How Much Can You Earn From Print On Demand?
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So, you've just come across the business model called Print On Demand.
Everyone's talking about it. All the influencers are sharing their revenue numbers.
But, you are still not convinced - is it real? is it risky?
Exactly how much can you earn from Print On Demand?
In this blog post, we will take a look at the realistic earnings of a POD seller who also has a 9-5 job.
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Is Print on Demand Business Profitable?
Let's start with the golden question: Can POD be a business that makes money?
Absolutely! This isn't just a trend. Print on Demand is a legit business model that can be lucrative if you apply the right strategies.
The average monthly income for a POD business is $4,639, but it can reach as high as $9,833 per month. In fact, the PoD market is projected to reach $64.3 billion by 2032.
Why is POD getting so popular?
Well, it allows you to dip your toes into entrepreneurship without diving deep into your pockets.
Instead of stocking piles of inventory, you can focus on your craft - creating unique designs.
Print on demand companies like Printful and Printify step in - they print, pack, and ship your products directly to the customer.
No need for a massive warehouse or worrying about excess stock gathering dust. And not need to handle shipping hassles too.
It's a low-risk, high-reward business model that anyone can start.
Related Reading: How To Use Printful With Etsy? Simple Guide
Is Print-on-Demand Risky?
Every business venture comes with risks involved with it. That's what makes it more interesting than traditional jobs, isn't it?
To begin with, traditional businesses often struggle with the fear of overstocking and facing losses. However, with PoD, the risk of unsold inventory is nearly eliminated.
In addition, let's discuss in more detail the risk involved in the POD business model.
Risks of Selling on POD Marketplaces
If you are using online marketplaces like Etsy or other popular sites to sell your merchandise, you are at the mercy of their policies.
For example, in recent times, Etsy sellers have reported issues such as deactivated listings and even shop closures, raising doubts about the platform's support for POD businesses.
But, if you are sure to follow their policies, for example, about copyright infringements - your shop will be safe from such incidents.
In addition, if you are still worried about it - you can open an online shop independently on Shopify. By building your own online store, you have more control over your brand and its assets.
By doing so, you own your website, social media accounts, and customer email list, which can be valuable assets in the long term.
Competition and Saturation
As this business model is getting more popular due to its low barrier of entry - the existing POD sellers are facing increasing competition and saturation.
As more sellers join the platform, it becomes harder to stand out among the crowd. Finding unsaturated niches and creating unique designs becomes crucial to success.
Minimum Print On Demand Startup costs
When selling products online, it is important to consider all the costs to run a thriving business. Let's look at POD costs with an example, that assumes you are selling online products on Etsy and Printify.
You have a personalized t-shirt listed in your Etsy store for $25 with free shipping. When a customer makes a purchase, they pay $25.
Etsy charges a fee for selling on their platform, which in this case would be $2.83 (based on a 6.5% transaction fee).
Etsy pays you the remaining amount, which would be $22.17.
You then pay Printify for the production cost of the t-shirt, including shipping. In this example, the cost is $13.82.
You keep the profit, which in this case would be $8.35.
It's important to note that as a new seller on Etsy, your account will be placed on payment reserves for the first 90 days. This means that Etsy will only pay you once per week, and they will hold about 30% of the total payment until the item is shipped.
Other Costs To consider - Break Down
In addition to the payment process, there are other costs associated with running a print-on-demand business. Here are some key expenses:
Printify Premium: Printify offers a premium option that costs $29.99 per month or $299.99 per year. This subscription provides a discount of up to 20% per item sold. It becomes cost-effective when you reach around 5 to 20 sales per month.
Etsy Fees: Etsy charges various fees for selling on their platform. These fees include listing fees of 20 cents per listing, a transaction fee of 6.5%, and processing fees of 3% plus 25 cents per transaction.
Use this link to open your Etsy, to get 40 free listings.
Canva Pro: Canva is a popular design software for creating print-on-demand designs. A Canva Pro account costs $12.99 per month or $119.99 per year.
PlaceIt: It's important to have high-quality product images for your store. You can either purchase mock-ups from your POD provider or find them on external tools like PlaceIt. Unlimited subscription on PlaceIt starts from $9.99/month.
In summary, to get started with your print-on-demand business, you can actually begin with just $1 in your first month. This includes 40 free Etsy listings, one free month of Canva Pro, free version of Printify premium, and free version of PlaceIt. These initial costs are minimal compared to other businesses.
However, as your business grows and you start making sales, it's important to have some money saved up or a credit card to cover the production costs while waiting for Etsy to pay you. On a monthly basis, the costs to run a print-on-demand business would be between ~$60. This includes the Canva Pro account, Printify Premium, PlaceIt subscription, and Etsy fees.
What is a Good Profit Margin for Print on Demand?
Let's get down to the nitty-gritty of profit margins.
The statistics reveal that successful PoD businesses maintain profit margins ranging from 30% to 50%.
For instance, if you sell a product for $25 and it costs $10 to produce, you're looking at a profit margin of $15.
I would encourage you to play around with the pricing and discounts - to find a balance between your costs and profit. And ensure you make enough to keep your business alive for the long term.
To ensure you are running a profitable e-commerce business, you can use Printify's Profit Calculator.
The tool allows you to calculate your profit margin by considering the cost of your item, shipping costs, and your selling price.
Not satisfied with the numbers? Adjust your pricing until it aligns with your desired profit margin.
How to Make Money with Print on Demand?
As mentioned above - due to its low barrier of entry Print on Demand business model is getting competitive by the day.
But, at the same time, the demand for creative designs has been on the rise more than ever.
So, if you can make your products stand out by finding the right balance between creative designs, high-quality products, optimal pricing, and personalization - you'll be able to run a thriving business on these pillars.
But, remember - creating great products is only one side of the coin.
To truly make meaningful profits from the business - you'll need to learn about the marketing strategies to drive highly converting traffic to your shop.
Related Read: How Do I Drive Traffic To My E-Commerce Store - For Free
The more you promote, the more money you can potentially make.
Final Thoughts
While the profitability of a POD business depends on various factors, choosing the right platform and marketing strategies can significantly improve your success.
If you are worried about the risks and uncertainties involved with certain platforms for your online business - be sure to follow their policies and join facebook groups to follow the discussions around it and to seek support from the community.
Further Resources We Recommend
- Can I Use AI Images For Print On demand?
- Shopify Dropshipping Guide: How to Start With Only $100
- How to Make $1,000 as a Freelance Developer in 5 Easy Steps
