Dropshipping vs Print on Demand – Which is Better?

A lot of people who want to start an online business get confused between print-on-demand (POD) and dropshipping. Even though they’re both popular e-commerce models, they work in different ways. Knowing the difference can help you figure out which one is a better fit for you.

We live in a time where starting a side hustle is easier than ever. E-commerce, in particular, is a solid way to make either passive or active income. In fact, e-commerce sales are expected to hit $8.1 trillion by 2026 — which means there’s huge potential for success.

Dropshipping and print-on-demand are two of the most profitable e-commerce models. But since they work differently, a lot of new entrepreneurs aren’t sure which one to go with. This guide will break down the key differences and help you decide which one suits you best.

What is Dropshipping?

Dropshipping is a business model where you sell ready-made products through an online store — like Shopify — without having to manage inventory or handle shipping.

How It Works

1. You create an online store.
2. You list products from a dropshipping supplier.
3. When a customer places an order, the supplier handles production, packing, and shipping directly to the customer.

You don’t need to buy products upfront or store them. You’re basically the middleman connecting the customer to the supplier.

💡 Did you know?
The dropshipping market is expected to reach $200 billion by 2023 — so it’s definitely growing fast!

Also Read: Remote Jobs that Pay Over $100k Per Year

Why Dropshipping Works

Dropshipping lets you decide your profit margin. Since you don’t have to manage stock or shipping, your costs are low — meaning more room for profit.

What is Print-on-Demand (POD)?

Print-on-demand is similar to dropshipping, but with one key difference: you create the design.

How It Works

1. You design a product (or hire someone to design it for you).
2. You list the product on your store.
3. When someone places an order, your print-on-demand supplier prints the design and ships the product to the customer.

You can create custom designs for things like t-shirts, mugs, phone cases, and tote bags. Since customers love personalized products, this model has a lot of potential.

💡 Did you know?
The print-on-demand market is growing at an annual rate of 26.1% and is expected to keep expanding until at least 2030.

Why POD Works

People are willing to pay more for unique, customized products. That’s why print-on-demand can be so profitable — especially if you create designs that resonate with your target audience.

Also Read: How to Find Legit Remote Jobs?

Dropshipping vs. Print-on-Demand: Which One’s Better?

Let’s break down the key differences:

🏆 Investment

• Both models require minimal upfront investment.
• For dropshipping, you’ll need to research and test which products to sell.
• For POD, you’ll need to invest time in creating or sourcing designs (or hire a designer).

🏆 Profitability

• Dropshipping generally has higher profit margins since products are already made.
• POD has a profit cap because people are only willing to spend so much on custom products — but you can charge more once you’ve built a strong brand.

🏆 Shipping

• Dropshipping shipping times vary depending on where the supplier is located — often 4–8 days or longer if shipping from overseas.
• POD shipping depends on where the printing company is based. If they have local facilities, it can take 3–5 days.

🏆 Branding

• Dropshipping products usually carry the supplier’s brand.
• POD allows you to add your logo or brand name, helping you build a recognizable brand over time.

🏆 Scaling Up

• Both models are easy to scale.
• Dropshipping allows you to list a wide range of products quickly.
• POD requires creativity and design skills, but once you create popular designs, you can easily expand your product line.

🏆 Competition

• Dropshipping is highly competitive since many sellers offer the same products.
• POD has less competition since your designs are unique — giving you more control over pricing and positioning.

Also Read: Can you make Passive Income on YouTube?

So, Which One is Right for You?

Still not sure? Ask yourself these questions:
✅ How much time can I invest in the business?
✅ Do I have creative skills (or the budget to hire a designer)?
✅ Am I comfortable with market research and testing products?
✅ Do I prefer working with existing products or creating something original?

Many successful entrepreneurs start with one model and switch to the other once they gain experience. You don’t have to pick just one — try both and see which one works best for you!