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.

Outlines

00:00

📈 Print-on-Demand Profit Margins and Platform Comparison

Alec discusses the importance of profit margins in print-on-demand (POD) businesses, highlighting the three main platforms: Printful, Printify, and Gelato. He explains that these platforms differ significantly in their operations and cost structures. Printful handles printing and shipping in-house, while Printify allows sellers to choose from various third-party providers, offering more control and competitive pricing. Gelato uses an algorithm to select the print provider, offering less control but potentially more convenience. Alec emphasizes the need to choose a print provider wisely, as it is crucial for the success of a POD business.

05:02

💰 Cost Analysis for Print-on-Demand Platforms

In this section, Alec provides a detailed cost analysis for selling mugs and t-shirts on Etsy using the three platforms. He calculates the average selling price for these items and compares the costs associated with each platform, both for new sellers and established ones with significant sales volume. Alec explains the discount structures of Printful and Gelato, and how they can impact profit margins. He also discusses the Printify Premium plan and its benefits for high-volume sellers. The summary includes specific cost figures and profit estimates, illustrating the financial implications of choosing one platform over another.

10:02

🚀 Choosing the Right Print-on-Demand Platform for Success

Alec concludes the video script by sharing his personal preference for Printify based on cost-effectiveness, control, and quality of service. He mentions the affiliate commission rates offered by the platforms, with Printify providing a lower rate compared to Printful and Gelato. Alec reflects on his experience with Printify, noting the provision of a sales success manager for high-volume sellers and the overall positive impact on his business. He encourages viewers to consider these factors when selecting a POD platform for their business.

Keywords

💡Profit Margins

Profit margins refer to the percentage of the sale that remains after all costs and fees have been deducted. In the context of the video, profit margins are crucial for evaluating the financial viability of a print-on-demand store. The script discusses how different platforms affect profit margins, with examples of cost differences and potential earnings for mugs and t-shirts sold on Etsy.

💡Print-on-Demand

Print-on-demand is a business model where products are only produced once an order is received, reducing the need for inventory and upfront costs. The video script explains how this works, with the customer placing an order that is then sent to a print provider for production and direct shipment to the customer, as opposed to traditional models where products are made in advance and stored.

💡Print Providers

Print providers are companies that handle the production and shipping of print-on-demand products. The script mentions three major platforms—Printful, Printify, and Gelato—as the most popular choices for sellers, each with different operational models and cost structures that impact the profitability of a store.

💡Printful

Printful is a print provider mentioned in the script that handles all printing and shipping in-house from their own facilities. The video discusses the cost structure of Printful, including product costs and shipping fees, and how they compare to other platforms in terms of profit potential for sellers.

💡Printify

Printify is a platform that allows sellers to connect with various third-party print providers. The script highlights Printify's flexibility in choosing print providers and the competitive pricing that results from this model. It also discusses Printify's performance score system for evaluating print providers and the benefits of their Premium plan for established sellers.

💡Gelato

Gelato is described in the script as a software company that uses an algorithm to determine which printing facility will fulfill orders. Unlike Printify, sellers do not choose the fulfillment center, which can lead to less control over the quality and shipping times. The video script compares Gelato's pricing and membership model to other platforms.

💡Etsy

Etsy is an online marketplace where many print-on-demand sellers list their products for sale. The script uses Etsy as a reference point for discussing average selling prices for items like mugs and t-shirts and how these prices relate to the profit margins achievable with different print providers.

💡Discounts

Discounts in the context of the video refer to the reduced rates offered by print providers to established sellers based on their monthly product costs or order volume. The script explains how these discounts can significantly affect profit margins, with examples of how much a seller might save with Printful, Printify, and Gelato after reaching certain sales thresholds.

💡Affiliate Commissions

Affiliate commissions are payments made to affiliates for promoting a company's products or services. The script mentions that Printful and Gelato offer higher affiliate commissions compared to Printify, which could influence a seller's decision on which platform to use, especially if they also engage in affiliate marketing.

💡Sales Success Manager

A sales success manager, as mentioned in the script, is a role assigned by Printify to help sellers grow their business once they reach a certain sales threshold. This service is highlighted as a benefit of using Printify, indicating that the platform provides support beyond just printing and shipping.

💡Revenue

Revenue in the video script refers to the total income generated from sales. It is used to calculate profit margins and to compare the financial outcomes of using different print providers. The script provides examples of how much revenue could be generated from selling 10,000 mugs or t-shirts and how this revenue is affected by the costs associated with each platform.

Highlights

Alec discusses the importance of profit margins in running a print-on-demand store.

The three main print-on-demand platforms are Printful, Printify, and Gelato.

Printful handles printing and shipping in-house, unlike Printify and Gelato.

Printify allows sellers to choose from various third-party print providers.

Gelato uses an algorithm to decide which print provider fulfills orders.

Multiple fulfillment centers on Printify can lead to quality and speed inconsistencies.

Printify assigns performance scores to fulfillment centers to help sellers choose.

Gelato's membership offers significant shipping discounts.

Printful requires sellers to re-earn discounts monthly based on sales volume.

Alec provides a detailed cost breakdown for mugs and t-shirts on different platforms.

Established sellers can earn significant discounts on Printful and Printify.

Gelato's flat rate pricing lacks competition and discounts.

Alec's personal preference for Printify due to cost-effectiveness and control.

Printify offers a sales success manager for high-volume sellers.

Alec's comparison of profit margins for hypothetical 10,000 mug and t-shirt orders.

The impact of affiliate commissions on platform choice.

Alec's recommendation for new sellers starting from scratch.

Transcripts

what's up guys it's Alec and after I

made my recent video on three million

dollar print on demand Etsy shops it

reminded me of a little detail called

profit margins profit margins are the

part of the sale that you get to keep

after you've paid all of the fees and

product costs if you've thought about

running a print-on-demand store you'll

know that there are a lot of options

when it comes to choosing a print

provider in my opinion the biggest three

platforms are printful printify and

gelato these three seem to have the

biggest market share and are used by the

most sellers overall but they're

actually extremely different from one

another so today I wanted to break down

the main differences between these

platforms so you can see how each one

actually works then I'm gonna break down

the cost differences so you can see how

much profit you'd bring home depending

on which platform you decide to use and

then finally I'll go over exactly what I

would do if I was starting over from

scratch before I had ever made Seven

figures and fifty thousand sales if you

plan on having success with print on

demand or you want to be a six or seven

figure seller it's extremely important

to choose wise when you're picking a

print provider because you're

essentially trusting them with your

entire business so let's get right into

the breakdown if you're unfamiliar with

print on demand here's a super quick

breakdown so you can see how everything

works and then you'll be able to

understand how these platforms are

different from one another first a

customer places an order for one of your

products either on a website or an

online Marketplace this could be

anything from t-shirts and mugs to

posters and phone cases next the order

is sent to the print provider where the

product is printed and shipped directly

to the customer usually within a few

days so if you're using printful as your

print provider once you get an online

order and you click submit it'll go

directly to a printful warehouse where

they'll print and ship the item directly

to the customer now this is where we

start to see the main differences and

how printify and gelato are slightly

different first of all printify doesn't

actually print and ship any products at

all they allow you to choose from a

variety of third-party print providers

to connect with if you're selling

T-shirts or mugs you might have several

different options for print providers

for who's going to handle that order one

of the benefits to this is you can find

specific print providers that are

holding the inventory that you need if

you need to sell extra small shirts in a

specific color you can probably find a

print provider who can offer that having

multiple different fulfillment options

also means there's competition this

competition keeps the prices lower and

it incentivizes each fulfillment center

to ship out their products faster than

all the other guys having multiple

third-party fulfillment centers also

allows printify to expand much faster

than printful they can just integrate

with a new facility once it's ready to

go instead of having to purchase new

warehouse space hire staff and fill that

entire Warehouse with the printing

equipment the downsides to this

multi-fulfillment Center approach is

that some print providers are far better

than others as far as quality production

speed and responsiveness whenever

there's an issue with an order if a

product hasn't been shipped on time you

have to reach out to printify and have

them contact the facility to see what's

causing the delays and once this happens

it could take a few days for the smaller

fulfillment centers to respond to

printify and then you still have to wait

for printify to respond to you but this

can usually just be avoided by picking

the best print provider for each product

so you don't have to worry about these

kind of delays printify handles these

issues by assigning a performance score

to each fulfillment center this score

includes quality control production time

and stock reliability to help you decide

on which Center is best for you I'll put

a list of my favorite fulfillment

centers on screen to help you decide

depending on what products you're

selling gelato is more similar to

printify where they're just a software

company that connects you to different

printing facilities around the world the

issue here is that you don't get to pick

which fulfillment center is printing and

fulfilling your orders instead their

Advanced algorithm will decide this for

you this could obviously create some

issues because you don't have the same

control that you have on printify and

printful there's also no competition

between the centers on gelato so they'll

just continue to charge you a flat rate

and there's no other price options now

it's fairly standard for all of these

platforms to have great quality and

great customer support so the main

differences here are just the way that

they're operated printful handles

everything in-house they'll print and

ship everything from a printful facility

printfi allows you to pick and choose

which print provider you want to work

with and with gelato they'll use their

algorithm to determine which print

provider at the time is best for that

order so ultimately the main differences

are how much control you want over the

products and what the price differences

are going to be there isn't much

difference in the ease of use on these

platforms either all three of these

platforms are very streamlined and easy

to use especially once you get going so

main differences aside assuming that the

quality and delivery speeds are roughly

the same now we can talk about price we

looked at several stores in my video

covering three million dollar shops and

since t-shirts and mugs are the most

popular items to sell we're going to use

these products to compare the three

platforms okay so here's how I'm

breaking down the costs we're going to

find the average price that mugs and

shirts to sell for on Etsy and then I'll

compare the costs for if you're brand

new and just starting out or if you're

an established seller getting lots and

lots of sales which is the end goal to

find the average selling price we're

going to look at these seven figure

shops to see what they're selling at and

then try and use a conservative estimate

if you want to see how I find these

seven figure shops make sure you watch

that video that I keep mentioning for

the mugs we're looking at two shops the

first shop called Ultimate Gift Shop

sells each mug for 17.99 with 5.95 of

shipping totaling 23.94 each mug another

shop we could look at is called Strictly

Business mugs and they're selling each

mug for 14.96 and 7.99 of shipping

totaling 22.95 so we'll use 23 dollars

as an average mug price this is what our

hypothetical store is selling each mug

for including shipping now on printful

to fulfill the mug order you'll pay

14.44 for the mug leaving you with 8.56

in profit before Etsy fees on gelato we

without any discounts you'll pay 14 and

11 cents for the same exact mug leaving

you with eight dollars and eighty nine

cents in profit before Etsy fees now if

we're using the high quality but still

very cost effective print provider

called District photo through printify

and we're not paying for any discounts

then the same exact mug is going to cost

9.62 that leaves us with a 13.38 profit

before any Etsy fees pause here if you

want to see the individual profit

breakdown for each platform okay but

that's for if you're a complete beginner

without any discounts but what if you're

an established seller and you're doing

let's say 10 000 mug orders per year

you're gonna want the best discount from

each platform so let's see what that

would come out to be now on printful you

have to earn each discount to earn the

largest discount of nine percent each

month you have to spend a total of ten

thousand dollars in product costs and

that does not include the shipping but

assuming that you earn this nine percent

discount every single month that's 7.95

mug becomes seven dollars and twenty

three cents plus the 6.49 shipping which

means each mug is going to cost you

thirteen dollars and seventy two cents

to fulfill so if we made ten thousand

mug orders at twenty three dollars each

order that's two hundred and thirty

thousand dollars if you're using

printful you would pay one hundred and

thirty seven thousand two hundred

dollars in product and shipping costs

and you'd be left with a hundred and

fourteen thousand two hundred dollars in

profit before any Etsy fees now a little

detail here is that you have to re-earn

that nine percent discount every single

month to keep it for the next month

which means if you're selling mugs you

have to sell thirteen hundred and eighty

four mugs each month to keep that nine

percent discount coming in but for the

sake of easy math we're gonna ignore

that fact gelato's membership costs a

thousand dollars a year and gives you

essentially fifty percent off all the

shipping so on gelato the mugs cost us

7.49 plus 331 in shipping to totaling

ten dollars and eighty cents after we

have the discount that means we would

pay a hundred and eight thousand dollars

to fulfill ten thousand mug orders

leaving us with a hundred and twenty two

thousand dollars in profit before Etsy

fees and that's before we subtract the

thousand dollar gelato gold membership

on printify you can purchase the

printify Premium plan for about twenty

five dollars a month and after about 25

mug orders you'll break even because you

save about a dollar a mug you would pay

eight dollars and fifty five cents per

mug order leaving you with fourteen

dollars and forty five cents in profit

before Etsy fees or if you are selling

ten thousand mugs out of your two

hundred and thirty thousand dollars of

Revenue you would pay printify 85 500 to

fulfill all those orders that leaves you

with a hundred and forty four thousand

five hundred dollars before the Etsy

fees and the three hundred dollar

printify Premium cost again pause here

if you want to see the individual profit

breakdown for each platform if you sell

ten thousand bugs a year with the

maximum product discounts so what what

about a successful t-shirt business if

you're selling 10 000 plus t-shirts a

year here's the breakdown and yes this

is absolutely possible if you want to

see then make sure you check out that

video I did on the three million dollar

print on demand Etsy shops we're going

to use the average prices from those

shops we looked at which is between 20

and 22 dollars per shirt order so we'll

use twenty dollars as a conservative

estimate but in my experience shirts

usually sell for about 22 to 23 dollars

so assuming we sell 10 000 shirts at

twenty dollars a piece that's two

hundred thousand dollars in revenue

printful is going to charge 11.78 plus a

399 shipping after the nine percent

discount so that's 15.77 for 10 000

orders is a hundred and fifty seven

thousand seven hundred dollars that

leaves you with about forty two thousand

dollars in profit before all of the Etsy

fees but again to keep that 11.78 price

you'll have to sell about 850 shirts

each month to keep that new discount

coming gelato plus gold they'll charge

you about 14.05 per shirt order meaning

for 10 000 orders you would pay a

hundred and forty thousand five hundred

dollars and that would leave you with

about fifty nine thousand five hundred

dollars in profit again before the Etsy

fees and the cost of the subscription

you'll pay

13.35 for a t-shirt from Monster Digital

on printify meaning for those ten

thousand orders you'd pay one hundred

and thirty three thousand five hundred

dollars on the products and shipping

leaving you with a sixty six thousand

five hundred dollar profit before Etsy

fees and the three hundred dollar

printify premium subscription pause here

if you want to see the individual profit

breakdown for each platform selling ten

thousand t-shirts a year with maximum

product discounts but this is just for a

proof of concept so that you can see the

percentages that these platforms run on

now for a little more context not every

order that you get is going to be a

single item like a single shirt or a

single mug you're probably not going to

be charging the exact same as these

platforms that we looked at and a lot of

orders might qualify for free shipping

which would drastically decrease your

Revenue but this is absolutely still

possible and almost all of my orders are

single items like one mug or one shirt

so that's just another piece of the

puzzle to keep in mind when you're

deciding between these platforms the

last thing that I do have to point out

that not everybody talks about and I'm

definitely not trying to throw shade at

anyone but we have to talk about the

affiliate commissions gelato and

printful have the highest commissions at

fifteen and ten percent compared to the

five percent that print of five pays out

to their Affiliates this could be a

complete coincidence and I am biased

because I am a printify affiliate link

down below but I'm also biased because I

fulfilled tens of thousands of orders

with printify and if I could go back to

day one and start all over I would use

printify all over again to me it makes

sense to use the most cost effective

option that gives me the most control

even though their partners are third

party a lot of them are still

outstanding and produce great quality

and really fast shipping times not only

that but printify will also assign you a

sales success manager to help you grow

your business once you reach a certain

sales threshold they have not paid me to

say this I just really like their

platform more than all of the other

platforms and it's made me substantially

more money than I would have made if I

had used the other platforms and since

their quality is the same I have better

control and their profit margins seem to

be much better to me I'm going to

continue using printify as long as

they're providing amazing service I hope

this helps I'll see you next time