Print on Demand vs drop shipping – which is the better business model? If you’re looking to start an online business, you’ve probably considered both options. While similar, each has pros and cons depending on your vision for your eCommerce store.

In this guide, we’ll compare Print on Demand and drop shipping, examining their difficulty levels, costs, and profit margins.

Key takeaways

• Drop shipping and Print on Demand are both profitable, low-risk, and beginner-friendly business models.
• Both options let anyone start an eCommerce business without dealing with inventory management, storage space, or shipping responsibilities.
• Print on Demand is an ideal business model for people who want to sell custom products, like t-shirts and mugs, with their own designs.
• The drop shipping model is a good option for those who want to start a business quickly without customizing their products.

What is Print on Demand?

Print on Demand (POD) lets you sell products with your own custom designs – like t-shirts, hoodies, mugs, and tote bags – without inventory management or upfront investment. You’ll work with a supplier who prints and ships each item only after a customer places an order.

Best for: Creators or entrepreneurs who want to build their own brand with zero upfront costs and no inventory.

How POD works:

• Sign up with a print-on-demand company like Printify.
• Choose products and upload your custom designs.
• Connect to your online store or marketplace and list your products.
• When a customer orders, the printing business produces, packs, and ships the item directly to them.

What is drop shipping?

Drop shipping is similar to Print on Demand – you don’t need to worry about production or shipping, and you don’t pay for the product until a customer orders it. However, you don’t have the option to customize your items.

That means you’re not limited to printable goods – you can drop ship a wide range of items like gadgets, kitchen tools, home decor, phone accessories, and more.

Best for: Sellers who want to test product ideas fast or build a store around trending items without creating custom designs.

How drop shipping works:

• Choose one or several drop shipping suppliers and list products in your online store.
• A customer purchases a product from your drop shipping store at the retail price.
• Send the information to the drop shipping supplier and pay the wholesale price.
• The supplier ships products directly to the customer’s address from their nearest fulfillment center.

Conclusion: Which business model is best for you?

So, which is better: Print on Demand or drop shipping? There’s no clear winner. It really depends on your business goals and preferences.

Print on Demand is the way to go if you want to express your creativity and cater to a more specific niche. If customization isn’t your priority, drop shipping may be the better route.

If done right, they’re both great business models that enable entrepreneurs to start businesses without production, inventory, or shipping responsibilities. Want to launch an eCommerce business without the upfront costs? Get started with Luxury Pro for free and sell your own custom products today!