We have covered many aspects of how to start a dropshipping business with AliExpress in our dropshipping series. Dropshippers can also opt for ‘Print on Demand’ dropshipping, which is a highly lucrative option that offers dropshippers nearly twice the income.
It is so popular right now that you can find POD shops everywhere. They make millions of dollars per year, and most of them are now very large.
Dropshipping
Let’s find out what dropshipping means for print on demand, and how to create a demanding business.
What’s Print on Demand (POD),?
Print on Demand (POD) is essentially custom design. You can apply the custom designs to any item, from a pen to bumpers for your car. This industry was thriving long before the advent of ecommerce. However, ecommerce made it possible for anyone to open an ecommerce store starting with very little money.
Today, POD stores sell their custom creations directly through suppliers to consumers. This idea is similar to a dropshipping shop where you sell Chinese manufacturer’s goods. However, there are more options and fewer restrictions.
TeeSpring is the most popular drop-shipping site. TeeSpring allows anyone to create a shirt and send it to clients. TeeSpringreserves a base price and encourages dropshippers to set their own prices.
Print on Demand (POD), which delivers custom-designed products to customers around the globe, has been a business for five years. Print on Demand (POD) can be printed on almost anything, including T-shirts, books and cell phones. However, shirts, mobile covers and pillow covers are most popular.
Dropshipping on Demand – Pros and Cons
Every dropshipping company, including a print on demand (POD), has its advantages and disadvantages. Let’s have an in-depth conversation about these issues to determine if we can overcome them.
Dropshipping
Dropshipping Print On Demand (POD), is an ideal business model for artists, writers, and designers who wish to launch products or start a side-business. These are some of the main benefits that POD offers.
Make Your Own Products
Nothing can beat the satisfaction you get when you sell your products. It was difficult for designers to sell their goods a few years back because it was hard to find reliable suppliers and engage with them. You can sell your designs on mobile covers and book covers as well as mugs and calendars. There are also print-on demand platforms like Printful, TeeSpring and Zazzle that allow you to easily print your designs.
Custom Packaging
To increase brand recognition and dropshipping custom designs , you can add your logo. Dropshippers such as RIPTApparel began to do this. They began to endorse the designs of others on their platform and added their logo.
The shirts were shipped from a third-party vendor. They made over $100,000 per month by selling their creations on a website and charging a fee for each sale.
A POD shop is only the first step to creating a sustainable brand.
Simple to start as a side-business
Many print-on-demand dropshippers also run their own companies as a side business. They work full-time to support their families and market their creations through different POD channels.
Because it is easier to get into and offers more space for new items and styles, they started a POD business.
The Complete Process Automates
Dropshipping Print On Demand is a better option than others because you can automate everything, from designing to advertising. Dropshippers who sell on-demand prints spend about $10 per day to experiment with new ideas. If these designs don’t convert, they can start over with another design.
Dropshipping
All print on demand drop shipping shops need to be creative, flexible, and hardworking in order to survive. However, there are some issues that can be a problem in the long-term. Here’s how to avoid them.
High Shipping Prices
These POD dropshipping products are more expensive than AliExpress dropshipping where clients prefer to buy Chinese goods. The prototypes, which can be made in other dropshipping models, have been hand-printed and are not manufactured in bulk.
It is possible to compare the prices of different POD dropshipping websites. TeeSpring and PrintFul, for example, charge $11 per cover when they offer custom mobile covers. Printify, however, charges $9 for the exact same.
You can compare the prices of different POD platforms to find the most affordable one.
Another way to lower commodity prices is to reduce your sales. First, if you have a $5 profit on a commodity keep it at $3. While this would decrease your earnings, it will also increase the number of people who are willing to buy your products, which means more profit from economies of scale.
Strong Design Skills
A POD dropshipping company has one disadvantage: it requires expertise in architecture. People aren’t just buying T-shirts, they are looking for styles that fit their daily lives. For example, this ‘butcher tee’ layout sold over 1,000 orders in just minutes. Because the idea resonated with butchers, the owner of the print-on-demand store targeted them. These shirts must be attractive, well-made, and easy to buy.
Requires Creativity, Resources
One challenge for every POD company is the inability to quickly find quality goods. While some goods may work well, they are not sustainable. You must start testing new products. This will take longer since you won’t be designing the shirts and it will cost more because good designers can be hard to find at a low price.
Even if your work is outsourced before it is finalized, there are still chances that you will need to make numerous revisions.
Tough Competition
Its low entry barrier is a benefit for POD companies. It may seem odd that this is a disadvantage, especially when you can start at a low price. Because there is no barrier to entry, they will be your competitors, people who are looking for a business to start. You will need to be different to make your business stand out from the rest. Anything is possible!
TeeSpring is used to market thousands of consumers’ goods. Your competitors may be more successful than yours. There are many people who also sell t-shirts using Printify, Printful and even dropshippers through AliExpress.
Print On Demand vs. AliExpress Dropshipping and vs. Amazon FBA
Let’s see how they differ from one another by comparing Print on Demand dropshipping to two other ecommerce models.
Dropshipping
Dropshipping Print on Demand is a way to make your designs available online. You will need an e-commerce platform like TeeSpring, Printify or Printful to dropship your designs. Although the entry barrier to the POD Company is low, it faces stiff competition. Although there are few options for customization, profit margins can be high in a POD company. This type of business can be quickly expanded if you have a loyal customer base.
AliExpress Dropshipping
Dropshipping with AliExpress is a dropshipping model that allows you to sell products through AliExpress while still making a profit. This company is successful as the suppliers to AliExpress don’t directly market their products, so dropshippers do this for them while still making a profit.
For example, a cat-paw locket is available for $1 + $3 ePacket shipping via AliExpress. It’s usually $10 on free shipping websites such as Wish or Bluecrate. Dropshippers can still make a profit of $3 on one product even though it is listed at $3.
This type of business model is known as “arbitrage” in simple terms. Arbitrators are real estate agents who sell products at a higher price and still make a profit. Dropshipping is possible because many sellers use the same terminology. Dropshippers who sell AliExpress products or Chinese products often promote them on social media and Google ads.
Fulfillment from Amazon (FBA).
Fulfillment by Amazon is a business model that allows you to use Amazon’s excellent service to sell products on Amazon. FBA allows you to ship your products to Amazon, then pack them and deliver them to customers. This business model is used by the majority of FBA professionals to make millions.
It is simple:
- They import high-quality goods from China through China
- These goods are then sent to Amazon warehouses where they can be eligible for Amazon prime products.
- They then promote their products on Amazon listing pages and optimize Amazon descriptions for higher ranking.
FBA has a high barrier of entry. These companies must purchase bulk and sell it. This is something that a POD store owner can’t easily do.
Common Misconceptions About Print on Demand (POD), Dropshipping Business
These are common misconceptions about POD companies that you will find all over the Internet.
Misconception #1 – Print on Demand requires a lot of upfront costs
Dropshipping can be started with no money for Print on Demand. Most dropshippers start with zero dollars and scale after they have made a few sales. We have added a disadvantage to printing in demand stores: their low entry barrier.
Misconception #2 – Print on Demand Products don’t sell well
This is not a myth. You won’t make the money you want if you sell low-quality products. If you sell substandard products, who would buy them?
Misconception #3 – High Chances of Failure in a POD Business
Failure in any company that doesn’t conduct a feasibility study is very likely. Almost nine out of ten companies fail, and this is due to a variety of reasons. Learn more about POD statistics by visiting our Business Success Report Dropshipping.
Misconception #4 – You must be a graphic designer in order to start
However, this is incorrect. Many dropshippers of POD don’t know much about graphic design. They saw a gap in the market and started advertising on Facebook to promote their plans. One dropshipper started by printing quotes on his shirts. He has already earned more than $100k.
Potential Market for a Print on Demand Company
As a result, a ‘Print On Demand (POD),’ business model is still very infancy. However, the overall printing industry is growing by 16 percent annually. This combined with the ecommerce growth data can give us a good idea of its future development. The ecommerce growth data aims to achieve a $3.5 trillion ceiling this year. Printify and other top POD platforms have experienced a remarkable growth in the past six months, purely because there is so much demand.
Top Countries to Market POD
POD dropshipping can be done in almost all countries. Dropshipping is a way to reach high-income countries. Dropshipping experts sell POD goods to countries with strong per capita incomes and mature online markets in the US, UK , Canada, New Zealand.
When choosing countries to target for POD, keep these factors in mind.
Buying power
Find out the per capita income of these countries. For example, the US, UK, Switzerland and many other countries have strong purchasing power. You should also shortlist your POD ads.
Population
You can now search for which country has the largest population. If a country only has a few millions people, such as Norway, it will take a while to grow your POD Company.
Ad Budget
Compare the prices of ad spend by comparing ads from different countries. America actually has the highest budget costs at $5-$8 per mouse. The rate in Australia and Canada is $2, while it is much lower. Compare these before you decide on the country to sell your goods.
Shipping Fees
Compare shipping costs for each country. Use a product such as TeeSpring or Printify to find out the shipping costs.
After considering the above factors, finalize the country to be targeted by advertisers.
Expert Views of Print on Demand Dropshipping
Consistency is all
Ronnie McKenzie, an associate marketer, said that the reason we were so successful in selling POD products was because of our emphasis and consistency.”
Ultimate Words
It is important to remember that nothing is worse than a missed opportunity. Easy to launch and scale, print on demand drop shipping businesses require no investment. Our study shows that the benefits of a POD organisation outweigh their cons.
The e-commerce market is growing rapidly and POD companies offer a great opportunity for someone who wants to start a side business but is hesitant about putting their hard-earned money at risk.
The advantage of a POD dropshipping business is that you only have to lose a small amount of the money that you spent on promoting and developing the products. Even if your shop fails, this is still a benefit. However, you will be able to use the knowledge gained in the process to open a successful shop. This is your chance to make the most of it and get started printing on demand right away.
