Dropshipping vs. print-on-demand (POD) differs in product handling and customization. Traditional dropshipping means selling generic, non-customizable products from a third-party supplier. A print-on-demand business sells products with unique designs. This may range from shirts, mugs, posters, phone cases, and more. Each product is only created after a customer orders it. This aspect makes the POD model more flexible than dropshipping.
Dropshipping
Dropshipping initial investment usually ranges from $100 to $1,800.
Dropshipping requires basic technical and digital marketing skills to start.
Successful dropshipping relies on working with reputable suppliers. Dropshippers do not handle or manage any inventory.
Dropshipping shipping time varies. For example, ePacket takes 10 to 20 days while GreenDropShip takes 15 to 20 days.
Dropshipping is growing each year. Experts expect the North America market to reach a compound annual growth rate of 33.3% by 2033.
Popular dropshipping suppliers include AliExpress, Oberlo, and SaleHoo.
Print-On-Demand
Print-on-demand initial investment ranges from $100 to $1,000.
POD requires basic e-commerce and designing knowledge to start.
Print-on-demand businesses are also dependent on suppliers. Quality control issues like faded prints or poor materials arise in some cases.
Print-on-demand fulfillment process averages 2 to 7 days. Extra shipping time might be necessary, depending on the supplier's and recipient's destination.
Print-on-demand is also growing yearly. The US market will likely reach a compound annual growth rate of 24.4% by 2030.
Popular print-on-demand suppliers include Printful, Teespring, Redbubble, Gelato, and Zazzle.
Chelsea Guarriello is a dropshipping expert and business coach from Online Business Mastery. According to her, there are three good reasons to start a dropshipping business:
Tom Bell of Insider Scaling System is a successful print-on-demand entrepreneur. He says POD business owners earn up to $10,000 a month without using ads, email marketing, or social media. While dropshipping and POD are both profitable, they have several disadvantages. These models often mean you have less control over your product, face fierce competition, and earn low profit margins.
I've been making money online since 2014. I've tried dropshipping and other business models. Personally, I've seen how running an ecommerce business can be time consuming, expensive, and risky. We compare dropshipping and print-on-demand to give you a clear picture of which is best for you. We look at start-up costs, entry barriers, product variety, quality control. Finally, we outline the advantages and drawbacks of each model.
Dropshipping vs. Print-On-Demand: Pros and Cons
Dropshipping Pros and Cons
Dropshipping Pros
Starting an online dropshipping store is easy. Platforms like WooCommerce and BigCommerce connect you to suppliers like AliExpress and SaleHoo to simplify product listing and order management.
Dropshipping doesn't need a huge investment on inventory. Startup costs range from $100 to $1,800 and mostly cover site setup and advertising.
Dropshipping lets you sell viral products. You can profit from trending bestsellers.
Dropshipping Cons
Dropshipping is very competitive, especially in popular niches like clothing and electronics. About 24 million ecommerce stores use the dropshipping model.
Dropshipping has low profit margins. Dropshippers work with slim margins of 10% to 30%.
Dropshippers have little control over the supply chain. You rely on suppliers for product quality, inventory, and shipping.
Print-O-Demand Pros and Cons
Print-On-Demand Pros
Print-on-demand has low startup costs. Initial investment only ranges $100 to $1,000 since POD business only prints products when customers place orders.
Print-on-demand lets you test new designs and follow viral trends without extra costs. If you're selling custom mugs, changing your designs to match current trends is easy.
Print-on-demand is simple to set up. You only need to create an account on platforms like Printful or Printify to start selling products.
Print-On-Demand Cons
Ongoing print-on-demand costs reduce your earnings. Outsourcing production and shipping increases costs per item, while average profit margins are around 20% to 30%.
Print-on-demand stores have little control over quality and shipping. Defective prints and delivery delays will lead to negative reviews for your business.
Print-on-demand market is competitive. You need unique designs, strong marketing, and a solid brand to stand out.
Dropshipping vs. Print-On-Demand: Which Business Model Is Better?
The better model between dropshipping and print-on-demand depends on your business goals. If you want to sell products without handling production, dropshipping may be for you. If you want to sell unique, customizable items with higher value, POD is better.
Dropshipping's main advantage is its vast product range. This includes apparel, electronics, home decors, and more. Also, you never have to do any inventory management. Your suppliers handle each order and ships products to customers. Finance-wise, dropshipping is cost-effective. According to AppScenic, startup costs range from $100 to $1,800. This covers domain registration, platform fees, and initial marketing expenses.
A disadvantage of a dropshipping business is it completely relies on third-party suppliers. Low product quality and shipping problems leads to poor customer experiences.
The main advantage of POD is personalization. Your target customers will be looking for unique products and designs. The unique designs allow you to build a brand and reduce potential competition. You also do not keep inventory as your supplier prints and ships it out for you. Shipping time and order fulfillment tend to be faster than dropshipping.
A big downside with POD is that creating designs takes time. Having graphic design skills or hiring a professional artist is recommended.
Dropshipping is Better Than Print-On-Demand for Selling High-Ticket Items
Dropshipping is better than print-on-demand if you want to sell high-ticket items. These products may range electronics, furniture, specialized equipment and others. You get to sell expensive products and earn higher revenue.
One noteworthy example is British entrepreneur Kamil Sattar. Also known online as The Ecom King, Kamil has an estimated net worth of $12 million. He earns over $5 million yearly from dropshipping, courses, YouTube, and affiliate marketing.
Kamil launched his first dropshipping business in 2017. At the time, he struggled with Facebook ads. In 2018, he created a Christmas store selling kids' toys and beauty products. It generated over $1 million in revenue. By 2020, he was generating $1.7 million in sales doing high-ticket dropshipping on Shopify. According to Kamil, selling high-end items worth $100 to $1,000 brings a profit margin of 30% to 60%.
Print-On-Demand is Better Than Dropshipping if You're a Creative Entrepreneur
Print-on-demand is better than dropshipping for creative entrepreneurs. It meets their needs for establishing brand identity, innovation, and sustainability. The business model enables artists and designers to produce and sell unique products.
An example of a creative print-on-demand entrepreneur is April Showers. She founded the successful brand Afro Unicorn in 2019. She specializes in apparel and merchandise that celebrate Black women and children.
A single mother, April explored real estate and insurance before doing print-on-demand. Her unique unicorn designs gained popularity online. Plus, her strong community ties also helped boost her brand. In 2022, her company launched its products in Walmart stores nationwide. Afro Unicorn became the first Black woman-owned brand to get a major retail store license.
Dropshipping vs. Print-On-Demand: Initial Investment
Dropshipping Initial Investment
Initial investment in dropshipping is generally low. It usually ranges from $100 to $1,800. So, its crucial to have enough funds to cover essential expenses.
Here's a sample breakdown of dropshipping startup costs from AppScenic:
Print-On-Demand Initial Investment
The initial investment in a print-on-demand (POD) business is usually lower. It ranges from $100 to $1,000 or more. For the most part, the most important expenses are for building a website and marketing.
Here's a sample breakdown of print-on-demand startup costs from the WIX Blog:
Dropshipping vs. Print-On-Demand: Quality Control
Dropshipping Quality Control
According to Katana, dropshipping limits control over:
Dropshippers also risk canceled orders, delays, and damaged products because of these limitations. So business owners should look for reliable dropshipping suppliers.
Print-On-Demand Quality Control
Minimal quality control in print-on-demand (POD) harms your business. Poor supplier practices increase the risk of low-quality products. Some products may have issues like:
This leads to unhappy customers and will damage your brand's reputation. So you need to choose trusted POD suppliers to work with.
Dropshipping vs. Print-On-Demand: Average Income
Dropshipping Average Income
The average income for dropshipping ranges between $1,000 to $3,000 per month in the first year. Successful dropshipping businesses earn anywhere from $50 to $5,000 daily. The average dropshipping income varies depending on your products, niche, and marketing strategy. Dedicated Amazon dropshippers earn $1,000 to $50,000 per month, according to BlueCart. Dripshipper and EcomBridges say successful dropshippers earn up to $100,000 a year.
Print-On-Demand Average Income
The average income for print-on-demand is $4,639 per month, according to Gelato. Some manage to reach as high as $9,833 per month. Aleksandra of Dropshipping.com reports that 3.8% of POD shops earn a monthly revenue of over $50,000. Business coach Greg Gottfried explains that POD stores typically earn about $1 per month per listing. With 100 designs uploaded to 3 POD sites, owners create 300 listings and make around $300 in monthly profit.
Dropshipping vs. Print-On-Demand: Profit Margins
Dropshipping Profit Margins
Dropshipping profit margins range from 10% to 30%. Success depends on choosing the right products and managing costs. It's all about maximizing your profits. Travis Nagle of Visso says new dropshippers often overlook product margins. This is especially true after factoring in shipping costs. You need to be careful of that.
Print-On-Demand Profit Margins
Print-on-demand profit margins range from 15% to 60%. Printify, a leading POD company, says most sellers make a 20% profit margin. Top POD businesses achieve higher profit margins that reach up to about 60%. Pricing, production costs, and marketing strategies all impact POD profit margins.
Dropshipping vs. Print-On-Demand: Sampling Product Costs
Dropshipping Sampling Product Costs
Sampling products in dropshipping starts around $200, according to Nimbuspost and AppScenic. The actual cost varies depending on your niche. You must find a balance between affordability and quality to stay competitive. Negotiating with suppliers is important to secure good prices while maintaining product quality.
Print-On-Demand Sampling Product Costs
Sampling products in print-on-demand starts around $50, according to Printful. The website also adds that sample costs could even “reach into the thousands.” Registered Printful customers qualify for 1 sample order each month. Orders have a limit of three items. If monthly sales reach $300, customers get up to 5 items per sample order the following month. Sample orders are only for e-commerce store owners and reset on the first day of each month.
Dropshipping vs. Print-On-Demand: Shipping Costs
Dropshipping Shipping Costs
Shipping costs in dropshipping depend on carrier rates and the order's destination. The Shopify Help Center shows various shipping strategies for dropshipping businesses, such as:
Print-On-Demand Shipping Costs
Shipping costs in print-on-demand vary based on the provider and chosen method. For example, Printify has different shipping rates for POD businesses.
Dropshipping vs. Print-On-Demand: Success Rate
Dropshipping Success Rate
Success rate for dropshipping is at 10% to 20%. Most dropshipping businesses take 6 months to 1 year to see real profits. While a few achieve massive success, it requires effective marketing. Most also try selling different products until they find a winning item.
Print-On-Demand Success Rate
Success rate for print-on-demand is at 24%, according to Dropshipping.com. This means only 24% of stores remain active after three years. POD requires careful niche selection and effective marketing. Challenges include maintaining consistent sales and managing customer expectations. Handling POD operations like product sourcing, quality control, and shipping can be time-consuming.
Dropshipping vs. Print-On-Demand: Passive Income Potential
Dropshipping Passive Income Potential
Dropshipping may bring a consistent income stream but it's not 100% passive. It requires active management, especially in customer service and marketing. Quick responses to inquiries are crucial for customer satisfaction. Continuous marketing is a must to attract customers and boost sales. These efforts make dropshipping an active business. Of course, automation tools and outsourcing can help simplify the process.
Print-On-Demand Passive Income Potential
Print-on-demand is a potential passive income source. As with dropshipping, it requires management, customer service, and marketing. Moreover, upfront effort to design products. Communicating with customers is also important. Automation and outsourcing may likewise benefit POD business owners. You may bring in revenue even when you're not actively selling products.
Is Dropshipping Easy?
Dropshipping isn't easy because of the stiff competition. You are competing with thousands of sellers selling the same items. Also, dropshipping involves many tasks. You'll have to pick the right niche, find dependable suppliers, and keep up with market trends. You want to sell winning products before they become too common.
Ecommerce expert Davie Fogarty also adds that dropshipping is not a quick way to get rich. He notes that many YouTube gurus promise quick success. This leads beginners to buy courses that fail to deliver. He also points out other issues with dropshipping, such as:
Davie believes that growing an e-commerce business takes much effort. It requires unique products and good customer service to achieve lasting success.
Is Print-On-Demand Profitable?
Print-on-demand is profitable if you pick a less saturated and profitable niche. For example, YouTuber Cassiy Johnson shared about earning a revenue of $26,440.59 and a profit of $8,558 in April 2021. She ended up making $214,925 in revenue and $63,952 in profit during her first year in the POD marketplace.
What Is Better Than Dropshipping and Print-On-Demand?
Local lead generation is better than dropshipping and print-on-demand. It doesn’t involve selling physical products or constant customer communication. You are also more control of your business since you're not reliant on third-party suppliers.
Instead, you create niche websites, rank them on Google, and rent them to businesses needing organic leads. With a startup cost of about $500 per site and profit margins of 80% to 95%, it generates passive income and is a more scalable business model.
As an online entrepreneur since 2014, lead generation has become my top business choice. I've tried Shopify dropshipping, affiliate marketing, and other business models. I eventually ended up with lead gen after seeing I can earn $500 to $3,000 from each site with little work. Once a lead gen site reaches top search engine results, the leads come instantly.
Competition is also not as hard. I'm not competing with thousands of dropshippers and POD sellers. Instead, I'm only going against 10 to 15 local businesses targeting the same keywords as my site. With proper SEO implementation, it's possible to rise to the top ranks in no time. In total, I make a monthly earning of up to $52,000 from this business. I also run a local lead generation coaching program where we've had 7,400 students and counting.
