What is the difference between Print on demand and Dropshipping

When I first started looking into print-on-demand and dropshipping, I was a bit confused about how they actually differed. At first glance, they seem quite similar—but once you break them down, the distinction becomes clear.

Both are e-commerce fulfillment methods that allow entrepreneurs to sell products without managing inventory or making large upfront investments. This makes them excellent choices for anyone looking to start an online business with minimal risk.

The key difference? It all comes down to how much involvement you want in product customization and branding. But that’s only the beginning—there are several important factors to weigh before deciding which model suits your business best.

In this article, we’ll explore the ins and outs of running a print-on-demand business with Tapstitch compared to traditional dropshipping, helping you choose the best approach for your e-commerce journey.

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What is print on demand?

Print on demand (POD) is a business model and fulfillment method where products are created only after a customer places an order. This approach enables entrepreneurs to sell customized, one-of-a-kind items—such as apparel, accessories, home decor, and more—without the need to hold inventory or meet bulk order requirements.

With Tapstitch print on demand, for example, once a customer makes a purchase, the supplier selects the blank product, prints the design, packages it, and ships it directly to the buyer. This seamless process eliminates the risks and costs associated with traditional inventory management.

What Can You Sell with Print-on-Demand?

POD opens the door to a variety of personalized products, including:

• ‍T-shirts‍
• Hoodies‍
• Sweatshirts‍
• Coats & Jackets‍
• Sportswear‍
• Accessories

With print on demand, you have the flexibility to create and sell unique designs tailored to your audience—without worrying about storage, production, or shipping logistics.

Related blog：How to Launch a Print-On-Demand Business in 2025

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What Is Dropshipping?

Dropshipping is a business model and fulfillment method that lets you sell products without handling inventory. Instead, a third-party supplier manages storage, packaging, and shipping on your behalf.

Unlike print-on-demand, where products are customized, dropshipping typically involves selling pre-made items that are shipped directly to your customers without modifications. Once an order is placed, the supplier picks the item from their inventory, packs it, and sends it to the buyer under your brand’s name—allowing you to focus on marketing and sales rather than logistics.

What Can You Sell with Dropshipping?

Dropshipping covers a wide range of ready-to-ship products, including:

• Toys and games
• Electronics and gadgets
• Fashion accessories: sunglasses, watches, jewelry
• Health & Beauty: skincare, haircare, personal care items
• Office Supplies: notebooks, planners, desk organizers
• Home Improvement Tools: DIY kits, small appliances

Since suppliers handle fulfillment, dropshipping offers an easy way to start an online store with minimal upfront costs. However, selecting the right dropshipping niche is crucial to building a profitable business.

Related blog：

Top 10 Dropshipping Websites for Your Online Store

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Print-on-demand vs. dropshipping: key things to consider

Now that you have a clear understanding of both business models, let’s dive deeper into their differences. By comparing key factors, you’ll be able to determine which option aligns best with your goals and business strategy.

Initial Costs: How Much Do You Need to Start?

One of the biggest advantages of both print on demand and dropshipping is that you can launch a business without purchasing inventory upfront. This significantly reduces financial risk, making these models attractive for entrepreneurs looking to start with minimal investment.

By cutting out inventory costs, you’re not only saving on product expenses (which could otherwise go unsold) but also eliminating the need for storage, warehousing, and staff to manage stock.

Print on Demand

Starting a print on demand business involves some additional considerations. You may need to hire a designer or develop your own design skills to create unique, high-quality products. Additionally, investing in sample orders ensures that the final products meet your expectations before selling them.

Building a strong brand identity through high-quality visuals, a professional website, and strategic marketing also plays a key role in long-term success. While these costs are relatively low compared to traditional retail, they are essential for standing out in a competitive market.

Read more: How to start a print on demand business

Dropshipping

For dropshipping, while you don’t need to invest in inventory, successful sellers often allocate funds toward product testing, market research, and advertising to find profitable items.

Studies suggest that dropshipping businesses can boost their profit margins by up to 50% by reinvesting savings into marketing strategies and customer acquisition. However, since fulfillment is handled by a third-party supplier, it’s important to partner with reliable vendors to avoid unexpected costs related to returns, delays, or quality issues.

Learn about ：How to Start a Successful Dropshipping Business in 2025

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Risk Level: What to Watch Out For?

Both print on demand and dropshipping come with relatively low financial risk since neither requires upfront inventory purchases. This means you have the flexibility to experiment with new niches, test different products, and refine your strategy without the fear of major financial loss.

That said, each business model has its own unique challenges that entrepreneurs should consider.

Print on Demand

For print on demand, success depends largely on the appeal and demand for your designs. Since products are created only after a sale is made, there’s no risk of unsold inventory, but there is the possibility of wasted time and effort if a design doesn’t perform well.

Another potential risk is quality control. Variability in print quality, color accuracy, or longer fulfillment times can impact customer satisfaction. Choosing a reliable POD supplier, like Tapstitch Print on Demand, can help ensure a smooth experience for both you and your customers.

Dropshipping

Dropshipping, on the other hand, carries more supply chain-related risks. Since products are sourced from third-party suppliers, you have less control over stock levels, product quality, and shipping times. A supplier running out of stock or experiencing delays can lead to frustrated customers, refund requests, and potential negative reviews.

To reduce this risk, successful dropshippers often work with multiple suppliers, clearly communicate shipping expectations, and proactively manage customer service to address potential issues before they escalate.

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Inventory Management

One of the biggest advantages of print on demand and dropshipping is that neither requires holding inventory upfront. This makes them attractive options for entrepreneurs looking to start an online business with minimal investment.

However, inventory management still plays a crucial role in ensuring a seamless shopping experience. Since fulfillment is handled by a third-party supplier, store owners must depend on their efficiency, stock availability, and shipping reliability. While POD and dropshipping share similarities, their approaches to inventory management are quite different.

Print on Demand

With print on demand, products are created only after a customer places an order. This eliminates the risk of overproduction or stock shortages since items aren’t pre-made. However, this also means longer fulfillment times, as each product must be printed, packaged, and then shipped.

To maintain consistent quality and delivery times, choosing a reliable POD partner like Tapstitch Print on Demand is essential. A great provider will have advanced printing technology, streamlined production workflows, and multiple fulfillment centers to reduce delivery delays and ensure customer satisfaction.

Dropshipping

In dropshipping, sellers list ready-made products from suppliers, meaning they don’t need to worry about production—but they do have to monitor stock levels carefully. Since multiple businesses may source from the same supplier, items can suddenly go out of stock, leading to delays and missed sales opportunities.

To avoid these issues, many dropshipping businesses use inventory sync tools that automatically update product availability in real time. This helps prevent customers from purchasing out-of-stock items and improves the overall shopping experience. However, since dropshipped products are not unique or customizable, sellers often face stiff competition, making it harder to stand out without aggressive pricing strategies.

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Product Selection

One of the biggest advantages of print on demand (POD) and dropshipping is that you can sell as many products as you like without managing physical inventory. This gives you the flexibility to experiment with different items and adjust your offerings based on market trends and customer preferences.

For example, if you’re launching a clothing brand, you might want to introduce seasonal designs or trendy apparel. Since there’s no upfront stock investment, you can easily test different styles and designs using both business models.

Print on Demand

In print on demand, your unique designs are the key to success. Unlike traditional retail, where branding comes second to mass production, POD businesses thrive by offering one-of-a-kind, personalized products. Apparel, accessories, and home decor can all be customized to reflect trends, niche interests, or personal branding.

The beauty of POD is that there are no creative limits—you can print on a variety of products and adjust designs based on what’s trending. Whether it's a viral meme, a pop culture reference, or an artistic masterpiece, your store can capitalize on emerging trends without the risk of overstocking.

For instance, celebrities and influencers often leverage print on demand to turn their brand into profitable merchandise. Take the music industry: artists frequently launch limited-edition merch based on their latest hits, creating an additional revenue stream while engaging their fan base.

Dropshipping

With dropshipping, you have access to an extensive range of products beyond just apparel—think electronics, beauty products, home goods, and more. This model works well for entrepreneurs who want to sell trending items quickly and test different markets without committing to a specific niche.

However, one challenge with dropshipping is perceived product quality. Many stores opt for low-cost, generic products to compete on price, which can lead to customer concerns about quality. This is why choosing the right supplier is critical. Look for providers who offer detailed product descriptions, clear sourcing information, and sample ordering options to ensure the quality aligns with your brand’s standards.

While dropshipping offers variety, print on demand provides exclusivity. A well-designed POD product carries more perceived value because it’s unique, whereas many dropshipping items are available from multiple sellers. If you’re aiming for a high-quality, branded experience, POD might be the better choice.

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Profit Margins

Understanding profit margins is key to running a successful eCommerce business. While both print-on-demand and dropshipping eliminate the need for inventory, they differ in costs, pricing flexibility, and potential profitability.

Print on Demand

When selling POD products like custom t-shirts, the final retail price includes not just the base cost of the item but also printing, packaging, and shipping fees. Since these expenses are bundled into the supplier’s charges, profit margins can be lower compared to handling fulfillment independently. To maintain healthy margins, consider charging more for high-quality, unique designs that customers truly value, targeting a niche where shoppers are willing to pay a premium, and enhancing the customer experience with branded packaging or small gifts.

Shipping costs also impact profitability. Many POD suppliers operate fulfillment centers worldwide, enabling them to ship from the nearest location to the customer, which can reduce shipping expenses and improve delivery times.

Dropshipping

Dropshipping allows sellers to list and sell ready-made products without holding inventory. When an order is placed, the supplier handles storage, packing, and shipping, and the seller pays a wholesale price. This model often offers higher profit margins when sourcing low-cost products, particularly from overseas manufacturers. However, competition can be intense.

One challenge is price wars, as many sellers offer identical products, which can drive prices down. Additionally, unlike POD, where unique designs add value, dropshipping products often compete on price alone. To counter these challenges, sellers can build a strong brand identity, offer exclusive bundles, or improve the shopping experience with premium packaging and customer service.

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Customer Service

Customer service is a critical factor in the success of any ecommerce business. How you handle customer inquiries, complaints, and returns can directly affect customer trust and lead to repeat sales. Let’s explore how print on demand (POD) and dropshipping businesses compare in terms of customer support.

Print on Demand

Running customer service for a print on demand business is typically more straightforward. Since every order is custom-made, you don’t need to worry about common issues like running out of stock. This simplifies things, but challenges still arise:

• Printing errors or color inconsistencies may occasionally occur.
• Longer-than-expected shipping times can also affect customer satisfaction.
• Since products are made-to-order, returns and exchanges can be trickier, as they often can’t be resold.

To minimize these challenges, here’s what you can do:

• ‍Set clear expectations on product fulfillment and delivery times from the outset.
• Partner with a reliable POD supplier who prioritizes quality control and efficient fulfillment.

This proactive approach helps maintain smooth customer interactions and ensures that any issues are dealt with quickly.

Dropshipping

Dropshipping presents its own unique set of customer service challenges, particularly when working with overseas suppliers. Since you don’t control fulfillment, problems like shipping delays, product inconsistencies, or incorrect orders may occur more frequently.

To overcome these obstacles, focus on:

• ‍Transparency—clearly communicate shipping times, potential delays, and product descriptions upfront.
• A structured refund policy to manage returns effectively.
• Offering tracking updates and quick responses to customer inquiries will also help build trust and reduce frustration.

Managing disputes and refund requests may require more time and attention. However, by offering strong customer service, you can turn these setbacks into opportunities to build customer loyalty and stand out from competitors.

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Marketing and Branding

While high-quality products are essential for any online business, branding is what truly sets you apart. The way your brand is presented, the experience you offer, and how customers perceive your business all contribute to long-term success. Let’s break down how branding differs between print on demand (POD) and dropshipping.

Print on Demand

One of the biggest advantages of print on demand is the ability to offer unique, personalized products. Since items are made to order, you can create exclusive designs tailored to your niche, making your brand stand out.

Additionally, POD allows for deeper branding opportunities through:

• Custom labels (inside and outside)
• Branded packaging (if supported by your POD supplier)
• Exclusive product designs

Beyond customization, POD also provides flexibility to quickly adapt to trends. Whether you’re selling on your own website, through a marketplace, or via social media, you can easily test new ideas and launch new products without major financial risks.

Dropshipping

With dropshipping, branding is more challenging since you’re selling the same products as many other businesses. Unlike POD, where your designs make your products unique, dropshipping requires you to stand out through marketing strategies, including:

• Strong brand messaging
• Engaging content and storytelling
• Targeted advertising and social media presence

Some dropshipping suppliers offer limited branding options, such as:

• Custom packaging
• Package inserts (e.g., thank-you notes, discount codes, or small gifts like stickers)

However, since the core products remain identical to what competitors offer, your brand’s success will rely on how well you differentiate through marketing, customer experience, and niche positioning.

Whether you run your own website, sell on a popular marketplace, or want to leverage social media, both dropshipping and print on demand  can be highly effective business models. The key is finding a reliable supplier that seamlessly integrates with your chosen platform.

Social media isn’t just for marketing anymore—it’s a direct sales channel. Platforms like TikTok, Instagram, and Facebook are transforming how people shop, with features like in-app checkout and product tagging making the buying process seamless.

Consider these stats:

• ‍20.6% of consumers who frequently shop on social media buy directly on TikTok.‍
• 67% of TikTok users admit they feel inspired to shop—even if they weren’t planning to.

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Competition

Marketing expert Philip Kotler once said, “If you’re not a brand, you’re a commodity.” This means that without a unique identity, your business becomes just another option in a sea of competitors. But how does this play out in print on demand (POD) and dropshipping?

Print on Demand

One of the biggest advantages of POD is product customization. A plain t-shirt may not turn heads, but a t-shirt featuring original artwork, witty slogans, or niche-focused designs creates a distinct identity. Customers are willing to pay a premium for exclusive products, helping POD sellers stand out without competing on price.

Dropshipping

Dropshipping, on the other hand, is often more competitive because many sellers offer the exact same products. Pricing becomes the main differentiator, which can lead to price wars and lower profit margins. For example, if you search for a popular product like a water bottle on a marketplace, you’ll likely find multiple sellers offering the same item. Many businesses end up cutting prices to attract buyers, which benefits consumers but makes profitability challenging.

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Opportunities for Growth

Steve Jobs once said, “Start small, think big.” His message? Use what you have now to launch your business, but always keep growth in mind. This mindset is especially relevant for print on demand (POD) and dropshipping, both of which allow entrepreneurs to scale efficiently.

Imagine trying to grow a business where you handle production, packing, and shipping all by yourself. As orders increase, so do delays, quality issues, and stress—creating a frustrating experience for both you and your customers.

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Print on Demand vs. Dropshipping: Which One Is Right for You?

The truth is, there’s no one-size-fits-all answer when it comes to choosing between print-on-demand (POD) and dropshipping. Your business goals, creative involvement, and available time will all play a role in determining the best model for you.

Who Should Choose Print-on-Demand?

✅ Creative entrepreneurs who want to design and sell unique, custom products‍

✅ Artists, influencers, and brands looking to sell merchandise

‍✅ Anyone who values brand identity and wants to stand out from competitors

Who Should Choose Dropshipping?

✅ Entrepreneurs who want to sell trending products without handling design or production

‍✅ Those looking for a low-maintenance business model with minimal time investment

‍✅ People who prioritize scalability and fast product turnover

Both POD and dropshipping offer low-risk, cost-effective ways to start an online business. Still unsure? Think about your strengths, goals, and resources. Whether you create custom designs with print-on-demand or build a broad product selection with dropshipping, the key is to choose the model that aligns with your vision.

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