Print-on-Demand vs Digital Products on Etsy: Which is Better?

One question. There is always one question I frequently receive from new Etsy sellers.

Should they focus on selling digital products or print-on-demand (POD) products?

I have experience with both of these methods, so I'm sure I can help you decide.

THE BASICS
What Exactly is POD or Digital Product?

Let’s start by explaining the basics.

Print-on-demand (POD) - is a fulfillment model where products are printed and shipped directly to customers as orders are placed. This allows you to sell physical products without having to manage inventory or shipping yourself.

Here's how it works:

• You create designs and upload them to a POD platform like Printful or Printify.

• You list the products in your Etsy shop, setting your own prices.

• When a customer places an order, the POD platform prints the design on the product and ships it directly to the customer.

POD products can include t-shirts, mugs, posters, phone cases, and more.

The POD platform handles all the production and shipping.

Your profit is the difference between the price you pay for products and shipping fulfillment and the price you charge when selling the products on Etsy.

Digital products - Digital products are files that are delivered electronically to customers after purchase.

These can include:

• Printable art and wall art

• Planners and journals

• Sewing patterns

• Craft patterns

• Graphic design elements

• Fonts

• Ebooks and guides

To sell digital products on Etsy:

• Create your digital files and ensure they are high-quality.

• List the products in your Etsy shop with clear descriptions and images.

• When an order is placed, the customer is sent a download link to access the files.

No shipping is needed.

Your profit is the difference between what the customer pays and the fees you are paying to the Etsy marketplace.

THE COMPARISON
Pros and Cons of Both Business Models

Both print-on-demand (POD) and digital products can be profitable business models on Etsy, but they have different pros and cons to consider:

Pros of Selling Digital Downloads:

• Higher profit margins due to lower production costs

• Faster product creation process

• Ability to create product lines by reusing designs across multiple products

• Less competition compared to physical products

Cons of Selling Digital Downloads:

• Higher barrier to entry due to design skills required

• Many digital products are low-ticket items, which can limit marketing budget

• Need to ensure digital files work across various devices and software

Pros of Selling Print-on-Demand Products:

• Lower costs to get started, with no inventory or fancy software needed

• Faster to test product ideas and build out a product line

• Ability to create product lines using the full catalog of POD providers

• Potential for higher price points compared to digital downloads

Cons of Selling Print-on-Demand Products:

• Lower profit margins compared to digital downloads

• Need to deal with production (fulfillment), shipping, and potential product issues

PRESENTED BY CREATIVE FABRICA

Get instant access to 9 millions+ beautiful fonts and graphics.

You also get access to exclusive Full POD commercial license: No modifications are needed - the designs can be used as-is on your POD products.

• Sign up for FREE and get access to all resources

• Get your first 10 downloads for FREE

• Commercial use allowed on all resources

Try for free.

WHICH IS BETTER
Which Etsy Model Is Better For You

There is no clear-cut answer, as both models can be successful.

I have started by selling on a POD marketplace called Redbubble, where all you do is upload a design and that’s it.

Selling with the POD method on Etsy is more complicated.

First, you need to connect your Etsy shop to the fulfillment company, then choose the products you want to sell, and upload your designs to the fulfillment company's website.

You also need to set the correct pricing, which includes shipping.

This model is not suitable for beginners. It requires dealing with customer messages, and customers often complain extensively.

This was one reason why I stopped selling through print-on-demand.

With digital products, it is simpler.

You upload the file to Etsy and set the pricing.

When a customer purchases a digital product, Etsy automatically provides them with the download link.

That's all there is to it.

Yes, you are dealing with customers, but it is not so much as with POD.

However, the best approach is often a hybrid strategy, incorporating both digital and POD products in your Etsy store.

This allows you to balance the pros and cons of each model.

If you already have a successful digital download store, consider adding a few POD products.

FINALLY

Remember, the success of your Etsy business will depend on your ability to identify profitable niches, create high-quality products, and effectively market your store.

Both digital downloads and PODs can be profitable paths to success on Etsy.

Have a nice day,

Miroslav from The Design Nexus