Printful vs. Printify 2023 (My Thoughts after $1,000,000)

Summary

In this video, Alec discusses the importance of profit margins in print-on-demand Etsy shops and compares three major platforms: Printful, Printify, and Gelato. He highlights their differences in control, pricing, and fulfillment, offering insights on how each operates and their impact on profit. Alec also provides a detailed cost analysis for mugs and t-shirts, revealing the financial implications of choosing each platform, especially considering discounts for high-volume sellers. His personal preference for Printify is shared, based on cost-effectiveness and control, along with a note on affiliate commissions.

Takeaways

• 💰 Profit margins are the portion of the sale that remains after covering all fees and product costs for a print-on-demand store.
• 🛍️ Print-on-demand platforms like Printful, Printify, and Gelato are popular for their market share but differ significantly in their operations and costs.
• 🔄 Printify distinguishes itself by not printing products themselves, but instead connecting sellers to a variety of third-party print providers.
• 🏗️ Printful operates in-house, handling printing and shipping from their own facilities, which can offer more control over the process.
• 🤖 Gelato uses an advanced algorithm to decide which printing facility to use for each order, but does not allow sellers to choose their provider.
• 📈 Printify's approach can lead to lower prices due to competition among fulfillment centers and can expand more quickly by integrating with new facilities.
• 📉 The downside of Printify's multi-fulfillment center approach is potential variability in quality, production speed, and responsiveness to issues.
• 💡 Printify assigns performance scores to each fulfillment center to help sellers choose the best provider based on quality control, production time, and stock reliability.
• 💼 The video suggests that choosing the right print provider is crucial for the success of a print-on-demand business, as they essentially manage the entire operation.
• 📊 The script provides a detailed cost and profit analysis for selling mugs and t-shirts on Etsy using the different platforms, considering both new and established sellers.
• 💰 For high-volume sales, Printify's premium plan and Printful's discounts can significantly impact profit margins, with Printify offering a potentially higher profit after discounts.
• 🔑 The importance of considering the affiliate commission rates of the platforms is highlighted, with Printify offering a lower rate compared to Printful and Gelato.

Q & A

What is the main focus of Alec's video?

The main focus of Alec's video is to discuss the differences between three major print-on-demand platforms: Printful, Printify, and Gelato, and how these differences can affect profit margins for sellers.

What are profit margins and why are they important for print-on-demand store owners?

Profit margins are the portion of the sale that a seller keeps after covering all costs and fees. They are important because they determine the actual earnings from each sale, which is crucial for the financial success of a print-on-demand business.

How does Printful differ from Printify and Gelato in terms of product fulfillment?

Printful handles everything in-house, printing and shipping products directly from their own facilities. In contrast, Printify and Gelato act as intermediaries, connecting sellers with third-party print providers, with Printify allowing sellers to choose their print providers and Gelato using an algorithm to decide which provider to use.

What are the potential downsides of using multiple third-party fulfillment centers as Printify does?

The downsides include variability in quality, production speed, and responsiveness to issues. If there's a problem with an order, the seller must go through Printify to contact the fulfillment center, which can lead to delays in resolution.

How does Printify address the issue of quality control among its third-party print providers?

Printify assigns a performance score to each fulfillment center, which includes metrics for quality control, production time, and stock reliability. This helps sellers choose the best provider for their products.

What is Gelato's approach to deciding which fulfillment center to use for an order?

Gelato uses an advanced algorithm to automatically decide which fulfillment center is best for an order at the time, without giving the seller the option to choose.

How does the cost structure of Printful, Printify, and Gelato compare for a new seller without discounts?

For a mug, Printful costs $14.44, Gelato costs $14.11, and Printify (with District Photo as the print provider) costs $9.62. These costs affect the profit margin before any Etsy fees are applied.

What are the benefits of being an established seller with high sales volume on these platforms?

Established sellers can earn discounts on product costs, which significantly increase profit margins. For example, with Printful, a 9% discount on product costs can be earned by spending $10,000 in product costs each month.

How much profit could an established seller expect from selling 10,000 mugs on Printful, considering the highest discount?

An established seller could expect a profit of approximately $114,200 before Etsy fees, assuming they maintain the 9% discount by selling the required number of mugs each month.

What additional services do Printify offer to help sellers grow their businesses?

Printify assigns a sales success manager to help sellers grow their business once they reach a certain sales threshold, providing personalized support and guidance.

What is Alec's personal preference and recommendation based on his experience with these platforms?

Alec prefers Printify due to its cost-effectiveness, control over print providers, and the quality of service provided, including the assignment of a sales success manager.