Many people are unaware that Print On Demand companies (direct shipment by the wholesaler) is a method also used by large companies. The reason? It boils down to the cost savings: is the higher cost of Print On Demand companies still advantageous considering the savings in reduced maintenance and overhead? In many cases, the answer is yes.
We will review several reasons and methods used by large companies to enable them to grow their business and expand their business with minimal investment on their part.
Execution costs: an obstacle to growth
Managing production and logistics for a growing ecommerce business can be costly. In addition to the time it takes, it also involves many costs. Some companies choose to outsource production and logistics and resort to Print On Demand companies.
Overhead costs are what people generally take for granted. An order management warehouse will need to cover the cost of rent and related charges for water and electricity, as well as the salaries of employees who perform the physical work, and all necessary materials.
In addition, the monthly rent for business premises varies greatly depending on size and geographical location.
Uneven shipping costs
At first glance, you might think it's not much to ship a product. But navigating the complex world of shipping is a feat in itself. Negotiating shipping prices, label payments, withdrawals and delivery times in high and low season can easily be a full-time job, and there are university programs devoted entirely to logistics.
Do you want to get into Print On Demand companies to earn money, work from anywhere, have your own business and become a real e-merchant?
This online business is more and more popular and can bring you big profits! Whether you are an individual or a company, you can open a Print On Demand companies online store easily and quickly.
To learn more about this business model and trend, I will explain in more detail what Print On Demand companies is, show you why it's a good idea to become a dropshipper and help you find out what product to sell.
Finally, I will show you the different steps to create an online Print On Demand companies store dedicated to selling without stock thanks to Techtoprint.com technologie.
What is Print On Demand companies?
Print On Demand companies is an ultra-simplified online sales system.
By launching this business, you are an intermediary distributor and you are simply in charge of highlighting products that do not belong to you to consumers.
Also known as "drop shipping", Print On Demand companies is divided into 3 phases.
1: The customer places an order on your e-commerce site and you are notified of this purchase.
2: You inform your supplier/wholesaler of the sale.
3: This same supplier will take care of the logistic part and will ship the package to your customer.
It's as simple as that!
Now that you know the definition of Print On Demand companies, I will explain the concept a bit more.
How Print On Demand companies works
When you are an e-merchant, your only ambition is to sell your products. Logistics adds many daily tasks to your work and you are less focused on your core business: selling.
With Print On Demand companies, you can concentrate on one thing: communication and marketing.
Your only goal is to make sales and generate turnover!
On the other hand, the supplier or wholesaler you have chosen also focuses on his business: logistics. He manages the entire stock, from production to delivery.
If you take a closer look, you can see that various marketplaces have been using this business model for some time.
For example, Rue du Commerce is a site offering products belonging to suppliers. As soon as an Internet user places an order on this market place, the wholesaler receives a notification and will take care of sending the package to him. The site receives a commission on the sale. This is of course the case for other well-known marketplaces (Amazon, eBay, etc).
And if you dig deeper, you'll find that supermarkets, department stores and even home shopping shows use this method of selling.
Print On Demand companies has been an omnipresent practice around us for several years!
For more details on the subject, read our article: what is Print On Demand companies?
Now that you have understood what Print On Demand companies is as well as the concept of this business model, I'm going to tell you about some undeniable advantages to start this practice.
Why do Print On Demand companies?
Whether it is for you, as an e-merchant, or for your supplier, Print On Demand companies has many advantages.
The absence of logistics
Among the benefits of Print On Demand companies, you surely suspect that we find the logistics.
Inventory management, parcel preparation, carton packing and shipping will never be among your tasks. Your wholesaler takes care of everything!
With this reduction of tasks, you will focus on the distribution of the products you offer on your online store. Your only mission will be to make sales and set up effective means of communication.
Moreover, with the development of the web, web marketing levers are more and more important: natural referencing (SEO), paid referencing with Google Adwords, online advertising with Facebook Ads, e-mailing, social networks, affiliation, etc.
With the constraint of logistics less and less, you focus only on the visibility of your e-commerce site!
The low financial investment
This advantage leads me to talk to you about financial investment.
Print On Demand companies allows you to create an online store with very little cost.
Inventory management represents a significant cost for e-merchants. With a supplier, you choose your products in the catalog of your wholesaler and you add them on your merchant site.
You sell items that you do not store... No financial risk!
Your only expenses will be in the webmarketing levers. And if you communicate effectively, you will have good returns on investment.
This money spent will generate sales on your website!
As I mentioned above, this practice also has advantages for the wholesaler.
As we often hear, everyone has his own job. And this is the case for a supplier. Selling on the internet is not an insignificant task. It requires a certain expertise and a certain level of knowledge. If it were not the case, each wholesaler would have his own e-commerce site to sell directly to customers...
With Print On Demand companies, the supplier can therefore focus on his supply chain and let the distributors promote his products.
If you want to discover other advantages of Print On Demand companies, I invite you to read our opinion on Print On Demand companies.
Print On Demand companies: elements to consider
Print On Demand companies has advantages. However, it also has some small elements to consider.
They will vary depending on your position in the chain of online sales without stock.
If you are a distributor, you will encounter different elements from the supplier and vice versa.
On the wholesaler's side
Dependence on the platform
When you are a supplier or wholesaler and you want to promote your products through other websites, it is quite possible that you use the e-commerce mastodons: Amazon, Cdiscount, Rueducommerce, eBay, etc..
And when you start integrating these different marketplaces, you will soon realize that you have to comply with certain requirements and conditions: content to be created for the product sheets, restrictions on delivery time, percentage of commissions on sales made, etc.
If these requirements are not met, you risk exclusion from the marketplace.
Nevertheless, suppliers and wholesalers can make a very large turnover on these marketplaces. It is therefore a real opportunity. And this is why they continue to sell their products on these channels .
On the other hand, this disadvantage opens the doors to Print On Demand companies with private individuals. By doing business with e-merchants and dropshippers, you can set up your own sales conditions!
This is why more and more suppliers and wholesalers are offering unit sales.
The information that circulates about your products
When you propose to other merchants to sell your products on their e-shop, you don't really control the communication around your items.
A dropshipper will write a product sheet with some information. He will also create advertisements by putting forward sales arguments, etc.
All this communication can be beneficial to you. However, sometimes it can harm your image.
This is why it is important to set up an effective communication between you and your distributors. Present your product range and catalog to them effectively to help them sell your articles and use reliable and concrete arguments.
To limit the circulation of bad information as much as possible, you can set up certain conditions with regard to the resellers. Your products will be available for sale only if the dropshipper meets certain obligations (benefiting from an auto-entrepreneur status for example).
Certainly, fewer people will call on you but you will avoid unpleasant surprises.
On the reseller's side
Dependence on the wholesaler
And yes, it's not just for suppliers that dependency is a disadvantage. It is also the case for dropshippers!
When you go into this business, you don't manage any stock and you don't store any product. Your products are therefore totally dependent on your wholesaler.
Imagine that you create your site, that you work on a very specific category (writing product sheets, ordering products to make nice pictures, creating advertisements, etc) and that, overnight, your supplier stops the production of the product.
This decision will directly impact your Print On Demand companies store and you will lose all your work...
Of course, this is quite radical and quite rare. However, other decisions may come into conflict: price changes on products, unavailable stock, etc.
In short, there is a dependency on your wholesaler. To avoid these problems, set up good communication with your supplier in order to establish a relationship of trust.
In Print On Demand companies, the competition is tough. Chances are that your products will also be present in other online stores.
Unless, of course, you negotiate exclusivity with your supplier, but as a rule this is not the case.
By using a production and logistics company, you benefit from the expertise, experience and work already done, but more importantly, you get lower shipping costs that you probably wouldn't be able to negotiate because of the little influence you have when shipping a small volume of items.
Facilitate rapid growth, test new products
Print On Demand companies is a quick and easy way, with a minimum of effort, to have LOTS of items available in your store quickly, with very little risk or upfront payments from you.
Thanks to Print On Demand companies, you don't have to take the time to validate your products, nor to take the risk of ordering a stock of items in store. All you have to do is add them to your store. Quickly add to your store the products you think are appealing and let customers decide for themselves. When some products are clearly distinguishable from others, you may want to consider managing orders yourself.
Zappos, the famous shoe store site, is an example of this. They started their business by using Print On Demand companies for all their products. Eventually, they came to manage production and logistics themselves, but it was Print On Demand companies that gave them the opportunity to offer a wide selection of shoes right from the start, which allowed them to consolidate their role as market leaders.
Developing your business by outsourcing
Some major brands have decided to outsource all the production and logistics of their e-commerce sites, proving that Print On Demand companies is much more than just an online sales tool for beginners. Some stores set up and run million-dollar businesses offering only products shipped by the wholesaler, such as Blinds.com, Wayfair, Gilt, to name a few.
Wayfair operates its business exclusively through Print On Demand companies, managing over 7,000 different suppliers and more than 7 million items. They ended 2015 with revenues of $2.25 billion, which led us to understand that Print On Demand companies is a major business.
Services such as Amazon FBA (Fulfilled By Amazon - Managed by Amazon) have also demonstrated that Print On Demand companies is a great way to grow your business. You can send all your products to Amazon, who will take care of the entire fulfillment process. This service is available for those who use Amazon to sell their products.
Seasonal flow management
Sometimes an online store may experience higher than expected sales volume. In these cases, instead of letting their customers down and keeping them waiting, large retailers may choose to connect with a production center to handle orders that they cannot handle themselves.
Suppose you receive a larger than usual order and simply don't have the capacity to produce or ship it quickly. Ask for help from a production center that will handle the extra orders until you can change sizes.
Selling products that are not part of your core business
When you want to offer a product, but it is not the basis of your income, it may be wise to outsource production. This will save you from investing your time in implementing a product that you are happy to have but that does not constitute the bulk of your income.
Let's say, for example, that you manage a blog or a press site. Your main income will depend on the content you consume (of course, this may vary depending on your business model). You can monetize this site by adding merchandise that is shipped by Print On Demand companies, without wasting the time and resources that could be spent creating your main source of income.
Print On Demand companies: the versatile tool for young and old alike
Large companies make extensive use of production and logistics outsourcing because it allows them to add value to their business. By doing so, they create a reason for a product to exist from scratch, and a new need in their niche.
Print On Demand companies can be used by the bosses of multi-million dollar companies, as well as the smallest of amateur entrepreneurs, or it can be used as a springboard to launch a major brand. The tool has become a business model in itself and is changing the business landscape.
Most wholesalers and suppliers are fairly accessible. They therefore open their catalog to a large number of e-merchants.
Even if you can rework the visuals and photos of the products, the only real difference will be the universe of your site and the price.
And if you start implementing a price marketing strategy, you may lose the battle...
To counter this competition, you can negotiate prices directly with your supplier if you make a lot of sales. You can also differentiate yourself and create a brand as well as a community for your e-commerce dropship site.
Lack of control over delivery
The big advantage of selling online without stock is the absence of logistics. But this advantage can quickly become a disadvantage if your supplier is not of quality.
As you know, your wholesaler will take care of all the production and logistics. As a dropshipper, you don't know the quality of the product and you don't manage the quality of the shipment to the final customer.
That's why it's important to choose a good supplier and to order the products you sell upstream to test them. You will be able to analyze, by yourself, the delivery time, the packaging or the quality.
With a good Print On Demand companies strategy, you can get around these drawbacks and turn them into advantages!
Now I will help you to find your supplier and the products to sell.
Which product to sell in Print On Demand companies?
There are a multitude of suppliers and wholesalers in the world for Print On Demand companies.
However, you have to be careful because a wrong choice can negatively impact the reputation of your online store.
First of all you need to think about the theme of the products you want to sell. Here are some tips to find the perfect product:
Avoid certain products: in Print On Demand companies, some items are to be banned. Of course, it will depend on your supplier but as a general rule, electronic products, cosmetics, food products, baby products and finally bulky products should be avoided.
Choose a niche: to avoid being too generalist, you must focus on a theme and create a niche e-commerce site that targets enthusiasts.
Look for trendy products: to choose a product that will be a hit, you can play on the trend. Follow the news and visit trendy sites, you will find lots of product ideas!
When you have found your niche, all you have to do is find the best wholesaler.
Which Print On Demand companies ?
You can find hundreds of Print On Demand suppliers on the Internet. There are even websites that list the main Print On Demand companies wholesalers according to countries and product categories.
However, I advise you to do your own research on the Internet and don't stop at the first Google page!
As I told you, webmarketing levers are not the strong point of suppliers, their website can be well hidden in search results!
You can also make your job easier with the Techtoprint solution. Our tool is directly connected to the best print on demand suppliers.
Create a Techtoprint store with integrated suppliers - Free 15-day test
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These different sites group together millions of references and offer catalogs with all the products in the world.
The market is large, you are free to choose the country to do Print On Demand companies and therefore the location of your supplier.
To help you make your choice and find the best wholesaler in Print On Demand companies, you can also use our Techtoprint extension.
Once you go to the best on-demand print suppliers, a rating is displayed on all products taking into account many criteria: the number of orders, the number of customer reviews, the product rating, etc. This indicator is very relevant and will help you in your choice of supplier and product!
Which solution to create your Print On Demand companies store?
Several solutions are available to you to create your Print On Demand companies website. You can use open source or turn to SaaS, like the majority of online merchants.
With a SaaS solution, you can create your Print On Demand companies store very quickly and easily without investing a large amount of money!
Unlike Open Source where you have to spend thousands of euros to develop your site, SaaS is very accessible without prior knowledge.
These platforms work, most of the time, with a monthly subscription and a small commission on the sales made.
This price gives you the possibility to have access to an all-in-one tool: hosting, back office to manage your store, marketing functionalities, templates, etc.
Be careful, some solutions do not natively integrate templates and functionalities. So you have to pay an additional cost and you can quickly find yourself paying several hundred euros per month...
The Techtoprint solution
The Techtoprint solution is a turnkey solution. It includes all the essential functionalities to sell in Print On Demand companies.
One of the big advantages is the automation of the suppliers mentioned above.
In a few clicks, you can import hundreds of products, place orders automatically and benefit from stock synchronization with certain wholesalers.
This e-commerce solution goes even further and offers you support by online sales experts as well as a complete Print On Demand companies training in video. I talk about it in more details at the end of the article.
Techtoprint's price starts at 14 euros/month. This is a very affordable price compared to Open Source that will cost you several thousand euros.
Create my store with Techtoprint SaaS solution! - Free 14 days test
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Case study Print On Demand companies: 33,000 euros in 2 months with Techtoprint
"Print On Demand companies is dead", "Print On Demand companies doesn't work anymore", "Print On Demand companies is a scam",...
You have probably already read or heard these words somewhere.
Since when has buying - reselling been a scam?
And since when you can't succeed if you give yourself the means?
Print On Demand companies is like any other business. As long as you invest time and work efficiently, you have a good chance of making money.
Most of those people with negative comments gave up at the first hurdle.
John, a motivated entrepreneur
So I thought it would be interesting to present you the concrete case of a Techtoprint store that generated more than 30,000 euros in sales in 2 months.
This concrete case is that of John Br, a seasoned entrepreneur and e-merchant.
At the age of 19, he decided to start selling online in Print On Demand companies. For him, this business was accessible because it required very little investment.
The choice of the Techtoprint solution
John initially started with the Prestashop solution. The high cost and complexity of this platform quickly forced him to close his store. He looked for a more accessible alternative and came across Techtoprint.
This all-in-one solution quickly convinced him.
No additional plugin to pay, no fees to buy templates, great ease of use,... But the biggest advantage of the solution for John is: business coaches.
These e-commerce experts are always available to answer your questions and accompany you in the development of your store.
In June 2018, he starts to create his online store. He tried different themes: vehicle accessories, yoga accessories, cat accessories, etc.
Finally, it is with a very nested sports products site that he will excel.
His marketing strategy was based on Facebook advertising and natural referencing.
Every day, he devoted a few hours of work to taking orders and optimizing his store (content creation, writing product sheets, creating ads, etc.).
For John, the 5 keys to success in Print On Demand companies are :
1-A good product
2-A good design
3-A good marketing
It is with these criteria and the Techtoprint solution that he has managed to generate so many sales.
The steps to create his site in Print On Demand companies
Now that you know what Print On Demand companies is, that you have a good understanding of the concept, that you have an idea of what product to sell and that you know how to find a reliable supplier, it's time to summarize in a few key steps, how to create a Print On Demand companies e-commerce site.
You can discover our detailed guide: How to do Print On Demand companies and create your site in 6 steps.
Choose your industry and products: this step is crucial because you need to sell products that interest consumers.
Import your products on your online store: with Techtoprint and the best print-on-demand providers, everything is automated. In 1 click, you add the products from the marketplace to your Print On Demand companies site. We have automated the flow between the best print on demand suppliers and your Print On Demand companies store.
Configure your Print On Demand companies online store: find a name for your online store, create attractive visuals, write your product sheets and define the payment methods. You can also customize your template according to your theme to stand out from your competitors. Our Techtoprint solution provides you with unique design tools that allow you to create beautiful sites very easily and quickly.
Create your business: if you don't have an official status, you need to create one. The auto-entrepreneur status is the most suitable to start a Print On Demand companies activity.
Set up your webmarketing levers: now it's time to make your merchant site visible! Optimize your e-commerce for natural referencing, launch some paid ads, create a community on social networks, ...