Printful’s Davis Siksnans and the on-demand entrepreneur

Davis Siksnans:

The key thing is giving more sustainable products to our customer base. And the part of it is just print-on-demand in general, because we only produce a product when somebody has bought it. A traditional retailer in most cases would try to guess what's going to sell. If inventory doesn't sell, it might end up in a landfill. So Printful and print-on-demand, the whole industry's working to reduce that.

Rob Goodman:

Hi everyone. And welcome to Now What, the podcast from Wix about how technology is changing everything. I'm your host, Rob Goodman. And in this series, we're talking all about evolution in business, design development and beyond. Over this past year, business and creative leaders have had to evolve to meet the challenges that come with this overwhelming amount of change. Here at Wix, we're interested in the ways that creative people are evolving to build new businesses, grow beyond their limits and shape the future of the web. So we thought, what if we got together a bunch of our friends, leaders in design, development, eCommerce and the agency world, to talk about how they're dealing with change and how it's affecting their careers, teams and industries. This is a place to prepare for tomorrow's ever-changing world and apply those lessons today. In this episode, we have Davis Siksnans on the show, co-founder and CEO at Printful, a print-on-demand and warehousing company for online stores.

Rob Goodman:

Printful prints T-shirts, posters and hundreds of other products for online eCommerce stores, creators, and entrepreneurs, and drop-ships them to customers everywhere. It's one of the industry's largest print-on-demand drop-shipping businesses. The company has fulfilled more than 30 million items since it launched in 2013. And Davis helped transform Printful into one of the fastest-growing companies in the U.S.. In this episode, we talked to Davis about running an eCommerce business during a global crisis, experiencing both explosive growth and supply chain challenges due to the pandemic, how Printful is making eCommerce more sustainable and most importantly, the lessons he's learned about navigating change as a leader after nearly a decade in business. You're in for a great conversation about the future of eCommerce and business strategies for dealing with scale and change on a global level. Now let's get started. Davis, welcome to Now What podcast.

Davis Siksnans:

Thanks for having me.

Rob Goodman:

Absolutely. It's so great to talk to you. I mentioned that I am also a Printful customer myself. I'm an illustrator, so I've sold some goods on Printful and I love your service. And I love how you are making it possible for entrepreneurs and small businesses to immediately set up shop without having to have fulfillment and printing and all of these things that are so costly. But if you could start just by telling listeners what Printful does?

Davis Siksnans:

In simple terms, we just tried to make it as easy as possible for anybody to launch an online store for printed products. We handle the printing and fulfillment, and we're able to print 250 items as low as quantities as we want. So it was great for eCommerce, selling on-demand. Then there's a lot of entrepreneurs who build their stores and their brands on top of Printful.

Rob Goodman:

Wonderful. The past year has been so tumultuous, so kind of ground-shifting for everyone. It's been so much to deal with. And you're on the front lines of how eCommerce is changing, how more entrepreneurs are building their businesses. I'm really curious if you can tell me more about what happened specifically at Printful over this last year and what it looked like to have more and more people diving into eCommerce?

Davis Siksnans:

Printful has about seven fulfillment centers worldwide. So we operate in LA, Charlotte, Toronto, Tijuana, Mexico, Spain, Riga, and there's new sites is going to be coming up as well. So this year has definitely been challenged. So there's a big physical component to our business as well. Even before the pandemic, we saw that more and more people are gradually shifting towards online commerce. And the goods that we sell is mostly apparel. And we see just the share of the apparels sold online, just increasing and increasing every year. And that's sort of a big trend that existed already. What pandemic did was accelerate a lot of existing trends that existed before. And overnight, a lot of people felt unsafe going to retail stores, or they just plain couldn't, because under the restrictions, some of these stores are closed down and now thus everything kind of moved online.

Davis Siksnans:

I guess, the biggest thing was that normally online companies, online retailers and service providers like us would prepare for something like this for months in advance. We always had a seasonal business and Q4 was heavy for us. For Christmas, for holidays and Thanksgiving, we usually start and prepare it in August. The pandemic just didn't give that ability to prepare that in advance and we just had to do it overnight. And that has been incredibly challenging at a time when you have to do scaling up and hiring in times where you have to observe social distancing and the house of employees and team members as a priority.

Rob Goodman:

Yeah. And I was reading that. I think it was in 2019, you had something over 500 employees and teammates, and now at least the number on the site it was over 1,600 people working at Printful. I mean, that's an incredible scale and tripling of the workforce over the past couple of years. So talk to me a little bit about how you navigated these shifts. And as you were describing those months where you needed to scale up quickly, while dealing with all of these unforeseen obstacles with the pandemic. As a leader, what were the qualities that you brought forward in order to see the organization through that change in a way that felt safe to everyone and was grounding, but also is driving the business forward?

Davis Siksnans:

We definitely have never been tested like we have been tested in the last year. Things were changing really quickly in those early days of pandemic. Everybody was new to this. Governments were making changes, local governments and our business was heavily affected by that. There was a point where we even temporarily closed our Los Angeles facility, because pandemics struck the big cities first -- New York and LA. And it kind of got Charlotte, which was the second facility that we operate in the U.S. later. But as a leader and leadership team, we came together and had all hands on deck meetings every day. And we made decisions every day. And we made sure to communicate those decisions to team members across our sites, who transitioned to working for a leader, both were possible, and but not possible we're working from sites. So one of the key things was just up your communication to your team members, to assure everyone that the leadership team is on top of this constantly monitoring the situation.

Davis Siksnans:

Normally, we would have all hands meetings, like every quarter. Normally, I would write a memo to the team members once a month, but then these days I was doing that multiple times a week.

Rob Goodman:

In terms of sales, I know you're touting a million items fulfilled every single month. What was the explosive growth that you saw on the platform now going into 2021? What did it look like?

Davis Siksnans:

A lot of people who build their print-on-demand stores, that is an extra income, right? And they often have their 9:00 to 5:00 and then they build their online store on top of that. And they always have aspirations for making a full-time income, but often started as a part-time income. The pandemic was special is that people who have a lot of part-time income opportunities, they often did multiple things at the same time. So they'd print-on-demand and then they participate in the gig economy such as riding Ubers, right? And what is interesting overnight, the revenue that you made as an Uber driver, for instance dried up. And you were confined to your home and maybe you were temporarily laid off or furloughed to do your own jobs. So you had to make a full-time income of part-time income. So all those things combined, just created an unprecedented sudden demand to the Printful platform and our sort of offering, because you could build your online store for print-on-demand products, truly just working from your home, because the Printful was the company that's handling all the physical part of it.

Davis Siksnans:

So normally again, it doesn't happen like that. So the most challenging thing was that when we had to order equipment, we had to open new facilities all during the pandemic. And that was challenging. And we were opening international facilities at this time as well. For instance, our Canadian facility started last year. And that was very difficult when the border between the U.S. and Canada was closed. In normal times we would easily bring people over, they'd facilitate knowledge transfer, help us with the training of new members. And we had to do all this as much as possible over Zoom calls and things like that. After we've been through this, I don't know what else can surprise us.

Rob Goodman:

Yeah, and there's this explosive growth as you're describing, but then there's also these challenges with fulfillment and shipping and getting the prem facilities up and running online. How did you deal with that? Because I know there was lots of challenges with shipping and getting things places on time. So was there a moment where you felt, "Hey, our brand is at risk here, the quality of our services at risk here, because we're feeling this push and we can't quite meet it because of circumstances that are outside of our control?”

Davis Siksnans:

There's definitely a feeling like that. Then there were things that are out of control, like as our business was impacted, so were the businesses, so for our vendors and suppliers. It still continues to this day. For instance, some of the blank we print on were produced in Central America and they closed their production facilities due to the COVID. And that impacted stock. Up to this day, still impacts the stock. At the same time, right? Logistics depends on planes being in the air. We send a lot of the goods through regular mails, like USPS, and in Europe and other countries through their mail systems. And all these flights were just grounded and things were slowed down. Luckily, the mail is also trying to figure out alternative routes, but for the big part, we spent a great deal to explaining to our customers much like any, many of the other business, we launched a COVID page that we updated almost daily explaining to them.

Davis Siksnans:

We're doing the best we can, us and our logistics partners are trying to find new routes, how to get your products to your customers, but it's going to be pretty choppy for weeks. And then it was, and bear with us. So we encourage our customers to make these COVID pages up on their storefronts as well. And many did. And those who did, those who were open to communicating to their customers did really well.

Rob Goodman:

So the show is all about evolution and your own personal evolution and the evolution of Printful is so interesting. You grew up in Latvia, you were building websites at an early age, and then you got involved with the Draugiem Group. Am I saying that right?

Davis Siksnans:

It's Draugiem. But it's a difficult name to pronounce. Means for friends, in Latvian.

Rob Goodman:

Okay. And that group had all these startup ideas spinning outside of it. I know, Ideabits and then also Startup Vitamins came from there, which was a shop to buy inspirational startup slogans for your office. And then Printful was basically a solution that was created for Startup Vitamins to help in fulfillment and print-on-demand that ultimately, opened up to the whole world and became what it is today. When you were kind of going through these formative years of your development and moving from being a maker and creator and engineer into the business side, could you have ever kind of anticipated the evolution and the personal growth you would have to go through over those years? And what has been kind of the most surprising aspect of shifting into this leadership role over these years?

Davis Siksnans:

Nobody can really expect this or anticipate this, but, and all these years even prior to Printful, I was always interested in learning new things. I was approaching any new challenges that somebody has done it before me. Very likely there's some material out there on a podcast or a book or elsewhere that I can read about this. So I think one thing that makes me maybe a little different that's I'm always about learning new things. If I don't know something I'm going to devour any material available on that topic. And over these years we specifically tried to select team members like that. In our interview process, we ask them about how they learn new things, what they read, what they listen to, podcasts, et cetera? So that is one of the things that really helped us in the evolution process. And helped me personally, and also the team members, because the team members had to go through that scaling up phase as well. And I'm really proud to say that out of our executive management team, roughly about half of them are internal promotions.

Davis Siksnans:

So people who started often in entry level roles, but just being really about learning new things and opening to new things, they were able to sort of grow into the roles that they were awarded.

Rob Goodman:

What's the last thing that you've learned that you thought was really interesting, or the thing you're trying to learn now in this kind of new level, as things are growing?

Davis Siksnans:

When the business started, I was manning and running all the key departments. I was running development and marketing, design, and I hired people who sort of replaced me in that role. And they sort of become experts in that space. So I'm kind of moving a little away from hands-on things in product development and marketing. These days, my job as a CEO now deals with some sort of those high-level things like strategy, but things that when I was much younger, I had been learning a lot about it is all things finance. These days, I'm reading a lot of financial documents, things that our auditors do. Sort of personal passion for me has been learning the documents that public companies release. So I'm a subscriber to several companies in the eCommerce space who are public. And I like reading what they released to their investor community, how they frame it. I believe I can learn a lot about it. And the same, I have encouraged my team members to do it. And that information is publicly available there and we can learn a lot from that.

Rob Goodman:

Yeah. That's a great insight that you have. Why not take advantage of what's out there and what's accessible, even if it's not kind of the common book on the shelf, so to speak? So let's go back and talk a little bit more about customer behavior. What kind of trends are you seeing in the purchases that people are making online through Printful and also, what are you seeing in terms of trends with what is being produced and made?

Davis Siksnans:

Yes. So, last year, again, was exceptional in a sense that there's some obvious things that were really trending last year, one being face covering. So I remember we were very early to launch a neck gaiter, which could be used as a face covering. So there was a point last year where in our Los Angeles facility only produced face coverings. That basically was an essential product at that point. And that's how we kind of stayed open in the first wave of stay at home orders and things like that. But to this day, face coverings still sell really well. It's not the sort of the, that was in the first year. So everybody kind of has face masks these days. But I think, even as we get vaccinated, it's a sort of become a wardrobe staple.

Davis Siksnans:

I've seen videos and how things are going for instance, in Israel, but is ahead in vaccination in the world, they still use a lot of face masks everywhere and it's going to be a bit of a time and you can safely assume that at least for the rest of 2021, the whole world is going to use a lot of face coverings. So it's still a safe bet. And I see a lot of people just doing their designs on a face mask, and that's an obvious thing. But beyond that, you can sort of assume, and we directly solve that in the demand of our products that as people were confined to their homes, they're more interested in maybe upgrading things in their homes. So we've had increase in orders from framed art, wall art, posters, rugs. So that's one thing. And still going on. You see that a lot of people are buying homes and home prices going up in the U.S.. So you can imagine that anything dealing with home furnishings is doing well.

Davis Siksnans:

And I think as people spent way more time in their homes than they did in commuting or they're at our work jobs that just gave their apartments or homes just higher value in their lives. And so, they were more willing to spend money on their primary residence. And the third thing that might seem obvious, but only the best store owners, the best merchants caught them this early was active wear. So even though as gyms were closed, people still wanted to buy clothing and home workout equipment. So, we see people selling leggings, sports bras, other active-wear products that Printful offers. And those people who were sent equipment... I was like that myself as well, the first month you couldn't buy dumbbells and things like that, they were sold out. So that tends to do well. And those people who didn't work out, they switched to more casual clothing, right? So hoodies and joggers also did really well. The reason why Printful's performing as well is just more people want to buy less sort of from branded stores like H&M and ZARA and Gap.

Davis Siksnans:

And they want to go more, sort of, smaller retailers, someone unique. And printed apparel or printed goods in general is personalized. So people are willing to spend extra money for that, and they see a value for that. You can have a plain white mug, but if that's their design or it's a design of something you know, or a brand or influencers that you associate with, or you're willing to spend more money on that, and you're willing to wait a little longer for that. So that's kind of why we're doing so as well.

Rob Goodman:

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Rob Goodman:

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Rob Goodman:

Are there new categories that Printful is expanding into now, knowing kind of where the trends are moving? Are there more expansive home categories that you're exploring?

Davis Siksnans:

We have the staples of the pandemic products covered. We want to add products that I think is going to be more popular, even when the pandemic ends. So as a company, we just want to add more higher quality products. So we are moving into more complex products. Right now in a beta to a select few customers we launched sports leggings. It's basically a new type of legging that combines different fabrics. One part is printed, another part is not printed. And the part that's not printed, just gives the compression aspects of leggings and other abilities. Our vision is that we want to sort of offer at least on the athletic end, on-demand products for anybody who wants to launch online store in a quality like Nike. You can have Nike level of quality leggings, for instance, that's your own brand.

Davis Siksnans:

That's sort of a long term. If you had to compare the aspiration would be something like Lululemon, where they use a lot of technical fabrics and things like that. So I'm very excited about that as well. But we do a lot of things in more regular categories as well, that are non-athletic items that will be more sustainable products. I think there's no doubt that the world is more into more sustainable products. I remember that about seven years ago, when we started a business, we had the organic cotton T-shirts, but we couldn't sell them. A lot of people are not willing to pay the premium price on that, but that has changed. In the last two years, more people are just way more willing to pay a premium for organic cotton. So we invested a lot of products in there. And a couple of weeks ago, we also launched a first recycled polyester item. I'm very excited about those and how through providing products like that, we can make the apparel industry more sustainable.

Rob Goodman:

Are there things you're doing on the operations side that you feel like are moving more in a green direction, whether that be in fulfillment or shipping or any of the aspects of the business? Is that part of the dimensions that you're evaluating from a business perspective?

Davis Siksnans:

Yes, actually in the last year, maybe a little more, we introduced what we call internally a green team. So there's a team that specifically looks at sustainability at Printful. There's some member of that team in each of our locations. So they look at things like packaging as well. So though we do have more packaging that we use, where we pack our products to be produced from recycled items. So items that are used in multiple times. So that's a project that they do. As we look into new facilities as well we can sort of start thinking about that. We haven't done it, but we're thinking about things like, "Hey, can we do like solar panels on there?" And the energy we use, the recycling in just in our facilities as well. Any it kind of, scraps of trash we have, can we properly dispose of that? So there's many different aspects that we're looking at. The key thing is I guess, just giving more sustainable products to our customer base. And the part of it is just print-on-demand in general, because we only produce a product when somebody has bought it.

Davis Siksnans:

The traditional retailer in most cases would try to guess what's going to sell. So they sort of buy and produce inventory in advance. And sometimes if inventory doesn't sell, it might end up in a landfill. You don't want that to happen. So Printful and print-on-demand the whole industry is working to reduce that.

Rob Goodman:

It's so wonderful to hear. And I want to go a little bit deeper into eCommerce, specifically how Printful is set up as this platform. So talk to me a little bit about how critical partnerships and integrations are to Printful's business. There's an integration between Printful and Wix, and you have integrations and APIs with lots of other eCommerce platforms and social media. Talk to me about that structure of the business and how it works.

Davis Siksnans:

So our sort of vision is that we want to make it as easy as possible to launch an online store. We want to sort of reduce the arrears that exist for anybody to do this. So we are sort of experts on producing products on-demand. We invested in these facilities and equipment and software that does it. And then there's our partners like Wix who invested in eCommerce and of this sort of building a website, templates, payments, and things like that. So there's some merchant success team at Printful that spends a lot of time thinking about how we can use the APIs of our eCommerce partners in a way that benefits our sellers the most. We always start thinking about what kind of feature we can build that makes the running of the store more effortless. So our customers only have to be thinking about marketing the design. So we also build things like, "Hey, here's quick designs. There's some clipboards. Here we integrate with Getty images. You can pull a Getty image and sell this license Getty image on your product." So things like that.

Rob Goodman:

And talk to me a little bit about payments and the importance of payment options, how those kinds of connections and agreements are made in terms of the types of payment options that you're going to bring in. And I'm hearing more and more out there about there's obviously crypto is growing and building. There's being able to buy now, pay later. Obviously, certainly credit cards and things like that, but there's so many new payment platforms that are out there. Talk to me a little bit about the importance of having robust payments and how that, you know, minimizes the friction for your customers, the people who are standing up their stores, and also the end customers who are buying.

Davis Siksnans:

When our customers work is Printful, we provide them multiple ways of paying, but digitally it's credit card and PayPal. And some of our customers, we have some advances like ACH from US-based customers, but the transaction where the merchant works was their customer, it's separate from Printful platforms. So it goes to the partner like Wix that has hopefully that built in. So, that, I think the key thing is that when you're starting out, you don't want to be adding another thing to your storefront with a separate sign up process, it's difficult. Ideally those things are integrated. I think that's key just to decrease the barrier. When I think about our merchants again, I explained a lot of them are initially starting out and building out the passive income or extra income. So they don't want to deal. It was another company that they're going to work in or bureaucracy. And I liked that how payment processing companies like Stripe and what they've done to the whole ecosystem that's made payments way easier.

Davis Siksnans:

I remember when we started Printful and even before that, the payments used to be in a more complicated process, and I'm glad how it's evolved over the years. And these days, as companies are global from day one, I think Stripe and many others have made it just easy. Also, if you're an international seller to sell globally. So I think that's a key thing. Being from Latvia, if you wanted to sell something online from Latvia as a Latvian registered company about eight years ago, it was difficult, because there was not a lot of payment processing companies that will be able to accept credit cards globally, if you were registered in Latvia. Luckily all that has changed. On the methods, how others can pay you. I think credit cards covers, if you have to pick one, just a regular credit cards covers most use cases. PayPal is very popular and is another thing that if you wanted to add anything besides just credit cards, just add PayPal.

Davis Siksnans:

There's some countries where we see PayPal being more popular in other countries like Germany, PayPal is still more popular, but everything else beyond that is going to be more specific to you being international so that you're moving more away from just U.S., Canada, UK and Australia. In those countries, credit cards and PayPal you can do fine. But as you move into more specific countries, you will see things like bank links and others that are important to payment. For crypto and among ourselves and our customers we haven't really seen a big adoption. A lot of people talk about it, but I remember I looked into that maybe last crypto wave in 2017, it was still very difficult and costly to accept crypto payments. I have some crypto as well, but I was transferring some crypto over the exchange to the cold storage recently, and I paid maybe $10 in transfer fees. And it just doesn't work in eCommerce. You want to have low transaction costs and instant costs. And it took me an hour to transfer from exchange to cold storage.

Rob Goodman:

You have this front row seat into what is happening right now in eCommerce. And I'm really curious about your perspective about the future of eCommerce. Beyond just Printful, but overall in the industry, what are you seeing in terms of giant shifts that are coming, that we should all look out for?

Davis Siksnans:

I have, again, the most perspective on physical product, in the apparel industry. I hope the government's going to follow with some of the legislation that's going to demand everything being more sustainable. I live in Europe, I spend most of the time in Europe and I see that most grocery stores in Europe don't use plastic bags. Whenever I traveled to our facilities in the U.S. it's still a thing, and it just kind of blows my mind why there hasn't been a law that just basically makes that another thing that we're going to do. Something that's may be related to do that is also transparency. If you go on H&M website, you can now when you buy a shirt or an item from them, you can see transparency data around it, so where it's being produced. So H&M will actually service some of the suppliers and talk about them. That's a trend that's also going to continue forward.

Davis Siksnans:

And absolutely, we're trying to take advantage of that ourselves, just providing us our information more about us, how we produce these items, what kind of printers we use, what kind of inks we use, where we source the fabric from, which countries? eCommerce sellers, who do not service their information, they might be left behind. I think any online sales, you have to build trust and credibility over your webpage, your product page. And I'm not a fan myself of very clean product pages. When I say clean, they don't provide a lot of essential information. I think they may look cool, but if you would look only on the customers who converted, only on the customers who bought the product, those customers would likely look at each of the pictures of the product, they would read the product description or any additional information you provided. That extra information around transparency or how these products are built, would help increase the sales.

Davis Siksnans:

And that's a big trend as well. And I see a lot of, these days they call direct-to-consumer brands launching. They launch was that thesis as well, that they are more transparent about how they run the business itself. These days, we ask a lot of questions of our suppliers, and try to make sure that, "Hey, these products are produced in a good manner." And I think that's going to matter in the future.

Rob Goodman:

Okay. Let's change gears. I want to hear a little bit about something that's exciting you right now, it could be a book. It could be maybe time with people as things are starting to open up a little bit or get better. I'm curious, what is, kind of, putting fuel back in your tank right now?

Davis Siksnans:

We hired a lot of people over the last year and I haven't met most of them in person. I think 50%, almost gross last year in terms of employee accounts. And we owe it to our employees to have great parties. Up until the pandemic, Printful had great in-person parties and events. Actually, end of March, we wanted to do a big event in Barcelona, which was our latest facility at the time. We were thinking about flying people from all over the world, from the U.S. and Europe to Barcelona, partying there, but also having an offsite session about the strategy of the business. And I really look forward for that being a thing again, where we can do those things. We transferred over to doing that in a virtual setting, but talking to most of our team members and people I know outside of our company as well, most people want to go back to in-person and do all these things in person.

Davis Siksnans:

So, one thing that makes me excited as well is that tomorrow we're going to talk about the possible new office that we can lease here in the city of Riga, because we expect that most employees want to return. And we hired so many that our existing offices that we lease would not be able to house all those team members.

Rob Goodman:

That's amazing. Yeah. I think so many people are looking forward to a time when they can meet, get together, bond in person. You can't replace that human connection we have when we see each other. So Davis, thank you so much for joining the show. It was really a joy to speak to you, learn more about Printful and your journey, and hear a little bit about the evolution of what's happening in print-on-demand eCommerce. Thanks so much for joining.

Davis Siksnans:

Thanks for having me.

Rob Goodman:

Thanks so much for listening and big thanks to Davis for joining us and sharing more of the Printful story. Some of the key moments that really stood out to me from this episode are how print-on-demand as an overall industry can help reduce waste and drive sustainability, because what may have typically ended up in a landfill as extra stock is now only being created and printed when a customer orders it, why it's valuable to load up your webpage with information for your customers, especially around sustainability practices. And for all eCommerce businesses, why it's critical to promote and share how they're printing, what kind of printers they're using, how items are produced? Because customers are now expecting that information and they're evaluating it as they make their purchase decisions. Why increasing communication to your workforce is so important during those times of crisis and change? This is all in order to assure your organization and teammates about how challenges are being addressed and what new practices are being implemented.

Rob Goodman:

You can learn more about Printful at printful.com and check out show notes, links, and more about Davis on our website at wix.com/nowwhat. Thanks so much for listening. This is Now What by Wix, the podcast about how technology is changing everything. Now What is hosted and produced by me, Rob Goodman, executive producer for content at Wix, audio engineering and editing is by Brian Pake at Pacific audio. Music is composed and performed by Kimo Muraki. Our executive producers from Wix are Susan Kaplow, Shani Moore, Omar Shai, and me, Rob Goodman. You can discover more about the show and our guests at wix.com/nowwhat. Be sure to subscribe and follow the show for new episodes, wherever you get your podcasts. And if you like what you heard, please leave us a review on Apple podcasts and share this show with your friends and colleagues. We'll see you soon.