So, you've heard about print on demand and you’re wondering if it's the right fit for you. Well, consider this: the global print-on-demand market is expected to be worth a whopping $10.72 billion by 2025. Impressive, right? But big numbers aside, is starting a print-on-demand business still worth it?
In this article, we answer your questions about print on demand.
What is print on demand?
Print on demand is a manufacturing process where products are created as each order is placed, eliminating the need for inventory. When a customer orders, the product is printed, checked for quality, and shipped directly to the customer. POD reduces upfront costs, mitigates the risk of dead stock, and allows for easy product personalisation. It's a sustainable model that minimises waste and can be conveniently integrated with online stores, making it popular among ecommerce businesses and independent creators.
What products do print on demand businesses typically make?
Print on demand widely used for posters, wall art, books, apparel, and customised goods like t-shirts, mugs, phone cases, photo books.
What does it cost to start a print on demand business?
Unlike traditional retail setups, POD significantly lowers your start-up costs. You don’t need to store inventory or manage physical stock, eliminating both storage and logistics costs. You simply pay to produce a product when a customer places an order, eliminating unnecessary financial risks.
Start-up costs for a print-on-demand business could be anywhere between £0 and £5,000, depending on the scale and complexity of your online store. Given the vast array of ecommerce platforms, creating an online store has never been more affordable. Platforms will offer a range of packages from basic options suitable for beginners to advanced plans catering to established businesses.
You could design your site yourself meaning your costs will be minimal. Alternatively, you can hire a freelance designer. The cost here would depend on the complexity of your designs, and the reputation and skills of your chosen designer.
While most print-on-demand platforms, don’t charge a subscription fee, some others might. So, it's important to factor potential platform fees into your startup costs.
The beauty of print on demand is that it eliminates most of traditional retail markup costs – there’s no warehousing, bulk manufacturing, or inventory fees to worry about. Your products are only created once customer places an order, keeping your startup costs down to a minimum.
Is print on demand profitable?
The usual profit margin falls between 30-50%. For example, let's say you're selling t-shirts. The production cost for one t-shirt might be around $12, but you can easily sell it for about $25. The difference of $13 would be your gross profit. The same goes for other products like tote bags and posters.
How do I price my print on demand products?
Establishing effective pricing is if you are to build a successful print on demand business. Your pricing strategy needs to take account of your target market, product value, competition, and perceived value of your product.
- Understand your audience: who are your customers, how do they behave and what are they willing to pay? Remember, some consumers are willing to pay more for personalised products.
- Understand your competitors: what do your competitors charge, how does the quality of their products compare and what do your customers think of your rivals? Sometimes, a higher price indicates better quality and service to customers.
- Understand your value proposition: does your pricing reflect the value you’re offering to your customers? Consider whether factors such as product uniqueness, quality, design, or brand story justify a higher price point.
- Understand your profit margin: does your pricing cover your costs and yield a profit? Have you accounted for all the associated costs (including production, shipping, marketing, the cost of returned goods and platform fees).
What are the benefits of the print-on-demand business model?
As a business model, print on demand is easy to manage. Complicated tasks like managing stock or handling delivery logistics are a thing of the past. From product creation to sales, every step is hassle-free. Here are some of the ways print-on-demand simplifies your business:
- Instant product creation: You simply upload your designs, select the items you wish to sell, and voila – your products are ready for customers to purchase. Your product comes into existence when your customer decides to buy it.
- Fewer time-consuming tasks: With print on demand, tasks including stock management and processing returns are managed for you.
- Simple fulfilment: Orders are sent directly to your print-on-demand supplier, who prints, packages and delivers your product to your customers.
- Focused marketing efforts: Relieved of the usual operational tasks, you can channel your energy and resources into your marketing efforts. The success of your POD business largely relies on how effectively you market your products.
- No inventory management: With traditional retail models, you need to keep track of all your product lines and complicated logistics. With print on demand, production is only triggered by a customer order, so there's no need to maintain a stocked inventory.
- Flexibility: You can experiment with new designs and ideas without committing to bulk production. For small businesses and independent creators, print on demand can be a way to expand their offerings with minimal financial risk.
- Scalability: Scaling up has never been easier. With print on demand, your production grows as your customer base grows. There's no need to stockpile inventory or worry about storage space. The lean print-on-demand can cater to both low-volume and high-volume demand with equal ease.
What are the pitfalls of the print-on-demand business model?
Despite the many advantages of the print-on-demand business model, it's not without its challenges. Firstly, it can be tricky to maintain quality across different, especially if you’re dealing with different designs and providers. Products are not created until an order is placed. This means you don't have physical samples to inspect before they are delivered to customers making it difficult to spot inconsistent print quality or errors.
Another challenge is managing customer expectations, particularly relating to delivery. Since POD items are only created once an order is placed, production and shipping times can be longer than usual. Shipping times can also be influenced by the proximity of your printer to your customer. By being upfront about production and delivery times and setting clear expectations, customers are more likely to accept the additional time required to create and deliver custom items.
Is print on demand suitable for artists and designers?
Print on demand can be an excellent way for artists and designers, to monetise creative works. It allows them to turn their designs into tangible products, without the need to manage the production or shipping themselves. The print-on-demand model lets artists and designers focus on what they do best - creating. It can also be a great way to test the market for their designs and build a brand with low overheads.
Is it easy to get started with print on demand?
Print on demand is particularly beneficial for beginners because it doesn't require a large initial investment. If you are just starting your entrepreneurial journey, you don't need to worry about managing inventory or handling shipping, which makes this business model ideal for starting to sell products online.
How long does it take to start earning with print on demand?
This will depend on several factors, such as the quality of your designs, your marketing efforts, and your understanding of your target audience. Some sellers see a steady stream of sales in just a few weeks, while others may take a bit longer to gain traction. That said, consistent effort in promoting your products and refining your offerings can help you reach profitability sooner rather than later.
Copyright 2024. Featured post inspired by and made possible by Gelato. You can read the original article on the Gelato website.