Woman doing home office because she's a female entrepreneur who has an online shop and is uploading digital products

7 Reasons Why You Should Sell Digital Products on Etsy

Tap into the Etsy advantage to maximise your earnings with digital products!

Man working from home on his digital business from his laptop as a digital nomad

If you’re wondering where to sell your digital products, consider Etsy. And if you’re curious about what’s the simplest product to sell on Etsy, it’s digital products.

Whether you’re a graphic designer, writer, artist, or someone looking to make money online, Etsy is a great platform to showcase and sell your digital work.

Let’s take a look at seven key reasons why selling digital products on Etsy makes sense for your small business or side hustle.

 

1. Easy to set up

Setting up a digital storefront on Etsy is simple and straightforward. You can quickly get your shop up and running without getting bogged down by any complicated or technical steps.

Unlike other platforms that require you to have extensive knowledge about web hosting, coding, or design, Etsy’s interface is super friendly for sellers of all experience levels.

With guided prompts and many articles and video resources at your fingertips, creating product listings, setting up payment methods, and customising your store’s aesthetics can be done in a breeze. This allows you to focus on what matters most: creating and selling your digital products.

 

2. Low overhead costs

Selling digital products comes with a clear benefit: you don’t need a physical inventory. This means no worries about where to store items, no production costs, and no shipping hassles. Everything is online, making the whole process simpler and cheaper.

While setting up your Etsy shop is free, there are some operational costs you need to be aware of. Each item you put up on your shop incurs a listing fee of $0.20, which expires after every four months. Auto-renewals for listings also cost $0.20.

And when you make a sale, Etsy charges 6.5% of the cost of the item as transaction fee. These are the main expenses to think about. Read more about Etsy’s fees and payments policy.

 

3. Access to Etsy buyers

When you list your digital products on Etsy, you tap into a huge community of about 90 million+ active buyers. These buyers are looking for unique and creative items, just like the digital products you’re selling.

This means that instead of starting from scratch and struggling to attract customers to a new or unknown website, you benefit from Etsy’s existing user base.

Plus, Etsy’s user-friendly interface and secure payment systems make it convenient for shoppers, increasing the likelihood of them purchasing from you.

home office desktop perfect for an online business owner

4. Built-in digital download system

Etsy has a built-in system specifically designed for digital downloads. Once a customer makes a purchase, they receive a link to download their product. There’s no waiting and no fuss.

For you as a seller, this means no manual sending of files or checking orders round-the-clock. Everything is automated. And for buyers, they’ll get instant access to their purchased items.

This simplicity and speed make the entire process smooth for everyone involved. It’s a win-win — you provide a hands-off reliable service and your customers enjoy a smooth shopping experience.

 

5. Trust and security

Etsy has built a strong reputation over the years as a trusted online marketplace. And this trust isn’t just good for Etsy — it directly benefits you as a seller. When buyers come to Etsy, they already have confidence in the platform and in buying from your shop.

But it’s not just reputation, Etsy ensures safety. Every transaction is guarded with strong encryption, keeping both your data and your customer’s information secure.


6. The power of passive income

Each digital product you list on Etsy is an asset for earning passive income. Unlike physical items that require constant restocking, packaging, and shipping, digital products are set up once and can be sold many times with little to no extra work from you.

This means your digital products can keep making money for you, even when you’re enjoying a good night’s sleep or busy with other things.

You can also choose to use the extra time and energy you have to create new products, plan new marketing strategies, or just enjoy the fruits of your labor.

 

7. SEO perks for visibility

Selling online means making sure people can find your products, and this is where Search Engine Optimization (SEO) comes in.

Etsy is set up to work well with its own search tool. So when buyers search for items on Etsy, your products have a good chance of appearing (as long as you’ve followed Etsy’s SEO best practices).

But here’s another cool part: Etsy listings also perform well on big search engines like Google. So if someone Googles a product you sell, they might find your Etsy listing there too.


Warning! (Update)

All that being said, I had two shops on Etsy and my best shop was suspended. Nobody explained the reason. It coincided with me changing countries and the APIs fast (3 countries in two days), so that's my best guess. But I was so frustrated!

I realised that Etsy has their own rules and can shut down your income stream in no time without valid explanation and you are suddenly left alone.

So what's my takeaway? Build your own shop! And your email list! If something happens to third-party marketplaces, you'll always have your website and your client database!

I would start in Etsy to validate your brand and products and I wouldn't wait too long to build your own shop. That's my conclusion after experiencing it myself!

If you want to start with products that I have already validated, you have a whole array on my PLR shop! Feel free to choose what suits you best and remember that you can always adapt them to your brand super easily!

modern minimalist home office setting for female online entrepreneurs who own their shops and sell from anywhere

Final thoughts

Selling digital products on Etsy has many benefits. It’s easy to start with a low budget and you can reach many customers. If you have knowledge and skills that can be turned into a digital product — like photography or design — Etsy is a good place to start selling. Also, if you want to save time and buy ready-made products that you only need to rebrand, Etsy is also perfect!

Every digital product will be unique to you, and there are people who might want it. So consider selling on Etsy and see how it goes. After all, you’ll never know until you try!

Btw, my PLR Template Pack includes a whole Etsy shop branding kit and done for you content templates to set it up in one day! Plus, of course, the templates that you can resell! It's my bestseller bundle! Check it out here.

 

Back to blog