Print On Demand Vs Private Label, Fed Up? Know It All Now

In today’s gig economy, the trend is to sell products and services through the web as much as possible. Print on demand and private label are just two of the existing ways to retail items with their own advantages and disadvantages. This article aims to discuss these two methods and see which will work best for you as a budding entrepreneur.

What is the difference between the print on demand and private label selling? Print on demand is when you print designs on products after getting an order from a customer which will then be shipped to a destination. Private label is when a company manufactures a product under a certain brand with detailed specifications. There are instances that you can use these methods depending on your situation.

I will discuss more these methods below. I will also touch base on print on demand drop shipping which is a related topic.

Print On Demand

As mentioned above, print on demand is when you upload your designs to POD providers that will be used on products ordered by customers.

Order handling and fulfillment will be handled by various print on demand companies. This will enable you to mainly focus on design and brand creation and marketing of your store and its catalog.

Print on demand t-shirts comprises the bulk of items being ordered and delivered by this fulfillment method. You can also get caps, hats, mugs, phone cases, umbrellas, and other items through print on demand. Here is a list of the Best Print On Demand Items.

Print on demand can work well for entrepreneurs who are starting out with their online stores.

You can build your own business here and at the same moment, test new products to see which works and which does not. Experimentation is the key because you want to gauge how the market is receiving your products.

There are print on demand companies that are already linked to e-commerce platforms like Shopify, Amazon, eBay, Woo Commerce, and others.

Stores that are on these platforms have integrations to these print on demand companies where orders are immediately sent to for handling once the customer has paid for this order. If you have Shopify account, you can refer to this article showing the best print on demand Shopify apps.

This article link will show you how Printful, one of the leading print on demand companies, is integrating its application with Amazon. Certain print on demand providers will have a white label capability where orders are shipped to the customers with no indication as to who manufactured or shipped this item. As far as your customer is concerned, you are the one who processed their order.

If you are a social media influencer, YouTuber with plenty of subscribers or a cartoonist, print on demand will enable you to further monetize your presence. Your own posts, videos, and cartoons can easily be recreated with print on demand t-shirts, caps, posters, and other items.

Advantages Of Using Print On Demand

I will now discuss the pros of using print on demand.

It’s Very Easy To Set Up

These print on demand providers have their own apps that you can add to your online stores immediately. You can search for these print on demand Shopify apps.

After you have finalized the setup with the print on demand provider you have selected, you can immediately use their services for any order that comes in. It will not take long before you are in business.

In my experience, the hardest part here aside from the one that will demand the most time is design creation. I want to have great designs that will make my target audience flip over them and have to purchase. That is the reason why this should be your focus.

You Can Focus On Design Creation And Marketing

Print on demand providers will handle the hard part of order fulfillment which is production and shipment.

You can just use your time to create new designs, improve current ones, and promote them.

Use this free time to learn how to make your design better by enrolling in software classes that can assist you with this task. Check out this article on design tips on what mistakes you need to avoid in design creation.

Or, consider hiring a freelancer who can do this task for you. You can check that link out for the best ways you can find and hire your own freelancer.

Some print on demand providers will even allow you to set the price for your items. They or the e-commerce marketplace can handle the payment made and you will just be compensated every time an item is ordered from your online store.

I would like to add that you need to handle customer service here. This is another opportunity for you to share your design ideas with your buyers and market more to them.

No Inventory Needed

You don’t have to purchase a large amount of inventory to get this business started. Unlike in a traditional business, there is no need to build or rent space for you to store inventory such as t-shirts. Print on demand fulfillment companies will handle this.

This business model will work well with your accounting books.

Inventory is treated as a cost item by accountants, so if you don’t carry it then you simply will not have a large amount of expenses showing in your books. Your income statements and also balance sheets will definitely look better if you have low expenses.

This is something to remember if you are requiring additional capital for your business growth since banks and other lending institutions will definitely review your books.

No Need To Purchase Printers

Print on demand t-shirts and apparel that are handled by direct to garment or the (DTG) printers are selling very well right now. This is because the prints coming from these printers are very bright and vibrant, If you have an excellent design, this will be shown very vividly.

However, these DTG printers are definitely not cheap.

You are free from this type of expense since you are using the big DTG printers of these print on demand companies. You will also not have to be very concerned about the maintenance and upkeep of the same printers which are also not inexpensive.

DTG printers also require a computer and specific RIP software to function properly. Again, you also do not have to think about purchasing these items and learning how to use them.

Ability To Experiment On Designs

You can upload plenty of own designs to your online stores.

You can also have a variety of the same design that will cater to the other niche or segment that you are targeting. For example, if you have a great design for a Labrador puppy, you can have similar ones be created for a Doberman, Rottweiler, and other dog breeds.

The market’s own response to these designs will tell you if it is working or not.

And if it is not, there is no big financial damage to you since you have not invested in inventory for this item. It will only be printed if there is an order from a customer. You can easily take this design off from your store’s catalog as a response to this.

I will also like to add here that you can modify own designs with little difficulty.

If you think that the name of your customers will look good with this design, you can have it be printed as part of your special instructions to your print on demand provider. Remember that there is no particular requirement to print many t-shirts with just one name on it.

Print on demand t-shirts with specific customization are also a proven hit in the online marketplace.

You do not have to limit yourself by selling only t-shirts using your own designs.

Consider expanding to other products that are related.

If you have t-shirts for sale, hoodies and tank tops are possible extensions of this same design. This will greatly increase the quantity of items available in your online store.

I suggest that you check closely the particular print on demand provider that you are thinking of signing with. Please make certain that they have numerous items in their catalog that are available with print on demand.

You Can Build Your Brand

All these benefits that I discussed earlier will ultimately lead to what should be your endgame which is to establish a very successful brand.

This will be your base as you move on to explore other niches, products, and even other online selling methods such as drop shipping.

I would suggest that once you have your print on demand business smoothly running that you take time to see where you would want to venture next. You may consider private labeling or drop shipping.

Disadvantages Of Using Print On Demand

I will now discuss the not so good things about print on demand.

You Are Dependent On Your Print On Demand Provider

If you have signed up with an excellent print on demand provider who is continuously upgrading their products and related services, then you should be fine here.

However, these are possible scenarios that will happen in case you have one that is mediocre.

They are scrimping on the quality of their products due to cost-cutting or other management issues. Items are most often than not, out of stock or substituted with cheaper and low-quality ones.
They have issues with their printing infrastructure which will also have an effect on the designs that are being printed on your end product.
Their delivery partners are not doing their job properly which leads to delayed and canceled orders.
They may update their product catalog and discontinue a certain product that you are currently offering.

You simply do not have any control over these order fulfillment issues but you will bear the burden of these mistakes. Your customers will be complaining and probably even leave you in a huff.

I will also like to point out since everything is handled after an order is placed, fulfillment will take longer to finish. Having items already printed and prepared in your storage space would lead to a shorter period of processing an order.

You should test this setup with your print on demand provider by going ahead and ordering a sample order. And you should definitely learn how to manage the expectation of your customer by being upfront with them in terms of how long will it take to serve their order after placement.

Issues With Customer Returns

You need to ensure that your own store’s return policy is in sync with that of your print on demand provider. This will especially come to play if there are order fulfillment issues as mentioned in the previous section.

Come up with a return policy that will be appropriate for your financial capabilities.

As a way around this, please be explicit in your store’s guidelines as to what are your policies here when this event happens.

Private Label

This basically means that your contracted manufacturer will produce the item based on your specifications.

These specifications are more than the designs only because it includes the type of garments (if it’s a t-shirt or apparel), quality, size, and other specific requirements.

This will also include how the item is to be properly packaged, other items to be added in the packaging box, and labels. Once completed, they will be sent to your warehouse or any storage area for your disposition.

You can then sell these items as if you are the one who produced them yourself. You are essentially competing with the branded items produced by this manufacturer itself.

I discussed earlier in this article white labels. There is a distinction between white labels and private labels.

White labels produced by print on demand providers are not exclusive to you as an online seller in terms of materials used. You will only have exclusivity in terms of the design for this came from you anyway.

Private labels are produced by the manufacturer exclusively for you since you have specific requirements and specifications for this item. That means that these same manufacturers cannot go behind your back and sell this to your competitors. You are the sole reseller for this item.

Advantages Of Using Private Label

I will now proceed to discuss its advantages and cite its difference with print on demand whenever possible.

More Control Over Your Product Details

Since you have specified everything about this product and paying for this, you will definitely have more control.

You are not totally dependent here unlike with print on demand.

The manufacturer cannot change the quality and item specifications unless with your approval. You are in control here and this should give you total confidence when you are marketing and selling your items.

More Control Over Your Product Pricing And Profitability

Compared to buying this same item with a brand on it, you will be getting this at a cheaper price.

You will definitely know how much you will be paying for these items on a per piece basis. You can then also compute for the other costs associated such as storage and handling.

This should give you an idea as to what your final costs are on a per piece basis. You can then have the markup you would like to add to arrive at your selling price.

This setup gives you more control over your finances here unlike with print on demand where you can just define margin that you want. Certain print on demand providers are setting a cap on these margins.

Ability To Serve Big Orders

If you feel that your item is going to be a big seller, then you can easily plan ahead and stock a large quantity. You want to be certain that you can serve the expected huge demand when it comes as quick as you can.

By using a print on demand service, you will be dependent on how fast these providers can serve these big orders. It will be more than likely that delays in the order fulfillment will occur especially if this occurs during peak seasons such as holidays.

Ease In Setting Up Your Brand

This will be especially true once you have an item that is selling like hotcakes.

You can add complementary items that revolve around this single item to build your brand. It will be easy for you since you do not handle production yourself.

Since you have more control with your products own features and pricing, this will enable you to promote it with sales incentives, promos, and giveaways. You more than likely will see realize increased sales and brand awareness with these actions.

Disadvantages Of Using Private Label

These are the distinct disadvantages of using private label:

Inventory

You will definitely be maintaining inventory here.

If your products are moving fast, then this is no concern. The problem is if they are not. You will be stuck with “dead” inventory that will be a burden to you and your bottom line.

To move them, you might have to cut your selling price drastically just to sell of your products that are not selling

Sometime, you will have no choice but to order more than what is necessary. Private label manufacturers have a minimum order number to serve before they consider your order. Or, it could be that you want to get avail(never use this word) the discount which is why you are buying more than what is necessary.

I will advise that if this is the case that you negotiate with this manufacturer so that you can order this same item in different variants such as in color and size. It will offer you flexibility in selling later.

Customer View Of Private Label Items

If you will ask customers in a survey, chances are there are plenty who will say that they prefer branded items over ones that are not.

They are familiar with the brands and they think private label items are inferior.

The way to work around this is to perform a thorough survey of your customers and find out their preferences. You can then consider the answers if you can incorporate that in your product specifications.

There is also a limitation in terms where your customers can buy this product which is only through your store. This can also be a strength since they will have no choice but to go back to your store to purchase this item.

Dependency On The Manufacturer

Just like with print on demand, you are tied up with how good your manufacturer is and how it maintains its quality standards.

Print On Demand Drop Shipping

Drop shipping, just like with print on demand, does not require the store owner to keep any inventory at all. When a customer order comes in through the online store, they purchase the stocks from a supplier and have it shipped directly to the intended destination.

The drop shipping provider will handle everything once you send the customer’s order to them. It will take care of product packaging for you then ship it to the customer’s address.

It is possible for drop shipping to work with a print on demand setup. Let me discuss further this in case you are considering having these two business models.

First, there will be no requirement to maintain inventory at all since your drop shipping partner will only move once you send them the order. It will handle order fulfillment for you.

Second, you also do not need to have a lot of investment money to start here except for your online store setup and designs.

Third, you can freely experiment with products for your online store for your drop shipping partners should have plenty of these in their catalog. You can customize these dropship products with your own design.

You can still maintain your brand here for drop shipping companies usually send out your products with white labels.

With dropshipping becoming popular these days, there are companies such as AliDropship.com which offers packages to would-be entrepreneurs to get in this business. This particular program makes the competition in this drop shipping field very tight.

You will also realize the same disadvantages as what you get in print on demand such as slower delivery times, no control over order fulfillment, and issues with returns.

Dropship custom t-shirts will not afford you a big profit margin as compared if you will be storing the items yourself.

If these t-shirts become a hit, you will just have to wait along with others for drop shipping companies to fulfill the orders.

Print on demand drop shipping business can be considered as designer dropshippers since they have unique products because of your designs.

You can even evolve later on to be a private label brand once you have built up a loyal following and mastered your customer wants. This will enable you to be on top of your products specifications.