Can Less be More? A Hybrid Solution to the Print-on-Demand Platforms

Problem definition:
Print-on-demand (POD) platforms have emerged as popular online marketplaces where individual content creators upload unique graphic designs that customers can purchase. These designs are subsequently printed on demand by the platform using MTO production, with the platform covering all production costs and sharing revenue with content creators according to a pre-determined pay scheme.

Methodology / Results:
In this paper, we propose a novel hybrid production that simultaneously employs both MTS and MTO to reduce unit costs and enhance profitability. However, incentive misalignment arises because content creators typically favor a large assortment size, which dilutes the expected demand per design and undermines the effective utilization of MTS by the platform. To achieve incentive compatibility, we introduce three implementation strategies that regulate assortment size, thereby balancing the cost-savings from MTS against the potential profit losses for creators.

Managerial implications:
Our analysis demonstrates an approximate 13% improvement in overall system profit and establishes critical boundaries on platform-specific parameters that dictate when adopting the hybrid production is advantageous.

Recommended citation: Pengyu Wang, Yuankun Li, Masha Shunko, Yong-Pin Zhou. (2025). “Can Less be More? A Hybrid Solution to the Print-on-Demand Platforms.” -. -.
Download Paper | Download Slides