Dropshipping vs. Print-on-Demand: What’s the difference?

Over the past few years, two popular ways for entrepreneurs to start a side hustle without dealing with inventory have become really popular: dropshipping and print-on-demand (POD).

Although these models have some similarities, they also have distinct approaches and offer different types of products. Let’s take a closer look at how they operate and what makes each one unique.

What is Dropshipping?

Dropshipping is a type of business where sellers can list products on their online store without needing to keep any inventory on hand. When a customer buys something, the seller sends the order details to a third-party supplier, who then ships the product directly to the customer.

This means sellers don’t have to worry about storing or shipping the products themselves, making it a convenient way to run an online store.

A fantastic niche for dropshipping that’s proven to be profitable is reselling baby products. This includes items like baby onesies, bibs, bottles, and many other essential baby items.

Here are some examples of products you can sell with dropshipping:

• Baby bottles
• Laptop stands
• Baby silicone teething toys
• Dog collars
• Wall art
• Candles

What is Print-on-Demand (POD)?

Print-on-demand is a business model where products are made only when someone places an order. This includes custom-designed or personalized items like t-shirts, mugs, and posters that are created based on what the customer wants. This approach eliminates the need for keeping a large inventory and allows for unique, made-to-order items tailored to individual preferences.

A sought-after product that does well on Etsy is personalized baby onesies. Customers tend to prefer buying from brands that offer custom-made items.

Here are some examples of products that can be personalized and sold with print-on-demand:

• T-Shirts
• Hoodies
• Baby onesies
• Blankets
• Mugs
• Phone cases
• Tote bags

Similarities

Dropshipping vs print-on-demand share striking similarities, often leading to confusion between the two. In this section, we will delve into their commonalities and explore where they intersect.

Inventory Management

Both POD and dropshipping eliminate the need for holding inventory. In POD, products are manufactured only when an order is received, while in dropshipping, products are shipped directly from suppliers to customers without the retailer holding physical stock. This reduces the risk and costs associated with maintaining inventory.

Low Initial Investment

Both models require relatively low initial investment compared to traditional retail models. With POD, you don’t have to invest in bulk production or warehousing, and in dropshipping, you don’t need to purchase inventory upfront. This makes them attractive options for entrepreneurs starting out with limited capital.

Scalability

Both models are highly scalable. As sales increase, there’s typically no need to invest significantly in additional infrastructure or resources. POD platforms and dropshipping suppliers can handle increased demand without major adjustments to operations.

Product Variety

Both models offer a wide range of products without the need to manage inventory. In POD, you can offer custom-designed products across various categories (e.g., apparel, accessories, home decor), and in dropshipping, you can sell products from multiple suppliers without physically stocking them.

E-commerce Integration

Both models are compatible with e-commerce platforms. You can set up an online store (using platforms like Shopify, WooCommerce, Syncee etc.) and integrate with POD services or dropshipping suppliers seamlessly.

Reduced Overhead Costs

Since you don’t need to manage inventory or a physical store, overhead costs are generally lower in both models. This includes costs related to storage, handling, and shipping of products.

The Main Differences

Manufacturing Process

Dropshipping works by using products already made and stored by suppliers. This means retailers can sell these products without needing to store or ship them themselves.

In contrast, Print-on-Demand uses high-tech printing to make items only when someone orders them. This allows for personalized and one-of-a-kind creations that match each person’s preferences.

These methods are changing online business by making operations smoother and offering customized options. This helps entrepreneurs succeed in fast-paced markets with less upfront costs and more adaptability.

Customization

Dropshipping provides a variety of ready-made products sourced from suppliers, but these items typically come as-is without much room for customization.

On the other hand, Print-on-Demand focuses on customization, giving customers the ability to personalize products with their own designs and preferences. This model lets people create unique items that match their tastes perfectly, offering a personalized shopping experience that appeals to modern consumers looking for individuality and creativity in what they buy.

Dropshipping vs Print-on-Demand: Which is better?

When choosing between dropshipping and print-on-demand, think about what kinds of products you prefer, how much customization you need, and what profit margins you’re aiming for. Both options let you start an e-commerce business without needing a lot of money upfront.

Here are more articles you might be interested in:

• 10 Best Print-on-Demand Companies 2024
• How to Prepare Your Design for Print-On-Demand