How does Gelato work : Let’s have an in-depth look into the Gelato Business Model

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how-does-gelato-work-blogGelato is a software company that offers customized print products for global e-commerce sellers. It is headquartered in Oslo, Norway. The company doesn’t own any fixed assets, instead they build software. Today, Gelator represents the world’s largest network of printers and logistics options. It produces personalized print products in 33 countries, reaching more than 5 billion customers. Today, we will be discussing the Gelato business model to understand the work process and revenue system of the company. In the end, you will get a brief answer to the question- “How does Gelato work?”. So, keep reading till the end to get the most out of it.

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Gelato Business Model

Gelato is a fully integrated solution for customers looking for customized print products globally. It offers everything from selling, producing, and delivering customized print products globally and on-demand. It powers print production for creators, entrepreneurs, and global enterprises who are looking for a fulfillment partner for selling customized products online to global customers. The company works with mid size businesses, small businesses, startups, enterprises, freelancers, non profit organizations, and government.

Before founding Gelato, Henrik Muller-Hansen was the CEO at Tele2 Norway. Tele2 Norway was a $400 million telecom company and the Gelato’s team is built with people from telecommunication and technology background. This shows how much the company is prioritising technology in its working environment which adds value to their business.

Product categories at Gelato

  1. Apparels
  • T-shirts
  • Hoodies
  • Sweatshirts
  • For Kids
  • For Babies
  1. Wall Arts
  • Posters
  • Framed Posters
  • Posters with hangers
  • Canvas
  • Aluminium prints
  • Acrylic prints
  • Foam prints
  • Wood prints
  1. Mugs
  2. Photo books
  • Soft cover with photo books
  • Hard cover with photo books
  1. Cards
  2. Calendars
  3. Notebooks
  4. Stationary and business
  • Business Cards
  • Flyers
  • Single fold brochures
  • Multi page brochures
  • Roll fold brochures
  • Accordion fold brochures
  • Folders
  • Letterheads
  • Roll ups
  1. Tote bags

Places where Gelato serves

Here is the list of all the 33 countries where Gelato is serving today:

America

  • Brazil
  • Canada
  • Chile
  • Mexico
  • USA

Europe

  • Austria
  • Belgium
  • Czech Republic
  • Denmark
  • France
  • Germany
  • Greece
  • Ireland
  • Italy
  • Netherlands
  • Norway
  • Portugal
  • Spain
  • Sweden
  • Switzerland
  • United Kingdom
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Africa and Middle East

  • South Africa
  • Turkey
  • United Arab Emirates

Asia and Oceania

  • Australia
  • China
  • India
  • Japan
  • Malaysia
  • New Zealand
  • Russia
  • Singapore
  • South Korea

Impact of COVID-19 on Gelato’s growth

Impact of COVID-19 has been unsurprisingly positive as it enables Gelato’s API service to benefit and grow with a high success rate. When shops came into a complete lockdown, people started taking business online, and that’s where Gelato came into the picture. This particular platform has successfully enabled various eco-conscious companies to localise production and in doing so, they have played a commendable role in reducing carbon emissions, achieving faster delivery, and supporting local businesses.

The Gelato software enables the new generation of entrepreneurs and e-commerce store owners to produce, sell, and deliver high quality fully customized products anywhere around the world without worrying about managing orders, inventory, or international shipping. Additionally, there’s one more major plus point of using this platform i.e there is no requirement of investing a huge expense in buying machinery. By removing all these complications, e-commerce sellers can now focus on choosing the products from Gelato’s product catalogue that they wish to sell, apply their own design using the design tool, and finally display on their online store in an appealing way. When a customer makes a purchase through the e-commerce website, the order is automatically transferred to Gelato (if the online store has Gelato’s API integration) for fulfillment. As the orders are placed on demand, sellers only place orders when they have orders from their customer side which reduces both waste and cost.

Top 10 Gelato’s competitors

  1. Printful
  2. Printify
  3. CustomCat
  4. SPOD
  5. T-Pop
  6. Gooten
  7. Printy6
  8. JetPrint
  9. Teelaunch
  10. Teefury

Features of Gelato’s shipping and delivery

Gelato is the safest, fastest, and the most reliable way for your online business to deliver customized print products. Here are the few features of Gelato’s shipping and delivery:

  1. Reliable & Resilient: Gelato is a highly reliable platform as it delivers all products to customers safely and on time.
  2. Satisfied customers: Product’s high quality and complete order tracking satisfies the customers.
  3. Transparent pricing: The order management is easy and transparent at Gelato. When you manage your orders through the platform, prices include all taxes and shipping costs.
  4. Good for the planet: It helps in reducing shipping distances and carbon emissions, making your production more environment friendly.
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How does Gelato work?

According to Gelato estimates, by 2025, the market of customized products is expected to grow from $230 billion to more than $320 billion. This estimate charges various creators and entrepreneurs who want to sell or are selling customized products online. Many e-commerce websites like Shopify, Etsy, Woocommerce have now come up allowing people to start their own online store easily. This creates a huge space for POD businesses to exist in the market. Platforms like Gelato allows companies and startup owners to instantly reach customers globally through local production and distribution anywhere, anytime. Gelato gives an opportunity to business owners to scale up their business globally without any upfront, manufacturing, inventory, and logistics costs while achieving the profit margins on the products.

Gelato is on a mission to empower Print-on-Demand e-commerce businesses globally and create an economy to serve any customer with any customized product.

The problem: The traditional way of product manufacturing and distribution of customized products has still not changed in many areas. Products are still being sold and distributed whole across the planet. The transport industry is alone causing 25% of total global emission and because of this people tend to overproduce the products. The leftovers end up in the landfills which further contributes to the already existing problem of global waste and harmful emissions.

The solution: Gelato offers its software to local producers and an efficient delivery network offering a solution to startups and businesses to speed up delivery times in a cost-efficient manner, reduce global waste, and reduce carbon emission.

Integration with Optimalprint

Optimalprint was launched in Norway in 2007. It is one of the leading photo products brands in the world. The company is using Gelato to fulfill all orders in 24 countries. It has become a consumer brand of Gelato Group.

Optimalprint sells customized products such as books, cards, t-shirts, wall arts, etc to customers. Integration with this company has led Gelato to perfectly handle millions of micro orders and expand into a global e-commerce business. With this, Gelato has been successful in growing its network of local production partners across the world by serving a large customer base. The use of Gelato’s API solutions empowered Optimalprint to meet its growing customer demand.

Optimalprint is Gelato’s largest customer and is the reason behind the success it (Gelato) has gained today. This company taught the Gelato Group how to successfully handle millions of orders and gain customer satisfaction in as efficient a way as possible.

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Order management made easy

Gelato’s API portal is the control panel for Gelato’s business partners (businesses who chose Gelato as their fulfillment partner). The company has developed an easy & accessible option for them to manage their orders, production, and delivery of customized print products in the API portal.

Features:

  1. Easily modify the prices: Gelato allows its customers to maximize profits by keeping their pricing extremely competitive. Prices can be modified as per one’s profit convenience and one is charged only while placing an order.
  2. Expand product offerings: Gelato gives numerous product offerings to its customers. With its API portal, one can easily enable or disable new/ old products to refresh content.
  3. Robust editing tools: Gelato has built robust layering and position tools to ensure the designs look best in the end.
  4. Order history and tracking: Order history is easily accessible through the platform to keep the customer updated on current production and deliveries.
  5. Product catalog: Gelato has thousands of products and formats to choose the ones that can make your design come alive.
  6. Fast and efficient delivery: Gelato guarantees its delivery within 72 hours. Their local production makers make the delivery reliable, fast, and efficient.

Who are Gelato’s investors?

According to Crunchbase, Gelato has successfully raised a total amount of $269 million in funding over 4 rounds. The company has a total of 7 investors, namely, Dawn Capital, Insight Partners, SoftBank Vision Fund, John K. Hepburn, Goldman Sachs Asset Management, Tellef Thorleifsson, and SEB Pension Fund. Out of these, Insight Partners, SEB Pension Funds, and Dawn Capital are the 3 leading investors.

Dawn Capital and Insight Partners are the most recent investors of the company. The company received their latest funding on Aug 16, 2021 from Venture- Series Unknown round.

Conclusion

If you are willing to launch an on-demand printing and fulfillment services providing platform similar to Gelato, Ncrypted Technologies has the right solutions developed by our capable and innovative workforce. We offer customized and innovative features as per your requirement to let you launch a successful on-demand printing and fulfillment services providing platform.

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