How to Avoid Low Profits and Complaints in POD

Many on-demand printing beginners experience a difficult initial period, thrilled by the mere sight of orders. In their eagerness to sell, they drastically reduce their profit margins. Have you ever done this? That's okay; you can do it in the initial stages, at least generating sales gives you some confidence. But if you want to ensure the long-term health of your business, this is clearly not a sustainable solution. In this article, we'll explore various methods to help businesses experiencing low profit margins and customer complaints overcome their difficulties.

What factors contribute to low profits?

Our initial conclusion is that the print-on-demand business will remain profitable until 2026. However, many sellers fall into several traps that lead to low profits. Let's analyze these factors one by one and explore practical ways to avoid them.

Inappropriate niche selection

Choosing the wrong market segment makes sustainable profitability nearly impossible. If the market is oversaturated, your product may be drowned out by hundreds or thousands of similar products, or you may face fierce competition from numerous rivals at extremely low prices. For example, if you sell T-shirts, the custom T-shirt market is already incredibly crowded. As a newcomer, you have no competitive advantage unless you lower your prices. However, if you focus on cute cartoon-style children's T-shirts, you're more likely to gain exposure in this niche market and secure orders with your unique designs. This is because it's a smaller niche with less competition. Even if a smaller niche isn't as large, it's a good starting point.

Product costs are too high

The base cost for most print-on-demand (POD) products typically accounts for 40%-50% of the total cost; this is what you pay the POD supplier. If the product cost is too high, it will squeeze your profit margin. In addition, shipping costs cannot be ignored; international shipping or courier fees are high, especially for small orders where costs cannot be spread out. There are also additional costs such as packaging, labeling, and customized gift boxes; if these are not included in the cost breakdown, they will also reduce profits.

Therefore, choosing a supplier is crucial. Don't just pick the first supplier you find; compare base prices, printing costs, and shipping costs. Everyone knows Printify and Printful are good, but their product costs are higher. Are they really suitable for every seller? I doubt it. So you need to compare several suppliers based on the products you actually sell and choose the one with the best overall cost-effectiveness.

Unreasonable pricing strategy

The key to pricing strategy is maintaining competitiveness without sacrificing sales volume due to excessively high prices. Therefore, striking this delicate balance requires some skill. To decide how much to sell your product and what profit margin to set for yourself, you should first understand your cost structure, including product costs , shipping costs , transaction fees , and marketing expenses . Listing these costs will likely give you some ideas for pricing your product.

The best approach, of course, is to research your competitors. Find 3-5 competitors in your niche, compile their main products and prices in a table, and compare them. Your pricing can be the average of theirs, or slightly lower or higher. If your design is unique or your brand is well-known, customers may be willing to pay a higher price for perceived value.

High return rate or refund

High return rates are a significant factor eroding the profits of print-on-demand . Each returned order means lost revenue, wasted production costs, and worst of all, damage to brand reputation. Furthermore, due to the personalized customization process, print-on-demand sellers often cannot reuse returned items, making each refund even more costly.

According to research, e-commerce returns are mainly due to product quality issues or products not matching descriptions and failing to meet customer expectations. Therefore, to avoid returns, you need to address these two aspects. For example, before listing any product , purchase samples to test and evaluate printing accuracy, fabric feel, color consistency, and overall durability. Also, provide clear and concise product information in the product listing , including realistic lifestyle images.

High advertising and marketing costs

Many newcomers over-rely on paid advertising because they expect instant results and quick orders. While advertising is indeed important for sales, high or poorly managed advertising costs can quickly erode profits. If ad campaigns aren't optimized, advertising platforms like Meta, TikTok, or Google can rapidly deplete budgets. When every sale requires an expensive ad click, even a good product profit margin may not be enough to sustain profitability.

To avoid this, my advice is to avoid relying solely on advertising as a marketing method. Alternatively, optimize your ad creatives and target audience before running your ad groups to maximize ROI. Also, try acquiring organic traffic through social media or SEO. SEO, in particular, is incredibly valuable; it can be effective wherever there's a search box.

Unstable sales volume

Unstable or unpredictable sales are another common reason for low profit margins for print-on-demand sellers. Sales instability often occurs when a store lacks a clear brand image or a well-defined market positioning. If your catalog looks like a chaotic mix of designs — some trendy, some seasonal, and some too generic — customers are unlikely to take the brand seriously. Furthermore, over-reliance on "hot-selling designs" or seasonal holidays may lead to short-lived sales peaks, but not long-term stability. Without repeat customers or evergreen products, profits become volatile.

Clear market segmentation helps build a loyal customer base and makes your brand memorable. And in addition to seasonal products, you also need to offer evergreen designs that sell well year-round .

What factors contribute to customer complaints?

Customer complaints are an unavoidable part of any business, but in the print-on-demand (POD) industry, complaints can easily escalate into negative reviews, refund requests, and a crisis of trust, especially when some sellers don't even handle the products themselves.

Product quality issues

Since order fulfillment is handled by third-party suppliers, you are heavily reliant on their equipment, materials, and attention to detail. If their quality control is unreliable, your business will suffer. Therefore, before deciding to work with a supplier, you must first verify their product details and quality. This is especially important when it comes to your flagship products; thorough inspection and testing are essential.

If you're selling higher-priced products, make sure the quality matches the price. Today's customers have high expectations for product quality, and even minor flaws can lead to disappointment.

Partner with reputable suppliers known for their consistent quality and professional-grade printing. If you receive repeated complaints about a product's poor performance, replace it as soon as possible.

Product does not match description

Another common reason for customer complaints is that the actual product does not match expectations. For example, the shirt color may not be the same as the picture, the print may be smaller than shown in the picture, or the fabric may be thinner than described. These problems often stem from unclear product page descriptions or unrealistic renderings.

I always recommend using accurate, realistic images of everyday life, rather than overly edited or unrealistic pictures. Showcase your product from multiple angles to reduce guesswork and increase customer confidence.

Logistics and delivery issues

Customers typically don't distinguish between suppliers and sellers. If they haven't received an order or there's a problem with it, they 'll only contact you. Any package delays, slow updates on tracking information, lost packages, or damaged products can lead to customer complaints . Furthermore, because on-demand delivery usually involves multiple stages, inefficiency at any point in the supply chain can cause delays.

How to avoid this? Choosing a supplier with fast delivery speed, high stability, and reliable cooperative relationships with carriers is the best option .

Offer order tracking so customers can stay informed about their order status. Use protective packaging to prevent damage during shipping. Clearly indicate the estimated delivery time on product pages. Instead of waiting for customer complaints, proactively notify customers of any delays.

After-sales service issues

Even the best product can turn a satisfied buyer into a dissatisfied one if customer service is poor. Slow response times, unclear refund policies, or a cold attitude can all lead to negative reviews. Customers who print on demand expect prompt support, especially when purchasing customized products.

Good after-sales service not only solves problems but also builds long-term trust and repeat customers. The primary task of after-sales service is to respond to customer inquiries quickly and resolve their issues as soon as possible. Additionally, it's crucial to have clear and concise refund, return, and exchange policies, placing them in a prominent location for easy customer access. Follow-up is essential after problems are resolved to ensure customer satisfaction.

Boost your business with PeaPrint print-on-demand

Choosing the right print-on-demand (POD) partner is crucial to the success of your business. A reliable supplier not only helps you maintain high profit margins but also reduces customer complaints by providing consistent quality, fast delivery, and strong support. PeaPrint offers thousands of high-quality products at factory-direct prices, covering multiple categories including apparel, accessories, pet supplies, and home goods.

Many on-demand printing platforms operate through multiple intermediaries, which drives up the base cost of products. PeaPrint, on the other hand, works directly with factories, ensuring highly competitive prices across hundreds of product categories . Lower costs translate to higher profit margins .

If you need assistance with product selection, technical setup, or order issues, PeaPrint offers one-on-one customer service support instead of automated replies.

In addition, we offer discounts of up to 30% for bulk orders, the more you buy, the more you save. We also provide preferential support for sample orders, offering a 20% discount on samples every month, saving you on sample costs.

PeaPrint is more than just another on-demand printing provider; it's a partner dedicated to helping sellers build sustainable, profitable businesses with minimal resistance.

FAQs

How can I keep a healthy profit margin in POD?

The key is knowing your numbers. Pick products with enough margin room, compare supplier prices regularly, and avoid unnecessary discounts. High-value products like hoodies, blankets, or all-over prints tend to offer better margins than low-priced items like stickers or socks. You should also optimize ad spend, don't rely on "boosted posts" or broad targeting. Test creatives, use retargeting, and consider organic channels such as TikTok, Pinterest, or influencer UGC to bring costs down.

How do I reduce customer complaints as my store scales?

As your order volume grows, issues can multiply if your processes aren't prepared. Standardize everything, mockups, sizing charts, color disclaimers, shipping expectations, and post-purchase notifications. Use automated tools for customer service to respond quickly. Test samples from every new supplier before launching a product. And most importantly, partner with suppliers who can handle scale without sacrificing quality. A stable POD backend is the foundation of a complaint-proof business.

What's the biggest reason POD customers complain?

Most complaints arise from shipping issues—slow delivery, confusing tracking, or parcels getting stuck in customs. Product quality inconsistencies come next, especially color mismatches, blurred prints, or garments that shrink after washing. Sometimes sellers unintentionally make it worse by using mockups that oversell the product or unclear writing sizing guides. Picking a reliable supplier, using real photos, setting honest expectations, and offering transparent delivery information can drastically reduce complaint volume.

Conclusion

Running a profitable print-on-demand business isn't just about designing good products; it's about building a system that consistently protects your margins while keeping customers happy.

If you're ready to eliminate unnecessary risks, reduce complaints, and create healthier margins, platforms like PeaPrint can give you the foundation you need , reliable products, fast fulfillment, and a support team that actually cares about your growth. With the right setup and continuous refinement, your POD store can shift from “barely surviving” to confidently thriving.