Selling digital products, such as templates, planners, printables, spreadsheets, or ebooks, is one of the most flexible side hustles because you create an item once and can sell it many times without shipping anything. But choosing the wrong platform can eat into your profits or leave you with no buyers.
This guide compares five popular options so you can pick the one that fits your goals, budget, and technical comfort level.
This article is educational and is not personal financial or tax advice. Platform fees and policies change often, so verify the current details on each platform’s official site before you sign up. Income from digital products is never guaranteed.
What Can You Sell as a Digital Product?
Before choosing a platform, it helps to know what you might sell:
- Printables and planners
- Spreadsheet templates (budgets, trackers)
- Canva or design templates
- Ebooks, guides, and checklists
- Stock photos, presets, or graphics
- Online courses or workshops
- Resume, contract, or invoice templates
If you’re still looking for an idea, our guide to the best side hustles you can do from home lists several options.
How to Compare Platforms
Look at these factors:
- Fees: monthly cost, per-sale percentage, listing fees, and payment processing.
- Traffic: does the platform bring buyers to you, or must you bring your own?
- Control: can you brand your store and own your customer list?
- Taxes: does the platform help with sales tax or VAT collection?
- Ease of use: how fast can you list your first product?
There are two main fee models. Transaction-based platforms are free to start but take a percentage of each sale. Subscription-based platforms charge a monthly fee and take little or nothing per sale.
1. Etsy
Etsy is a large marketplace where shoppers already search for printables, planners, and templates.
- Typical costs: a small listing fee per item, a transaction fee of around 6.5%, plus payment processing
- Best for: beginners who want built-in traffic
- Pros: buyers come to you, quick setup, trusted brand
- Cons: heavy competition, limited branding, you don’t fully own the customer relationship, and fees add up
2. Gumroad
Gumroad is a simple tool for creators who want to sell directly to their own audience.
- Typical costs: no monthly fee; a percentage plus a small fixed amount per sale on direct sales, plus payment processing
- Best for: creators who already have an audience on social media or a blog
- Pros: very easy to start, handles a lot of the tax administration, works for many product types
- Cons: fees can feel high on low-priced items, and the platform won’t bring many buyers by itself
3. Payhip
Payhip is a popular alternative to Gumroad with a free plan and optional paid plans.
- Typical costs: a free plan with a lower per-sale fee (around 5%) plus payment processing; paid plans reduce or remove the per-sale fee
- Best for: sellers who want low costs and more control of their store
- Pros: free to start, custom store pages, built-in tools such as discount codes and affiliates
- Cons: no marketplace traffic, so you need your own promotion
4. Sellfy
Sellfy offers a hosted store with a flat monthly price instead of a platform sales fee.
- Typical costs: a monthly subscription (starting around $22 to $29 depending on billing), no platform transaction fee, plus payment processing; plans have annual sales limits
- Best for: sellers who already make steady sales and want to keep more of each one
- Pros: predictable cost, built-in email and marketing tools, can also sell print-on-demand products
- Cons: there is no permanent free plan, and you must pay even in months with no sales
5. Shopify
Shopify is a full online store builder. You can sell digital downloads with the right setup or app.
- Typical costs: a monthly plan (the basic tier is around $39 per month, less with annual billing), plus payment processing and possibly an app for file delivery
- Best for: people building a real brand with many products
- Pros: strong branding, scalable, many integrations
- Cons: more setup and higher monthly costs than most beginners need
Quick Comparison
| Platform | Upfront cost | Per-sale cost | Brings you traffic? | Best for |
|---|---|---|---|---|
| Etsy | Low (listing fees) | Moderate | Yes | Beginners wanting discovery |
| Gumroad | None | Higher | No | Creators with an audience |
| Payhip | None (free plan) | Lower | No | Budget-conscious sellers |
| Sellfy | Monthly fee | Very low | No | Steady sellers |
| Shopify | Monthly fee | Low | No | Building a brand |
These are general comparisons. Always verify current pricing.
A Simple Fee Example (Hypothetical)
Imagine you sell a $15 template. Using the rough fee levels above, the platform and payment costs might look like this:
- Etsy: around $1.90, so you keep roughly $13
- Gumroad (direct sale): around $2.70, so you keep roughly $12.30
- Payhip (free plan): around $1.50, so you keep roughly $13.50
The differences look small on one sale, but over hundreds of sales they matter, especially for low-priced products. On the other hand, a platform that brings buyers can be worth a higher fee if you have no audience.
Which Platform Should You Choose?
- You have no audience yet: start with Etsy for built-in traffic.
- You have an audience and want simplicity: try Gumroad or Payhip.
- You want the lowest cost while testing: Payhip’s free plan is a common starting point.
- You’re selling steadily and want predictable costs: consider Sellfy.
- You’re building a long-term brand: consider Shopify.
Many sellers combine two platforms, such as Etsy for discovery and Payhip or Gumroad for direct sales.
Taxes on Digital Product Sales
Income from digital products is generally taxable self-employment income. Keep these points in mind:
- You usually owe self-employment tax on your net profit. See Self-Employment Tax Explained.
- Platform fees, software, and design tools are generally deductible business expenses.
- Sales tax and VAT rules for digital goods vary by state and country. Some platforms collect and remit these for you and others don’t, so check each platform’s tax settings.
- Good record-keeping makes tax season easier. Our guide to the best apps to track freelance business expenses can help.
For official information, visit the IRS Self-Employed Individuals Tax Center.
Tips to Get Your First Sales
- Solve a specific problem. «Budget spreadsheet for freelancers» sells better than «general planner.»
- Use clear previews and descriptions so buyers know what they get.
- Start with a low-risk price and adjust after feedback.
- Collect emails so you aren’t dependent on one platform.
- Respect copyright. Only sell designs, fonts, and images you have the right to use commercially.
- Compare freelance platforms too. If you also offer services, see Upwork vs. Fiverr.
Frequently Asked Questions
What is the cheapest way to start selling digital products?
Platforms with free plans, such as Payhip or Gumroad, let you start without a monthly fee. You pay a percentage of each sale instead.
Can I sell digital products on my own WordPress website?
Yes. WordPress plugins for digital downloads and checkout exist, but you handle more of the setup, payments, and taxes yourself.
Do I need a business license to sell digital products?
Requirements vary by location and business type. Check with your state or local government and consult a professional if you’re unsure.
Is selling digital products really passive income?
Not at first. Creating, promoting, and supporting products takes real work. Some products sell steadily over time, but results vary and are not guaranteed.
Disclaimer: This content is for general information only and does not constitute personalized tax, legal, or financial advice. Platform fees and policies change; verify current information on each platform’s website. This site is not affiliated with any platform mentioned. Consult a qualified professional before making financial decisions.
Last Update: October 5, 2026