A mass extinction of small, local resellers of 3D printers and filaments

The Atomic Layers: S7E20 (00198)

Atomic Layer of the Day:

Today, I learned that after 12 years, a well-known Polish reseller of 3D printers and filaments has sold their business and withdrawn from the industry. I also heard about serious troubles faced by two other major companies of this type in another European country. And as always in such cases, I spent a few hours talking to various AM people discussing the matter.

Let me put it this way: the recent reports about the price war initiated by Elegoo are just the tip of the iceberg.

Low prices of 3D printers and filaments have been driving resellers out of business for over a year—especially those specializing in serving individual customers and small businesses.

Yes, the dominance of Chinese companies has not only impacted OEMs and material producers, but it has also proven fatal for the retail sector. Only companies specializing in industrial applications and large distribution firms operating at a continental level will survive.

The era of friendly, local resellers is coming to an end, just as the time of passenger pigeons and dodos did before them.

Why did this happen? Contrary to what it might seem, the issue is a bit more complex than just "it's because of the Chinese lowering prices." I mean, that is part of it, but not the whole story.

As some of you might remember, 10-12 years ago, a spool of PLA or ABS cost around 25-35 EUR/USD. In Poland, for some reason, the price was lower from the very beginning. Local manufacturers' were always offering 1 kg spool for around 20 EUR/USD.

Of course, more specialized materials were always more expensive, but I am referring here to the most popular, entry-level ones.

This price level remained stable for a good decade and was comparable worldwide. Interestingly, the gradual drop in the price of desktop-grade FFF 3D printers (from MakerBot and Ultimaker to Prusa and Creality Ender 3) was not correlated with filament prices. The ratio of printer cost to the number of filament spools one could buy, kept decreasing.

Then suddenly, around 2022, there was an influx of cheaper filaments from China. At one point, the only recognizable brand was Polymaker, but after 2022, so many brands emerged that they overshadowed Western manufacturers.

Over time, those manufacturers began to either go bankrupt or withdraw from the business altogether, as in the case of Mitsubishi Chemical, Braskem, and BASF.

But consumers did not switch to these new products on their own. Someone had to help them.

That "someone" was YouTubers and 3D printing influencers on Instagram, Facebook, and Twitter (X).

The Chinese companies first sent them 3D printers for testing, then filaments and resins. And they promoted them. First, because it was part of the deal—you receive 10 kg, use 1 kg for testing, and the rest is yours.

Second, because they placed affiliate links everywhere they could—to AliExpress, GearBest, and Amazon.

People clicked those affiliate links and bought 3D printers, filaments, and resins.

It wasn't Alibaba that promoted its platform in the 3D printing space. It wasn't Jeff Bezos who positioned Amazon as the go-to marketplace for cheap 3D printing products.

Your favorite influencers did that.

They convinced you that it was worth trying and that there was nothing to worry about. Remember when they asked you to support them by shopping through their affiliate links because they earned money from it? And you did it because you believed they deserved it?

Well, that was part of a bigger plan—to eliminate local resellers and tie you to Chinese e-commerce platforms, making you shop directly.

And now, those small businesses are either already gone or will be by the end of this year.

Oh, and by the way—PLA, ABS, and PETG filament no longer cost 25-35 EUR/USD. They don’t even cost 20 EUR/USD anymore. Now they cost 10-15 EUR/USD.

Even if someone managed to maintain their 30% profit margin on filament, the math is brutal. Thirty percent of 10 is much less in real terms than 30% of 30. What was once somewhat profitable is now not profitable at all.

Post scriptum: the Polish reseller I mentioned at the beginning happened to be scum and deserved it. But many others... it's a shame.

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Atomic Layer from the Past:

02-20-2020: the owners of Arburg acquired German RepRap.

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News & Gossip:

1. Replique informed, that it has achieved ISO/IEC 27001:2022 certification for its Information Security Management System (ISMS), affirming its high data protection standards. Company was audited by TÜV Süd. Last year, it also earned ISO 9001 certification.

2. French bioprinting company Poietis turned into Poietis Biosystems. The company will advance its Poieskin application for burn patients and industrialize its bioprinters, already installed in Europe and the US. This comes after serious financial problems at the original company were revealed last year.

3. And we end with another strong hit from China! Creality has launched the Ender-5 Max, a large-format CoreXY 3D printer with a build volume of 400 × 400 × 400 mm and a printing speed of up to 700 mm/s. It features a robust aluminum frame, dual Z-axis motors, and double linear guides for precision. The printer includes a 36-point auto-leveling system, a flexible epoxy-coated build plate, and a 1000W heated bed supporting materials like PLA, PETG, ABS, and ASA. Equipped with a direct-drive extruder, filament detection, and power-loss recovery, it also offers a 4.3-inch touchscreen and Wi-Fi connectivity.
   
   Priced at €799.