What Is A Digital Product

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Selling products online is becoming one of the most rapid industries of growth. This is because there are a lot of great benefits one can take advantage of by utilizing online markets to sell products. These products can range from physical products like you sell when opening up a shop to digital products like eBooks and apps.

We thought a comprehensive guide on what a digital product is and precisely what is so great about selling them online would be helpful for those not familiar with them. Along with this, we’re going to give you some tips and advice on selling digital products so that if this is the eCommerce business model you choose to go with, you have all the information you need to get started.

Digital Products: What Are They?

When you talk about selling digital products, many people are confused about what a digital product is. It’s really easy to understand selling a physical product like a candle or a crystal, but it becomes a little more tricky when it comes to digital products.

The basic definition of a digital product is one that is not tangible. This means that they are delivered via software or technology. Things like eBooks, apps, and computer programs are perfect examples of products that fall under this category.

Pros & Cons of Selling Digital Products

If you’re a smart business person, you probably want to understand the benefits and disadvantages you might come across when selling digital products. In order to help you, we have created this quick pros and cons list so that you can understand everything about digital products before leaping into building your business.


When you sell a physical product, unless you’re doing something like drop shipping, you need to have a place to store your goods. But with the digital product, there is no storage space necessary, which alleviates a tremendous cost in the long run.

Physical products sell out. That means there will be times when things will be out of inventory. However, with the digital product, this never happens because you’re just reusing the same file over and over again.

You eliminate a huge chunk of the cost because there is no shipping necessary for a digital product.

No matter where you are or what you’re doing, if someone orders a digital product, it can be sent immediately. That means that you have in-the-moment delivery.

Another pro is that you just have a one-time cost. If there is any cost to creating your digital product, it takes one time, and then you get a higher return on investment because there is no extra work necessary (unless you’re upgrading the product).


Though you only have to create something once, a little bit of maintenance is necessary when dealing with digital products. You want to make sure that your server is always running at its capacity and that you have continual internet access so that you can sell your digital product online.

Digital products have become a massive part of eCommerce. That means a higher level of competition, unlike some other models.

Someone might take your idea and put their own spin on it or make it better and sell the same product as you.

Online Courses Concept on Laptop Screen

Tips & Advice On Selling Digital Products

Now that you understand what digital products are and the advantages and disadvantages of selling them, let’s look at some advice and tips that can help you be successful when selling digital products online.

Only Need One

When you’re starting out selling digital products online, it might be really tempting to have a slew of different options. But the truth is you only need to start with one. In fact, starting with one will allow you to hone in on the benefits you’re offering your customers better. Also, giving your potential customers too many choices may give them option paralysis. So start with one product and then scale from there.

Easy To Scale

Online digital product businesses are simple to scale. One of the best things about selling digital products is that scaling it up to meet a wider customer range is very easy, no matter how small the product is. There’s little to no work, and there’s no needed focus on shipping, which means you can build off of just one product.


It will be super cost-efficient to run a business that sells digital products. This is because there’s no need for storage space or any other costs of a brick-and-mortar building or online business that sells physical products.

Space Saving

As we said above, eliminating the cost of needing a place to store goods is excellent. This means that you don’t have to have a space in your home to store your products or an outside storage facility. All you need is a hard drive and a backup, and you should be good to sell your digital products for years to come.

Gateway Business

The great news is that you can sell digital products based on a business or hobby you already have. If you love to paint, you could simply take a picture, scan it in, and make it a digital print. If you love to paint and you want to teach people about it, you can create an eBook and do this. You can utilize a business you already have as a gateway to creating digital products that save you time and money and keep a steady income rolling in.

Final Thoughts

Selling digital products has its positives and negatives, but in the long run, it is a great business model to look into when trying to develop an online business. There is a relatively low entry price, and it can be pretty time-efficient, allowing you the freedom to do other things that you love. But you have to really understand the market and the niche you are looking to sell your digital product in to ensure your success.

There is a wealth of information on digital products and strategies to sell them online. If you want to build an online business that deals with digital products, as we discussed above, you should definitely check out these resources.


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