Is Print on Demand Still Profitable in 2024?

Print on demand is one of the hottest keywords in the eCommerce industry in the past years. It has gained popularity over the years as a low-entry-barrier business model that allows business owners to establish an eCommerce business with a small investment.

But in 2024, more and more people are questioning the possibility of creating a profitable print on demand business. With the increasing competition and saturated market, some become more skeptical about starting a business with print on demand.

In this blog post, we will debunk the myth around print on demand and answer the question “Is print on demand still profitable?”

Is print on demand profitable in 2024?

The short answer is “Yes". Print on demand is still definitely profitable and worth trying in 2024.  According to Statista’s report, retail e-commerce sales amounted to approximately 5.8 trillion U.S. dollars worldwide in 2023, and is forecast to grow by 56 percent over the next years, reaching about 8.1 trillion dollars by 2026.

Ecommerce sales over years worldwide

Here are some practical tips for someone considering starting a print-on-demand business:

Find your niche: There are actually many niches for you to choose from such as hobbies, jobs, family, animals, holidays, sports,… research the market carefully and find a suitable niche with large volume and reach. little competition. You can also look for trending niches like Christmas (Ugly Sweater Christmas niche is an example)

• Prioritize quality: Ensure that your products are well-made and meet customer expectations. Choose reliable print-on-demand partners and consider experimenting with different production methods to create unique offerings.
• Build a strong brand: Communicate your store through different channels to maximize brand coverage. Build a store on Ecommerce Platform pages, build a website and SEO Run Ads for it. At the same time communicate through social networking channels.
• Provide excellent customer service: Good service will help you take a big step in the journey of building loyal customers. Always try to be responsible, helpful, and sympathetic to the problems your customers face. At the same time, in every interaction point with customers such as before, during and after the purchase process, remember to leave positive impressions.
• Continuously adapt and improve: Stay up-to-date with industry trends including products and designs that are being sold well by others, using embroidery or all over print. Continuously update knowledge from YouTube, Google and follow industry experts to achieve the best results.

I believe that as long as you work hard and put in your best efforts, you will achieve great success in your POD business.

Understanding the True Costs of Print-on-Demand

• Product cost: This is the price charged by print on demand provider for the blank product, and also the custom-printed design on it. This is the most basic cost of each product.

If we’re selling a basic T-shirt, the average base cost for a single-sided printed T-shirt ranges from $7 to $15, depending on the POD provider and the quality of the T-shirt.

• Printing cost: While the print cost is usually included in the product cost, some print on demand suppliers might charge additional fees for printing in some special cases, for example, if you want an extra print on the back or sleeve area, or if you opt for embroidery.

For some POD providers, adding printing on both the front and back might add another $2-$5.

• Shipping cost: This is the cost of shipping items from your print-on-demand provider to your customers. Suppliers either charge a flat rate or charge based on the customer’s location. This shipping cost might vary widely depending on the number of products on an order and the distance from the fulfillment center to the customer’s location. 

Let’s assume domestic shipping costs $4 per T-shirt, but international shipping could be as high as $8-$12. 

• Marketplace or Platform Fees:  Besides the price going into the production and shipping of products, you must also take into account costs for listing products on marketplaces like Etsy, Amazon, or eBay. If you are running your own store on your own website, don’t forget to include all costs required to maintain your website, from hosting, domain, additional plugins to website designs, etc.
• Transaction cost:  Marketplaces like Etsy, Amazon, and eBay, or payment processors like PayPal and Stripe, charge a transaction fee per sale.

Etsy, for instance, charges a 6.5% transaction fee on the sale price, while payment processors might charge around 3% plus a small fixed fee (e.g., $0.30).

• Marketing cost: Marketing cost also takes up a significant portion of your total cost. To attract more customers to your store, you must use some sort of advertisements, for example, platform ads, social media ads, search ads, or influencer partnerships. 

A common approach is to allocate around $2-$5 per sale for advertising costs, though this can vary widely based on the platform and targeting.

Now, assume that you are selling a simple T-shirt on Etsy at the price of $25 (including shipping). Let’s do some simple math:

This is just a rough calculation. In reality, the expense and total profits can vary widely based on various factors. But in general, print-on-demand is still profitable.

Is print on demand saturated?

Facing increasing competition, you might ask yourself: “Is there any chance for you to succeed with print on demand?” 

To address the question “Is print on demand saturated in 2024?”, here are a few reasons why you shouldn’t feel discouraged to try print on demand for fear of saturated supply.

• Out of all newly established print on demand businesses, only a few know how to attract visitors and convert them into customers.

Due to the low entry barrier, print on demand is able to draw a lot of aspiring starters, but the biggest challenge for beginners is that they don’t fully understand how to generate sales and get stuck with a low-traffic, low-sales POD store.

In this case, it is easy to get disheartened and give up, all because of the “saturated market”. However, if you stick around long enough to test, iterate, and learn the ins and outs of this business, your chance of earning success will definitely increase.

• Not all niches are saturated.

When someone says print on demand is saturated, it is possibly because they are looking at the surface layer of print on demand industry, at the most popular niches. Apparently, in familiar niches, there would be a large number of similar products because everyone wants a bite of that high-demand market. But it is definitely not the right place where opportunities exist.

The secret to winning print on demand game in 2024 is to find profitable niches with high demand and low competition. Another tactic that you can utilize is to combine different niches, which creates countless opportunities and unlimited space for your print on demand business to grow.

How can you make your print-on-demand business profitable in 2024?

From the cost breakdown above, we can pinpoint areas where you can maximize for larger profit margins. Apart from the fixed costs like transaction fees, platform listing fee, and payment processing fees, here are the sections that you can optimize:

• Product cost

• Shipping

• Marketing 

How to minimize product cost

Choose high-profit margin products

Apart from exploring ways to lower product costs, one effective tip to increase margin is finding products with larger room for profits. 

What are high-profit products? High-margin products are products with higher perceived value and less competition. These are products customers can’t resist and won’t think twice about paying a little extra for. You, as a seller, can impose higher markup without worrying about the cut-throat competition.

High-profit margin products exclude popular items like T-shirts, mugs, or even hoodies and sweaters. Instead, go for more unique, one-of-a-kind products like jewelry, decoration, gift-giving, and memorial items. Within the apparel categories, embroidery, premium pieces, and heavy-weight products like jackets and polo shirts are also associated with a higher price tier.

Compare providers

For starters, it’s easier to go for big companies like Printful or Printify since they offer some very low barrier, convenient, and easy-to-navigate road to start out a print-on-demand business. However, in the long run, such big companies are not the best when it comes to optimizing costs.

To get the best price, expanding your search and carrying out careful comparisons among different suppliers is a must. There are plenty of print-on-demand suppliers with attractive offers for a wider range of products for you to explore.

Negotiate for bulk discount

Once you have a steady flow of orders, consider negotiating with your POD supplier. Yes, even in POD, bulk discounts aren’t off the table. Providers value volume just as much as you do. They might be willing to cut a deal on specific items or throw in free shipping if you’re moving a decent quantity monthly. Think of it as haggling at a market stall—be bold and see what discounts you can walk away with.

How to minimize shipping cost

Shipping can eat into profits fast, especially when you’re dealing with international customers. Here’s how to trim those costs while keeping delivery reliable.

Optimizing for Your Target Market: 

If you’re targeting North America, shipping from a European or Asian provider will add significantly to the shipping cost. It’s better to choose a supplier closer to your target market if they can offer similar products. 

At Merchize, for example, we have different fulfillment locations across the globe to produce and deliver products more efficiently and inexpensively to your customers. With manufacturing facilities in Vietnam, the US, the UK, the EU, Australia, and China, our sellers can easily designate orders to suitable fulfillment centers for lower shipping costs and faster delivery time.

Bundle Shipping

You know what’s better than selling one product? Selling two or three—especially when shipping costs decrease per item in a bundle. For example, at Merchize, we offer discounted shipping on orders on the second items and more. 

Applying bundle shipping not only attracts larger purchases but also lets you leverage flat-rate or discounted shipping on multiple items. This can shave a surprising amount off your per-item cost.

Offer Different shipping options

Not every customer needs express delivery. Give them options: a standard or “green” shipping option at a lower cost, and the more expensive express option for those in a rush. You’ll save on shipping costs for slower deliveries, while customers feel empowered by the choice.

How to minimize marketing cost

Marketing is the wild card on your cost breakdown spreadsheet. It is important to get grounded with your marketing expenses and don’t get carried away with paid ads, fancy campaigns, or costly influencer partnerships. Focus on what works best at a fraction of the cost.

Be strategic with your marketing budgeting

The trick to a cost-effective marketing strategy? Treat it like a science experiment. Try different tactics in small doses: run a few low-budget ads, experiment with organic social media, and track the results. Allocate a set monthly budget and stick to it. That way, you’re spending strategically, not splurging impulsively. 

Select Your Niche and Focus on Target Audiences

The best way to make each of your pennies spent on marketing worthwhile is to select the right niche and focus on the right audience.

Zero in on a specific niche (say, pet owners or travel lovers) and tailor your marketing efforts to reach them. This focus doesn’t just make your campaigns sharper; it makes them more cost-effective, too. You’ll get a higher return on investment with less money spent, as your message hits the mark.

Don’t Forget About Email Marketing

Email marketing requires meticulous execution and extensive work. But in return, it’s extremely cheap and highly beneficial for nurturing relationships and nudging customers to come back.

• Create a Welcome Series: Roll out the red carpet for new subscribers with an automated welcome series. Send them a warm intro, offer a small discount, and showcase your top products.
• Set Up Abandoned Cart Reminders: It happens all the time—people add items to their cart, then disappear. Send timely reminders to pull them back. These simple nudges often lead to recovered sales.
• Segment Your Audience: Tailor emails to specific customer groups based on their past purchases, interests, or last orders. A “We miss you” email with a small incentive can turn a lapsed customer into a loyal one.

These are some simple steps that can actually work magic on your email marketing. 

Build brand and retain customers

Retaining a customer is cheaper than finding new ones. Keeping your customers coming back will help you to max out ROI for every penny spent to acquire customers. Establishing strong brand and brand royalty is extremely important to 

• Create a Loyalty Program: Retaining customers is cheaper than acquiring new ones. Loyalty programs or repeat customer discounts can increase customer lifetime value.
• Request Reviews and Referrals: Positive reviews and referrals are cost-free ways to generate more sales, especially when incentivized with discounts or perks.
• Include branded packaging: Branded packaging will cost you extra money. But in the long run, it can help you to establish a strong brand, increase retention, and lower the cost for acquiring new customers. Even so, don’t put too much focus on branding when you just starting out. Keep it for later on when you have consistent sales. 

If you want custom packaging, inserts, or branded tags, some POD providers offer these options at additional costs. For example, at Merchize, we offer custom brand packaging kit from just $0.6.

How to minimize hidden costs

In addition to these aspects above, in business, there are also hidden costs that come from unwanted loss which can eat up your profit margin. 

• Returns and Refunds: Handling returns can be costly since many POD providers don’t allow returns unless there’s a printing defect. If you offer a generous return policy, you might have to absorb these costs.
• Customer Service: Time spent on customer service (responding to inquiries, handling complaints) is an indirect cost. For high-volume sellers, this could lead to hiring virtual assistants, adding another cost layer.

Choosing a reliable print on demand supplier will help you handle the first two issues: returns and refunds and customer services.

Your print on demand partner fulfills products and controls the quality. Defected products make customers unhappy and ask for returns and refunds. That’s why you should closely monitor the returns and returns rate, as well as shipping time. These are great indicators of a supplier’s reliability. 

With consistent product quality and fast shipping time, you can significantly lower the returns and refund cases, avoid lost costs, spend less time handling customer complaints, and build trust with customers.

Why is print on demand still worth trying?

Despite all the challenges that you might have to encounter when entering the print on demand market, there are still a host of reasons that make print on demand appealing to aspiring entrepreneurs.

Low risk and low starting cost

The biggest peaks of print on demand are its low risk and low starting cost nature. With print on demand, business owners don’t have to put the money upfront and buy the products and stock them in order to distribute them to the end buyers.

Instead, all of these risks are shifted to print on demand suppliers. They will stock the products, print and ship them to the buyers. The production cost is only counted once the product is sold. Plus, registration with print on demand company is completely free.

When selling print on demand, you only have to pay for the operation of your online shop as well as the design cost only.

For this reason, print on demand is still the number one option for sellers who want low risk and low-investment business model to start making money, despite the growing concern about the profitability of this type of business.

Opportunities to explore and experiment with new products

Besides being an attractive opportunity for beginners to start an online business, print on demand is also chosen by many veteran eCommerce business owners because this form of business allows them to launch new products easily, and test new ideas quickly without risking losing money.

If the products receive positive signals from the buyers, sellers might consider ordering the products in bulk. This way, the sellers can avoid the risk of having unsold stocks that they can’t sell.

High flexibility

In today’s world, everything is going online. With print on demand business, you can move your entire business to the digital space. You won’t have to deal with stock management, shipping, or any related to physical products.

To operate your print on demand business, you only have to work mostly online. From creating the designs to uploading and promoting your products, everything can be done from anywhere at any time as long as you’re connected to the internet.

This offers high flexibility in operating and running a business. You can do print on demand as a side hustle outside your daytime job, or make it a source of passive income to support your nomad lifestyle.

Automated process

Another reason why many people are opting to use print on demand to power their business is because print on demand can be automated easily. Your business keeps running, orders fulfilled and products delivered even in your sleep. You will have to take the initiative to create designs, post and update your listings, and set up your ad campaigns, and print on demand automation will handle the rest.

Growing demand for custom products

According to a report by Salesforce, 65% of customers prefer personalized products over standard products. This number is even higher among Genz customers with over 74%.

This statistic reveals a huge demand for personalized products. Here is one aspect where print on demand can help to grow your business.

As you know, print on demand products are not premade but only printed in order, which offers space for you to introduce a personalization factor into your products. You can allow customers to send their own images to print into the products or personalize products with people’s names and messages.

It should be noted that customers are willing to pay more for personalized products. You can increase your profit margin with custom orders.

All of these are impossible with traditional goods which are ready-made and have no space for customization. If you want to make more money with personalized products, print on demand is the number one option to go with.