Print on demand (PoD) allows small businesses to offer personalized products without the burdens of inventory management. It has been a game changer for entrepreneurs, particularly artists and creators, because they can turn their creations into merchandise and revenue-generating assets.
Wondering about adding PoD to your entrepreneurial repertoire? This step-by-step guide will help you navigate the process of launching your own PoD business.
Step 1: Conduct Market Research
It’s crucial to perform market research before starting any kind of retail business. Market research provides valuable data about your target market, competitors, pricing, positioning, and potential market opportunities you can profitably fill. It also helps validate your business idea and ensure you can have a profitable opportunity to sell.
Conducting market research is not as hard as it sounds. You can do the following:
- Observe customer buying behaviors in your existing retail store or at stores with similar products and customers.
- Conduct interviews, hand out surveys, or do focus groups.
- Take a look at competitors. Research other PoD businesses in your chosen niche. Understand their products, pricing, and customer base to identify opportunities and gaps. The market research will help you come up with viable PoD business ideas.
Step 2: Choose a Niche & Products
After conducting your market research, you can then choose a niche that has demand and fits your interests. Based on this information, determine the types of products you want to offer. Common PoD products include T-shirts, hoodies, mugs, and phone cases, among many other items.
A perfect example of a PoD business that truly niched down is Austin, TX-based t-shirt merchant Classic Dad. The store features clothing apparel with “Dad-isms,” slogans that capture the essence of dads everywhere, with a touch of humor and cheese.
Step 3: Write a Business Plan
Your business plan serves as a roadmap to success. It outlines your business, brand, customer, team, product, and more. Use the business plan to lay out your business goals, target audience, marketing strategy, and financial projections.
This step also involves defining your business structure. You might elect to continue operating as a sole proprietorship or incorporate as an LLC, S-corp, or C-corp. The best route really depends on your unique business and goals.
We cover the first three steps comprehensively in our ultimate guide to starting a business. Download your free e-book below.
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Quick Tip:
As you’re starting your business, it’s wise to register it as a legal entity, like an LLC. Doing this will protect your personal assets if a lawsuit were to occur against the business. You can register your business as an LLC through an online legal service.
IncFile is an online service that handles and files the paperwork so your business can become an LLC quickly.
Start your business today with IncFile for as little as $0 plus state fees with no contracts and no hidden fees.
Step 4: Choose a Print-on-Demand Platform
Research PoD platforms to find the one that meets your needs. Choose a reliable and reputable print-on-demand platform that aligns with your business needs. Some popular options include Printful, Printify, and Teelaunch.
When vetting your options, consider product variety. Select a platform that offers a wide range of products to meet your customers’ preferences and future growth goals.
Other things to look for include:
- Production time
- Pricing structures
- Shipping options
- Product quality
- Customer service
Step 5: Design Custom Products
Now it’s time for the fun part! You get to create unique designs to be printed onto the products. You might do this yourself if you have the creativity and know-how. If not, you can also hire designers to create custom designs for your products for you. Just make sure you own the rights according to your contract.
Designing your PoD products also requires attention to trademarks and copyright. Make sure to avoid the illegal use of someone else’s creation, such as a logo or name. The best route to go is to make your designs completely unique. You could even take out a trademark or copyright for your own designs if you want protection.
Step 6: Set Up Your Online Store
Most PoD businesses operate on an ecommerce business model. That means you’ll need to have an online storefront where shoppers can purchase your products. You can start your own online store using a platform like Shopify or WooCommerce, or list your products on a marketplace like Amazon or Etsy.
If you have your own online store, you can customize it to match your branding. You also own the entire customer experience—you can track user behavior, collect customer data, and run tests. However, you still need to drive traffic to your store. If you sell on a marketplace, you get access to an existing audience of people who are actively looking to make a purchase. However, you have less control over the customer experience and relationship.
Regardless of which route you choose, or if you choose both, you’ll want to consider the following aspects of your online store and product listings:
- Product descriptions: Describe the item in detail, highlighting what makes it unique and valuable for your audience.
- Product photos: Use high-quality product images or renderings. You might even include product videos or 360-degree shots.
- SEO: Use relevant keywords to boost visibility in search results.
Find more resources:
- Best Small Business Ecommerce Platforms
- Beginner’s Guide to Selling on Amazon
- How to Sell on Etsy
- The Ultimate Guide to Print on Demand for Etsy in 2024
Step 7: Integrate Print-on-Demand Services
Once you’ve set up your ecommerce channel, it’s time to integrate your chosen PoD platform. Many platforms have ready-to-go integrations that require little technical skill to set up.
Once you’re connected, you can sync your products between your store and PoD platform. Your integration will sync product details, pricing, and inventory.
Step 8: Market & Promote Your Products
Develop a marketing strategy to promote your PoD products, tapping into channels like social media, content marketing, and email to promote your products.
Promotion also involves setting pricing for your products. Determine a pricing strategy that balances low prices for shoppers with high profit margins for you. Don’t forget to consider all costs, competitor prices, and perceived value.
You might also offer promotions to boost sales. Consider running initial deals or discounts to attract your first set of customers.
Step 9: Manage Customer Service
Customer acquisition is just one piece of the marketing and promotion puzzle. Customer retention is where you can really cash in on customer relationships in the long term. When you focus on customer retention as much as acquisition, you can build a loyal customer base that keeps coming back for repeat purchases. They might even turn into brand advocates, sharing your products with their own networks.
One important but often overlooked way to boost retention is through excellent customer service. Offer prompt responses to inquiries and address customer concerns. Be personable and personal.
Here are some resources to help you provide stellar customer service:
- 10 Excellent Customer Service Examples Driving Engagement & Results
- How to Create a Customer Service Program + Template
- 13 Customer Loyalty Program Ideas & Examples
Step 10: Evaluate & Optimize
One key to most successful businesses is adaptability. It’s always a good idea to monitor the performance of your PoD business and pivot where needed in order to take advantage of opportunities and address shortcomings.
Track sales, customer feedback, and website analytics to help identify areas for optimization and improvement. Then adjust your marketing and business strategies based on the data and feedback you receive.
Learn more: Key Retail Metrics: How to Drive Sales
Pros & Cons of Starting a Print-on-Demand Business
The PoD model requires low upfront investment, allowing businesses to allocate resources for manufacturing and inventory management elsewhere. There is also more flexibility when it comes to product offerings. Learn more about these advantages in detail below:
Low Initial Investment
Starting a print-on-demand business typically requires a low initial investment compared to traditional retail models.
Since you don’t have to invest in bulk inventory or manufacturing equipment, you can focus your resources on building your brand, marketing efforts, and product design. This reduces the financial risk associated with starting a new business, making it accessible even with limited capital.
No Inventory Management
One of the major advantages of PoD is the elimination of inventory management headaches. Unlike traditional ecommerce models where you need to pre-purchase and store inventory, print-on-demand allows you to produce items as orders come in.
This business model not only saves on storage costs but also reduces the risk of overstocking unsold items. It offers a more flexible and scalable approach where you can easily test and introduce new products without the burden of excess stock.
Diverse Product Offerings
PoD provides the opportunity to offer a diverse range of products without the need for specialized equipment or production facilities. From apparel like T-shirts and hoodies to accessories like phone cases and mugs, you can easily expand your product catalog.
You can cater to different customer preferences and trends, adapting your offerings to the evolving market. The ability to experiment with various products enables you to find the most lucrative niches within your target market.
On the other hand, the PoD model can potentially mean lower profits, limited quality control, and a lack of full autonomy over your online selling.
Lower Profit Margins
One significant disadvantage of a PoD business is lower profit margins compared to bulk production models. Since products are produced on a per-order basis and each item carries a higher manufacturing cost, the profit margins are generally slimmer. This can make it challenging to achieve substantial profits, especially for businesses that heavily rely on competitive pricing.
Limited Control Over Production & Quality
PoD involves outsourcing the printing and fulfillment processes to third-party providers.
While this reduces the burden of managing inventory, it also means you have less control over production timelines and product quality. Issues such as printing errors, color discrepancies, or fulfillment delays can impact customer satisfaction, and resolving these challenges may be dependent on the policies and capabilities of the PoD partner.
Dependence on Third-party Platforms
Many print-on-demand businesses operate through third-party platforms or marketplaces. While these platforms provide convenience and access to a broader audience, they also mean you’re subject to their rules, fees, and policies.
The lack of full autonomy over your online store and customer interactions can be a drawback. Additionally, changes in platform policies or algorithms may affect your visibility and overall business performance, highlighting the importance of diversifying your sales channels.
Frequently Asked Questions (FAQs)
Click through the section below to get answers about your frequently asked questions about starting a print-on-demand business.
Yes, a print-on-demand business is profitable if you price strategically, accounting for all costs that go into creating and selling each product.
Yes, you can make a living with print-on-demand. Follow the steps in this post to help you get on the right track to success.
Yes, print on demand is good for beginners because you don’t need to do product development or manufacture the items yourself. It also outsources the logistics of inventory management, shipping, and order fulfillment.
- Conduct market research
- Choose a niche and products
- Write a business plan
- Choose a print-on-demand platform
- Design custom products
- Set up your online store
- Integrate your print-on-demand platform
- Do marketing and promotion
- Manage customer service
- Evaluate and optimize
Bottom Line
Starting a PoD business can be a promising venture if you’re looking for a low-risk, low-cost entry into ecommerce. The ability to tap into niche markets, diversify product offerings, and minimize initial investments sets PoD apart from traditional retail models. While the prospect of slim profit margins and reliance on third-party platforms pose challenges, the alleviation of inventory management and the potential for a scalable, adaptable business model make PoD an attractive option for beginners.
