Will Package Printing Continue to Be Lucrative
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 2022, more and more people are questioning the possibilities 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 profitable in 2022?".
Is print on demand profitable in 2022?
The short answer is "Yes". Print on demand is still definitely profitable and worth trying in 2022.
Of course, compared to where it all begins, the possibilities of getting a successful print on demand business are getting thinner as the competition is ever-growing. If you started doing print on demand a decade ago, you might gain the first-mover advantages. Back then, everything was fresh, fewer people were offering similar products. It obviously took less effort to build a profitable business.
In 2022, print on demand has become a familiar territory where many strong competitors are competing for buyers' attention. But the fact is, not only print on demand but other forms of online business are also facing the same issue.
The above graph shows an overall downward trend in the average revenue per user across different categories. But rather than proving that it is no longer profitable to do ecommerce or print on demand, it shows that the profit gaps are bridging across different categories.
With the growth of the internet and social media, it has never been easier to start an online business. But it also means that the competition becomes increasingly stiffer. If you want to start print on demand or any other kind of online business, you must prepare for similar challenges.
Along with the challenges come with the possibility. The good news is that the eCommerce market has never been more active. According to Statista's report, retail e-commerce sales value worldwide is continuing to grow, expected to reach 7,391 billion US. dollar in 2025.
As for the print on demand market, the latest statistic reveals that the print on demand industry has grown by 12% from 2016 to 2020. It is expected to continue to grow in the future.
If you can take this trend to your advantage and grow profit for your business, you can still make a fortune out of print on demand in particular and eCommerce in general.
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 2022?", 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 can 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 2022 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.
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, the 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 a 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, 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 the 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 to 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 entirely automated. 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, set up your ad campaigns, but the rest can be automatically processed without your involvement.
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%. (2)
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 the 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.
Source: https://merchize.com/is-print-on-demand-profitable/