillment, but shipping speed depends on carrier efficiency and destination. |
| Profit Margins | Depends on the product type, brand’s popularity, design quality, and target market. | Depends on product type, competition, and the target market. |
| Integrations | Easy integrations with many online stores. |
WHICH BUSINESS MODEL SUITS YOU BEST?
• PRINT-ON-DEMAND SUITS FOR:
1.Creative Entrepreneurs: If you have a flair for design and want to build a brand around unique, custom products.
2.Niche Businesses: Print-On-Demand is ideal for those targeting specific niches with custom designs (e.g., fan art, inspirational quotes, custom appeals).
3.Part-time Entrepreneurs: It is perfect if you’re looking to start a side hustle without the need to manage inventory.
• DROPSHIPPING SUITS FOR:
1.New Entrepreneurs: If you’re new to eCommerce and want to test different products without investing heavily then choose dropshipping.
2.Market Testers: Great for entrepreneurs who want to explore various niches and products to find what sells best. Also for one who is marketing & promotion expert.
3.Ecommerce Savvy: If you’re comfortable with digital marketing, competitive pricing and interact with suppliers. Then dropshipping offers the flexibility to adapt quickly.
FINAL VERDICT SPECIALLY FOR BEGINNERS
Print on demand and dropshipping are both successful business strategies. Regarding the amount of time it takes to see a return on investment (ROI), they differ nonetheless.
In general, dropshipping frequently results in higher revenues because of its lower initial investment, diverse and readily available product range and lower shipping expenses. This enables you a prudent stepping stone into e-commerce, offering a low-risk initiation.
On the other hand, Print on Demand is a long term commercial approach. Building a brand and investing in high quality designs are crucial elements. The allure of POD lies in its potential of growing and gaining followers for augmented profitability through the infusion of unique, custom-designed products into the market.
In summary, dropshipping tends to yield faster earnings, while Print on Demand may prove to be more lucrative over an extended period of time. For newcomers, starting with dropshipping is a safe choice owing to its straightforward nature and lower upfront costs. But if your business grows to a stable point, choosing Print-On-Demand allows enhancing creative authority and the prospect of increased profits.
USEFUL LINKS
• Print-On-Demand websites:
Printful: https://www.printful.com
Printify: https://printify.com
Gelato: https://www.gelato.com
Redbubble: https://www.redbubble.com
• E-commerce marketplace
1.Shopify: https://www.shopify.com
2.Woocommerce: https://woocommerce.com
3. Bigcommerce: https://www.bigcommerce.com
• Starting a successful Dropshipping business blog: https://tarikulh.in/how-to-start-a-successful-dropshipping-business-with-no-upfront-costs/
• Complete guide for Print-On-Demand blog: https://tarikulh.in/complete-guide-to-print-on-demand-a-beginners-journey/
CONCLUSION
So, which is better: Print on Demand or dropshipping? There’s no clear winner. Both business models offer unique advantages and challenges. It really depends on your business goals and preferences. If you’re still unclear about which business model is the right fit, ask yourself a few questions. Start here.
• How much time can I invest in this business?
• Which two businesses can be profitable based on location, niche, and demand?
• Do you have the time and creativity to design?
• Do you love researching a product before buying?
While asking many more questions, you will eventually get to know what interests you. And all of your questions’ answer is this blog.
Whether you’re leaning towards Print-On-Demand’s creative freedom or dropshipping’s flexibility, success lies in understanding your market, delivering quality products, and continuously refining your approach. Hope now you knows the different between POD & Dropshipping and gain perfect knowledge from this blog to start your dream in online market. Comment below your opinion and see more interesting blogs for learn many money earning ways. Let’s start your entrepreneurship!
