How Dropshipping and Print on Demand Work: A Simple Guide for Beginners

Illustration explaining how dropshipping and print on demand ecommerce business models work

Dropshipping and Print on Demand (POD) have become popular because they let you sell products online without holding inventory – Dropshipping vs print on demand.

You don’t manufacture products.
You don’t store them.
You don’t ship them yourself.

Instead, you focus on:

  • Choosing products
  • Marketing and branding
  • Customer experience

Let’s break down how each model works, step by step.


What Is Dropshipping?

Dropshipping is an ecommerce model where you sell products that are shipped directly from a supplier to the customer.

You act as the middle layer between the buyer and the supplier.


How Dropshipping Works (Step by Step)

Step 1: You Set Up an Online Store

You create an online store using platforms like Shopify or WooCommerce.

You list products from a supplier at a marked-up price.


Step 2: A Customer Places an Order

A customer buys a product from your store and pays you, not the supplier.

This includes:

  • Product price
  • Your profit margin

Step 3: You Forward the Order to the Supplier

You place the same order with your supplier (often via platforms like AliExpress), paying them the wholesale price.


Step 4: Supplier Ships the Product

The supplier ships the product directly to the customer, usually without your branding.

You never touch the product.


Step 5: You Handle Customer Support

You’re responsible for:

  • Customer queries
  • Refunds and disputes
  • Delivery issues

How You Make Money in Dropshipping

Your profit =
Selling price – Supplier cost – Ads – Platform fees

Margins are usually:

  • Low to medium
  • Volume-driven

Pros and Cons of Dropshipping

✅ Pros

  • Very low startup cost
  • No inventory risk
  • Easy to start
  • Scalable

❌ Cons

  • High competition
  • Low profit margins
  • Shipping delays
  • Limited quality control

What Is Print on Demand (POD)?

Print on Demand is a variation of dropshipping — but with customised products.

You sell products like:

  • T-shirts
  • Hoodies
  • Mugs
  • Phone cases
  • Posters

These items are printed only after a customer places an order.


How Print on Demand Works (Step by Step)

Step 1: You Create Designs

You design graphics, text, or artwork for products.

These designs are uploaded to POD platforms like Printify or Printful.


Step 2: You Connect POD Platform to Your Store

Your store (Shopify, Etsy, etc.) is integrated with the POD service.

Products sync automatically.


Step 3: Customer Places an Order

A customer orders a custom product from your store.


Step 4: Product Is Printed and Shipped

The POD provider:

  • Prints the design
  • Packages the product
  • Ships it directly to the customer

Step 5: You Handle Branding and Marketing

Unlike dropshipping, POD allows:

  • Custom branding
  • Niche targeting
  • Brand loyalty

How You Make Money in Print on Demand

Your profit =
Selling price – Printing cost – Platform fees – Marketing

Margins are generally:

  • Higher than dropshipping
  • Brand-driven

Dropshipping vs Print on Demand: Key Differences

FeatureDropshippingPrint on Demand
InventoryNoNo
CustomisationNoYes
BrandingLimitedStrong
CompetitionVery highMedium
Profit potentialLowerHigher
Long-term brandDifficultEasier

Which Model Is Better for Beginners?

Choose Dropshipping If:

  • You want to test products quickly
  • You’re focused on paid ads
  • You want speed over branding

Choose Print on Demand If:

  • You want to build a brand
  • You enjoy design or niche marketing
  • You want long-term value

Common Mistakes to Avoid

  • Choosing generic products
  • Ignoring shipping times
  • Poor customer support
  • Over-reliance on ads
  • No brand differentiation

Let’s start the Journey:

Dropshipping and Print on Demand are business models, not shortcuts – Dropshipping vs print on demand.

They work best when you:

  • Understand your niche
  • Focus on customer trust
  • Build systems, not hype

If done right, both can become scalable online businesses — but POD generally offers better long-term sustainability.

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