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Many beginners to dropshipping often wonder if they should dropship existing products sold by suppliers on AliExpress and other platforms… or go the ‘print on demand’ (POD) route.

Since there are pros and cons with both business models, it’s crucial for the beginner to assess each business model on its own merits and decide for himself/herself which is suitable for them.

Dropshipping and POD are two sides of the same coin… and there are many marketers making good money with both models. So rest assured that both approaches are profitable. Now let’s see which one is right for you.

Branding

The biggest differentiator between dropshipping and POD is that with dropshipping, you’ll be shipping pre-made products created by manufacturers.

For example, if you’re dropshipping a sleeping bag, the manufacturer will decide the color, size, shape, etc. You’ll have no/very limited input and control in the process/designs.

While you could design a logo and ask the manufacturer to add your logo to the product, that’s about as far as you can go with the branding.

With print on demand, however, you’ll be able to create your own designs and/or outsource the process to professionals. Then it’s just a matter of getting your designs printed on POD products such as caps, mugs, backpacks, shirts and so on.

For branding, POD would be the way to go. You’ll build customer loyalty and your repeat customers will look forward to what new products you have to offer.

Lack of variety (with POD)

One downside to POD is that there’s only a handful of items you can print your designs on.

With dropshipping, you are spoiled for choice because there are thousands of products to choose from. Everything ranging from survival gear to baby care products are there for you to ship.

If you’re looking for variety, dropshipping is a better option.

Shipping times

This is a tricky issue. Generally, print on demand products need to be manufactured first before shipping out. If someone ordered a t-shirt from your POD store, the manufacturer would first need to print your design on the t-shirt before sending it out.

With dropshipping, the products will be held in inventory by the suppliers. So the moment the order comes in, the product can be shipped out. If China suppliers are used, the e-packet option will mean faster shipping times.

However, if you’re using dropshippers based in the U.S. for your POD products, your shipping time might be even faster than the dropshipped products from China.

So it all depends on the product, supplier, location, etc. You’ll have to assess the situation for yourself.

These are some of the main factors you should factor into your decision before setting up your ecommerce store. Do note that both business models are NOT mutually exclusive.

You can sell dropshipped products and POD products in the same store.

Learning to do both will give you more flexibility and your store will have a wider variety of products. That’s probably the best way to go about it.

One of the biggest challenges marketers face when doing dropshipping is finding a winning product. While many products may look good, ultimately, the market will decide if they like a product or not.

Until then, it’s a matter of trial and error for the marketer. While this sounds straightforward, it’s actually a test of patience because you’ll need to spend money on advertising and tweaking your ads until you find a winning ad.

But a winning ad can only work if you have a winning product. This is what you need to look out for…

Does it solve a problem?

The hottest selling dropshipping products solve an immediate problem. For example, posture correctors, pet care gadgets, etc.

A product that solves an immediate need tends to often be an impulse buy. Your ads will convert better when the prospective customer immediately realizes that the product will make their life easier.

Which brings us to the next point…

Mass market appeal

Since most marketers tend to use Facebook ads which are displayed to a wide audience, the more mass appeal your product has the higher the conversions will be.

If a product is too ‘specific’, most people will not click on the ad or buy the product.

Competition

This is another important factor to be aware of. Sometimes when a product is trending, every marketer and his neighbor tries to get in on the action. The end result is that there’s overexposure and most people who would want to buy the product have already bought it.

Sales will decline and if you get in too late, you’ll miss out on most of the profits. So it’s imperative that you choose a product that’s growing in popularity… and ride that wave upwards instead of choosing the product when the market is already saturated.

How unique is the product?

Generally, the product should NOT be available in big stores like Walmart, Amazon, etc. If the customer can buy the product from these places, they’ll probably not buy it from you.

Furthermore, the uniqueness of the product must make price less of an issue. For example, a roll of sticky tape which can hold up bricks and seal leaks is unique. You can’t really figure out the price.

The dropshipper who is able to source the product for $2.50 a roll will be able to sell it for $15. The consumer who’s unable to guess the price of the product will willingly pay $15 because of the perceived value of the product – and the fact that it’s not available in stores.

Minimal customization

Every extra step that a potential customer has to take will inevitably lead to a lower conversion rate. Your product should be simple to purchase and have very few options to customize or none at all.

You want a seamless buying process. Dropshipping products such as pet gadgets, car accessories, etc. are easier to sell.

Clothing and other products that require one to choose their size, look at sizing tables, choose the color, etc. require more mental energy… and many people will just click off the website than go through the buying process. So that’s something to be aware of.

Other factors

Besides the main pointers above, you should also take into account shipping times, product reviews, the demand for the product and the profit margin.
Do your due research and it’ll take a while – but this is time well-spent. Choosing a winning product to sell is one of the cornerstones of successful dropshipping. Then it’s just a matter of getting your advertising right.