7 Disadvantages of Print on Demand (Should You Start?)
Print on demand (POD) can be a fantastic way to launch an online store.
It offers low overhead and eliminates the need to hold inventory.
However, like any business model, there are drawbacks.
That’s why we will explore the disadvantages of print on demand and how you can overcome them!
Disadvantages of print on demand: An overview
POD is an excellent method for selling products online, but there are challenges.
Here’s a summary of the hurdles you may encounter when starting a POD business:
- Product options. Your product selection is limited to what suppliers offer, and it may not always align with what customers want.
- Lower profit margins. Printing products one at a time can be costlier, making it difficult to maintain affordable prices while staying profitable.
- Quality control challenges. Sometimes, the print quality may not match what is displayed online, leading to customer dissatisfaction.
- Lengthy production times. Due to production and shipping times, customers may experience delays in receiving their orders, leading to uncertainty.
- Limited control over the customer experience. You may not have full control over how products are created and shipped to customers, impacting the overall experience.
- Limited branding opportunities. Suppliers may use generic packaging, making it challenging to differentiate your brand from competitors.
- Stiff competition. With many businesses entering the POD industry, standing out and making sales can be tough.
1. Limited product options
The primary disadvantage of print on demand is the limited range of products available.
While apparel is a popular category, even apparel stores may face limitations.
For instance, finding specialized or oversized clothing can be challenging.
You may also have restrictions on placement areas, color options, and materials depending on the supplier.
How can you solve this disadvantage?
While you may be at the mercy of your supplier, there are strategies you can implement:
Work with multiple suppliers
Utilize multiple POD suppliers to access a wider range of products and customization options.
For example, you can expand color options by using different suppliers for specific products.
2. Lower profit margins
Profit margin issues are common in the POD business model, as the cost of printing individual products can be higher.
This may necessitate charging higher prices to maintain profitability, which can deter customers.
How can you solve this disadvantage?
Don’t be discouraged by lower profit margins; consider these solutions:
Increase value
Focus on providing high-quality designs, personalized options, or unique packaging to justify higher prices.
Customers are willing to pay more for added value.
Bundle products
Offer product bundles to provide value to customers without compromising your profits.
For example, offer a discount when customers purchase related items together.
3. Quality control challenges
Quality control issues can arise in the POD industry, leading to inconsistencies in product quality.
Customers may receive products with varying print quality, leading to dissatisfaction.
Handling quality issues effectively is crucial for maintaining customer satisfaction.
How can you solve this disadvantage?
While quality control largely rests with the supplier, you can take steps to address these challenges:
Choose reliable suppliers
Research and select suppliers known for consistently delivering high-quality products.
Set clear expectations
Communicate shipping times and product details clearly to manage customer expectations and reduce complaints.
Repurpose returned products
Repurpose returned products for marketing purposes or as gifts to loyal customers to minimize losses.
4. Lengthy production times
Dealing with extended production times is a common challenge in the POD business model.
Products must be printed, dried, and sometimes finished by hand before shipping, leading to delays.
How can you solve this disadvantage?
Address lengthy production times by implementing these strategies:
Stock bestsellers
Order popular designs in advance to fulfill orders faster and reduce production delays.
Offer shipping upgrades
Provide customers with expedited shipping options to enhance their shopping experience, albeit at an additional cost.
5. Limited control over the customer experience
Managing the customer experience in the absence of physical touchpoints can be challenging in the POD business.
Customers may have concerns about product quality or sizing without being able to interact with the products.
How can you solve this disadvantage?
Despite limitations, you can enhance the customer experience by focusing on these areas:
Strong branding and communication
Develop a distinctive brand identity and communicate effectively with customers to build trust and loyalty.
Enhanced online experience
Optimize your website for user-friendliness and engage with customers through social media to create a unique online experience.
Customer engagement strategies
Implement customer engagement initiatives such as loyalty programs and satisfaction surveys to build long-term relationships with customers.
6. Limited branding opportunities
Branding can be challenging in the POD industry due to limited customization options.
Generic packaging may hinder your brand’s visibility and impact the overall customer experience.
How can you solve this disadvantage?
Despite constraints, you can differentiate your brand by implementing these strategies:
Custom packing slips
Utilize custom packing slips to add personalized touches and enhance the unboxing experience for customers.
Branded inserts
Include branded inserts such as stickers or discount codes in orders to reinforce your brand identity and engage customers.
7. Stiff competition
The proliferation of POD businesses has led to increased competition in the industry.
Standing out and attracting customers requires a strong brand identity, quality products, and exceptional customer service.
How can you solve this disadvantage?
To differentiate yourself in a competitive market, consider these strategies:
Niche down
Focus on niche markets to target specific customer segments and create tailored products that cater to their interests.
Unique designs
Create exclusive designs that set your products apart from competitors and appeal to your target audience.
Brand storytelling
Develop a compelling brand story to connect with customers on a deeper level and foster brand loyalty.
What are the advantages of print on demand?
Despite its challenges, print on demand offers several benefits, including:
- No inventory management required. POD eliminates the need for inventory management, reducing the risk of unsold products.
- Payment after sale. You pay for products only after a sale is made, preserving cash flow for other business needs.
- Easily target niche markets. POD enables quick product creation for specific niches, allowing you to explore new interests without overproduction.
- Flexible design changes. Quickly update designs to stay relevant and respond to market trends and customer feedback.
- Potentially eco-friendly. Some suppliers offer eco-friendly options, aligning with consumer preferences for sustainable products.
- Global sales potential. Sell products worldwide without logistical concerns, as POD companies handle production and shipping globally.
- No upfront equipment costs. Starting a POD business does not require significant investments in printing equipment, making it easy to launch.
For more detailed information, check out our article on the advantages of print on demand.
Taking action
While learning and gathering information is valuable, taking action is even more impactful.
To help you implement what you’ve learned, consider the following steps:
- Order samples. Evaluate product quality by ordering samples from different suppliers.
- Invest in high-quality artwork. Create unique and appealing designs to attract customers.
- Use high-quality product photography. Showcase products effectively with professional photography.
- Focus on specific interests. Tailor products to niche interests to attract dedicated customers.
- Be transparent about product and shipping information. Communicate clearly to manage customer expectations and build trust.
- Build a good website and online presence. Ensure your website is user-friendly and engage with customers through social media.
Conclusion
While starting a POD business may have its challenges, implementing actionable strategies can help you overcome them effectively.
By addressing these hurdles, you can enjoy the benefits of the POD business model and increase your chances of success.
Thank you for reading, and have a wonderful day!
Want to learn more about POD?
Ready to elevate your print on demand store? Check out the articles below:
Don’t forget to explore our comprehensive guide on how to start a print on demand business!