Guide to Selling Digital Products
Digital products can be made once and sold multiple times. Learn about the most popular digital products and how to sell them. Entrepreneurs are building entire businesses around digital products. Digital items such as e-books, online courses, music, and custom templates can be easily sold and distributed online, and they complement physical products and services.
Learning how to sell digital products has the potential to generate passive income. Once created, digital products can be sold repeatedly to multiple customers without the need to replenish inventory. This makes digital products an ideal way for creators, bloggers, educators, freelancers, and others to make money online efficiently. If you’re one of them, learn how to create, market, and sell digital products online—including examples of the most popular digital products.
What is a digital product?
Digital products are goods that exist in digital form. These include e-books, music, digital art, software, online courses, and virtual goods sold within video games. They are typically delivered to customers via download or email, and provide a way to provide value without the need for physical inventory.
Why sell digital products?
Selling digital products has several advantages over physical goods:
- Low overhead costs: Digital products don’t require you to hold inventory or pay shipping costs.
- High profit margins: Digital products have few recurring costs, so you can keep most of the revenue from sales. Always calculate your profit margins before you sell your products.
- Automation potential: Orders can be shipped immediately without any additional supervision.
- Flexible Products: There are many ways to integrate digital products into your business, including offering free products to build your email list, paid subscriptions for exclusive content, and licensing for the use of digital products.
- E-learning is becoming increasingly popular: Online educators can use digital products to expand their business. The e-learning industry is expected to grow to $840 billion by 2030 .
Along with these advantages, digital products present some challenges to be aware of.
For digital products, consumers often have easy access to free alternatives, so it’s important to carefully consider your niche and write a product description that demonstrates the value of your product.
Digital products may also be more vulnerable to piracy than physical goods. You may need to utilize tools and security features to protect your products.
Where can I sell digital products?
Sell across multiple online sales channels to expand the reach of your digital products and expose your brand to more people.
- Start an online store: List your digital products, promote your brand, and post content that appeals to your audience.
- Promote on Social Media: Promote your digital products on social media and set up a social storefront where users can complete checkout while scrolling.
- Create a profile on a digital product marketplace: Create a profile on a marketplace to reach pre-built audiences within a specific niche.
However, some marketplaces can take up to 50% commission on each sale. To avoid seller fees, you may want to consider building your own online store.
10 Best Digital Products to Sell Online
- Online Course
- eBook
- Printable digital products
- Digital Templates and Tools
- Licensed digital content
- Premium Content Library
- Product Photos
- Music, Arts, Entertainment
- Digital Services
- Digital Membership
1. Online Course
Online courses are a great way to deliver in-depth content in a monetizable digital format. You can create presentations, record video lectures, or develop courses featuring subject matter experts.
Once created, a course can be taken by thousands (or even hundreds of thousands) of students, and only needs to be updated when the content becomes outdated or irrelevant.
When designing a course, start by visualizing the learning outcomes—what you want learners to know or be able to do when they complete the course.
Online courses can include quizzes, knowledge checks, and other interactive activities to break up passive learning content and increase engagement.
2. Ebooks
If your online course has been a source of knowledge, you can also package your expertise into an e-book. For example, How to Cake It sells a digital cookbook along with its online course, making it easy to scroll through and bookmark while baking.
E-books are a digital format familiar to readers and can be accessed on e-readers, computers, or mobile devices. Before deciding on a topic, do some research on how much free content exists on that topic.
If you already have a lot of blog posts or YouTube tutorials that your readers can access for free, you need to differentiate your content with a unique selling proposition (USP).
The USP of an e-book may be your reputation as an expert or successful figure in your field. Or it may promise to explore a topic in greater depth and breadth than existing free online content. Or it may position the book as an essential resource for readers who want to advance in their field.
Also, keep in mind that most e-books are competitively priced and may include some sections that can be downloaded for free to drive more sales.
3. Printable digital products
This digital product category offers a wide range of possibilities for printing at home. These range from custom wall art, planners, and greeting cards to special models for 3D printers or designs for craft activities. Customers can download the designs and print them for personal use or as part of their craft activities.
Printable coloring pages and worksheets for young people are popular products that combine fun and learning. For example, digital download brand Caravan sells coloring posters as downloadable files or printed materials that are shipped to you.
4. Digital Templates and Tools
Digital products also come in the form of tools, helping professionals do their jobs faster and more efficiently. For example, you can sell digital solutions that solve problems in common tasks or roles, such as video editing.
These tools can be standalone apps or items that can be used in conjunction with other digital software. For example, RetroSupply Co. sells brushes, textures, and templates that designers can use in popular programs like Procreate and Photoshop. (They also offer online courses and e-books, by the way.)
Other digital tools and template products that you can sell online include:
- Digital Marketing Strategy Template for Entrepreneurs
- Resume Templates for Job Seekers
- Mobile Apps for Business
- Graphic design templates for brochures, flyers, posters, etc.
- Adobe Photoshop Filters and Plug-ins for Media Editors
- Icons, fonts or UX kits for web designers
5. Licensed digital content
Licensable digital assets uploaded by creators around the world, including stock photos, videos, music, and sound effects, are available for other creators to use in their work.
Licensing your content for personal and business use is a way to generate income from your creations. After investing in creating high-quality video transitions or background music, you can earn royalties as long as the content remains popular.
You can sell licenses in your store, similar to how EditStock sells licenses for students, or you can sell them through online marketplaces like stock photo sites.
When brainstorming asset ideas, think backwards from the needs of your target audience. Consider first what type of content is in demand and what market needs are not being met by existing creators.
Especially if you sell photos online, it's important to protect your digital products with watermarks and other security measures.
6. Premium Content Library
If you’ve had success with online courses, e-books, or content licensing, one way to take it even further is to bundle your creations. You can offer full access to your entire digital product catalog for a monthly or annual subscription fee, or you can sell it for a one-time fee.
For example, Snowboard Addiction is a monetized platform for all things snowboarding. Not only can customers shop for snowboarding gear, they can also download tutorials and sign up for live online classes.
One advantage of a subscription-based business model is that it can create a motivated and active community. Subscribers can be potential customers for new content you create, and can be a great resource when considering your strategy.
Additionally, since your library is available only to paid subscribers, you may also want to consider hosting exclusive content, such as live streaming and Ask Me Anything (AMA) sessions.
Shopify lets you sell digital product subscriptions using its subscription payments app, allowing you to generate recurring revenue and build a loyal community.
7. Product Photos
If you’re a photographer, selling your services online can be a profitable business. Thanks to the growth of e-commerce, the demand for professional product photography is greater than ever.
Product photographers can identify the features of a product that are most likely to interest shoppers and highlight those features in their photos. Other tips for taking high-quality product photos include investing in a good tripod and learning how to create the right lighting environment.
Like other digital products on this list, product photography can be sold through a website, an agency, a marketplace (unless you have an exclusive contract), or a combination of all three. When selling your services, consider offering different packages based on the number of photos, type of product, and specific style and settings. This will allow you to cater to different needs and attract more potential customers.
8. Music, Arts, and Entertainment
Digital product ideas don’t have to be practical. If you’re a musician, artist, or content creator, you’ve likely already explored ways to monetize your talents online through these or similar methods:
- Crowdfunding platforms: Platforms like Patreon allow fans to support creators by earning rewards for exclusive content.
- Online Galleries: Online galleries like Saatchi Art are a great place for artists to purchase their work.
- Social Media: Upload or stream content to earn advertising revenue, sponsorships, audience tips, and build a following.
Beyond artistic and entertainment content, there is the world of merchandise and branded digital products. For example, people who like a particular podcast or album may be interested in products that include designs that reference that art.
You can use a print-on-demand company to create branded products and sell them on your Shopify store, without having to pay manufacturing costs until a sale is made.
This form of digital product sales often works best in specific niches. For example, Materia Store sells digital sheet music for popular video game soundtracks. In this way, digital products targeted at specific markets can be effective in building a fan base and creating a sustainable revenue stream.
9. Digital Services
Digital products and services are a great fit. For example, a designer can offer a logo creation service with downloadable templates. A personal trainer can offer live personal training sessions to their workout subscribers. Similarly, digital or real-life services can be offered as an additional service to an online product.
For example, you could sell consulting services along with personalized reports or Excel spreadsheets. Or you could offer a free downloadable product to generate leads for your email marketing list. This is a strategy used by many online businesses.
If there is a task that you normally perform in your service business, you may want to consider separating it into a product and creating additional revenue streams. This will add value to your service and promote revenue diversification for your business.
10. Digital Membership
Digital membership is like a golden ticket to an exclusive community built around a brand or content. Members of a digital club can gain access to premium content, the opportunity to purchase limited edition merchandise, or tickets to events.
Other digital membership clubs offer networking benefits. For example, Nomad List is a global network for digital nomads, offering members benefits such as connecting with other nomads, city data, and trip planning features.
However, as the trend of token-based projects shows, digital communities do not necessarily have to be centered around tangible items or services. Membership in an open community can itself be valuable. For example, digital projects like Bored Ape Yacht Club use blockchain technology to provide membership certificates and grant privileges without any specific purpose.
When designing your digital membership experience, focus on creating a sense of exclusivity. The goal is to provide ongoing value to your members and make potential customers feel like they’re missing out. This strategy can help increase the appeal of your membership and strengthen your community.
How to create and sell digital products
1. Find or create digital products
Find and sell digital products. You can create your own digital products or become an affiliate partner for an existing creator. Popular digital products include:
- Entertainment content
- music
- Font
- Design Assets
- Photoshop Presets
- Template
- Software and Plugins
- eLearning course
- Other online services
Product Brainstorming
When generating digital product ideas, don’t be too critical—the key to brainstorming is to avoid overthinking. If you’re looking for downloadable product ideas to sell online, ask yourself these questions:
- Can you teach your customers how to use your product? For example, if you sell knitting products, you could offer to teach advanced knitting techniques.
- Is there anything you can do to help your customers with the overall industry? If you sell surfboards, you can create a workout program to help your customers get in shape for surfing at home.
- What are some relevant topics based on the values you built your business on? For example, if you sell sustainable clothing, you could create a course that teaches your customers how to live more sustainably.
- How can you gather a community of customers? If you sell kitchenware, you could host a virtual wine tasting event.
- What are you good at? For example, if you are good at taking product photos, you can teach others how to take good product photos.
2. Product Verification
Validate your idea before investing too much time in it. The last thing you want to do is invest a lot of time or money into a new venture without knowing if it has a good chance of success.
Here are some ways to validate your idea as you figure out how to sell digital products:
- Keyword Research : Use keyword research tools to see how often people are searching for specific topics. This will help you determine the size of the opportunity for each topic.
- Google Trends : Search for topics on Google Trends. Look for topics that are gaining interest, which means the opportunity size will continue to grow.
- Facebook Groups : There are Facebook groups dedicated to every niche and target audience, which can help you learn what your potential customers value.
- Industry Forums : Forums dedicated to hobbies and communities help people learn more about what they want and need across industries.
- Product Reviews : Get ideas by reading product and competitor product reviews. These reviews can come from reviews on product pages as well as independent reviews on blogs and other websites.
- Start small and iterate : The easiest way to validate an idea is to experiment with small versions of the idea that you can grow. The goal is to get something out into the world as quickly as possible, test the idea, and improve from there.
No matter what industry you're in, you have unique strengths and knowledge that can be valuable to your customers and help you sell digital products.
3. Create an online store
After validating your digital product idea, secure an e-commerce platform to sell it on.
Create and launch a website to sell your digital products in a matter of hours. Choose from a catalog of website templates, fill in your logo, copy, and images, and you’re ready to start selling.
Shopify is the easiest and most reliable way to create an ecommerce store for your online digital products. No skills or big budget required, choose from over 100 templates and get set up quickly with built-in features.
also, Shopify has over 4,000 free apps that you can use to manage your store and sell more digital products online. Apps make it easier to deliver your digital products. Browse the app store to find apps that can do a variety of things, from hosting course content to offering PDF purchases.
4. Digital Product Marketing
Once you have your digital product and online store in place, it’s time to find your customers. If you sell fonts or design templates, build an audience for designers and creatives on the social platforms they use the most. Also consider influencer marketing, social advertising, and lead magnets.
8 of Sell digital products with the Shopify app
- EDP - Easy Digital Products . EDP is a popular app for selling downloadable files and license keys from an online store.
- Filemonk . Filemonk is An app designed to make it as easy as possible for Shopify merchants to sell branded digital products.
- SendOwl . For more complex digital product businesses, SendOwl offers a variety of automation features.
- Courses . this The Shopify app lets you create courses, tutorials, webinars, and manuals and sell them online.
- Single . Perfect for musicians selling music, Single bridges the gap between physical and digital music sales.
- FetchApp . FetchApp is another digital download delivery app that offers a free plan (which gives you 5 MB of storage).
- Sky Pilot . Useful for building membership programs, this app lets you sell files and exclusive video streams to your customers.
- BookThatApp , Tipo , or Sesami . These apps allow you to schedule consultations or coaching sessions with your clients. All three apps offer free plans.
Others for protecting and operating digital products Shopify App:
- RecurrinGO! . This app is for weekly or monthly subscriptions. You can use it to automate recurring orders, invoices, and digital subscriptions for online memberships or programs.
- Disable Right-Click . If your content is a product, this app can protect it from theft. You can lock images and text to prevent them from being saved or copied without permission.
reference: When creating a digital product in Shopify , be sure to uncheck the “This is a physical product” option.
Sales and Marketing Tips for Selling Digital Products
Whether you’re a new business selling digital products for the first time or adding digital products to your existing store, keep these tips in mind:
Create great digital products
The most important criterion when creating a digital product is to add value to the lives of your customers. You have to compete with free content on the web, so invest in creating a unique product that can’t be found anywhere else.
Promote your free lead magnet
Regardless of the price of your product, offer a lightweight version of it for free. Free products help build your email list, which can then be used to generate sales. It also opens up opportunities to offer various promotions to potential customers through upselling and retargeting. Free products help build trust between your business and potential customers.
Start an affiliate program for your product
Affiliate marketing provides huge traffic and sales to creators who sell digital products. Find trusted influencers in the industry and offer them a commission for each sale they make. You can set different commission rates for different affiliates, so you can offer a higher commission rate to those with a large audience to promote more and attract more customers.
Get your pre-order now
A great way to secure sales early on is to offer a discounted “early bird” price. When you launch a new digital product, offer 50% off to the first 100 buyers, 25% off to the next 100, and then release the product at regular price after the 25% discount ends.
Offer a money back guarantee
You may be hesitant about offering a guarantee on your product. Some people may buy the product, use it, and then ask for a refund. However, this is part of running an online business. The rewards of a high conversion rate are greater than the few people who take advantage of the policy. A money-back guarantee gives potential buyers confidence that the risk is borne by you, not them.
How to create the best digital products
Since there is no need to hold inventory and there are no overhead costs associated with selling physical products, any type of digital product can be a profitable online business idea.
There are endless ways to create, sell, resell, and integrate the best digital content into your business. With a little creativity and an initial investment of time, you can provide compelling value that will pay for itself over time.
Digital Products FAQs
What are some examples of digital products?
- Online Courses and Webinars
- Kindle eBooks
- Audiobook
- Software program
- Web elements such as Shopify or WordPress themes
- prints
- Membership site
- Workbook
- Powerpoint Templates
How do you create digital products?
- Brainstorm digital product ideas.
- Study your buyer's problems.
- Validate your ideas with keyword and trend research.
- Create digital products.
- Create a Shopify store.
- Build your audience and market your digital products.
Which digital products are in demand?
- Educational products such as e-books and online courses
- Exclusive Membership Community
- Digital Templates and Tools
- Recycled music or art
- commercialized services
- Digital Asset Use License