People typically associate ecommerce with physical goods (cue the endless parade of delivery boxes). But there’s a growing market for digital products like music, ebooks, online courses, and custom templates. These products are gaining popularity due to their ease of distribution and potential for high margins.
Selling digital products offers a chance to earn passive income. Create them once and sell them over and over without worrying about inventory. This means more time to focus on creating new content and reaching new customers. It’s an ideal setup for creatives, educators, and freelancers looking to expand their reach and boost their income.
If all that sounds exciting, here’s a guide on how to create, market, and sell digital products online, along with examples of the top digital products
What is a digital product?
Digital products are intangible assets or media that you can distribute online without the need to source or manage physical inventory. These products are often delivered in downloadable or streamable formats, such as PDFs, MP3s, videos, software, or templates.
Benefits of selling digital products
- Save time: When selling digital products, you don’t need to source or manage inventory. You also don’t have to deal with shipping and logistics.
- Save money: Sourcing, storing, and shipping physical products costs money—as does managing inventory. With digital products, you can avoid these overheads entirely.
- Scalable: Digital products are infinitely scalable. There’s very little difference between delivering 10 units per day and delivering 10,000 units per day. (However, as you scale, you’ll need to hire more customer service specialists and upgrade your website to handle the additional traffic.)
- High profit margins: Without the need to purchase and manage physical inventory, the profit margins on digital products are considerably high.
- Automation potential: It’s relatively easy to automate digital product delivery, which allows you to focus on growing your business.
- Flexibility: At any point, you can create new products or change the way you sell your products. For example, you may decide to give a digital product away to build your email list or sell a monthly subscription to access multiple products.
- Opportunity: The demand for online learning is at an all-time high, with more people seeking flexible and accessible ways to gain new skills. As such, there’s a huge opportunity for educators to expand their reach and grow their businesses.
The drawbacks to selling digital products
- Competition: It’s relatively easy to start selling digital products, so the competition can be tough. Plus, whatever you plan to sell, you’ll likely be competing with others offering similar content for free.
- Piracy: Thieves can easily steal and resell digital files, so you’ll need to take precautions.
Where to sell digital products
You have three main channels for selling digital products: your own online store, social media platforms, and digital marketplaces.
- Build your own online store: Use an ecommerce platform like Shopify to create a storefront. Add apps to manage and sell digital products.
- Leverage social media: Promote your digital products directly to your followers. Use built-in shopping tools or link your Shopify store for easy access.
- Join digital marketplaces: Set up a profile on a niche-specific marketplace. Benefit from reaching a ready-made audience eager for your type of products.
Keep in mind, some marketplaces charge up to 50% commission per sale. You can avoid these fees by setting up your own store to showcase and sell digital products.
11 best digital products to sell online
- Online courses
- Ebooks
- Licensed digital products
- Tools and templates
- Product photography
- Printable digital products
- Digital services
- Digital memberships
- Music, art, and entertainment
- Premium content libraries
- Interactive journals and planners
1. Online courses
Online courses are a great way to share detailed content and make money. You can create a slideshow, record a video tutorial, or design a course with experts talking about their fields.
Once you create it, your course can reach thousands of students. You only need to update it if the information gets old or less useful.
Start planning your course by thinking about what you want learners to achieve. What should they know or be able to do after finishing your course?
Online courses can have quizzes and activities to make learning more fun and keep students interested.
2. Ebooks
Ebooks are a popular format that people can read on an e-reader, computer, or phone. You can write an ebook about anything, but before you choose a topic, check how much free content is already out there.
If there are lots of YouTube videos or blog posts on your topic, you’ll need to think about how to make your ebook unique. You could share your personal insights or expertise to give it an edge. Offer a deeper look into the subject than what’s available for free. Present your ebook as the essential guide for anyone wanting to learn more.
Keep in mind that most ebooks are priced low, so including a free chapter can attract readers and increase sales.
3. Licensed digital products
Whether it’s stock photos, music tracks, or video clips, there’s a world of digital goodies that creatives make for others to use.
Licensing your content lets you earn passive income from your creations. Put effort into making high-quality video transitions or background tracks. Then earn revenue as long as they remain popular.
You can sell licenses directly from your own store, similar to how other platforms sell licenses to individuals. Or, you can use online marketplaces like stock photo sites to reach a wider audience.
When coming up with asset ideas, consider what your target audience needs. Identify what content is in demand and where other creators aren’t meeting those needs.
Pro tip: Use watermarks to protect your digital products. Consider adding password protection for files or limiting downloads to prevent unauthorized use. These measures help ensure that only paying customers access your content.
4. Tools and templates
Digital products can also be tools that help people do their jobs faster or better. You can sell digital solutions for tasks like project management or graphic design that streamline workflows and save time.
They might be standalone apps or items that integrate with existing software. For instance, companies sell plug-ins and templates for programs like Microsoft Excel and Adobe Photoshop.
Other digital tools you can sell include:
- Résumé templates for job-seekers
- Mobile apps for businesses
- Graphic design templates for brochures, flyers, and posters
- Digital marketing strategy templates for entrepreneurs
- Icons, fonts, or UX kits for web designers
- Adobe Photoshop filters and plug-ins for media editors
5. Product photography
If you’re passionate about product photography, offering your services online can be a profitable venture. With ecommerce expanding rapidly, there’s a high demand for quality product photos.
Skilled photographers know how to showcase a product’s best features to captivate shoppers. Using a solid tripod and setting up proper lighting can significantly improve your shots.
You can sell product photos on your own website, through agencies, or on marketplaces, unless bound by exclusivity agreements. Consider offering different packages based on photo quantity, product types, or specific styles to cater to various client needs.
6. Printable digital products
This type of digital product includes a variety of print-at-home options, such as personalized wall art, planners, greeting cards, and 3D printer models. Customers can download these designs to print for personal projects or crafting needs.
For a younger audience, printable coloring sheets and educational worksheets offer a blend of entertainment and education. For example, the digital brand PrintJoy offers downloadable coloring books and printable activities for kids.
7. Digital services
Services and digital products make a perfect match. An illustrator might offer personalized artwork alongside digital print sets. Similarly, a chef could provide live cooking classes as a supplement to their online recipe collection. You can offer services—both digital and in-person—as value-added components to your online business.
For example, you might include coaching sessions with a detailed action plan or a customized spreadsheet. Another approach is to offer a free downloadable product to attract leads for your email list—a tactic many ecommerce businesses use.
If your service business involves tasks you frequently perform, consider packaging them into standalone offerings that can be sold as part of a monthly or yearly subscription. Doing so will generate additional revenue streams for your venture.
8. Digital memberships
Digital memberships offer entry into an exclusive community focused on your brand or content. Members might gain access to premium content, limited-edition merchandise, or event tickets. These memberships create a sense of belonging and exclusivity that draws people in.
Some memberships provide networking opportunities. For instance, Remote Year provides location-independent workers a platform to meet others and access travel resources.
When building your digital membership, emphasize exclusivity and ongoing value. Make members feel special and entice potential clients with the fear of missing out.
9. Music, art, and entertainment
Digital product ideas don’t have to be strictly practical. If you’re a musician, artist, or content creator, you’ve likely explored ways to make money from your talents online.
To grow your audience, upload content on social media platforms for ad revenue, sponsorships, and viewer tips. For artists, sites like Etsy can connect you with buyers for your creations.
Crowdfunding sites like Patreon let fans support creators in exchange for exclusive content and experiences.
Beyond creating art and entertainment, consider offering merchandise or branded digital products. Fans of a particular show or album might want products featuring artwork or quotes from their favorite pieces.
Print-on-demand services allow you to sell branded merchandise through an online store without upfront costs, as items are produced only after a sale is made.
10. Premium content libraries
If you’ve successfully sold an online course or ebook, consider bundling your offerings to expand your business. Offer full access to your digital product library for a monthly or annual subscription—or as a one-time purchase.
For instance, Wargames Delivered is a premier destination for aspiring wargamers. Customers can buy miniature supplies, download instructional videos, and enroll in live workshops.
A subscription-based model helps build an engaged and loyal community. Subscribers become your top prospects for any new content and can offer valuable feedback as you plan your next steps.
With a subscription, you can provide exclusive content like live Q&A sessions or private webinars. You can easily sell digital product subscriptions on platforms like Shopify with the help of subscription billing apps.
11. Interactive journals and planners
Interactive journals and planners are digital products designed to help users organize their thoughts, set goals, and track progress. They offer customizable templates that can be tailored to individual needs. You can create interactive PDFs or apps where users personalize layouts, themes, and prompts.
Sell these planners as downloadable products or through a subscription service that offers regular updates and new templates. You can also bundle them with other productivity tools, such as task management apps or habit trackers, to provide a comprehensive planning solution.
How to create and sell digital products
Now that you understand the types of digital products you can sell online, how can you get started? Here’s an 8-step process that you can follow to create and sell digital products online.
1. Choose or create a digital product
Identify a digital product to offer your audience. You can create your own or partner with existing creators as an affiliate. Popular digital product categories include:
- E-learning courses
- Software and plug-ins
- Design assets
- Photoshop presets
- Templates
- Entertainment content
- Music
- Fonts
- Various online services
Brainstorm and research
When brainstorming digital product ideas, don’t overthink or be too critical. You can always develop a “bad” idea into a good one. And remember, you don’t have to be an expert to create a digital product—you just have to offer value in some way.
Here are some questions that may help you come up with ideas:
- What knowledge, skills, or experience do you have that you could teach others?
- What are your interests or passions—what can you talk about all day?
- If you already have a business, can you create digital products that support your physical products? For example, if you sell skateboards, could you make an online course teaching people how to improve their skateboarding skills?
- What are your values? Can you teach people how to implement those values practically? For example, if you’re very environmentally conscious, can you teach others how to live a more sustainable life?
Once you’ve finished brainstorming, do some research.
Start with your current ideas and see what other people are selling online. Search on Google and social media platforms. Check out Facebook groups, Reddit subreddits, and industry forums.
Thoroughly explore each idea to see if there are variations or additional ideas that you can add to your list.
2. Niche down and define a target market
Setting your targets on a defined target market allows you to:
- Cater your digital products to the specific needs of your niche, making them more compelling and valuable.
- Tailor your marketing communications to your target market’s particular needs, desires, and even language, allowing your messaging to hit home harder.
- Become the go-to expert in a very small niche, which will enable you to build authority and dominate the competition.
So, niche down. For instance, instead of teaching people how to get fit, perhaps you could teach injured people how to work out safely. Or maybe you could show moms how to get fit and increase their energy with home workouts they can do with their kids.
3. Validate your idea
You don’t want to pour your heart and soul into creating digital products that don’t sell. Before creating your first digital item, make sure to validate your idea.
Start with some basic research:
- Join Facebook groups relevant to your niche. They offer insights into what potential customers care about and discuss frequently.
- Explore forums related to your industry to discover customer needs and desires. These communities offer valuable info into common pain points.
- Analyze reviews of your products and those of competitors. Feedback on product pages, blogs, and other websites can reveal customer preferences.
- Use Google Trends to track the popularity of your topics. Focus on those with growing interest for expanding opportunities.
- Use a keyword research tool like Keywords Everywhere to determine the search volume for your topics. This helps assess the market size for each idea.
- Test a smaller version of your idea to validate it. Launch quickly to gather feedback, then refine and expand based on customer responses.
Then, create a minimal viable product, or MVP, to test your digital product idea in the real world.
For example, instead of building an eight-week video course on how to get fit, start by offering online fitness coaching. This way, you can test your product-market fit without investing too much time.
5. Create your digital product
Once you’ve validated a winning idea, it’s time to create your digital product. If you haven’t already, you’ll need to choose a format.
If possible, choose a simple format at first—you can always improve your digital products as you learn more about your customer’s needs and desires.
For example, if you’re planning to offer an online workshop with a companion ebook, you might begin by launching a basic webinar first. You can create the ebook alongside the webinar and gradually add more interactive elements as you gather feedback and understand what your audience values most.
6. Create an online store
Now that you’ve created your digital product, it’s time to build an online store to sell it.
Shopify is one of the easiest and most reliable platforms for launching an online store for digital products. You can quickly set up a professional-looking store without needing any technical skills or a big budget. With more than 100 customizable templates, you can choose a design that fits your brand. Just add your logo, images, and product descriptions, and you’re ready to start selling.
Shopify also offers more than 4,000 free apps that can help you manage your store and boost sales. These apps simplify the delivery of digital products, allowing you to offer everything from downloadable PDFs to video courses.
7. Market your digital products
When it comes to promoting your digital items, you can leverage several channels to get them in front of potential buyers.
Social media
Social media is a great way to reach a big audience. Platforms like Instagram and TikTok let you show off your digital products with fun videos and images. For example, if you sell digital art, post time-lapse videos of your creative process. You can also use Pinterest to share visual content that links back to your store.
Marketplaces
Platforms like Etsy and Gumroad are ideal for selling digital products. Etsy is popular for digital art, printables, and crafts, allowing you to reach buyers looking for unique creations. Gumroad is great for creators selling ebooks, music, or courses, providing easy payment and delivery options. These marketplaces have built-in audiences and tools to help you manage your sales effectively.
Online communities
Join online communities or forums related to your niche. If you sell software, participate in tech forums or groups. Share advice, answer questions, and subtly mention your products when relevant. Being active in these communities helps you build relationships and promote your products naturally.
Bonus tips for selling digital products
Whether you’re just starting out or expanding your current store with digital products, consider the following tips:
Create a free lead magnet
No matter what your product costs, make a simple version for free. This freebie helps you gather email addresses of people who might buy later. It also gives you a chance to upsell and retarget them with other deals.
Have a unique USP for your product
When creating digital products, focus on adding real value to your customers’ lives. Because you’re up against free content on the web, it’s important to create something unique. Focus on developing a product that offers something they can’t find elsewhere.
Launch an affiliate program for your product
Affiliates can drive a lot of traffic and sales for those selling digital goods. Look for influencers who are well-known and respected in your niche and offer them a commission for every sale they bring in. You can set different commission rates for different partners. For instance, offer a higher rate to affiliates with larger audiences to encourage them to promote your product more and reach more potential buyers.
Provide a money-back guarantee
Offering a refund policy might seem risky, and it’s understandable to feel hesitant. Some customers might take advantage and request a refund after using your product. However, this is part of doing business online. The benefits, such as increased sales and customer trust, often outweigh the few who might misuse the offer.
Gather preorders
One effective way to secure early sales is by offering a special “early bird” discount. For a new digital product launch, consider providing a 40% discount to the first 50 customers, followed by a 20% discount for the next 50. After those spots are filled, you can then offer the product at its regular price.
Best Shopify apps for selling digital products
If you’re planning to sell digital products via Shopify, make sure to check out the following apps:
- EDP - Easy Digital Products. Known for its ease of use, EDP helps you sell downloadable files and license keys directly from your store.
- Single. Ideal for musicians, Single allows you to sell both physical and digital music seamlessly.
- FetchApp. This app provides a solution for digital download delivery, with a free plan that includes a limited amount of storage space.
- SendOwl. Perfect for complex digital product businesses, SendOwl offers advanced automation features to simplify management.
- Sky Pilot. Use this app to set up membership programs where you can sell exclusive video streams and digital content.
- Courses Plus. Create and sell educational materials like lessons and webinars with this Shopify app.
- Filemonk. Filemonk is designed to streamline the branding and selling of digital products for Shopify merchants.
Top tip: When selling digital products with Shopify, you’ll need to disable the shipping option.
Start selling digital products online
Without needing to manage inventory or the costs of physical goods, digital products can be a highly profitable online business model. There are many ways to create digital content that can be sold and resold in your business.
With some creativity and a time investment upfront, you can offer great value that will pay off over time. Focus on making content that your audience loves, ensuring it keeps customers coming back for more.
Digital products FAQ
How do you create a digital product?
- Generate ideas for digital products.
- Discover what problems customers need solving.
- Validate ideas with keyword and trend analysis.
- Create your digital products.
- Launch a store on Shopify.
- Grow your audience and promote your products.
What digital products are in demand?
- Licenses for digital content use.
- Private membership communities.
- Digital tools and templates.
- Educational materials such as ebooks and online courses.
- Music or art repurposed for new uses.
- Packaged service offerings.
What kind of digital products sell best?
Some of the top digital sellers are design assets, templates, and downloadable art. Music and audio files also do well. Stock photos and print-on-demand items like custom shirts, journals, and mugs are popular too.