Dropshipping VS Print-On-Demand: Who Is The Winner?

April 18, 2024

Dropshipping and print-on-demand (POD) are both ecommerce models that eliminate the need for inventory, yet they differ significantly in product handling and customization. Traditional dropshipping involves selling pre-existing products that a third-party supplier stocks and ships directly to customers; quick setup and generic, non-customizable products characterize this model. In contrast, print-on-demand allows you to offer personalized or unique designs on products such as t-shirts, mugs, and posters, with each item being created only after a customer places an order, enabling customization that traditional dropshipping does not offer. This key difference makes POD ideal for those looking to sell bespoke items, while dropshipping suits those looking to quickly market and sell existing products without personalization.

In addition, it's important to consider that in dropshipping and print-on-demand businesses, you have limited control over product quality as you rely on suppliers like AliExpress, Shopify, Printful, and Teespring. Chelsea Guarriello from Online Business Mastery highlights three main reasons for starting a dropshipping business: the growth of the ecommerce industry, the potential for cost and time freedom, and the opportunity to earn six figures or more. Similarly, Tom Bell, creator of Insider Scaling System, suggests that in print-on-demand businesses, you can potentially earn $10,000 a month without running ads, email marketing, or maintaining a social media presence. While dropshipping and POD offer earning potential, it's essential for you to recognize its downsides. It includes less control over your product, fierce competition and low profit margins.

This article will compare dropshipping and print-on-demand in terms of initial capital, entry barriers, product range, and quality control. It outlines the advantages and drawbacks of each model for you. Additionally, it will address common questions about dropshipping and print-on-demand that offer insights to help you determine which business model suits you best. Towards the end, we'll introduce an alternative business model with higher profit margins and significantly less competition than dropshipping and print-on-demand.

Everything You Need To Know In Dropshipping

1. Initial Investment

Initial investment in dropshipping is typically low. Usually, it ranges from $100 to $1,800. However, it is crucial to have enough funds to cover essential expenses. According to Cloudways by Digital Ocean, if you lack even this amount of investment, it's advisable to wait until you've saved enough.

Here's a breakdown of the initial investment costs to start a dropshipping business in the USA, as shared by AppSecenic:

  • Domain costs $14 per year.
  • Ecommerce platform (such as Shopify) requires $29 per month plus a 2% transaction fee.
  • Dropshipping platform (such as AppScenic) entails a monthly expense of $24.
  • Sampling products would set you back by $200.
  • Marketing expenses (such as advertising on Google and Facebook) amount to $1,000 per month.
  • Incorporating an LLC company involves a onetime fee of $600.
    Other apps needed would cost $29 per month.

2. Entry Barrier

The barrier to entry in dropshipping is relatively low. You need basic technical and digital marketing skills, and many online platforms offer easy-to-use interfaces for beginners. According to Oberlo 2022, the ease of starting up a dropshipping business has contributed to its increasing market size. However, this low barrier to entry also leads to high competition in the industry.

3. Product Range

The range of products available in dropshipping is extensive. It provides sellers with a wide selection across various niches. Whether it's fashion, electronics, home decor, or beauty products, the options are practically limitless. This diverse range enables sellers to target specific market segments effectively.

4. Quality Control

Quality control in dropshipping presents challenges because you don't manage the inventory. It heavily relies on selecting reputable suppliers. According to Katana, this means you have lack control over product availability, quality, packaging, shipping methods and timing, as well as the return and refund process. Additionally, Katana added that dropshippers are vulnerable to canceled orders, shipping delays, or damaged products due to this lack of control. 

5. Sampling Product Cost

Sampling product costs in dropshipping can start as low as $200, as stated by Nimbuspost and AppScenic. However, the actual cost varies depending on your niche. You must find a balance between affordability and quality to stay competitive. It's essential to negotiate with suppliers to get the best prices without compromising on product quality.

6. Profit Margins

The profit margins in dropshipping typically range from 10% to 30%, as indicated by Abdalslam. Choosing the right products and effectively managing operational costs are crucial for maximizing your profits. According to Travis Nagle of Viesso, a common mistake in starting dropshipping business is not paying enough attention to product margins, especially after factoring in shipping costs. You need to be careful of that. 

7.  Average Dropshipping Income

The average dropshipping income varies for each individual, but dedicated Amazon dropshippers can earn between $1,000 to $50,000 per month, according to BlueCart. Additionally, Dripshipper and EcomBridges mentioned that many dropshippers operate successful stores where they can make up to $100,000 annually.

8. Shipping Time

Shipping times in dropshipping can vary widely depending on the supplier's location and chosen shipping method. For example, ePacket, a commonly used shipping option from Chinese suppliers, typically delivers to the US in about 10-20 days. It's important to note that while a supplier may provide a broad estimate like "10-25 days," real-life experience often reveals a more accurate timeframe, such as 15-20 days, as mentioned by GreenDropShip.

9. Dropshipping Shipping Costs

Shipping costs are typically included in the product price. Shopify Help Center offers various shipping strategies for dropshipping businesses:

  • Free Shipping: This is straightforward. If you get free shipping from your supplier, you offer the same to your customers. It can encourage more people to buy. 
  • Single Flat Shipping Rate: This means you charge the same shipping fee for every order. To figure out this rate, first calculate your average shipping cost. For example, if you spend $66 on shipping for 18 orders, you can charge a flat rate of about $3.67 for each order. This method makes it easy for customers to understand shipping costs.
  • Tiered Flat Rates: In this method, the shipping costs vary based on the order size or weight. It's more precise and fair. For instance, shipping might cost $1 for one item, $2 for 2-5 items, and $4 for 6-10 items. This way, you can save on shipping costs and pass those savings to customers.
  • Per-Item Shipping Rates: For this rate, each item has its own shipping cost. This works well if your supplier charges you per item. You set a specific shipping price for each type of item. For example, if shipping a pack of AA batteries costs $3 and AAA batteries cost $2, an order with both would have a $5 shipping fee. This method ensures that shipping costs are covered accurately for each item.

10. Inventory

Dropshipping offers a significant advantage by eliminating the need to manage physical inventory. This reduces the risk and cost associated with unsold stock. According to Meteor Space, with dropshipping, you don’t have to worry about purchasing inventory, finding storage space, managing stock, or creating a fulfillment infrastructure. 

11. Passive Income Potential

Dropshipping demands active management, particularly in customer service and marketing. While it can provide a consistent income stream, it's not entirely passive. For instance, in dropshipping, you must handle customer inquiries promptly and effectively to maintain satisfaction. Additionally, ongoing marketing efforts are essential to attract new customers and drive sales. These tasks require consistent attention and effort. It makes dropshipping more of an active endeavor rather than a completely passive income opportunity.

12. Success Rate

The success rate in dropshipping can vary widely. According to data from AppScenic, the success rate for top dropshippers typically falls between 10% to 20%. However, it's crucial to note that this percentage doesn't necessarily mean that many businesses fail outright.

13. Competition

Competition in dropshipping is intense. According to data from Drop Shipping Helps, there are over 1 million dropshippers worldwide. Additionally, Abdalslam reports that there are approximately 24 million ecommerce stores globally, with many operating as dropshipping websites. This high level of competition poses a significant challenge for you, particularly when competing against giants like Amazon Prime.

14. Companies Or Supplier

In dropshipping, finding the right suppliers is crucial. Popular platforms like AliExpress, Oberlo, and SaleHoo offer an array of products and suppliers. However, according to Truelist, 84% of ecommerce dropshipping retailers identify finding the right supplier as their major obstacle. This underscores the importance of you handpicking companies or suppliers to partner with your dropshipping businesss.

Dropshipping Pros And Cons

3 Awesome Advantages Of Dropshipping

1. Dropshipping Offers Hassle-Free Account Creation

Dropshipping offers hassle-free account creation that lets you enter the ecommerce field straightforwardly. Setting up a dropshipping account is usually simple and quick. It often requires just a few steps. For instance, platforms like Shopify, WooCommerce, or BigCommerce allow easy integration with dropshipping suppliers such as AliExpress, Oberlo, or SaleHoo. These integrations streamline the process of listing products in your store and managing orders.

2. Dropshipping Has Requires Low Startup Costs

Dropshipping eliminates the need for large upfront investments in inventory. Instead, your main expenses are usually related to setting up your website and marketing your products. It often ranges from $100 to $1,800. For example, a basic Shopify subscription, which many dropshippers use, starts at just $29 per month. This affordability makes it easier for entrepreneurs to enter the ecommerce market without breaking the bank.

3. Dropshipping Allows You To Work With Reputable Suppliers

Dropshipping allows you to partner with established suppliers like AliExpress or SaleHoo who have a track record of reliability and quality. These companies offer a wide array of products and have systems in place for rating and reviewing suppliers. It makes it easier for you to choose partners that are trustworthy. However, according to Truelist, 84% of ecommerce dropshipping retailers identify finding the right supplier as the main obstacle to their business. You need to choose a supplier carefully.

3 Scary Disadvantages Of Dropshipping

1. Dropshipping Has Stiff Market Competition

Dropshipping has really stiff market competition, particularly in lucrative sectors such as apparel and electronics. According to data from Drop Shipping Helps, the number of dropshippers has surpassed 1 million globally. Further research by Abdalslam indicates about 24 million e-commerce stores worldwide, with a significant number adopting the dropshipping model. This data underscores the intense competition within the dropshipping industry. This fierce competition emphasizes the need for you to differentiate and create strategic marketing approaches.

2. Dropshipping Offers Low Profit Margins

Dropshipping offers you low profit margins because you're not buying inventory in bulk and rely on third-party suppliers, the cost per item can be higher. It cuts into your profits. Many dropshippers find themselves dealing with margins as slim as 15-20%, which is considerably lower than traditional retail models. According to Abdalslam, dropshipping businesses typically operate within a profit margin range of 10% to 30%. These narrow profit margins can make it challenging to sustain a profitable business. It requires careful cost management and efficient operations to remain competitive in the market.

3. Dropshipping Provides Lack of Control Over Your Supply Chain

Dropshipping provides you a lack of control over your supply chain. When you rely on suppliers for product quality, inventory management, and shipping, you're at the mercy of their processes and decisions. This limited control can lead to issues such as stock availability problems, shipping delays, and inconsistent product quality. All of which can impact customer satisfaction and damage your brand reputation. For example, imagine you're a dropshipper selling fitness equipment. You receive several customer complaints about receiving damaged items due to poor packaging by your supplier. Despite your efforts to address the issue with the supplier, the problem persists. It leads to frustrated customers and negative reviews, ultimately harming your business.

Dropshipping is Better Than Print-On-Demand for Selling High-ticket

Dropshipping is better than Print-on-Demand for high-ticket items because it typically involves selling products that carry a higher value and profit margin.It includes electronics, furniture, or specialized equipment. In this business model, you don’t hold inventory but partner with suppliers who manage the product stock and handle the shipping directly to your customers. This setup minimizes the upfront investment and risk, making it ideal for more expensive items. A noteworthy example is Kamil Sattar (The Ecom King).

Frequently Asked Questions In Dropshipping

Is Dropshipping Passive Income?

Dropshipping is not entirely passive income but it can be profitable. It doesn't involve holding inventory, but it demands significant time, effort, and investment. You need to manage customer orders, provide timely responses to inquiries, and deliver excellent customer service. Additionally, effective marketing is essential to attract more customers, often requiring spending on advertising.

However, you can automate some aspects of dropshipping using tools like Zendrop for order fulfillment, which offers a 30-day free trial and paid plans starting at $49 per month. Also, Recapture is another tool to prevent abandoned carts. It supports various dropshipping platforms, such as BigCommerce, Shopify, and WooCommerce. Moreover, hiring virtual assistants can also help you make dropshipping slightly passive. Platforms like Fiverr, OnlineJobs, and Upwork offer you access to experts in dropshipping who can assist with various tasks like customer service, product listing, and digital marketing.

Is Dropshipping Easy?

Dropshipping isn't easy because it involves many tasks like picking the right niche, finding a dependable supplier, and keeping up with market trends. Your aim is to identify popular products before they become too common. Although dropshipping is a straightforward online business to start, it's also highly competitive. As of July 2023, Statista reveals that Shopify hosts over 4 million active online stores, with 77% of them relying on third-party suppliers. This means you'll need to work hard to attract customers to your store. Additionally, according to TrueList, about 33% of these stores use dropshipping.

Can Dropshipping Make You Rich?

Yes, dropshipping can make you rich if you choose a profitable niche and build a loyal customer base. According to our research, dropshippers earn profit margins of 20% to 30%. It translates to monthly earnings of $1,000 to $5,000 in the first year and potentially up to $100,000 annually. Notable successful dropshippers include Andreas Koenig & Alexander Pecka, Harry Coleman, Alex Philip, Cole Turner, and Sarah & Audrey. For instance, Andreas Koenig and Alexander Pecka started with a goal of making $1,000 daily and eventually scaling up to earn $500,000 monthly and now over $10 million annually. However, it's essential to note that dropshipping success isn't guaranteed, with approximately 90% of businesses failing within their first four months.

Everything You Need To Know In Print-On-Demand

1. Initial Investment

The initial investment print-on-demand (POD) business is relatively low. Typically, the only costs involved are setting up a website and any associated marketing expenses. For website creation, platforms like Shopify or WooCommerce are commonly used, with costs ranging from $29 to $299 per month for Shopify. As highlighted by lumenprints, launching a print-on-demand business requires very little capital. You have the option to sell on established marketplaces for free or for less than $100, or you can establish your own website.

2. Entry Barrier

The entry barriers for starting a print-on-demand (POD) business are low. Only basic technical knowledge for website management and an understanding of e-commerce platforms are needed to get started. This means with minimal technical skills, you can enter the POD industry with relative ease. Unlike some other business ventures that may require specialized expertise or significant financial investments, POD businesses offer a more accessible entry point for you to start an online venture.

3. Product Range

Print-on-demand (POD) services offer a wide array of products, ranging from clothing and accessories to home decor items. Companies like Printful and Teespring provide extensive catalogs of customizable products like shirts, mugs, and hoodies. For instance, as of 2023, some of the most popular items offered by Printful include wall art, blankets, mugs, and apparel. This diverse selection allows you to cater to various customer preferences and interests, expanding their market reach and potential for sales.

4. Quality Control

Minimal quality control in print-on-demand (POD) can have significant consequences for your business. When suppliers have lax quality control processes, there's a higher risk of receiving products that don't meet your standards or customers' expectations. This can lead to issues such as misaligned prints, faded colors, or poor-quality materials. It results in dissatisfied customers and potentially damages your brand reputation.

5. Sampling Product Cost

The cost of sampling products in print-on-demand (POD) varies depending on the item and supplier. According to the Printful Help Center, each registered Printful customer qualifies for one sample order each month, with a maximum of three items per order. If monthly accumulated sales reach $300 or more, customers can get promoted for up to five items per sample order in the following month. However, it's important to note that sample orders are available for ecommerce store owners only, and they reset on the first day of every month.

6. Profit Margins

Profit margins in print-on-demand (POD) businesses can vary significantly, typically ranging from 20% to 50%. According to Printify, a leading POD company, most sellers in this industry make an average profit margin of about 20%. However, some businesses can achieve even higher profit margins that reach up to about 30%. These profit margins depend on various factors, including product pricing, production costs, and your marketing strategies.

7. Average Print-On-Demand Income

The average income in POD businesses can vary significantly due to factors such as your niche selection, marketing effectiveness, and product range. While some successful POD stores can generate thousands of dollars per month, others may earn less. According to Aleksandra of Dropshipping.com, a solid 3.8% of POD stores are making over $50,000 in revenue every month. Additionally, Gelato reports that the average monthly income for a POD business is $4,639, but it can reach as high as $9,833 per month. These figures highlight the potential for profitability in the POD industry. However, your success ultimately depends on various factors, including business strategy, market demand, and operational efficiency.

8. Shipping Time

Shipping times for print-on-demand (POD) orders vary depending on the supplier and shipping destination. On average, it can take 2-7 days for order fulfillment, with additional time required for shipping. To provide clarity on shipping times, Sellfy Help Center offers detailed information.

According to Sellfy, delivery times vary as follows:

  • United States: Non-clothing and clothing items typically take 2-7 days for production, with shipping taking around 3-4 days. Therefore, customers in the United States can expect their orders to arrive in approximately 5-11 days.
  • Canada: Similar to the United States, items take 2-7 days to produce, but shipping takes longer, approximately 6-10 days. As a result, customers in Canada can expect delivery within 8-17 days.
  • International: Production times remain consistent at 2-7 days, but shipping can take longer, ranging from 5 to 20 days. Therefore, international orders may arrive within 7-27 days.

9. Shipping Costs

Shipping costs in print-on-demand (POD) businesses typically take 2-7 days for order fulfillment, and additional days for shipping. Printify offers different shipping rates for POD businesses, each with its own strategy:

  • Flat Rates: This charges a fixed shipping cost for any order, such as a consistent $5 shipping fee for every t-shirt order.
  • General Rates: Here, a single shipping price is set regardless of the items in the cart, like offering standard shipping for $5 and expedited for $15.
  • Priced-based Rates: This varies the shipping fee based on the order's total value, like charging $4 for orders under $50 and $10 for those over $50.
  • Weight-Based Rates: The shipping cost depends on the total weight of the order, such as a flat rate of $7 for orders under 5kg and $15 for those over 5kg.
  • Free Shipping: Some stores offer free shipping by setting the shipping cost to $0, either for all orders or for those exceeding a certain amount, like orders over $100.

10. Inventory

One of the main advantages of POD is that there is no need to hold inventory, as products are printed and shipped as orders come in.

11. Passive Income Potential

Print-on-demand (POD) can’t be a 100% passive income source. Unlike traditional retail models where businesses need to invest in and manage inventory, POD businesses operate by printing and shipping products only when orders are received. This eliminates the need for holding inventory, reducing upfront costs and minimizing the risk of overstocking or running out of products. However, it's important to note that while the fulfillment process is automated, there are still active tasks involved in running a successful POD business. These tasks include designing products, marketing them to attract customers, and providing excellent customer service.

12. Success Rate

The success rate of print-on-demand (POD) businesses isn't explicitly documented, but it largely hinges on factors like niche selection, marketing strategy, and brand development. According to Dropshipping.com, approximately 24% of print-on-demand shops are still operational three years after being set up. This implies that the success rate of print-on-demand businesses is around 24%.

13. Competition

The print-on-demand (POD) market is highly competitive, with a significant number of businesses entering due to low barriers to entry. Currently, there are approximately 228,000 print-on-demand stores operating, as reported by Aleksandra, Chief of Content Marketing of Ddropshipping.com. This saturation makes it essential for you to differentiate yourself and target specific niches to stand out from the competition.

14. Companies Or Supplier

Several popular companies cater to the print-on-demand (POD) market, including Printful, Teespring, Redbubble, Shopify, and Zazzle. Each of these companies offers a variety of products, pricing options, and fulfillment services tailored to meet the needs of your POD businesses. According to data from Dropshipping.com, approximately 11.4% of all stores using Shopify are engaged in the print-on-demand business. It highlights the significant presence of this model within the Shopify ecosystem.

3 Awesome Advantages Of Print-On-Demand

1. Print-On-Demand Requires Low Initial Investment

Print-on-demand is an attractive option for entrepreneurs due to its minimal upfront costs. Unlike traditional business models, where you need to invest in inventory upfront, with print-on-demand, products are created and shipped only when a customer places an order. This means you don't have to spend money buying or storing inventory, which significantly reduces your initial investment. For example, let's say you're interested in starting a POD business selling custom t-shirts. You can easily get started by setting up an online store on platforms like Etsy or Shopify for free or for less than $100. Once you receive an order, you simply forward it to the print-on-demand supplier, who will then create and ship the product directly to your customer. This allows you to start your business with very little capital that makes it accessible to a wide range of aspiring entrepreneurs.

2. Print-On-Demand Offers Flexibility in Product Design

Print-on-demand offers flexibility in product design unlike traditional manufacturing methods where designs are set in stone. It gives you the opportunity to test new ideas or adapt to current trends without incurring extra costs. For instance, imagine you're running a print-on-demand business selling custom mugs. With print-on-demand, you can easily tweak your designs based on customer feedback or seasonal trends without having to worry about excess inventory or expensive reprints.

3. Print-On-Demand Allows Ease of Setup and Operation

Print-on-demand allows you to set up and operate with ease. It often just involves creating an online store and integrating it with a POD service. This simplicity makes it an accessible option for individuals with limited business or technical backgrounds. For example, you can easily set up a print-on-demand store on platforms like Printful or Printify by creating an account, uploading your designs, and connecting your store through plugins or integrations. This streamlined process allows you to launch your businesses quickly and efficiently, without the need for extensive technical expertise or significant upfront investments.

3 Scary Disadvantages Of Print-On-Demand

1. Print-On-Demand Has Lower Profit Margins

Print-on-demand has lower profit margins because you outsource manufacturing and shipping that results in higher per-item costs compared to bulk production. According to Printify, most sellers in this industry make an average profit margin of about 20%. While some businesses may achieve higher margins of around 30%, the overall profitability of POD businesses can be limited due to the higher costs associated with each product. This can pose a challenge for entrepreneurs aiming to maximize their profits in the competitive ecommerce landscape.

2. Print-On--Demand Offers Limited Control Over Quality and Fulfillment

Print-on-demand offers limited control over quality and fulfillment since third-party providers handle production and shipping. This can lead to potential issues with product defects or inconsistencies that impact your customer satisfaction and brand reputation. For example, if a customer orders a custom-printed shirt from a POD store and receives a product with faded or misaligned printing, it can result in negative reviews and damage your store's credibility. Additionally, the speed of fulfillment may vary depending on the POD provider's workload, potentially leading to delays in order processing and delivery.

3. Print-On-Demand Has High Competition

Print-on-demand has high competition, with approximately 228,000 print-on-demand stores currently operating, according to Aleksandra, Chief of Content Marketing of Ddropshipping.com. To succeed in this competitive landscape, you must offer unique designs, implement strong marketing efforts, and establish a robust brand identity. Without these key elements, it can be difficult for you to attract customers and achieve profitability.

Print-On-Demand is Better Than Dropshipping if You're a Creative Entrepreneur

Print-on-demand (POD) is better than dropshipping if you're a creative entrepreneur because it aligns perfectly with needs for customization, brand identity, and sustainability. This business model enables artists, designers, and writers to produce and sell unique merchandise. It includes t-shirts, mugs, and posters without the need for upfront inventory. POD allows for real-time creativity and innovation. By using POD, creative entrepreneur can ensure each product consistently reflects their aesthetic and brand message. A notable creative entrepreneur thriving with the print-on-demand model is April Showers, founder of Afro Unicorn.

April Showers started the very successful print-on-demand brand Afro Unicorn, which sells apparel and merchandise featuring empowering designs celebrating African American women and children. April transitioned from unsuccessful businesses in real estate and insurance to start Afro Unicorn as a single mother
Afro Unicorn's unique unicorn designs representing black and brown women became extremely popular. Her brand maintains strong community connections and will have products in over 3,000 stores across the U.S. Afro Unicorn shows the power of using meaningful symbols, descriptive words and cultural representation for branding.

Frequently Asked Questions In Print-On-Demand

Is Print-On-Demand Profitable?

Yes, Print-On-Demand (POD) is be profitable if you can pick a less saturated and profitable niche for your business. For example, Cassiy Johnson shared her earnings on YouTube. She reported a revenue of $26,440.59 and a profit of $8,558 in her best month which is April 2021. Overall, she made $214,925 in revenue and $63,952 in profit during her first year in the POD marketplace.

Additionally, statistics from Dropshipping.com show that about 3.8% of print-on-demand stores generate over $50,000 in revenue every month. Also, Gelato stated that the average monthly income for a POD business is $4,639, but it can go as high as $9,833 per month. These figures suggest that POD businesses can be profitable. But, success may vary depending on factors like your niche selection, marketing effectiveness, and overall business strategy.

What Is the Success Rate of Print-On-Demand?

According to DoDropshipping, the success rate of print-on-demand is 24%. This means that out of all the print-on-demand stores created, only about 24% are still active after three years. One reason why POD isn't easy is because it requires careful niche selection and marketing. With so many competitors in the market, it can be challenging to stand out and attract customers. Additionally, maintaining consistent sales and managing customer expectations can be demanding tasks. Furthermore, managing print-on-demand operations, including product sourcing, quality control, and shipping, can also be complex and time-consuming. 

Can Print-On-Demand Make You Rich?

Yes, print-on-demand can make you rich but it's not an overnight journey. According to Diana of Adventure With Art, there are really no limits to how much money you can make with print on demand. To give you some examples, Baiba Blain shares the story of Mike Pasley, the founder of famousinreal.life. He achieved an impressive $700k in revenue in his first business year by embracing a strategy of continuous learning and experimentation in the POD industry.

Final Verdict: Dropshipping VS Print-On-Demand: Who Is The Winner?

The winner between dropshipping and POD depends on your business strategy. If your goal is to offer a wide range of products with minimal involvement in the production process, dropshipping might be for you. However, if your focus is on selling unique, customizable items with a potentially higher value proposition, POD is more advantageous. Both models have unique advantages and limitations.

Dropshipping's primary advantage is its vast product range.You can sell various industry items like electronics, fashion apparel, home decor, beauty products, and fitness equipment without ever handling the products, as your suppliers directly ship to customers. This model is especially beneficial for those looking to offer an array of products or for those who wish to tap into trending items quickly. Financially, dropshipping is cost-effective due to lower starting costs that range from $100 to $1,800, as per AppScenic. It encompasses domain registration, platform fees, and initial marketing expenses. However, it's important to note that dropshipping involves reliance on third-party suppliers on product quality and shipping. It can sometimes lead to inconsistent customer experiences.

Print-on-Demand‌ specializes in offering customizable products like clothing and home decor. This model's strength lies in its ability to provide unique, personalized products, which can be a significant draw for customers looking for originality. According to statistics from the United States, 62% of consumers who shop online have stated that they have selected, endorsed, or bought from a brand that offers personalized experiences or services. POD's inventory-free approach also eliminates the risk of overstock and reduces the need for significant upfront capital. 

Conclusion: Why Local Lead Gen Biz Is Better Than Dropshipping And Print-On-Demand?

Local lead gen biz is better than dropshipping and print-on-demand because of its lower competition and higher profit margins. It is similar to digital real estate, where you build your digital assets for as little as $500 and optimize them using SEO tactics to rank high on search engines like Google. After claiming a sweet spot, you can lease them to local businesses in need of leads that can generate monthly passive income ranging from $500 to $3,000 per website. Unlike the highly competitive global market of dropshipping and POD, Local lead gen focuses on serving local businesses. It typically competes with just 10 to 15 companies that increase your success rates. 

Additionally, local lead gen boasts a whooping profit margins of 80% to 95%. It is significantly higher than the 10% to 50% margins seen in dropshipping and POD, as it involves generating leads rather than dealing with physical goods. Moreover, the heavy reliance on third-party suppliers in dropshipping and POD can lead to unpredictability in your product quality and delivery times.

In conclusion, while dropshipping and POD offer opportunities in the e-commerce landscape, local lead gen businesses have a distinct advantage due to its localized focus, lower competition, and the ability to build lasting relationships with local businesses.

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