In the age of digital-first and influencer marketing, small to medium enterprises (SMEs) are flexing their muscles and rising to the challenge of beating their larger and more established competitors. But as with any new path, there are of course obstacles to overcome.
For SMEs, this is often lack of resources – human and financial – to cover all the demands that a modern business occupies. This is clearly demonstrated in the printed merchandise industry, where production, sale, and shipping challenges have been great for many decades.
The traditional model
Once a business has started with a concept, products need to be sourced and quality tested before being purchased in bulk. With production costs in mind, this can often be a lengthy process, involving various sample stages and options before landing on the perfect stock.
After the product has been sourced and ordered, stock needs to be stored safely and a system implemented to record, fulfill, and ship orders. With the rise of remote working, a physical office space isn’t always required – but warehouse space is always needed to store an inventory. This is expensive, time-consuming, and risk-heavy.
This, combined with the high initial capital outlay of setting up a product run, means a recipe for failure if sales don’t reach expected levels. Smaller new businesses can seldom afford to have stock sitting on warehouse shelves months on end. Killer pressure is on from the outset, which is not a healthy position from which to grow. However, a more agile alternative has been found.
Introducing print-on-demand (POD)…
…which does pretty much what it says on the tin! Items are printed only as and when they’re sold, in batches of any size to fulfill a specific order, to then be delivered directly to the customer.
How does POD help SMEs enter global markets?
Technology has allowed SMEs to enter global markets, and POD is a big part of this for eCommerce stores. Combined with dedicated drop-shipping partners, a small online store can “stock” thousands of items in their catalogue, and never lay a finger on the complex supply chain process.
Of course, these systems and partners take a cut of the profit margins, but the merchant can instead focus on scaling sales and marketing, and improving the range of products on sale in the store. Let’s take a look at how POD has had a genuine impact.
- Building on eCommerce technology
With a strong digital presence and targeted marketing, SMEs have more opportunity than ever to connect directly with their potential customers and grow sales overnight. eCommerce stores can be promoted via content, social media, and PPC advertising across multiple platforms for scalable and affordable budgets.
When the audience is built and sales are made, POD can be combined with a drop-shipping service that coordinates delivery to the customer, removing a lot of the painful and time-consuming admin associated with supply chain management.
Website frameworks can be build especially for eCommerce, or paired with plug-and-play eCommerce solutions. This makes setting up an international online store straightforward and easy to maintain. In a digital-first business, brand is the gateway for your consumer and making a good impression in this area only helps to strengthen a reputation.
- Easy to get started
A zero-inventory model means that upfront costs are kept low, and SMEs can minimise risk when first getting started. Through this revolutionary model, merchants only need to make payment for products once an order has been completed by the customer. This means that it’s possible to get started with very little upfront investment.
Additionally, in a globalised market flooded by mass-produced products, offering a unique product range will give businesses the cutting edge to compete against larger, more established companies. This helps a business grow quickly in new areas, beyond what would have been considered the local market. Thanks to the lack of admin, SMEs can focus on building a compelling set of printed products for the catalogue.
- Flexibility and ability to react
When looking to establish a product range or increase an existing offering, a large proportion of time and resources goes into research and preparation, with every new product design carefully considered and put through multiple rounds of approval. Even with the best planning, products will fluctuate in popularity, trends change, and new launches bomb. With the traditional model, business owners are left with hundreds of boxes of unsold stock.
With POD, it’s easy to test out different designs, slogans and products with low risk. The merchant can adapt when market conditions change. This freedom to change direction gives smaller businesses an advantage over bigger brands, and can make the difference between a successful venture and an expensive misstep.
- The move beyond local limits
A business with no need for physical premises for inventory can be established anywhere, taking advantage of low rent for office space (if any is needed), specific local market conditions, and of course, personal location preference of the business leaders. When it’s time to grow, there is no pre-ordained direction and plans for expansion can be explored without limits.
- Pre-established global logistics infrastructure
Many POD providers also offer a global drop-shipping service to complement their offering. Drop-shipping is a retail fulfilment method that means that businesses don’t hold any inventory, but instead take orders that are then fulfilled directly by the supplier. By working with a supplier that has an established network to ship globally, companies that would previously have been restricted by their local footprint can compete in a global marketplace.
Summary
As the way customers interact with businesses changes, smaller businesses can challenge big brands by making the most of innovation. There are four technologies that revolutionise the landscape for SMEs: digital marketing, eCommerce, POD, and drop-shipping. The combination of these has opened up a wealth of opportunity for even the smallest business.
With a strong online presence and targeted marketing campaigns, SMEs have an opportunity to reach more people than ever before. By offering a varied and unique product range with no risk of unsold stock, new businesses have a much better chance of success and can pose a real threat to more established brands in the market.
AUTHOR BIO
Charlie Carpenter is the co-founder and CEO of Kite. He is a mobile advocate with over ten years of industry experience.
After working for large and small agencies for many years, he co-founded Kite; a software solution for print-on-demand, zero inventory merchandise, and personalised photo print goods. As well as an entrepreneur, Charlie is a seasoned product strategist with experience of various types of digital projects which include: Responsive and Adaptive Websites, Mobile & Tablet Apps, Hybrid Apps, Cross Platform App development.
You can connect with Charlie on LinkedIn, and follow him on Twitter.
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