Dropshipping and print-on-demand have become go-to e-commerce models for beginners. Both methods make it easy to start an online store with low initial costs and no need for inventory.
Yet, newcomers may struggle to understand how these models differ and which one suits their goals best. This article covers all you need to know about these concepts and helps you choose the best option for your business needs.
What is dropshipping?
Dropshipping is a business model that allows businesses to sell products without carrying their own inventory. Instead, they connect with a supplier and manage aspects such as store design, customer service, and more before the sale. When a customer buys a product, the dropshipper takes it from the supplier’s stock, packages it, and ships it directly to the customer under the store’s brand.
What is print-on-demand?
Print-on-demand, or POD, is a specialized model that allows you to create custom designs on white-label products and sell them to customers. Essentially, when a customer orders a product (like a t-shirt, mug, or poster) featuring your design, the POD provider prints the item and ships it directly to the customer.
Dropshipping vs. Print-on-demand: Key similarities
From the explanations above, it is clear that both dropshipping and print-on-demand have much in common. Neither model requires buying inventory in advance. Without the need to purchase products in bulk and maintain inventory, it requires significantly less investment compared to traditional businesses. Sellers only need to create an online store and list their products for sale. This allows anyone to start an online business on a small budget while avoiding the risks associated with excess or outdated inventory.
Another significant advantage is that both models let you offer as many items as you want, allowing for extensive diversification. For instance, if you start a clothing line, you can add trendy or seasonal designs without needing to purchase inventory upfront, enabling you to test a variety of items.
More importantly, both print-on-demand and dropshipping models enable entrepreneurs to focus on other aspects of their business, such as marketing and promoting their products. For example, to drive traffic to their stores, dropshippers and print-on-demand sellers need to engage in advertising and marketing, such as social media, email campaigns, SEO, or paid ads. This allows them to dedicate their time and energy to growing their customer base and brand rather than worrying about inventory management and logistics. This focus drives revenue growth and builds trust and credibility for the business.
Dropshipping vs. Print-on-demand: Main differences
Besides what they have in common, dropshipping and print-on-demand have unique features that set them apart. Let’s recap the main differences between these two business models.
| Criteria | Dropshipping | Print on Demand (POD) |
|---|---|---|
| 1. Competition | Higher competition due to the availability of similar pre-made products from multiple sellers. | Lower competition as products are unique and customized, reducing direct competition. |
| 2. Product Quality | Varies based on the supplier; quality control can be challenging. | Generally more consistent; quality depends on the POD provider and the base product selected for customization. |
| 3. Product Types | Wide variety, including electronics, home goods, fashion, and more. | Limited to customizable items such as t-shirts, mugs, posters, and other printed merchandise. |
| 4. Profit Margin | Usually lower due to price competition and less control over product quality. | May be higher due to increased value from product customization. |
| 5. Customization and Branding | Limited customization; usually pre-made products with minimal branding opportunities. | High level of customization; allows for unique designs and personalized branding on products. |
| 6. Fulfillment Process | Products are selected from the supplier’s inventory, packaged, and shipped directly to customers. | Involves an additional step of printing the design on the selected product before packaging and shipping. |
| 7. Shipping Times | Generally faster since products are pre-made and ready to ship. | May take longer due to the customization process required before shipping. |
| 8. Market Size | Large market size with a diverse range of products appealing to various consumer needs. | Smaller, niche market focused on personalized and unique items; highly engaged and willing to pay a premium for custom products. |
Dropshipping vs Print-on-demand: What’s best for you?
Every case is different, so there’s no one-size-fits-all answer. You should choose the model that aligns with your goals and abilities.
Dropshipping suits businesses that want to sell online without handling inventory or product development. It’s perfect for practical entrepreneurs who have limited time and experience.
Print-on-demand is ideal for selling custom products without the need for inventory and upfront costs. It’s perfect for artists, influencers, companies, and bands aiming to sell merchandise online.
The Role of the Fulfillment Unit in both models
The fulfillment unit plays a crucial role in both dropshipping and print-on-demand (POD) business models, ensuring that orders are processed, packed, and shipped efficiently to customers. Here’s how it works for each model:
In dropshipping, the fulfillment unit primarily handles inventory and shipping by keeping supplier products and shipping them directly to customers once orders are placed. They optimize logistics processes to ensure quick and efficient dispatch. Additionally, they offer support for order-related issues, such as handling returns, exchanges, and customer concerns.
For print-on-demand, the fulfillment unit is responsible for promptly producing the product after placing an order. This involves printing or manufacturing the item according to the customer’s specific design. They need to ensure top-quality printing and strictly adhere to customization requirements, covering images, colors, and materials. Prompt delivery after production is necessary, as the product is only made once an order is received.
In both models, fulfillment units help reduce manual tasks, minimize errors, and improve overall efficiency, allowing you to run your business more smoothly and profitably. Zopi Fulfillment Service proudly offers unparalleled advantages to elevate your dropshipping business. With over 3,670 merchants served, 19,000+ orders successfully fulfilled, and an impressive 85% satisfaction rate, we deliver unmatched benefits to ensure your success. Get started with Zopi Fulfillment service and make the change today!
In summary, dropshipping and print-on-demand are great, cost-effective, and competitive solutions to help your business thrive. So, which is better for you? We hope this article has guided you toward the right choice!