Reasons to Choose Print on Demand Business

Print on Demand (POD) businesses have experienced significant growth in recent years, largely due to the rise and popularity of digital printing technologies. In this passage, we'll delve into the three key questions to gain a deeper understanding of this business model and explore whether it's worth pursuing.

Written by Procolored - Published on Aug 2, 2024

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Written by Procolored - Published on Aug 26, 2024

PASSAGE SUMMARY

1. Why did Print on Demand Emerge

2. Why is Print on Demand Trending So Much
2.1 Advancements in digital printing technology
2.2 Rise of e-commerce and online platforms
2.3 Shift in consumer preferences
3. Why to Start a Print on Demand Business
3.1 Lower startup cost and risk
3.2 Considerable profit margin
3.3 Global reach

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Firstly, what is print on demand?

Print on demand (POD) is a business model that contrasts with traditional manufacturing practices. It involves producing items only after an order has been placed, typically in smaller quantities. This approach helps business owners significantly reduce the risk of accumulating unsold inventory.

1. Why Did Print on Demand Emerge?

The history of manufacturing dates back to the Industrial Revolution in the 19th century, when innovations like steam engines and machinery accelerated the transformation of production models. Since then, manufacturing has been the predominant method in the commodity industry due to its high output and centralized automation.

As consumers, we've benefited greatly from manufacturing products – they're readily available in shopping malls, supermarkets, and online stores, often at affordable prices with abundant stock. Even when a product is sold out, there's usually a similar substitute readily available.

However, for entrepreneurs looking to start their own businesses and become sellers, the traditional manufacturing model can be daunting. Can you afford to carry large inventories? Where will you store them? What happens if sales are slow? How do you compete against rivals offering the same products at lower prices?

In response to these challenges, innovation arose – leading to the emergence of print on demand (POD).

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2. Why is Print on Demand Trending So Much

the average monthly search volume for “print on demand”

According to Semrush, as of 2024, the global average monthly search volume for "print on demand" has reached 1,327,000 searches.

As an innovative business model, print on demand deserves attention not only because it significantly reduces upfront costs and minimizes the risk of excess unsold inventory but also due to several other factors that have contributed to its growing popularity.

2.1 Advancements in digital printing technology

Eye-catching phone cases, personalized Stanley tumblers, unique leggings...custom products are now commonplace, thanks to the significant advancements in printing technologies, particularly in digital printing.

Taking garment printing as an example, screen printing has been the primary method for decades, especially in the garment manufacturing industry. However, in the 1990s, Direct-to-Garment (DTG) printing emerged and revolutionized the printing workflow by streamlining the process and reducing the time, equipment, and labor needed. Today, with further technological advancements in machines and consumables, new garment printing methods like Direct-to-Film (DTF) and sublimation have emerged, greatly diversifying the print-on-demand market for garment printing.

2.2 Rise of e-commerce and online platforms

E-commerce has become an indispensable part of our daily lives. As it continues to flourish and expand, more online platforms are emerging to help entrepreneurs turn their business ideas into tangible profits.

Taking Shopify as an example, it is an e-commerce platform that combines business startup, order management, and sales analysis into a single platform, enabling entrepreneurs to operate an online store with flexible customization and reduced costs. According to reports published on dropshipping.com, approximately 11.4% of all Shopify stores are engaged in print on demand.

2.3 Shift in consumer preferences

A successful brand or company must be capable of catering to consumers' unique needs, whether they pertain to fashion, daily essentials, or luxury goods. Nowadays, the trend toward individual customization and personalization is gaining momentum. Epsilon, a renowned marketing company, conducted a survey that revealed over 80% of consumers aged 18-64 are more inclined to do business with a company that offers personalized experiences, and 90% find personalization appealing.The print on demand business model aligns perfectly with this shift in consumer preferences. By providing products with unique designs and limited quantities, consumers enjoy a novel experience in co-creating goods tailored specifically for them.

The customer is the final judge of
whether we have done our job.

Thomas Watson Jr, former CEO of IBM

3. Why to Start a Print on Demand Business

Given the above, print on demand business has rapidly developed, greatly benefiting from innovation in printing and Internet technology, as well as preferences of consumers. However, the bigger momentum of its prosperity lies in its flexibility and dynamic, exhibiting features as below:

3.1 Lower startup cost & lower risk

Easy Startup of Print on Demand Stores - Printing suppliers such as Printful or Gelato are just as easily accessible online as e-commerce platforms! The print on demand business model offers entrepreneurs great flexibility, as it can be quickly set up with the assistance of online services, covering everything from material sourcing to product sales, without the need for expensive office space, time-consuming site visits, or prolonged negotiations.

No Need for Large Stock - Typically, entrepreneurs don't have to worry about excess stock issues since print on demand products are only produced once an order is placed. Some producers may choose to keep a few white-label or printed items on hand as quality references, but this is not a requirement.

3.2 Considerable profit margin

estimated print on demand market size (2022 as base year )

So far, everything sounds promising. But before diving into this new business venture, is print on demand really worth it? Let the statistics speak for themselves: According to Precedence Research, the market size of the print on demand business reached 10.17 billion by 2024.

Printify, a leading print on demand company, conducted related research and found that the average profit margin for its sellers is around 20%, with some businesses achieving even higher margins of approximately 30%.

3.3 Global reach & broader market

Most online print on demand companies and e-commerce platforms have established steady cooperation relationship with global logistics carriers, that means they not only provide print on demand sellers with a complete commodity system, but also trusted shipping services and a much broader global market.

About the Author - Simon

Simon has worked in inkjet printing industry for years. He has the rare ability to see print related issues from many perspectives. Witnessing the gradual development of digital printing especially inkjet printing, Simon knows better about what the users are looking for and how the new technologies will truly help big or small businesses.

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