How to Sell Digital Downloads on Etsy
Setting up your shop to sell digital downloads on Etsy is easy. You can start your online business quickly by following a few simple steps.
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Selling digital downloads on Etsy is a great way to make money from your creative work and start an online business. You can sell digital products such as artwork, design patterns, fonts, printable organizers, digital planners, and Excel templates.
Setting up your shop to sell digital downloads is easy, and you can list them in your Etsy shop just like any other product by following a few simple steps.
In this article, we’ll walk you through the process of setting up your digital downloads shop and listing your products so you can start your online business.
7 steps to get started to sell digital products on ETSY
Etsy is one of the best marketplaces to sell your digital products. And starting to sell digital products on Etsy is easier than you might think to get started.
Here are a few simple steps to get you started selling digital products on Etsy:
Step 1. Choose a niche
The first step to selling digital products on Etsy is choosing a niche that reflects your interests and business goals.
Niche and competitor research is an important part of finding a business idea, so make sure to do plenty of research before deciding on a niche.
Some popular niches for selling digital products on Etsy include printables and digital planners.
You can also sell your digital products in categories such as business, photography, art, crafts, design, and more.
Competitor research can help you identify trends and determine what types of digital products are selling well on Etsy.
Step 2. Determine the products
Once you’ve chosen a niche, the next step is to find digital products that you can sell in your Etsy shop.
You cannot simply copy another seller’s work or use images downloaded from Google or other stock image sites. However, by analyzing your competition, you can get inspiration for new and unique designs.
Look for trending keywords in your niche using Etsy search, Google Trends, and other Etsy keyword research tools.
Step 3. Create your products
Once you’ve determined the products you want to sell, it’s time to start creating them.
This may involve creating your own products from scratch or finding existing design elements that you can utilize and source legally.
You can use design elements for your products from sites like Creative Market and Creative Fabrica, or you may want to create your own unique digital downloads using design tools like Adobe Photoshop and Illustrator.
You don’t have to hire a designer or illustrator if you don’t have the skills yourself. You can easily create digital products without any design experience using graphic design tools like Canva.
Step 4. Set your pricing
After finding, sourcing, and creating your products, it’s important to create a pricing strategy for your digital downloads business.
This can help you determine how many products you’ll need to sell in order to break even, as well as what your ideal profit margins should be.
Determine your pricing based on cost, competition, demand, and platform fees.
When setting your price points for digital downloads on Etsy, it’s important to consider factors like production time, overhead costs, market demand, and other business expenses.
You’ll also want to consider the fees associated with selling digital downloads on Etsy, which typically range from 10.5% (6.5% Etsy fee + 4% payment processing fee) of your product price + fixed fees ($0.20 for transaction and $0.20 for listing).
Step 5. Sign up for an Etsy account
If you don’t already have one, you’ll need to create an account to start selling. You can sign up at etsy.com.
Step 6. Create your listings
Once you’ve completed all of the steps above, it’s time to create your Etsy listings for your digital downloads business.
When creating a listing, be sure to include high-quality product photos and a detailed description of the product and its uses.
Keywords and tags are also essential for helping customers find your products, so be sure to include plenty of relevant keywords in your descriptions and titles.
When a buyer purchases a digital product from your shop, they’re automatically sent an email with a link to download the file. There’s no need for you to send the file to the buyer manually.
You’ll also need to indicate in your listing that the buyer is purchasing a digital product. Be sure also to include clear instructions for downloading the file in the “Description” section of your listing.
Step 7. Promote your products
Once your Etsy shop is up and running, the final step is to promote your digital downloads business and start driving traffic to your listings.
Etsy ads and social media marketing are great ways to reach new customers and promote your Etsy shop effectively.
Sharing links to your products on social media or communities can also help drive more traffic to your listings.
Marketing your business effectively can be the key to your success, so make sure you’re actively engaging with potential customers and building relationships with influencers in your niche.
With the right planning, effort, and marketing strategy, you can build a successful business selling digital products on Etsy!
What can you sell as a digital product on Etsy?
When selling digital products on Etsy, it’s important to remember that your buyers are looking for unique, high-quality items. With that in mind, consider selling items such as:
- Photography and graphic design templates,
- Illustrations, fonts, and other design assets,
- Labels, business cards, and logos,
- Printable and digital planners,
- Digital art prints,
- Wedding invitations and greeting cards
- Ebooks, online courses, or other digital training materials
- Other unique digital downloads that you can create using your design skills
If you need help coming up with ideas for digital products, you can check our list of popular digital products to sell on Etsy.
How much money can you make over time?
The amount of money you can make selling digital products on Etsy depends on a number of factors, including the quality of your products, the price point you choose, and the demand for the products you offer.
If you create high-quality, niche products that are in high demand, you can potentially make a lot of money selling on Etsy.
However, if you choose to sell lower-quality or more common products, you may only be able to make a modest income.
Let’s look at some real-world examples:
Etsy Seller: MyLifePlans
On Etsy: Since 2021
Product Count: ~350 Items
Daily Average Sale: ~100 Sales
Average Profit Per Sale: ~$1
Monthly Income: $3,000 (before taxes and expenses)
Annual Income: $36,000 (before taxes and expenses)
Etsy Seller: AmethystGarnet
On Etsy: Since 2020
Product Count: ~250 Items
Daily Average Sale: ~125 Sales
Average Profit Per Sale: ~$7
Monthly Income: $26,000 (before taxes and expenses)
Annual Income: $312,000 (before taxes and expenses)
Kindly note that all of the stats and information in these examples are based on estimations and should not be used as a definitive business plan.
However, these examples can provide some insight into the earning potential for digital product sellers on Etsy.
So, looking at the above sellers, let’s estimate your earnings.
Let’s say you sell digital wedding invitations at $5.00 each (that is a ~$3.50 profit for each product you sell). If you create 200 invitations and can consistently sell 50 invitations per day, that would give you an estimated monthly income of $5,250 before taxes and expenses!
Do not forget that your results may vary depending on the popularity & quality of your products and your marketing efforts.