How to start a print on demand business: Essential steps to follow

There's a reason why the search volume for 'print on demand business' has nearly tripled in the past five years — POD businesses aren't just profitable; they're also flexible and surprisingly scalable. This can explain why the global print on demand market size is anticipated to skyrocket from $6.17 billion in 2022 to a whopping $39.4 billion by 2030, with no slowdown in sight.

The POD business model has become a lucrative opportunity for independent creators and ecommerce entrepreneurs alike. If you're searching for a cost-effective means to transform your ideas into tangible products, here's everything you need to know about how to start a print on demand business.

• The POD business model allows creators and ecommerce entrepreneurs to sell custom products without upfront costs or managing inventory.

• Key benefits include low startup costs, easy scalability, faster product listing and production, and hassle-free fulfillment, while drawbacks include lower profit margins than wholesale and limited control over shipping and branding.

• To start a POD business, identify a niche, select products, set up your store, choose a reliable POD provider, design quality products, optimize listings, market your store, and track performance for long-term success.

• To succeed in a POD business, select a reputable POD provider, order samples to verify product quality, design appealing mockups for your store and marketing, focus on efficient and affordable shipping, and tailor products to your target niche.

Before diving into your print on demand (POD) journey, it's essential to grasp the fundamentals of this booming business model.

A POD setup allows a creator or ecommerce operator to partner with a supplier, offering customized products on a per-order basis. When a customer orders from an online store, the supplier manages everything from printing to shipping, eliminating much of the logistical burden. This structure is attractive to many creators and entrepreneurs due to its minimal upfront investment and low running costs, as there's no need for inventory or costly equipment like direct-to-garment printers for t-shirts or frames for wall art.

One standout advantage of a POD business is its inherent simplicity and scalability. The model saves owners time and money because all aspects of fulfillment are executed by the supplier, from packaging to delivery. This approach appeals to digital creators, ecommerce operators, and graphic designers looking to establish an online presence without hefty financial liabilities. The global POD market surged from$4.9 billion to $6.17 billion between 2021 and 2022, with a continued growth forecast of a 26.1% compound annual growth rate (CAGR) through 2030.

If you're interested in selling custom products, you may have researched both print on demand and wholesale business models to get your creations into your customers' hands. But what's the difference between the two? 

Print on demand means that the seller does not pre-purchase any products, and the business has no upfront costs. Instead, products are only paid for once a customer places an order. The POD business pays for just the product and shipping cost of the customer order. The POD supplier then customizes the product with the customer's desired print and packages it for delivery.

Wholesale means that a business chooses from a supplier's product catalog, provides direction for any product customization, and places an order in bulk. Products are purchased upfront, often at a discounted price for a specific volume, and then held in a holding facility like a warehouse. Once a customer places an order, the product is retrieved from the holding facility for delivery.

How do these models differ?

The primary difference between a print on demand and wholesale business model is that a POD business incurs costs only for items made-to-order, eliminating the need for upfront investment in inventory. This means that the POD model reduces financial risk, as funds are only spent when a customer places an order, allowing entrepreneurs to operate without unsold stock or excessive overhead. 

A wholesale business requires an initial investment to purchase and store inventory, such as quantities of t-shirts in various colors. If certain items don't sell, this upfront cost can lead to financial loss. In contrast, the print on demand model offers flexibility and lower risk since it aligns production expenses directly with customer purchases, providing more reward potential without the burden of inventory management.

You know what a print on demand business model is, and the next question to ask is whether it is right for you. Let's weigh the pros and cons.

Pros of print on demand

Low start-up costs

One of the biggest advantages of a print on demand business model is the minimal start-up costs. Unlike a wholesale or alternative ecommerce business, a POD business does not need to place a minimum order with a supplier or hold inventory in a warehouse. You only pay for what you sell!

Easy to scale to a global audience

A print on demand service leverages a global production and logistics network to fulfill orders for a POD business, which makes it a breeze to expand your ecommerce store to new countries. Take advantage of a POD provider to enter new markets and get your product in front of new audiences.

Create custom products and list them quickly

A print on demand business model enables creators and designers to dream up unlimited product designs that are not constrained to on-hand stock. Even better? The timeline from design ideation and creation to product listing and production can be expedited from days to minutes.

Hassle-free shipping and order fulfillment

Once a print on demand business receives a purchase order from a customer, the print on demand service does the rest. Every aspect of order fulfillment — including printing, packaging, and shipping — is handled directly by the POD supplier without the POD business ever lifting a finger.

Cons of starting a POD business

Lower profit margins

While print on demand business owners save on expenses upon start-up, they trade higher up-front costs for higher costs per item. Wholesale suppliers often offer discounts when purchasing in bulk; however, these discounts do not trickle down to POD businesses that buy on a per-order basis.

Limited control of shipping and delivery timelines

Though many independent creators and ecommerce entrepreneurs prefer the simplicity of print on demand services, some miss the control over shipping and delivery timelines that comes with handling your fulfillment in-house. Your supplier determines all shipping costs and timelines.

(Tip: Want more control over shipping costs for your print on demand business? Unlock up to 50% discounts on shipping rates with Gelato+ and Gelato+ Gold subscriptions.)

Less control over packaging and branding

When you outsource fulfillment to a third-party supplier, like a print on demand service, you forfeit complete control over your product's packaging and branding. (Tip: A white-label global print on demand platform like Gelato can eliminate this problem with branded packaging for your business!)

Limited products to choose from

Where a wholesale business has a personal inventory of products to choose from, print on demand companies must select from a supplier's available inventory. This can pose an issue when trying to keep items in stock, attempting to diversify products, or when purchase orders suddenly spike.

From unlimited flexibility to untapped scalability, it's no secret why a print on demand business has become a rewarding opportunity to turn ideas into products and products into profit. For those considering starting a POD business for the first time (or perhaps expanding your current offering), we've put together a guide outlining how to start a print on demand business step by step.

1. Find a niche market

All print on demand sites share one thing in common: they target a niche market. Before brainstorming POD products, take a look at how to decide on the direction for your own brand.

Determine your niche

In ecommerce, much like traditional retail, many stores falter because they pursue ideas without viable markets. But don't believe you must invent something entirely unique to succeed! Often, the most successful online stores, especially in print on demand (POD), thrive by delivering exceptional products within established niches.

Begin by identifying a niche you're passionate about—perhaps landscape photography or watercolor art. Use resources like Google Trends to assess consumer demand and profitability. By understanding the market and your interests, you can carve out a profitable space for your POD business.

Research your target market and competition

With a niche in mind, research your target market to feel confident that potential customers will want your products. The niche itself (like mug collectors or art enthusiasts) will inform the interests of your target market. To learn more about the demographic and understand their needs and preferences, assess niche-focused online forums, social media groups, and search trends.

Once you understand your target market's pain points and potential budget, analyze the potential competitors. Browse rival ecommerce stores and competitor websites to determine how your offerings could better serve your niche, such as a better price point. Also, assess your competitors' marketing efforts, like paid ads, to better understand your niche's demographics.

2. Decide what to sell

Now that you've determined a niche market for your print on demand business, you can decide what your company will sell. This step focuses primarily on profitability and planning.

Identify profitable products

Of course, if you want your POD business to earn money, you have to identify profitable products to sell. Statistically speaking, the apparel segment dominates the global print on demand market, with a share of 39.6% in 2021. Profitable products to sell in 2024 include custom apparel like tank tops, t-shirts, sweatshirts, and zip-up and pull-over hoodies.

If you'd prefer to enter an up-and-coming market, the home décor segment is expected to register the highest compound annual growth rate of 27.7% through 2030. A vast assortment of custom products fall under the home décor segment and thrive in a POD business model, including but not limited to wall art, wallpaper, and photo books.

Develop a business plan

A business plan should describe what you sell and how it benefits your customers. It should explain how you plan to attract and retain customers and the sales channels you will use in your marketing strategy. A business plan should also include financial projections, such as forecasted income statements and balance sheets. It should be clear how you will profit from the value you provide.

Enjoy the flexibility of print on demand

POD allows ecommerce entrepreneurs the flexibility to pivot business models without the burden of unsold inventory, enabling quick adaptation to changing market demands. This agility supports launching limited-edition products and swiftly monetizing established online followings.

3. Set up your business and storefront

This will be the longest step to establish a print on demand business, but it's also the most important.

Register your business

It's time to make your business official! First, select your business name. Your business name should reflect your niche and the products you sell but not be so generic that customers need help finding you on Google. Be sure to research variations of your business name and check against the official trademark database to avoid conflict with an existing business entity.

Next, it's time to register your business in your operating state. Even ecommerce businesses must seek a proper Business Operation License to help the local government keep track of active businesses and proper tax filing. Depending on the uniqueness of your niche and business name, consider filing a trademark to establish ownership of your identity.

Additional necessary licenses and permits for an online business may include:

• Employer Identification Number (EIN)

• Doing Business As (DBA) License

• Sales Tax License

• Seller's Permit

Choose a platform or marketplace

The right ecommerce platform or marketplace for your target audience is crucial for showcasing your brand and designs to your niche market where and when they shop and increasing entry points to your store, thereby expanding your potential customer base. But what's the difference between ecommerce platforms and marketplaces?

An ecommerce platform allows sellers to create their own online store and sell products directly to customers, with popular choices being Shopify, Squarespace, BigCommerce, and WooCommerce. 

An ecommerce marketplace serves as a centralized space shared by multiple sellers, each with a personalized storefront, with Amazon, Etsy, and eBay leading the pack. Visibility is everything, and platforms and marketplaces like Shopify, Etsy, Squarespace, and Amazon allow you to showcase your store across several key locations frequented by your target audience.

Set up your store

After you've decided on an ecommerce platform or marketplace to start a print on demand business, you can begin to set up your store. While a bit time-consuming, set-up brings you one step closer to selling products. First, you'll need to create an account with your desired provider. From here, you'll input details like your store name and logo and update your language, country, and currency preferences.

Want step-by-step directions to set up your store? Check out the resources below:

• How to Start an Etsy Shop Step-by-Step

• Shopify Print on Demand: How to Start a POD Store

• How to Set Up a New WooCommerce Store

• Wix Help Center: Setting Up Your Store

• Getting Started with Squarespace Commerce

• Store Launch Guide: Welcome to BigCommerce

4. Select a POD provider and connect your store

Now that your store is ready to take customer orders, find a reputable POD provider that best suits your needs. Some aspects to consider include the following:

• Average production and delivery time. How long until your orders are processed and your customers receive their shipments?

• Product selection and pricing. What kind of items do you want to sell, and what profit margins are you looking to make?

• Available ecommerce integrations. Can the supplier automatically integrate with your ecommerce operations to streamline customer orders?

• Production locations. Can they produce on-demand products where your customers are located for faster, cost-effective shipping?

• Sustainability and ethics. How will your order production and fulfillment impact the local environment and supply chain?

Gelato stands out as a top choice for print on demand businesses, offering effortless integration with platforms like Shopify and Etsy to automate orders and expedite delivery. With over 10 million orders fulfilled, we provide a vast product catalog ranging from apparel to home décor, all produced with optimal profit margins.

Operating in 200+ countries, Gelato's local production reduces carbon emissions, supporting sustainability. A vast product catalog and global production network empower creators in 33 markets to produce nearly 90% of orders locally.

5. Design and list your products

Once your store is connected to Gelato, it's time for you to add products such as wall art, apparel, cards, and mugs. Think about what products best fit your niche; perhaps it makes sense to focus on one product category initially or launch a few different products to determine your bestsellers.

Create your product designs

Print on demand business owners can create endless product designs. As you whip up new creations for your online store, make sure your designs are original and will appeal to your target audience. One way to confirm your ideas are new but still relevant to your niche is to return to your original market research and compare your designs to what's currently selling.

Remember, the most high-quality products begin with high print quality. Work with a vetted designer to create new designs for your products, or use design software like Adobe Illustrator and Photoshop or an online tool like Canva to create high-quality graphics and designs.

Add products to your storefront

With product designs ready for your customers to browse, you're now prepared to add products to your storefront. Adding products is easy with Gelato. Here’s what it takes:

• Selecting the product

• Uploading the design

• Defining a name and a description

• Selecting beautiful mockups

• Defining the retail price

• Publishing to your store

We have step-by-step directions to add products to each ecommerce store in our Help Center. If you already have products in your store, here's how to connect them to Gelato with a few clicks.

Optimize your product listings

Once you're ready to start selling custom products, optimizing your product listings is essential. This is your time to win over customers! Be sure to include high-quality product images and detailed product descriptions to capture the benefits or differentiators of each custom product.

If you need help crafting winning product listings, check out our beginner's guide to writing product descriptions. Help each customer imagine how your products can work in their daily lives, and use clear language and concise calls-to-action (CTAs), like add to cart or buy now, to encourage a sale.

Determine your pricing

To strategically price your POD products, begin by researching market trends and analyzing what competitors charge for similar offerings. Consider implementing a tiered pricing strategy that offers customers variations based on quality or customization, thus appealing to a broad segment of buyers. Always factor in all related costs, including production, shipping, and platform fees, to ensure you maintain healthy profit margins.

Another essential aspect is understanding your target market’s demographics and purchasing behavior. Recognize your audience's price sensitivity to determine whether they’re looking for budget-friendly options or are willing to pay a premium for unique, high-quality products. Incorporate psychological pricing techniques, such as setting prices just below a round number (e.g., $19.99 instead of $20), to make the cost seem more attractive.

6. Launch and sell your products

With the preparatory and back-office work done, it's time to focus on the greatest reward an ecommerce store owner can have: sales! To gear up for new orders, you must set a launch date to promote your product launch in advance. Most POD businesses ramp up marketing at least a month in advance via social media, paid search ads, and email marketing to reach their target audience.

One way to capture the attention of your target audience before launch is to offer exclusive discounts or promotions, like a general 15% launch-exclusive sale or 20% discount for new customers. An average of 83% of US consumers turn to digital coupons when shopping online.

Bear in mind, success might be gradual. It might come overnight. New challenges will emerge, but one of the many joys of POD is that the barriers to entry are lower, and the opportunity to change and adapt is always there.

7. Market and scale your online store

Now that your products are live, it's time to show off your store! Leverage your immediate network to spread the word and gather valuable feedback for improvements. 

Marketing can impact your store's success. While there's no one-size-fits-all solution, here's how to get started with your print on demand store: 

Social media marketing

Social media accounts are free and effective for connecting with your audience. Use platforms like Facebook, Instagram, Twitter, TikTok, Pinterest, and YouTube to generate awareness and reach customers. 

Paid media marketing

Explore paid marketing with a well-researched strategy. Build your presence on social media organically before investing in ads to ensure potential customers see engaging content.

Email marketing

Email marketing is a cost-effective way to engage customers. Use a newsletter to offer deals or highlight new products, keeping your brand top of mind and encouraging purchases.

Collaborations and influencers

Collaborate with influencers and digital creators to expand your reach. Through your print on demand business, you can offer digital creators and social media influencers a way to create limited-time merchandise.

8. Evaluate your sales performance

We're almost at the finish line! To ensure ongoing success for your print on demand business, monitoring sales performance regularly to inform your product, pricing, and marketing strategy is essential. Data-driven decisions are integral to maintaining a long-term profit margin.

Key performance indicators (KPIs) and business analytics to track over time may include:

• Top-selling products

• Average order value

• Trends over time

• Sales by region

• Gross revenue

• Net profit

• Total cost to POD

Fortunately, with a print on demand provider like Gelato, you can monitor these metrics and more on a convenient mobile app. The Gelato POD model enables you to A/B test various aspects of your storefront, like product inventory and pricing, to keep your offerings fresh.

Speaking of fresh inventory, create variations of your most popular products to keep customers engaged and encourage repeat purchases. Whether it's fine-tuning the design of your store or zeroing in on the products to sell, seek the opinions of others — be they existing customers or friends and family — to elevate your business.

The print on demand business model allows entrepreneurs to explore creativity without financial risk, so let's explore the five tips for a profitable POD business.

1. Choose a reliable provider

Look for suppliers known for their reputation, quality, and reliability. Evaluate their production capabilities, product range, customer service, and integration options before deciding. A trustworthy provider lets you focus on creating and marketing rather than worrying about production issues, so you're worry-free.

2. Order samples first

Ordering samples is a fundamental step in ensuring the quality of your print on demand products. It's your opportunity to evaluate the materials, print quality, and overall finish before launching to the public. With a provider like Gelato, you can access exclusive discounts on sample orders. This helps fine-tune your product offerings and delivers satisfaction to your customers.

3. Design product mockups

With tools like Placeit.net, you can easily generate stunning mockups tailored to your niche, whether it’s apparel, home decor, or lifestyle items. Mockups enhance the professionalism of your storefront and create engaging content for marketing campaigns. By showcasing your products effectively, you can capture your audience's attention and drive more sales.

4. Prioritize shipping

By prioritizing efficient and cost-effective shipping, you enhance customer satisfaction and loyalty. Consider options like Gelato's local production, which reduces shipping times and costs and ensures products reach customers promptly. Always factor shipping costs into your pricing strategy to maintain healthy profit margins without overcharging your customers.

5. Create for your target niche

By focusing on the specific interests and preferences of your audience, you can design products that resonate and stand out.Your niche dictates the type of products you offer and the themes, styles, and variations that appeal most to them. Regularly engage with your niche community to gain insights and stay ahead of trends, ensuring your designs remain relevant and desirable.

From selecting the right niche and products to mastering marketing strategies, you now know the ins and outs of the POD model. You can make informed decisions and turn your creative ideas into tangible products.

Gelato empowers entrepreneurs with a comprehensive suite of print on demand solutions tailored to global production needs. From a vast catalog of customizable products like apparel and home décor to efficient integrations with top ecommerce platforms like Shopify and Etsy, Gelato ensures your business runs smoothly and sustainably. With local production in over 32 markets, you benefit from faster delivery times and reduced carbon footprints.

If you're ready to launch your dream business,sign up for Gelato today!

What products can I sell with print on demand?

In a print on demand (POD) business, you can sell a variety of products. Popular categories include custom apparel like t-shirts, hoodies, and tank tops. Home décor items such as wall art, photo books, and canvas prints are trending. Accessories like phone cases, tote bags, and mugs are also great options. The beauty of a POD business is the ability to cater to specific niches, so you can sell unique products that appeal to your target audience.

How do I ensure product quality in print on demand?

Ensuring product quality in a print on demand business involves choosing a reliable POD provider like Gelato. Gelato can handle the production and shipping of your products and is known for high-quality standards. However, it helps to order samples of your products to review the print quality, material, and overall finish. Regularly checking customer feedback can also help you maintain quality, as you can quickly address any issues.

Do I need special skills or software for designs?

You don't need advanced skills or expensive software to create designs for your print on demand business. Tools like Adobe Illustrator and Photoshop are popular among designers, but there are also user-friendly online options like Canva that require no design experience. These tools offer templates and easy-to-use features to help you create professional-looking designs. Whether you're a seasoned designer or a beginner, there's a range of resources available to suit your needs.

Can I integrate print on demand with my website?

Yes, integrating print on demand with your website is straightforward. Many POD providers, including Gelato, offer seamless integration with major ecommerce platforms such as Shopify, Etsy, WooCommerce, Wix, Squarespace, and BigCommerce. These integrations allow your store to automatically handle orders, from printing to shipping, without manual intervention. This setup streamlines your operations and lets you focus on marketing and growing your business.

What are the shipping costs for print on demand?

Shipping costs in a print on demand business can vary depending on the provider and the destination of the products. Generally, the POD provider determines the shipping rates based on package weight, dimensions, and delivery speed. It's important to consider these costs when pricing your products to ensure you maintain a healthy profit margin. However, you can enjoy affordable shipping rates with Gelato, as we have a global network of production partners, which can help reduce shipping times and costs.