Dropshipping vs. Print-on-Demand

When looking at beginner-friendly business models, dropshipping and print-on-demand – also known as POD – will likely appear in your searches. Both have unique opportunities, and you can benefit from not needing to store inventory.

However, knowing which one to choose is difficult. Though they can often cross over with each other, both business models have their own unique pros and cons. Moreover, you’ll need to think about how your skills and personality fit into the equation.

While there isn’t a right or wrong answer, dropshipping is better for some people and print-on-demand will be the ideal route forward for others. To help you pick the right business model, we’ve put together this full comparison.

Technically speaking, print-on-demand is a form of dropshipping. While you have more creative freedom, you still partner with a supplier who’ll manage inventory. Each time a person makes a sale, the supplier creates the product and ships it to the customer.

Having said that, dropshipping is not always print-on-demand. You can sell print-on-demand products as part of a dropshipping business, but you have more flexibility in your chosen items. In many cases, you’ll sell something already created by another brand.

Another key difference is that dropshipping involves shipping items as soon as a customer has purchased them. However, there will be an initial delay with print-on-demand as the supplier needs to create the product.

We’ll now discuss each of their key areas in more detail to help you understand the differences better and make the right decision.

Initial Setup

Dropshipping and print-on-demand are similar in their initial setup. For each one, you’ll need to know what you’re selling and create a website that encourages people to make a purchase. Moreover, you’ll need to upload high-quality product descriptions.

Another similarity between dropshipping and print-on-demand is that you’ll need to find a supplier to partner with. This can be more challenging if you’re running a print-on-demand business because they need to meet your requirements; the items they print on must also be high quality.

Since dropshipping is slightly easier to set up, it gets a point here.

Winner: Dropshipping

Customization

Print-on-demand is fully customizable. Many creators use these services to sell merchandise related to their brand, and it’s also common for artists to partner with suppliers to bring their art to a wider audience.

Another benefit of print-on-demand is that you can customize multiple products. It’s common to make clothing, but calendars, coffee mugs, and bedsheets are also possible. You’re really only limited by your creative thinking.

Dropshipping, on the other hand, is less customizable. Although you can create a unique website and product descriptions, you can’t customize your products that much. So, you’ll need to decide if this will cause you issues in the long run.

Winner: Print-on-demand

Order Fulfillment

Dropshipping and print-on-demand are practically identical when it comes to order fulfillment. You do not need to update inventory or store items. Instead, the supplier deals with shipping the order to a customer; your only job is to sell and market your products. In addition to partnering with the right supplier, you can automate dropshipping with AI and machine learning.

Although you don’t need to store inventory, it’s still a good idea to test your items before putting them up for sale. Contact your supplier to get test pieces and determine if the quality is good enough. If you’re happy to proceed, you can then go ahead and start selling your products

One key thing to remember with print-on-demand is that it’s not just about selling the item. You need to factor production times into your delivery times. Be as transparent as possible on your website.

Dropshipping is slightly quicker than print-on-demand, but all things considered, this category is still tied.

Winner: Tie

Beginner-Friendliness

Dropshipping and print-on-demand both have beginner-friendly elements, and you should consider both if you’re new to running an online business. However, print-on-demand has more nuances. To sell products, your prints need to be interesting enough. This can be difficult without an existing audience; it’s why many creators wait before making online courses, merchandise, and other items.

With dropshipping, you don’t need to create your own product. Instead, you just sell it. In essence, it’s like a more hands-on version of affiliate marketing with higher profit margins.

Having said that, you still need to learn a couple of important skills. Being a persuasive copywriter is crucial for your website, product pages, and ads. Nonetheless, dropshipping gets another point here.

Winner: Dropshipping

Profit Margins

Both business models are viable money-making avenues, but you must think about profit margins here. One of the most essential considerations is that you’ll need to consider every part of the process, as this area doesn’t work in a vacuum.

Print-on-demand can have relatively high profit margins for multiple reasons. In many instances, you pay only for shipping and give a small cut to the supplier. If you have an established audience, your customers will also probably be more loyal than those of many dropshipping businesses.

Another reason why print-on-demand can be more profitable is because you have more control over your pricing. Because you’re selling unique items, you’re technically offering something more valuable. This is particularly the case for artists selling their work.

On the other hand, dropshipping’s profit margins have less flexibility. You can’t control your pricing too much, and you often need to pay your supplier more. In the long run, it’s also harder to build a loyal audience.

Winner: Print-on-demand

Customer Satisfaction

Customer satisfaction is one of the most important yet commonly overlooked elements of starting an online business. These can differ quite dramatically when comparing dropshipping and print-on-demand, too.

Print-on-demand businesses often have fewer returns, and we can look to several reasons why. First and foremost, they often focus more on quality control. This is particularly true when selling collector’s items.

Another reason why print-on-demand businesses often don’t have as many returns is that people are buying something that’s unique. They’re less likely to impulse buy and regret it later. It’s also easier to build a long-term relationship with your audience.

On the other hand, things can be more challenging with dropshipping. Items can often be of poorer quality, resulting in frustrated customers. The good news, however, is that you can make yourself stand out by focusing on improving in this area.

Winner: Print-on-demand

Online Store Integrations

Another important factor to think about is whether you can integrate your suppliers with your online store. Regardless of whether you focus on dropshipping or print-on-demand, you should have no issues in this respect.

Many stores have WooCommerce integrations, allowing users to easily place orders through your website. Once they’ve done this, the supplier can then focus on producing the item (if needed) and shipping it to the customer.

Since both work just as well, this section is also a tie.

Winner: Tie

Long-Term Success

When starting any business, you must think carefully about your long-term prospects. You can make dropshipping and print-on-demand successful, but it’s often easier to build a long-term brand around print-on-demand.

Because print-on-demand products are more unique, you can stand out against your competition. You also have less competition than if you were selling a general dropshipping product, meaning you’ll be off to a good start.

Another advantage of print-on-demand is that your products are yours. Therefore, you’ll find it easier to develop marketing copy and sell your items to others.

Dropshipping has every chance of being profitable, but it’s more competitive and generally more challenging to build long-term success. Picking this business model because you really want to do it will increase your chances of success.

Winner: Print-on-demand

Print-on-demand is an excellent choice if you’ve got a creative mind and want to bring your ideas to life. It’s one of the best ways to make money with WordPress and a fantastic way to make money online with your photography, for example. You can use this business model to sell your art, create cool calendars, sell interesting merchandise, and much more.

You should also choose print-on-demand if it’s an extension of something else you’re doing, such as running a creator business. That way, people can buy from you when they want – but at the same time, you don’t need to go full-time on managing your print-on-demand settings.

It’s also worth building a print-on-demand business if you want to have more customization and control over price points. You’ve got a lot more flexibility if you create products that people really want.

Dropshipping is ideal if you don’t yet have a product creation idea. Someone else has already taken the guesswork out of purchasing, and you can instead focus on the marketing aspects.

You can also pick dropshipping if you want an entry-level route into eCommerce. It’s an ideal training ground to learn about the basics of selling products, and you’ll find it easier to transfer your skills later.

Another advantage of dropshipping is that it’s easier to not be the face of your business. So, if you’d rather have a backseat role, this is better than print-on-demand.

Dropshipping and print-on-demand both have their own advantages and disadvantages. There isn’t a right or wrong answer; it depends largely on your skills and preferences. You can enjoy success in both if you stick with them for the long run.