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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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14 minutes read

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Written by Procolored - Published on Aug 26, 2024

Passage Summary

Why Print on Demand Business

Mastering Heat Transfer Printing for Your Print-on-Demand 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

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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

2. POD Printing Methods - Heat Transfer Printing

2.1 What is Heat Transfer Printing

Heat transfer printing is a method that uses heat and pressure to transfer designs or graphics onto a variety of materials, including textiles and other flat surfaces. Unlike traditional printing methods such as screen printing, heat transfer printing allows for the creation of custom decorations with minimal human effort, using just printing and pressing machines. This method is ideal for print-on-demand (POD) products like custom apparel, home decor, and promotional items.

2.2 How to Proceed Heat Transfer Printing

Heat transfer printing uses printers to produce graphics, and the process generally involves three main steps: graphic design, printing, and heat pressing. However, the specifics can vary depending on the method used. In the following section, we will delve into three popular heat transfer printing methods: HTV (Heat Transfer Vinyl), sublimation, and DTF (Direct to Film) printing.

HTV (Heat Transfer Vinyl):

HTV, also known as Heat Transfer Vinyl printing, is a method that uses a thin and flexible material suitable for various fabrics, including polyester, cotton, leather, linen, and more. The vinyl has an adhesive layer on one side that can be activated by heat and pressure, ensuring a tight and stable bond to the desired surface.

The HTV printing process typically involves the following steps:

1. Graphic Design: Create and confirm the graphic you want to print.

2. Printing: Print the design onto a vinyl sheet using a vinyl printer.

3. Cutting: Use a vinyl cutter to precisely cut out the desired parts of the design.

4. Trimming: Remove any unwanted parts of the vinyl to isolate the design.

5. Heat Pressing: Place the trimmed vinyl graphic on the desired object and use a heat press to adhere it firmly.

picture from https://www.siser.com/news/the-basics-and-benefits-of-siser-easyweed-heat-transfer-vinyl/

Sublimation printing:

Sublimation is a printing method that uses sublimation inks, a printer, and a heat press to transfer dye onto materials such as polyester fabrics or other rigid surfaces.

Compared to HTV printing, the sublimation process is generally simpler and involves the following steps:

1. Graphic Design: Create and confirm the graphic you want to print.

2. Printing: Print the design onto sublimation paper.

3. Heat Pressing: Place the printed sublimation paper on the desired object and use a heat press to transfer the design.

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

DTF (Direct-to-Film) printing:

DTF, also known as Direct-to-Film printing, is a method that uses DTF inks, adhesive powder, an oven, and a heat press to transfer prints onto a variety of fabrics, including polyester, cotton, silk, and more. While it shares some similarities with HTV printing, DTF differs from sublimation printing. Although DTF is being experimented with on more rigid substrates, it is primarily used for textile decorations.

The complete DTF printing process involves the following steps:

1. Graphic Design: Create and confirm the graphic you want to print.

2. Printing: Print the design onto a PET film.

3. Powder Spreading: Spread adhesive powder over the printed design.

4. Powder Curing: Use an oven to cure the adhesive powder, ensuring it adheres properly.

5. Heat Pressing: Place the cured film on the desired fabric and use a heat press to transfer the design.

2.3 Which Heat Transfer Printing Suits Your Business Most

With strong compatibility with fabrics and ease of use, these three printing methods—HTV, sublimation, and DTF—are all suitable for starting a print-on-demand (POD) apparel business. However, in actual application, there are noticeable differences among them.To choose the heat transfer printing method that best suits your business, it's important to understand their unique characteristics and processes. Below is a detailed comparison to help you make an informed decision:

Suitable Fabric Range: Both HTV and DTF printing can be used on a wide range of fabrics, including polyester, cotton, leather, linen, and more. In contrast, sublimation printing is limited to polyester fabrics.

Design Options: DTF printing offers the highest flexibility for desired graphics, capable of handling complex and detailed designs. HTV, on the other hand, is best suited for simpler designs, as the cutting and trimming process cannot support intricate silhouettes. Sublimation printing excels in producing high-quality prints, but it works best on light-colored fabrics; otherwise, the printed colors may appear darker and less vibrant than intended.

Generally speaking, with its wide range of suitable fabrics and striking printing outputs, DTF printing undoubtedly exhibits the highest cost-efficiency and perfectly fits the needs of POD business model.

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.