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 26, 2024

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Written by Procolored - Published on Aug 26, 2024

Passage Summary

Reasons to Choose Print on Demand Business

POD Printing Methods

Popular POD Printing Products

How to Integrate Procolored into POD Business

Reasons to Choose Print on Demand Business

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).

Passage Summary

Reasons to Choose Print on Demand Business

POD Printing Methods

Popular POD Printing Products

How to Integrate Procolored into POD Business

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The purpose of a business is
to create and keep a customer.

Peter Drucker, famous management consultant

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.

POD Printing Methods

To start and run a successful print-on-demand (POD) business, selecting a suitable and efficient printing method is crucial. Thanks to advancements in printing technology, there are now numerous printing methods available on the market.

Today, let’s focus on one specific and popular method: heat transfer printing.

1. POD Printing Methods - Digital Printing

Compared to traditional screen printing, which relies heavily on manual labor, digital printing has emerged as a more modern and automated solution. Typically, digital printing uses specialized printers and machinery to produce prints on a wide range of materials. As technology continues to advance, various digital printing techniques, such as Direct-to-Garment (DTG), Direct-to-Film (DTF), and Ultra-Violet (UV) printing, are becoming increasingly popular, transforming the printing industry into a more efficient and innovative sector.

While the specific processes vary among different digital printing methods, they share several commonalities:

All digital printing processes use printing machines to deposit ink or toner onto the desired substrates. Utilizing machines for printing significantly enhances both speed and accuracy.

Designed to work with printing machines, digital printing requires digital files such as graphics created in software like Adobe Illustrator or Photoshop. These files are then interpreted by the machines to produce the final printed output.

Most finished digital prints require additional equipment or devices to cure the printed ink or toner, resulting in more durable and long-lasting printing outcomes.

1.1 Digital printing vs traditional printing

Unlike digital printing, most traditional printing techniques do not directly produce graphics. Instead, they require the creation of one or more specific printing plates or screens before ink can be applied.
Although considered somewhat outdated, traditional printing remains prevalent in today's market. For instance, screen printing continues to be the most favored printing method in the United States, a key player in the global printing industry. According to Grand View Research, screen printing accounted for over 56% of the revenue share in the U.S. printing market in 2023.

screen printing took up over 56% of US T-shirt printing revenue in 2023

Unlike digital printing, traditional printing methods, such as screen or offset printing, basically work like this:

As the very first step, a specific printing template of the desired graphic must be created, which can be stencils in screen printing or metal plates in offset printing. Generally, each template can only be used to print graphics in the same color.

Inks are later applied to the printing template to “print out” the exact text or graphics.

Similar to digital printing, the finished prints require further drying or curing to stay firm on the printed substrates.

1.2 Differences in traditional and digital printing

Coexisting on the thriving current printing market, both traditional and digital printing have undoubtedly built their own loyal user bases. So what exactly distinguishes them from each other?

Applicable material: Digital printing, though younger—it was first invented and applied in inkjet printers only during the 1950s-1960s—has rapidly expanded its capabilities due to advancements in printer technology, particularly in compatible inks and built-in curing devices. As a result, digital printing has broadened its range of applicable printing substrates.

For example, in garment printing, screen printing, a traditional textile printing method, is typically recommended for fabrics like cotton and polyester but is less suitable for delicate materials like silk. On the other hand, DTF (Direct-to-Film) printing can be used on a wider range of fabrics, including cotton, polyester, blends, nylon, spandex, and even silk or other fine fabrics.

Applicable business model: Besides its use of printing machines, another significant feature of digital printing is its ability to produce unique, customized printings rather than universal ones—meaning it is better suited for handling printing tasks of smaller quantities.
Traditional printing methods, such as screen or offset printing, are instead commonly used in manufacturing businesses due to their reliance on shared pre-made printing templates, making them more efficient for larger production runs.

Applicable graphic type: As previously mentioned, each printing template of traditional printing supports graphic content in one color only, making it challenging to accommodate multicolored designs at once. In screen printing, achieving graphics in multiple colors and layers requires numerous templates, and strict calibration is necessary when printing each template in sequence.
In contrast, digital printing enables multicolored, intricate, and complex printings all at once, offering a broader color gamut and detailed color reproduction thanks to the printer's color space.

Environmental Effect: Though still playing important roles in the current printing community, traditional printing is often criticized for its negative environmental impacts. Screen printing, in particular, is not always a preferred choice for new beginners due to its emission of VOCs (Volatile Organic Compounds) during the printing process.
On the contrary, digital printing has significantly improved its environmental friendliness by using low-VOC inks and reducing the usage of chemical solvents.

1.3 Why choose digital printing for POD business

Higher cost-efficiency: Compared to screen or offset printing, digital printing requires lower upfront investment and is more widely used for smaller quantities, perfectly meeting the business needs of the POD (Print-On-Demand) model.

Simplified workflow: Digital printing uses printing machines to complete printing tasks, requiring less human effort in both template preparation and ink application. This effectively transforms the printing process from manual operations to automated workflows.

Quicker turnaround: Let’s take garment printing as an example. The difference between traditional and digital printing might be minor when we’re aiming to print out graphics with simple designs and single colors.
But imagine using both screen printing and DTF printing to print the picture on the right, and here’s what we’re supposed to do:

Evidently, digital printing is much better at processing multicolored graphics, successfully saving you from endless waiting time and tedious printing workflows.

Minimal workspace: Similar to computers, early printing machines were large and bulky. However, with advancements in electronic technologies and production techniques, most printing machines have been reshaped into smaller sizes. Nonetheless, machines for screen printing and other traditional printing methods still take up more space than those used in digital printing.
Thanks to smaller machine size and much easier operation, digital printing can be performed in a relatively limited space, making a POD (Print-On-Demand) business feasible for people on a budget.

Xerox 9700, laser printer in old days, image: wikipedia

1.4 How to Proceed with Digital Printing

DTF (Direct-to-Film) printing:

DTF, or Direct-to-Film printing, is a technique that uses specialized DTF inks, adhesive powder, drying ovens, and heat transfer processes to create designs on various fabric types, including polyester, cotton, and silk. While it shares some similarities with Heat Transfer Vinyl (HTV), DTF differs significantly from dye sublimation printing. Primarily utilized for embellishing textiles, the scope of DTF printing is expanding as new, rigid materials are explored for printing.

The DTF printing process can be broken down into these steps:
1. Design Preparation: Finalize the artwork intended for printing.
2. Film Printing: Print the design onto a PET film substrate.
3. Powder Application: Apply an even layer of adhesive powder over the printed design.
4. Drying Process: Cure the adhesive powder using a heating oven.
5. Heat Transfer: Position the design onto the target item and apply pressure with a heat press to affix it.

Sublimation Printing:

Sublimation printing is a technique that utilizes sublimation inks, a specialized printer, and a heat press to transfer dyes onto materials, primarily polyester fabrics and other rigid surfaces. Unlike HTV (Heat Transfer Vinyl) printing, sublimation offers a simpler printing process, which typically involves the following steps:

1. Design Preparation: Finalize the graphic you intend to print.
2. Printing: Print the design onto sublimation paper.
3. Heat Transfer: Place the printed design onto the desired material and use a heat press to transfer the ink.

picture from https://blog.spgprints.com/paper-for-sublimation-printing-on-textile

DTG (Direct-to-Garment) printing:

DTG printing is a technique that employs specialized inkjet technology to print directly onto textiles and garments. It is especially effective for producing full-color designs on t-shirts, hoodies, and other apparel items.

The complete DTG printing process includes the following steps:

1. Pre-Treatment: For optimal results, especially on dark-colored garments, a pre-treatment solution is often applied to the fabric. This step enhances ink adhesion and ensures color accuracy.
2. Printing: The garment is positioned in the DTG printer, which then deposits water-based inks directly onto the fabric. The printer is capable of handling complex full-color images, gradients, and fine details.
3. Curing: After the printing is complete, the garment undergoes a heat-setting process to cure the ink. This ensures that the print is durable and resistant to washing.

Laser printing:

Laser printing is a digital printing method that uses a laser beam to create an electrostatic charge on a drum, which attracts toner particles. The toner is then transferred to paper or other media and fused using heat and pressure.

The complete laser printing process consists of the following steps:

1. Laser Scanning: A laser beam scans the surface of the drum, creating an electrostatic image.
2. Toner Application: Toner particles are attracted to the charged areas on the drum.
3. Transfer: The toner is transferred from the drum to the paper or other media.
4. Fusing: Heat and pressure are applied to permanently bond the toner to the paper, ensuring the print is durable and long-lasting.

UV (Ultra-Violet) printing:

UV printing is a technique that uses a special type of ink that is cured instantly using UV light after being printed onto the substrate. This immediate curing process ensures that the ink dries quickly, reducing the risk of smudging or bleeding. UV printing is highly versatile and can be used on a wide range of materials, including paper, plastic, metal, glass, and even three-dimensional objects.

The complete UV printing process includes the following steps:

1. Graphic Design: Finalize the graphic you intend to print.
2. Select Substrate: Choose the appropriate material for your print, such as paper, plastic, metal, or glass.
3. Printing: The UV printer applies UV-curable ink to the substrate in small droplets.
4. UV Curing: UV lights inside the printer immediately cure the ink, causing it to dry and adhere instantly.

UV DTF printing:

UV DTF (Direct-to-Film) printing combines the principles of UV printing and DTF printing. It is particularly effective for creating crystal stickers that can be directly applied to various objects, such as mugs, bottles, and items with beveled or cylindrical shapes. However, it is not suitable for use on fabrics.

The complete UV DTF printing process includes the following steps:

1. Graphic Design: Finalize the graphic you intend to print.
2. Printing: Print the design onto a base film, which has a glue-coated side.
3. Laminating: Laminate the base film with a backing film to protect and enhance the print.
4. Transferring: Transfer the printed graphic from the base film to the backing film, which now has adhesive properties.
5. Sticker Preparation: The crystal sticker is now ready to be applied to the desired object.