Hey, everyone, welcome back to another video.
Today's video is going to be about
three different business models,
Print On-Demand, Dropshipping, and Amazon FBA.
Now, at first glance,
these business models look very similar.
However, once you start to dive in
and break down what those business models are
and what daily tasks you would have
as the business owner of that business model,
you will see that these three business models
are very different.
So, by the end of this video
you will know what all three of these business models are
and which one is the best fit for you.
So, without further ado,
let's go ahead and get right into this.
Starting with Print On-Demand,
Print On-Demand is a business model
where you as the seller create artwork or design files,
and once you have that file on your computer,
you upload that to different print on-demand websites.
Now, once it's on that website,
you create, essentially, a virtual product listing.
The website Photoshops that onto different products
so it shows what that design would look like
on a T-shirt or a coffee mug or wall art.
They have a bunch of different products
you could choose from.
Now, once you decide what kind of products
you wanna offer your design on,
you can choose those different products in different colors
and add them to a listing.
Now, this listing has photos of what your design
would look like on actual products,
although no inventory is actually created so far.
Now, once you've created this listing,
you can publish it right to
the Print On-Demand website's marketplace.
The Print On-Demand website
will take the information from that listing
and put it as a Google search result.
So, if someone is typing into Google
that they're looking for a specific type
of shirt or coffee mug or whatever that item is
and you've created that in one of these listings,
your item will automatically show up on Google
and people can find it there for sale.
With Print On-Demand,
you don't actually bring any of the traffic yourself.
It's all done by the Print On-Demand websites.
Now, the cool part about Print On-Demand
is that when someone finds that on Google
or wherever they find that product listing
and they come over to the marketplace
and they purchase it there,
the Print On-Demand website themselves,
they take the order, they collect the funds,
and they actually print the item.
They print the custom design
on whatever item that the customer ordered
and they ship it out to the customer.
Beyond that, they even handle all returns or exchanges
and all customer service that happens after the order.
Now, once someone makes a purchase of that item,
your listing stays on the marketplace.
It doesn't go down,
it doesn't say sold out or anything like that.
It continues to stay as an available product.
Now, the way that you make money as a print on-demand seller
is you simply get a split of the profit of every sale.
These funds get added into your print on-demand
website's account,
and you can sign up for multiple
different print on-demand websites.
So, you can add your same design to a bunch
of different websites,
and as you make sales on them,
your profits will start to accrue in the different websites.
Now, some of these websites
will pay you out every single month.
Some of them allow the funds to build up
and you can collect or request a payout
whenever you would like.
But that's essentially how Print On-Demand works.
Now, moving on from there, let's talk about Dropshipping.
Dropshipping is actually a very similar business model,
but there are a few very big differences
that you need to know about.
Now, with Dropshipping,
you create your own website
with products available for sale.
And when an order comes in,
you are the one who receives that order.
Now, what you do is you take the customer's information
and you send that to the manufacturer of the product.
Now, what the manufacturer does
is they ship the product directly to the customer.
It never comes to you.
That's the whole concept of Dropshipping.
It means that you are simply taking the order
and shipping it from the manufacturer
directly to the customer.
Now, a couple big differences you need to know here is that,
first, you need to create your own website.
With Print On-Demand,
you upload your designs to other Print On-Demand websites
and they have their own marketplace and their own traffic.
Secondly, you have to bring your own customers
to your website.
The most common way you will see this
is with different advertising methods,
whether this is Facebook advertising,
Instagram advertising,
or a slew of other social media platforms,
to show one of the products that you have available
and bring people to your website to make a purchase.
And the third main difference is, with Dropshipping,
you are the one who is responsible for customer service.
Now, customer service ranges from anything
from shipping information or shipping issues,
status updates on orders, refunds, exchanges.
It all comes to you as the business owner.
Although the product is shipped
directly from the manufacturer,
the customer doesn't know that.
They think it's coming from you
because you are the website that they ordered from.
So, keep that in mind if you're considering Dropshipping.
Now, the third business model is Amazon FBA.
This is going to be the business model
that you see the most differences with,
and you'll see what I mean, here.
With Amazon FBA, you create a product listing on Amazon.
Although that is similar to Print On-Demand,
you're creating a listing on another website's marketplace.
This is where it starts to get different.
Once you've created that product listing on Amazon,
you now go buy inventory of that product
and you actually ship it to Amazon's fulfillment centers.
If you didn't know before,
Amazon FBA means Fulfilled By Amazon.
Essentially, what you're doing is
creating the product listing
of what you will have available for sale.
People can buy that on Amazon,
and then you, as the seller,
you go purchase that inventory, multiple of them,
and you ship them to Amazon's warehouses.
Now, when someone's scrolling through Amazon
and they find your listing,
they buy that product.
Amazon is the one who fulfills that order.
They pull it off the shelf,
they ship it to the customer,
and they actually handle
all of the customer service for you,
which is a nice perk.
The obvious difference here
is that you actually have to go purchase inventory up front
and ship it to Amazon's fulfillment centers.
Now, the nice thing about Amazon FBA
is that all of the traffic is taken care of for you.
You don't have to buy advertising space
to bring people to your listing.
And the second thing is that
all of the customer service is done for you.
Now, probably the most common question
about these three different business models is,
how much do they each cost?
And this is something
that's really important for you to know
if you're considering starting any of them.
So, the quick answers here
are Print On-Demand is 100% free.
You don't have to buy anything in order to get started.
You literally just sign up with your email
and upload the designs.
The optional purchases for Print On-Demand
would be design and research software.
There's different tools you can buy
in order to make better designs
and find out different opportunities to create designs in.
For Dropshipping, you cannot do this for free.
You're going to have to have your own website,
most commonly is Shopify,
and that's going to be $29 per month.
In addition to that,
you will likely be paying for social media ads.
But the amount that you spend there can fluctuate,
so it depends on if you wanna start small-scale
or go large-scale.
That amount can change drastically.
And then for Amazon FBA,
this is another one that you cannot do for free.
You're going to have your Amazon FBA fee,
essentially paying Amazon for the work that they're doing
by holding your products, packing them, shipping them,
and the customer service.
And then in addition to that,
you have the large up-front cost
of buying the inventory before you send it to Amazon.
Now, all three of these business models absolutely work.
You just have to think about which one works best for you
based on how much it costs to do
and how involved of a business that really is.
Personally, I've been doing Print On-Demand
for over seven years, now.
I did Dropshipping in the past and it was profitable.
However, it was too involved for me.
It felt like too much work
for the amount of money that I was making
when compared to Print On-Demand.
And then, Amazon FBA is one that I haven't personally done.
I've done all of the research for it,
so I was essentially ready to do it.
And then I met someone who was an Amazon FBA seller
and he was actually in the top couple percent
of his category or his niche of what he was selling in.
And we were talking about our different businesses.
I was telling him about Print On-Demand.
He was telling me about Amazon FBA,
and he was telling me how many hours
he puts in each day for how much money he was making.
And he said, in a heartbeat,
he would trade businesses with me
to have the Print On-Demand business.
Hopefully, that honest explanation of these
helps you to make your decision
of where you wanna invest your time
if you do wanna start one of these.
As always, I hope you guys enjoyed this video.
If you did, please give it a thumbs up
and let me know down in the comments
if you have any questions about this at all.
All right guys, that's all for today.
I will see you all in the next video.