The print-on-demand (POD) business model can seem like a simple option for starting an online venture: create a few product designs, set up your store, and wait for sales to roll in.
But how realistic is this dream? In truth, running a successful print-on-demand shop requires as much elbow grease as any other new business. Learn about the profitability of print-on-demand businesses and gain tips for pricing and marketing strategies.
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Is print on demand profitable?
The print-on-demand business model has a lot going for it. POD companies have low overhead compared to printing businesses that use traditional mass production methods, which often require extensive upfront investment in stock, materials, equipment, and designs. With the POD model, business owners only pay the printers once a customer places an order.
POD also reduces costs because business owners are only responsible for designing products, basic infrastructure like an ecommerce platform, and marketing expenses. If you sell your custom products for more than it takes to produce and market them, your business should be profitable.
Research indicates the print-on-demand industry is growing rapidly. According to Global Information Institute, the POD industry in the US will have a compound annual growth rate of more than 20% and increase to over $560 million by 2030. Related trends—such as continued growth of online shopping and an increase in demand for personalized products—suggest that market demand for POD products will keep rising. According to Acumen Research and Consulting, the top three product categories for print-on-demand products are apparel, glasses and mugs, and home décor.
This growth also has a flip side. Starting a POD business is easy, so the market is crowded—especially in custom apparel. Printing companies often charge a premium rate for POD services, and there are no bulk-order discounts—leading to lower profit margins for individual items.
Example of a profitable print-on-demand company
When Shopify merchant Raven Gibson used a print-on-demand model to launch Legendary Rootz, she was still in college. Working with a print-on-demand platform gave her the flexibility she needed as a startup.
As she explains on an episode of the Shopify Masters podcast: “It’s a great option for those who are just starting out or even those who may want to test a product but don’t necessarily want to invest hundreds or thousands of dollars into buying in bulk.” For ambitious entrepreneurs with limited working capital, print-on-demand has a huge advantage. “Your profit margin might be lower, but your operating costs could be zero,” she says.
Today, what started as a print-on-demand passion project has become a full-fledged lifestyle brand.
Strategies for earning a profit at your print-on-demand business
- Create unique products
- Confirm product quality
- Establish a business identity
- Use targeted marketing strategies
- Consider your pricing strategy
- Prioritize customer experience
Establishing and maintaining a successful POD business requires a solid business plan, clever marketing tactics, and exceptional customer service. Try these simple strategies to build a profitable print-on-demand ecommerce business:
Create unique products
Unique designs with a strong point of view can help your products stand out in a crowded market.
Raven explains how designs helped her connect with her community. “Two of the first designs were ‘No, you cannot touch my hair’ and ‘I am Black history,’” she says. “‘I am Black history’—I really love that design because it’s simple. I believe that it resonated with the Black culture as a whole, and I think that was one of the designs that really helped to elevate us from family and friend support to international and community support around the world.”
Confirm product quality
Business owners can create print-on-demand products by adding custom designs to blank items from a printer’s product catalog. POD websites often include design tools that let you see mockups of how finished products will look, but Raven always recommends ordering physical samples to confirm accuracy and quality. “I get a sample just to make sure it looks how I envisioned it and that the colors are printing how I want them to look,” she explains. “That helps to eliminate any future problems.”
If products don’t meet her expectations, she sends revisions to the printer and reviews samples again.
Establish a business identity
Designing a professional-looking online store and creating product listings with original photography helps increase perceived value. Pictures of your products on models or in compelling settings can help customers visualize how they’ll use or wear them.
Shopify themes can simplify the web design process. A professional website with clean, intuitive navigation helps establish trust with consumers.
Use targeted marketing strategies
Consider who you’re designing for and why they should be interested in your products. Create a mental picture of your ideal customer—or a buyer persona—then tailor product designs, marketing language, and imagery to connect with that target audience.
Raven says, “You want to make sure that your audience, your target person, your customer persona—when they go to your site, they’re like, I need everything.”
After you’ve identified your target market, focus on reaching them with your advertising and marketing efforts. Popular ecommerce marketing strategies include influencer marketing, social media advertising, and pay-per-click (PPC) campaigns.
Consider your pricing strategy
Start by calculating all costs for producing and selling your products—production charges, platform fees, shipping costs, and marketing expenses. Then, add a markup that ensures you cover your expenses by a healthy margin and turn a profit. Print-on-demand suppliers Printful and Printify both suggest aiming for about a 40% profit margin. Researching competitor prices can also help you create an effective pricing strategy for your own business.
Prioritize customer experience
For Raven, customer service is key. As her business grew, she used Shopify to hone her approach: “One thing I really appreciated about the integrations offered through Shopify is something called Zendesk, which is a customer service management software. The element we use is for customer service emails,” she explains.
Her team uses the Zendesk app to organize customer queries and order details in one place. This helps them communicate with printers and resolve issues quickly.
In addition to customer service interactions, elements like websitecheckout experiences, product delivery times, and product packaging affect the consumer experience. Choosing a high-quality print-on-demand supplier with fast turnaround, domestic shipping, and customized packaging options can help you meet customer expectations.
Is print on demand profitable FAQ
How successful are print-on-demand businesses?
Print-on-demand can be a profitable business model for an online business, but only if you have strong marketing, competitive prices, and high-quality products. The most profitable categories for print-on-demand sites are apparel, glasses and mugs, and home décor.
Is the print-on-demand market oversaturated?
Industry trends indicate the print-on-demand industry is still growing. Online shopping trends and an increased interest in personalization indicate there is still room for POD companies to make a profit.
Why isn’t my print-on-demand business profitable?
If your costs outweigh your sales, revisit your pricing strategy. Make sure each product’s price covers production, marketing, and platform fees. Ensuring a satisfying consumer experience and maintaining an attractive, professional website can help you retain customers.
