Dropshipping Vs. Print on Demand (POD): Which is Best for Your Business?

Introduction

The rapid digital evolution with emerging technologies has opened many doors for entrepreneurs to invest and shine in the digital landscape. Out of many, eCommerce is one of the best and most profitable options available. But then, confusion arises in this segment when they find it difficult to pick between two top-ranking eCommerce business models: Dropshipping and Print-on-Dermand or POD.

The never-ending comparison between Dropshipping vs. POD has its arguments and theories, and every eCommerce specialists has different opinions to share, which is obvious. In contrast, it becomes tough for aspiring and midscale business owners to choose the best option.

If you are a budding entrepreneur and are stuck in a similar situation, this article is for you. We have covered both business models' crucial factors to give a clearer picture of whether POD or Dropshipping is right for you.

What do You Need to Know About Dropshipping?

Dropshipping is a famous eCommerce business model where you sell products without any physical inventory. When a customer buys something, you place the order to a third-party supplier, who then sends it directly to the customer. As the seller, your main job is to promote and sell the products, while the supplier takes care of making, packing, and shipping them. Compared to POD, dropshipping lets you sell ready-made products without any personalization.

In 2020, the Dropshipping market was worth $128.6 billion. By 2026, it is predicted to grow to $476.1 billion, indicating significant expansion in this online business area.

How does Dropshipping work?

One of the best things about dropshipping is that you don't have to make or ship products yourself. You only have to connect your customers with suppliers:

Here's how dropshipping works:

• A retailer or seller partners with a dropshipping supplier or suppliers.
• The suppliers then provide their products to showcase in the seller's online store.
• When a customer buys something, the seller handles the order.
• The seller then sends the order information to the supplier.
• The supplier does all the packing and ships to the customer.
• The customer gets the product straight from the supplier.

Dropshoopping Pros

• In dropshipping, you don't have to own a physical inventory. This leads to minimal operational costs as you don't directly manage warehouse or shipping.
• Here, you can find a huge variety of products in different categories without worrying about running out of stock.
• Dropshipping allows you to grow your business fast without adding extra work or costs.
• This eCommerce middleman offers many automated tools and supplier systems that make ordering and delivering products easier.
• You can work at your preferred location with an internet connection because suppliers take care of the inventory.

Dropshipping Cons

• High competition can cause prices to drop, which lowers profits.
• Businesses depend on suppliers to manage stock and deliver goods on time. So when suppliers come across any issues, it affects customers as well.
• The products are usually common, making it difficult to stand out as a unique brand.
• If a business uses many suppliers, customers might receive several separate packages, which raises shipping costs and complicates things.
• Dropshipping is an easy model to adapt, which causes increased competitors and profit margins.

What do You Need to Know About Print on Demand?

Print on Demand, or POD, is another rising business model where you make products only after places an order. Instead of keeping products in stock, you can partner with a supplier for custom design printings on items like T-shirts, mugs, phone cases, and more.

The supplier handles everything, from printing, packing, and shipping, to help you focus on designing and promoting your products. POD is a low-cost and low-risk way to start an online store because you don't need to buy inventory or set up production in advance.

The global print-on-demand market is predicted to grow significantly. It was valued at USD 5.1 billion in 2023 and is expected to touch USD 59.3 billion by 2033. This growth showcases an average annual increase of 27.8% from 2024 to 2033.

How does POD Work?

Print on Demand cycle is simple and easy to understand. Here's how it works:

• Set up and start your online store.
• Choose a POD supplier and connect it to your online store.
• Add those products you want to sell in your shop.
• When a customer buys something, the order is sent to the print-on-demand company you picked.
• The company prints the design on the product the customer chose.
• Once the order is ready, the company sends it directly to the customer.

Print on Demand Pros

• Creates unique designs and helps establish a strong brand image.
• Items are made only when someone buys them, so there's no leftover stock.
• You don't have to buy products in advance, which lowers financial risks.
• You have the flexibility to design items and target specific groups of people.
• Print on Demand platforms take care of printing, packing, and delivery, making the process easier.

Print On Demand Cons

• Making custom items costs more per piece, which can lower profits compared to making lots of the same thing.
• Custom orders take longer to deliver, which might upset customers.
• It focuses on customizable products, offering less variety than dropshipping.
• Keeping quality consistent is harder because items are printed as needed by outside companies.
• It takes time and effort to come up with attractive, one-of-a-kind designs all the time.

Dropshipping Vs. Print On Demand Differences

Business Model

• Dropshipping lets you sell ready-made products from suppliers.
• In POD, you sell customized products that fit your own designs.

Setup Requirements

• Dropshipping lets you choose items from suppliers and put them up for sale online.
• In POD, you create your own designs and offer them for sale.

Inventory

• In Dropshipping, suppliers keep the products in stock
• In POD, no products are made in advance; they are printed only when someone orders them

Production Time

• Dropshipping is faster as products are already made and ready to ship.
• POD is slower because customization and printing take time.

Product Customization

• In Dropshipping, products are already made and not personalized.
• In POD, Products are personalized and printed only after someone orders them.

Shipping

• In Dropshipping, the supplier sends the products directly to customers.
• In Print on Demand, the printing company sends the products directly to customers.

Order Fulfillment

• In Dropshipping, the supplier handles packaging and shipping
• In Print on Demand, the POD service provider handles printing, packaging, and shipping

Branding

• In Dropshipping, you have less control over branding (unless you use private labeling)
• POD gives you full control over branding (you can customize designs, logos, etc.)

Dropshipping vs Print on Demand: Choose the Right Option

Both models have their merits and can be highly profitable when executed strategically. Choose based on your business goals, resources, and target audience.

=> Dropshipping is ideal for entrepreneurs who want to sell various products quickly and with minimal effort but are less concerned about branding.

=> Print on Demand is better suited for those looking to build a distinct brand with custom products, especially if they have creative design skills.

When you examine the growth and market size factor while comparing POD vs. Dropshipping, you can't deny that Print on Demand is a profitable and scalable eCommerce business model, especially for entrepreneurs looking to tap into the booming demand for customized products. Invest in Print on Demand App development today to accelerate business growth and revenue.

Final Thoughts

Dropshipping and Print on Demand share a few similarities and many differences. Both provide unique benefits to eCommerce ventures. Now that you have gone through the article and all the key prospects, especially the differences between Dropshipping vs. Print on Demand, I am sure you have made up your mind about the right option. So move with confidence with your preferred business model and drive high-end revenue.