A century ago, baby names were dominated by a few choices. The top name for boys, “John” accounted for more than 5% of all American males born in 1923, and “Mary” was 5.7% of females. Fast forward to today: 2023 Social Security data shows currently popular names are far less common. The most popular name for boys, “Liam,” makes up only 1.1% of births, and “Olivia” just 0.87%—only about one in 100 kids for each.
It’s one of many trends that highlights an increasing desire for individuality. People don’t want to be one of five Marys or Johns—nor do they want the same old products as everyone else.
Selling customized products can be a great upselling opportunity for small business owners with online stores, allowing customers to tweak details and designs to make items truly their own.
What is product customization?
Online product customization enables customers to modify an item based on their needs and desires. Personalization options might involve selecting colors, changing designs, adding or removing product features, or adding a name, logo, or monogram.
“Some people think of customizable products as putting a name or a picture on a t-shirt—but it can go well beyond that,” says Dans Rozentāls, customer success team manager at Printful, which allows businesses to design and sell custom products online with print-on-demand dropshipping.
“We encourage business owners to think about offering something unique for a specific fan base or customer need—making a real connection.”
When done right, Dans says, customized products can help businesses “become flexible, agile, and able to try new things. That’s where we see a lot of business owners have the biggest opportunity to grow.”
Benefits of product customization
- Potential for higher profit margins
- Increased customer loyalty
- Competitive edge
- Reduced inventory risk
- Speed and agility
- Deeper understanding of customers
Personalized products and customization options are a major differentiator for today’s customer. According to a June 2024 Deloitte study, consumers are increasingly buying from brands that highlight their individuality. Customization, as a subset of personalization, can contribute to this sense of connection. Benefits of product customization include:
Potential for higher profit margins
A generic item that everyone owns is rather ho-hum. But product personalization turns it into something special—even one of a kind. That’s something many customers are willing to pay a premium price for, boosting sales.
For example, a plain t-shirt can sell for as little as a few dollars, Dans notes. Yet if the buyer can select the collar style, sleeve length, and color, and then prints whatever design they’d like—suddenly that $5 t-shirt is worth a lot more.
“I’ve seen customers selling print-on-demand t-shirts for up to $80,” Dans says. “It’s about how you market it, the community you’re marketing to, and the value that your brand brings.”
Increased customer loyalty
When customers can get exactly what they need (whether that’s a pair of sneakers in a half size with two-tone laces or their baby’s likeness on a pair of socks) it can increase brand loyalty, potentially leading to repeat orders.
“You feel the brand actually knows what you’re about and wants to give you exactly what you want,” Dans says. “You’ll come back to them again and again, and tell others about it, because they understand you.”
According to the Deloitte study, companies with more mature personalization programs were 71% more likely to report improved customer loyalty.
Competitive edge
With so much competition among ecommerce businesses, it can be difficult to stand out. Why should someone buy this off-the-shelf notebook from you instead of a competitor?
Personalization provides a clear differentiator: If customers can select not only the color of the notebook, but also the wire binding, the format of the pages, and the monogram foil color, that’s no longer a generic notebook they can get anywhere—it’s something special.
Reduced inventory risk
Let’s say the color purple isn’t resonating with your customers this season. If you follow typical bulk production, now you have a pile of purple baseball caps sitting in inventory. But if you produce items on demand, you’re creating a purple cap for a customer who has already purchased it.
While the per-unit cost of custom-made goods is likely higher than those made in bulk, it eliminates inventory expenses. You can even stop managing inventory altogether by using a partner like a print-on-demand company to produce and ship custom products. This can allow you to expand your product line, create new merchandise, or target a new audience.
“Sometimes when people look at an on-demand model compared to bulk, they look at the product cost and say, ‘That’s expensive,’” Dans says. “But for bulk setup, you have employee costs, utilities, warehousing, equipment and repairs, and more. Managing inventory can get really expensive.”
Speed and agility
On-demand production allows companies to be nimble in multiple ways. For one: Audiences are not one-size-fits-all, and enabling customers to add a personal touch can help you reach multiple customer segments at once.
“You can experiment with options for different communities, and if it works to boost sales, great; if not, you test something else,” Dans says. “That’s where a lot of business owners have a lot of opportunity to grow. It’s not sticking with the things that worked three years ago—it’s being agile and testing new things constantly.”
This nimbleness also allows companies to capitalize on of-the-moment trends—something that isn’t possible with bulk ordering, which you must do months in advance. “There’s a huge opportunity cost to missed trends, whether it’s on social media or in fashion,” Dans says. “If you haven’t ordered in June, you might be too late for the Christmas shopping season. Whereas with on demand, you can have a design up and running in literally five minutes.”
🌟Looking for popular things to sell in 2024? Check out these trending products. They could help grow your sales. Snail slime, anyone?
Deeper understanding of customers
As customers tinker with the product configurator and ultimately make their selections, every decision is a data point. According to the Deloitte study, the most successful personalization brands were 10 times as likely to say they have extensive insight into customers’ preferences.
For example, if most people upgrade to the nicer drawer pulls on your custom side tables, perhaps those become the default option—or you might consider charging more for them. Conversely, if most customers consider personalizing your gold ID bracelet but skip it before checking out, your price may be too high.
Examples of product customization
When leveraged effectively, product customization techniques can unlock business opportunities, attract new audiences, and drive growth through loyal customers. Here’s how a few Shopify merchants have done it:
KaiKini
Everybody is different, which makes shopping for women’s swimwear a challenge—especially when online shopping. That’s why Taryn Rodighiero founded KaiKini, a Hawaii-based swimwear company that creates a truly personalized experience.
On KaiKini’s store, a user-friendly interface lets customers build suits by entering their measurements and preferences (like “full,” “cheeky,” or “teeny” coverage for bikini bottoms). They also select a print—or two, if the suit style is reversible. Taryn also offers customers a virtual concierge service to walk them through the process. This turns customers into designers, and lets them take charge of finding the perfect fit and style for them.
MyCustomCandy
In 2013, marketer Sarah Hannington wanted to send custom-printed Valentine-style candy hearts to a client. Through frantic Googling she eventually persuaded a company to do it—but they had no ecommerce presence.
Sarah saw an opportunity and created MyCustomCandy, which prints personalized candy hearts and mints, customized candy bags and boxes, and direct-to-recipient candy mailers.
Customers can use their own text and images to create personalized items for wedding candy tables, corporate promotions, and marketing campaigns. MyCustomCandy’s long customer list includes Microsoft, J. Crew, Nintendo, Toyota, Lady Gaga, and Kim Kardashian.
Appointed
Appointed sells crisp and minimalist planners, notebooks, journals, calendars, and stationery—with as much or as little customization as customers want. When customers purchase from Appointed’s standard collection, they can use the product customizer to choose between several colors of bookcloth (bookbinding fabric) covers, and monogramming in either serif or sans-serif font.
Brands seeking further customizable options can browse Appointed’s Custom & Volume collection to choose from a variety of bestselling items and pick colors, add a monogram and/or logo, and, where applicable, select from lined, grid, or blank interior paper. Customers can also work directly with Appointed to make fully custom goods.
Product customization FAQ
What are the drawbacks of product customization?
You may need more complex operations to produce and sell customized goods. Custom products also likely need longer lead times, and you may spend more time going back and forth to ensure customer satisfaction. It’s also important to keep in mind that customers usually cannot return custom products.
How do you offer product customization on ecommerce stores?
Consider leveraging the best product customizer software and print-on-demand apps as you begin this process. The Shopify App Store includes hundreds of apps dedicated to product variants, customized and personalized products, custom file uploads, and print on demand.
What is an example of a customized product?
Popular product customization examples include print-on-demand t-shirts, custom furniture, monogrammed leather goods, and personalized jewelry.
