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Posted on: November 10, 2022

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Are you looking for ways to expand your online business? Digital products are one of the easiest and quickest ways to make a passive income online. In this blog, I will discuss what a digital product is and 7 reasons why you need to start selling them online today.

What are digital products?

Digital products are products sold in a digital form. There are many types of digital products. For example, I sell digital pdf sewing patterns for my business Makyla Creates. Sharyn from Excel at Work sells online self-paced courses teaching people how to use Microsoft Excel. You’d probably be surprised to find what some people are selling online. Below are some forms of digital products.

Examples of digital products:

  • Planner pages
  • Printable labels
  • eBooks for recipes, how-to guides, or workouts
  • Teaching materials
  • Recipe binder pages
  • Social media templates
  • Spreadsheets for budgeting, finances, or reporting
  • Printable wall art
  • Online courses
  • PDF sewing patterns
  • Presets for photo editing
  • Stock images

How to incorporate digital products into your business

Digital products are a great way to share helpful information with your audience or customers. People love it when you solve a problem or make their life easier by teaching them something. There are many ways to incorporate digital products into your business, whether you have a client-based business or a blog.

For example, a client-based business like a nutritionist could sell a digital eBook for a healthy kickstart plan. It may include a list of healthy whole foods, a meal plan and tips. This is an excellent solution for customers who aren’t financially ready to pay for their services yet.

A blogger who shares many cookie recipes could create an eBook with 25 of their best cookie recipes. Readers who enjoy following their cookie recipes would love to purchase this digital product because they can print them out and keep them in their kitchen.

The benefits of digital products vs physical products

The most significant benefit of digital products is that they have fewer overheads to produce compared to physical products. You won’t require factories to manufacture your products or a warehouse to store stock. This also reduces the need for communication with other businesses or freight companies. When a digital product is made, you can sell it repeatedly without needing to ship, update inventory or keep on top of stock levels.

7 reasons why you should start selling digital products 

  1. Low overheads
  2. Profit margins are high
  3. Sell the same digital product repeatedly
  4. No stock management
  5. Simple selling process
  6. The online market is global
  7. Earn passive income

1. Low overhead costs

Persons hands typing on laptop with reporting open and budgeting notes

This is a game changer if you want to start a small business but have no budget. Digital products have little to no overhead costs to produce and sell. Of course, this depends on the product type you will be selling and the software you may need to make it. Compared to a physical product, the overheads are a lot less overall.

For example, I pay for a subscription to Adobe suite so I can design my sewing patterns and convert them into PDF files, plus Shopify to sell them. These two tools cost the same amount as selling five sewing patterns per month.

If you want to start completely free, you can use Canva to create an eBook or PDF and sell it through a platform like Etsy.

2. High-profit margins

Percentage sign with stacks of money notes and coins

Selling products in a digital form helps keep profit margins irresistibly high. Physical products have many reoccurring costs, but with digital products, these costs are negligible or non-existent, making the profit margin incredibly high. This is one of the significant benefits of selling digital products over physical ones.

3. Sell the same digital product

Women on her laptop selling digital files with a repetitive arrow sign

Once a digital product has been made, it can be sold repeatedly to different customers. No need to monitor stock levels or reorder items because the product is the same download or digital files.

This reduces many tasks that physical products often require, like shipping, brick-and-mortar shops, packaging, retail staff, and stock managers. Selling digital products also minimises the impact on our environment by reducing greenhouse gas emissions through manufacturing and shipping.

4. No stock management

Stock boxes in a pile with a red cross over top

As I mentioned, digital products don’t require any stock maintenance. Once a digital product has been developed, the same files can be resold many times. This is a game changer, especially for small businesses with limited time and resources. I still recommend monitoring the sale amounts of the product, but there's no need to keep track of stock as no reordering is required.

5. Simple selling process

Man holding his credit card and a hand grabbing it through a cellphone to pay online

Selling digital products online couldn’t be easier with all of the fantastic platforms available to us. There are free platforms like Etsy where you can open up a shop and begin selling digital products like planners, templates, CSV files for crafting, sewing patterns, and so much more.

Another option is to host your online store through Shopify or Squarespace, where you can use their themes and add plugins to build a suitable store format for your products. If you sell digital courses, we love Kajabi because the platform is reliable and secure.

Once your online store is set up, you can add digital products and start selling immediately. It’s common for all of these online stores to have automated systems to set up so that when a customer buys a product, it gets sent automatically to them after payment has been made. You can sit back and relax or spend your precious time working on new products to sell.

6. The online market is global

Red clock that is delayed next to a shipping box

Now more than ever, there are shipping delays. Some countries have closed off shipping to certain parts of the world to reduce pressure on their postal services—a significant benefit of digital products is that they don’t require any shipping. This reduces many problem areas like lost or delayed parcels and unhappy customers, increasing customer service requirements. You can sell globally without stress or added costs by selling digital products online on Shopify or Etsy.

7. Earn passive income

Woman asleep with her cat next to her laptop that is showing money coming out of the screen as passive income

The beauty of selling digital products is that they don’t require stocktake, reordering, shipping or retail staff. After the initial set-up of automation, the digital products sell themselves. This makes them a fantastic source of passive income. There is some initial work to create the digital product, but you could continue selling the same thing for years to come.

To Sum Up

As you can see, selling digital products is a no-brainer for many businesses or a great way to make extra money as a side hustle. Maybe you are in a job that doesn’t satisfy you. Why not use your passions or hobbies to develop an irresistible digital product so you can start earning a passive income? With very low start-up costs, digital products are worth giving a go!

I would love to know what digital products you want to sell online in the comments below!

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About the Author

Online business owner and online shop creator. Passionate about achieving work/life balance and living your best life.

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