the top benefits of selling digital products
nowadays, digital products are a popular option when you're looking at side hustles or passive income streams.
digital products are digital goods you create and sell online. they can take on a variety of formats, like ebooks, templates, planners, journals, spreadsheets, clip art, and more. it really can be anything that people can access online or by email (and even print if they want to).
so why would someone like yourself choose to sell digital products?
there are actually a ton of benefits to selling digital products, especially when compared to selling physical products.
let's talk about them. 👇
the top benefits of selling digital products
quick time to market
because of how simple it is to create digital products and get your online store or marketplace going, the time to market is incredibly fast. you can realistically get everything set up in at little as a day, but I would expect it to take a couple days to work out all the details, create all the accounts needed, and start working on your marketing plan. (p.s. it's even quicker when you use my starter kit)
plus you have the option to skip creating your own digital products. 👀
how? buy digital products that come with private label rights (PLR rights). legally, these provide you with the ability to buy a digital product, edit it to your liking, and resell it with your own branding as if you are the original creator of the product. when you buy a PLR digital product, you can make simple adjustments, versus creating a digital product from scratch. this will reduce the amount of time to get going. plus the person has done the research to know that this type of product does in fact sell.
global reach
with digital products, your products can be sold to customers from all around the world without any shipping restrictions. typically, physical goods have different shipping costs depending on where the item is being sent to. plus international packages are subject to customs and any related fees.
24/7 availability
because of the nature of digital products, your online store and your customers' ability to purchase your digital products is always available, regardless of the time, day, or timezone. you also don't need to be readily available for the sale of the good or have to be available after the fact.
instant fulfillment
you read that right - instant fulfillment!! when your customers purchase your digital products, they are delivered immediately after purchase (well as long as you have automation set up to deliver them, of course).
NO waiting time. NO tracking codes. the customer gets their items right away. this provides your customers with a smooth purchasing process.
and in the case that you plan to create and sell digital products that come with PLR rights (like some of my products), I use Canva to share editable templates with people, so I make sure to note you must have a Canva account to access the digital product. this is transparent and known prior to purchase.
zero physical inventory + unlimited inventory
since the item is digital, you're never at risk of running out of products and you don't have to have space to store any items either, unlike selling physical goods.
you literally just create the digital product once, add it to your store, and it is always available for purchase.
negligible return hassles
since there are no physical goods to get damaged, the process of handling refunds is greatly simplified. in fact, a lot of people, myself included, do not allow refunds for sales of digital products, so in my case, I will not need to handle returns at all. I do include information on how to get in touch in case someone has issues accessing the digital product.
less competition
the online market for selling digital products is far less crowded compared to selling physical products. the sooner you get started, the less competition you have immediately and the longer you have to build your credibility as the market grows.
low operational costs
without the need for physical storage or shipping, your overhead costs are significantly reduced.
some things you can expect to spend money on are a domain for your website, PLR digital products (if you don't plan to create your own), a website platform (like Shopify or High Level) or online marketplace listing (like Etsy), and related marketing and sales tools.
when combined, these should be pretty low cost, especially compared to a physical store or physical product which in many cases needs a dedicated location, shipping materials, and so much more.
enhanced profit margins
on a related note, digital products offer up the potential for nearly 100% profits with each transaction. once you've started generating income, everything beyond what you're spending on operational costs is pure profit.
but don't forget you still need to pay taxes on income generated from selling goods online!!
try to save about 30% off all sales to pay towards your state and federal taxes. I am not a tax advisor, so please seek guidance from a licensed tax professional for actual tax advice.
an eco-friendly business
by selling digital products, you're contributing to a more sustainable business model that doesn't rely on creating, using, or wasting physical resources.
with all these benefits of selling digital products, it's clear why people are taking financial independence into their own hands - creating their own suite of digital products for sale, and earning passive income while they live their best lives.
