What Is The Profit Margin In Print On Demand Business?
The profit margin in a print-on-demand business is the profit earned on every product sold after paying the manufacturing cost. Your print-on-demand supplier charges you for printing, packing, and shipping of orders. After deducting all of these costs you pay to your supplier, you can set your profit margins.
Quick takeaways
- ✓Profit margin is calculated and marked with the percentage earned per sale.
- ✓On average, POD sellers can earn around 30% profit margin per product.
- ✓Good profit margins for POD products typically range between 15% and 35%.
- ✓Setting the right selling price requires understanding all cost components such as base price, shipping, platform fee, and marketing spend, before deciding on a margin.
Real Example
Calculating Profit Margin for a POD Product
A POD seller lists a custom t-shirt on their Shopify store at ₹699. Their fulfilment partner Qikink charges ₹350 as the base price covering printing, packing, and shipping. The platform fee is 10% of the selling price, which comes to ₹69.90. Using the profit margin formula, the seller calculates a profit margin of approximately 39.9% per sale. By understanding this calculation upfront, the seller prices their products confidently while ensuring every sale remains profitable.
Is Print On Demand Still Profitable In 2026?
Yes, print-on-demand is still profitable. According to Grand View Research, Print-on-demand Market Size in 2021, the global market of this industry was valued at 4.9 billion dollars. From 2022 to 2030, the market will witness a CAGR of 26.1%.
One can run a profitable print-on-demand business with a reliable supplier and a great marketing strategy.
How Much Can You Earn With Print On Demand?
On average, you can earn up to 30% with print-on-demand. Print-on-demand is a lucrative business model. However, its success depends on many factors like marketing strategies, product range, pricing, and, most importantly, your designs. Once all these factors are met, one can earn on every sale they make.
E.g. Let's say your profit margin excluding all your expenses, like manufacturing, platform fee, and marketing, is 30% on every sale. If you sell 100 t-shirts for ₹500 each, your total income would be ₹50,000. After subtracting all the expenditures, your profit would be ₹15,000 (30% of ₹50,000).
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What Are Good Profit Margins For A Dropshipping Product?
A good profit margin for dropshipping products will range from 15% to 35%. However, this could vary depending on the product quality, cost price, demand, where you sell them, and marketing efforts.
Your margins will be much lower if you only sell low-cost items. Understanding your expenses and market demand is critical to determine pricing that will give you the highest profit without sacrificing sales.
How To Calculate Profit Margin For Print On Demand Business?
The simple formula to calculate the profit margin for a print-on-demand business is
Profit Margin = [(Selling Price – Base Price) – Platform Fee] / Selling price * 100
Your print-on-demand fulfillment partner charges you Rs. 350 for a t-shirt print and shipping. This is your base price.
The selling price of the T-shirt is Rs. 699
The platform fee is 10% of the selling price of your order.
Profit margin = [(699-350) – 69.9 ] / 699 * 100 = 39.9%
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