Dropshipping VS. Print on Demand: Which is The Best for Your Business

In today’s world, there are numerous opportunities to generate extra income, with e-commerce being one of the most profitable. Dropshipping vs Print on Demand – common confusion for the person who wants to start an ecommerce business. If you’re also facing the same confusion, you’re not alone my friend.

This article will give you a clear overview of print-on-demand and dropshipping, helping you choose the best option to start and grow your online store. Get ready to explore these profitable models and their pros and cons.

What is Dropshipping?

Dropshipping is an e-commerce business model where you sell products without keeping any inventory. Instead of stocking items yourself, when a customer orders, the product is purchased from a third-party supplier, who then ships it directly to the customer. As a seller, you act as the middleman, focusing on marketing and sales, while the supplier handles production, packaging, and shipping. When comparing dropshipping vs print on demand, dropshipping offers the advantage of selling pre-made items without customization.

The dropshipping industry is growing, with projections to exceed $200 billion by 2023. In 2020, it was valued at $128.6 billion, and by 2026, it’s expected to reach $476.1 billion, showing huge growth in this e-commerce space.

How Does the Dropshipping Business Model Work?

One of the biggest advantages of dropshipping is that you don’t need to produce or transport goods yourself. You simply act as a link between your customers and suppliers.

Here’s how the process works:

A retailer collaborates with a dropshipping supplier.

The supplier’s products are displayed in the retailer’s online store.

When a customer places an order, the retailer processes the purchase.

The retailer then sends the order details to the supplier.

The supplier handles the packaging and ships the product to the customer.

The customer receives the product directly from the supplier.

What is Print on Demand?

POD is a business model where products are created only after a customer orders. Instead of holding inventory, you work with a supplier who prints custom designs on products like T-shirts, mugs, phone cases, etc. The supplier handles the printing, packaging, and shipping, allowing you to focus on creating designs and marketing. POD offers a low-cost, low-risk way to start an e-commerce business, as there’s no need to invest in stock or production upfront.

The global print-on-demand market, worth $6.18 billion in 2022, is expected to grow rapidly with a 25.8% annual growth rate from 2023 to 2030. A fact of this growth is the custom t-shirt printing market, valued at $1.16 billion in 2016 and projected to reach $3.1 billion by 2025. When comparing dropshipping vs print on demand, this rapid growth highlights the potential of POD as a profitable and scalable e-commerce business model, especially for entrepreneurs looking to tap into the booming demand for customized products.

How Does the Print on Demand Business Model Work?

Here’s how the process works:

Set up your online store.

Select a print on demand supplier and integrate it with your online platform.

Create listings for the products you want to offer.

When the customer places an order, it’ll automatically forwarded to the POD supplier you selected.

Your supplier prints the requested design onto the selected product.

When an order is packaged, it’ll shipped directly to the customer by your supplier.

Understanding the Differences: Dropshipping vs Print on Demand

Here is a complete comparison of print on Demand VS. Dropshipping:

Features	Dropshipping	Print on Demand (POD)
Business Model	Selling ready-made products from suppliers	Selling customized products with your own designs
Product Customization	Products are pre-made; no customization	Products are customized and printed after an order is placed
Inventory	Supplier stocks inventory	No pre-made inventory; products are printed on demand
Production Time	Faster as products are ready to ship	Slower due to the custom printing process
Setup Requirements	Select products from suppliers and list them online	Design products and upload them for sale
Profit Margin Control	Controlled by adjusting retail prices	Controlled by adjusting retail prices and production costs
Shipping Responsibility	Supplier handles shipping directly to customers	The print provider handles shipping directly to customers
Unique Product Offering	Limited to supplier’s stock	Unique, as each product features custom designs
Branding	Limited branding control (Unless private labeling)	Full branding control (custom designs, logos, etc.)
Cost Involvement	No upfront cost for stock	Minimal Cost (Design creation or hiring a designer)
Order fulfillment	Products are packaged and shipped by the supplier	Products are printed, packaged and shipped by the print provider
Time Investment	Less time-intensive, especially for product creation	More time is needed to create and manage designs
Target Audience	Customers looking for general products	Customers seeking unique, customized items
Setup Requirements	XL-XXL	XL-XXL
Product Variety	Dependent on the supplier’s inventory	A wide variety of designs created
Risk Level	Low risk, as there is no inventory investment	Low risk as products are only created when ordered

Print on Demand vs Dropshipping: Pros and Cons to Consider

Whether you choose dropshipping or print on demand for your online store, each has its own pros and cons, which can help you to get more clarity on choosing the right thing for your store.

Pros and Cons of Print on Demand

Pros:

Product customization is the main benefit of this business.

Products are only made after customers order, which keeps costs low and minimizes financial risk.

There is no inventory management system.

You have full control over your product designs. It allows you to add your logo or branding, making your products unique.

Cons:

Since each product is made after an order is placed, it takes longer to process than ready-made items.

Custom production costs are high, especially for small batches, and profits can be reduced unless you price your items carefully.

You depend on your print provider to meet quality standards.

It offers a limited product variety.

Pros and Cons of Dropshipping

Pros:

It allows you to sell various ready-made products without making them yourself. You can easily add items from suppliers to your store.

It offers no inventory costs.

It is simple to start dropshipping since you can quickly add products and sell without worrying about creating or producing items.

Because the products are already made, orders are shipped quickly, giving customers faster delivery times than POD.

Cons:

It allows you to lack of customization options.

With many businesses selling similar products, price competition is hard, leading to smaller profits unless you find a unique product or supplier.

It offers supplier reliability. Any issues they have can affect your customer experience.

It offers limited branding.

Dropshipping vs Print On Demand – Which One Should You Choose?

It depends on your business goals and interests when it comes to choosing for print-on-demand and dropship.

Go for Print on Demand: If you want to focus on custom, niche products and build a unique brand with custom designs. This model is great for businesses that thrive on creativity and targeting a specific market.

Select Dropshipping: If you want to sell various ready-made products without dealing with customization or production, dropshipping is a great option. It is perfect for growing fast since you don’t need to manage inventory or handle the manufacturing process.

Dropshipping vs Print on Demand – How Reddit Responses to It

Many entrepreneurs and e-commerce fans often go to Reddit to discuss about print on demand vs dropshipping, sharing real experiences and advice. Reddit communities are great for finding tips, and success stories and learning about common mistakes in both models.

Whether you are a beginner looking for help or an experienced seller comparing profits, these discussions offer useful insights. By joining these conversations, you can stay updated on trends, find solutions to challenges, and connect with others on a similar journey.

Discussion 1: Is Dropshipping Better than POD?

IS DROPSHIPPING BETTER THAN POD?
byu/AmandaD0128 inshopify

Discussion 2: Print on Demand or Dropshipping?

Print On Demand or Dropshipping?
byu/Adamanos inecommerce

Discussion 3: Which Should You Choose – Dropshipping or Print on Demand?

Which should you choose – dropshipping or print on demand?
byu/acalem inPassionsToProfits

Discussion 4: What is the Difference Between Print on Demand and Dropshipping?

What is the difference between Print on Demand and Dropshipping?
byu/O-ZeNe indropship

Discussion 5: Is POD (Print on demand) Dropshipping Profitable?

Is POD (Print on demand) Dropshipping profitable?
byu/realfaiq indropship

Discussion 6: Is Print-on-Demand a form of Dropshipping?

Is print-on-demand a form of dropshipping?
byu/brokeankleinturkiye inecommerce

Wrapping Up

Again the same question: Is dropshipping or print on demand better?

So you have gone through all the differences, and it was difficult to choose one fit for the business. Dropshipping and print on demand offers unique advantages for e-commerce businesses. While dropshipping faces stiff competition due to standard products sold by many, print on demand allows for more creativity and uniqueness, making it easier to stand out with custom designs. Ultimately, your business needs and strategy will determine which path to follow.

FAQs

1. Does Shopify Allow print on demand?
Yes, Shopify supports POD. It can go with many integrations with apps like Printify, printful, and others. You can easily set up a store, connect it to a POD supplier, and sell personalized designed products without holding inventory.

2. Can you really make money with print on demand?
Merchants earn money by creating proper designs and selling them. It depends on niche and design quality and how you promote and serve.

3. How much does it cost to start a print on demand business?
It is an affordable business because you must pay mainly for a Shopify subscription, a similar platform, and any marketing costs.

4. Can I use POD alongside dropshipping?
Yes, many sellers combine print on demand or dropshipping to offer custom and standard products in their online stores.