Print on Demand, or POD, is a business model where you can create designs and then add them to a large variety of products which you can then sell. Third party fulfillment companies will print your design on their products and ship them directly to your customer. POD is a great business model for artists, designers and entrepreneurs alike.
Dropshipping can be a great business for beginners because it doesn’t require the capital investment of traditional physical product businesses.
There are also many tools that can help automate the entire process so you can focus only on marketing and customer service.
Dropshipping websites can be launched fairly quickly. If you’re running paid ads like from Facebook or Google, you can see results in a matter of days.
However, If you’re relying on SEO to get traffic, that is a much longer process and is likely to take several months at a minimum.
Droppshipping businesses can be start for very little money down. There are free ecommerce solutions like WooCommerce or paid ones like Shopify which is only $30/month.
The largest expense will be when it comes to advertising your store, but ultimately that’s based on you and how much you want to invest into the business.
Dropshipping can be a profitable business venture with owners making upwards of 6 figures a year.
There is really no limit to how much you can make with a dropshipping business. In fact, one of the largest retailers online (Wayfair.com) operates a dropship model and brings in billions of dollars a year in sales.
Low-risk versatile business model with low startup costs
No inventory or fulfillment requirements
Wide range of products to sell
Can be run remotely from anywhere with an internet connection
Smaller margins than branded products
Quality and supply chain out of dropshippers control
More difficult to establish brand
Dropshipping is often criticized as either oversaturated or unreliable. Trends spark and die in a matter of months, leaving sellers looking for new trends or for more reliable products. A steady product niche can minimize a seller’s stress around whether their products will sell the next month.
The top steady categories of products are:
These are also the highest performing niches of Dropshipping products. Within these top categories are some interesting popular item types. Within Beauty & Health, facial sprays and eyeliner stood out as most-purchased. In Women’s clothing, intimates were purchased more than any other clothing type. And in Jewelry, necklaces were hot. Understanding the categories that perform highest is crucial to setting up a successful dropshipping business. While keeping up with changing trends can also pay well, it is wise to offer a combination of steady and grossing products. There is also incredible value in capturing unexpected segments of the market. A store with hard-to-find items will pull in customers needing that item and lacking other options.