How to Sell Digital Products Online
How to Sell Digital Products Online
How to Sell Digital Products Online: Discovering the Right Product, Platform and Strategy
With global ecommerce sales estimated to hit $6 trillion, it's never been easier for retailers to move their brick-and-mortar stores online. Merchants can create their own website, list their physical products online, get paid in full, and grow their business without even getting off the couch.
And now, digital transformation extends from storefronts to products.
Whether you realize it or not, we use digital products every day. Video games, audiobooks, online classes, digital marketing tools — these are prime examples of intangibles that can be bought and sold online.
Especially among artists, freelancers and bloggers, digital products are ideal for passive income, as there is no need to worry about inventory, shipping, packaging or logistics. All you have to do is create a digital product once and watch sales grow from there.
So, if you're an entrepreneur with a knack for selling online, the digital goods marketplace might be worth a shot. To help you on your way, this blog post will cover the most popular types of digital products, where to sell them, and how to launch your online business.
Physical products vs. digital products
How to Sell Digital Products Online, Long story short, a digital product is any intangible good or service that can be created once and sold over and over again online. Unlike physical items, which must be constantly reproduced and replenished, digital products give merchants the freedom to focus solely on improving their products rather than making them more.
Digital products can come in the form of digital files such as templates and tools or online classes, or they can be downloadable products such as printable artwork, music or infographics. Of course, your business doesn't just have to revolve around digital products – if you already sell physical products, you can also create digital products to sell to complement your business.
Profitable digital product ideas to sell online
How to Sell Digital Products Online, First things first, you need to figure out what to sell. Digital products may sound like a niche market, but there are actually plenty of options. Here are five different types of digital products to get your wheels turning.
1. Online Courses and Educational Products.
Gone are the days of sitting in a classroom to learn something new. With e-learning platforms like Coursera and SkillShare just a few clicks away, it's easier than ever to learn something new wherever and whenever you want.
So, if you have a unique skill or passion that you want to share with the world, this is the perfect opportunity to turn your knowledge into an online business. Try hosting monthly webinars, downloadable tutorials or an online course.
BigCommerce Merchant offers online courses for various medical certifications and accreditations, including helpful digital resources such as ACLS practice tests, articles, and videos.
Another great way to monetize your knowledge is through podcasts and e-books According to Statista, monthly podcast listenership is expected to reach 164 million by 2024, and readership in the e-publishing sector is predicted to reach 1,632.6 million in 2025. And thanks to mobile apps like Spotify, Audible, Amazon. Kindle and Scribd, hosting your own podcast or self-publishing your book are accessible to almost everyone.
If you already have a reputation as an expert in your field, leverage that to attract people to your product. But if you're just starting out, you can always try creating content for free, which can help get your name out there before you start selling paid digital products.
2. License for Digital Assets.
How to Sell Digital Products Online, Created by creatives for creatives, licensed digital assets allow individuals and businesses to pay to use someone else's digital assets — whether it's stock photos, WordPress themes, infographics or video footage.
As the creator, you can charge for the use of these digital assets, which you can sell in your online store as well as other online marketplaces such as stock photography sites, WordPress or Canva.
However, when these platforms publish your content, be aware that some of them may take a commission from each sale. So, if you want to create your own storefront, you can try a tool like SendOwl, which supports digital product trading and can automatically generate unique license keys.
3. Integration with top payment gateways.
To make the shopping experience more seamless, your ecommerce platform should include a variety of payment gateways. While payment solutions like PayPal and Stripe are some of the most common, they may not always be the best fit for every budget or geographic region, so it's essential that your website offers a wide range of payment options to accommodate all customers.
Fortunately, BigCommerce offers more than 65 pre-integrated payment solutions covering 230 countries and 140 currencies. These gateways include Apple Pay, Adyen, Visa Checkout and Amazon Pay etc.
Additionally, some platforms now offer one-click checkout functionality like PayPal One-Touch, which allows customers to enter their payment details once and then use the one-click option every time.
4. No hidden transaction fees.
How to Sell Digital Products Online, Nothing is worse than making a huge investment in a platform that costs more. At first glance, many ecommerce platforms may seem like an easy opportunity to increase your sales and make quick money. Unfortunately, many platforms have hidden fees for things like hosting and web development, website themes, and additional plugins or apps, and these fees can add up over time.
For example, with WooCommerce, merchants have to cover the cost of hosting, an SSL certificate and other features, which ecommerce platforms like BigCommerce and Shopify already include in their pricing.
Or, in some cases, platforms may charge an additional fee for not using their proprietary payment providers such as Shopify. They charge additional transaction fees of up to 2% of each sale for not using their payment provider.
However, no matter which credit card provider your business chooses, BigCommerce merchants never have to worry about hidden transaction fees.
How to Sell Digital Products for Online Store
Maybe you already have a great idea that's been marinating for a while, but if not, we get it — coming up with the perfect business idea can be overwhelming. To help you get started, we've compiled a six-step process for landing the perfect digital product idea and launching your e-commerce business.
1. Brainstorm and research - How to Sell Digital Products Online
It's time to get your creative juices flowing. Put pen to paper and write down every digital product idea you have - good and bad.
Don't overthink it. Even if your first idea isn't your best, it will help point you in the right direction and hopefully lead to your eureka moment.
What are you passionate about? If you could give a TED talk, what would it be? If you already have a business, what digital products could potentially complement your existing physical products? Are there specific pain points that you can solve for your customers?
Here are a few questions to help get the ball rolling and guide you in the right direction.
Next, you'll want to do some research to find out what potential customers are looking for online. You may already have a great business idea, but if not, seeing what other people are selling can help you find your niche. Below are some good resources to help you start your research:
Reddit subreddits.
Facebook group.
Product reviews.
Customer survey.
Industry Forum
Blog posts and comments.
2. Validate your ideas.
Before diving headfirst into creating and selling a digital product, it's best to validate your idea and make sure it has potential. It would be a shame to invest time and resources into a business idea only to find out later that it was destined to fail.
Here are some ways to make sure your digital product idea is set up for success:
Google's Keyword Planner: Keyword tools can show you how many people are actually searching for topics or terms related to your product. If there is a low search volume, it is probably a sign that your product is too niche or not popular enough, but if there is a high search volume, it can be validation that you are on the right track.
Google Trends: To ensure your product idea is in demand, you can use Google Trends to search for topics with increasing opportunity size.
Feedback: Perhaps one of the most beneficial things you can do is reach out directly to your target audience and ask for honest feedback. After all, they are the ones who will make or break your business.
3. Find a target market.
Now it's time to define your target audience.
While it may be tempting to try to reach everyone with your product, the reality is that targeting everyone means targeting no one. By specifying your target market, you will be able to tailor your digital products as well as your marketing and communications to meet the needs of your customers. Ultimately, this will provide them with greater value and a more compelling message.
Zone in on your target market and discover everything you need to know about them, from their geographic location to their career interests. Becoming an expert in your niche will give you a leg up and help you stand out from the competition.
4. Create your online store - How to Sell Digital Products Online
Once you've transformed your idea into a tangible product, it's time to bring it out into the world – and one of the best ways to do that is with an online store.
We'll go into more depth about this in the next section, but long story short: BigCommerce is your best bet for hosting a top-notch eCommerce website. With the flexibility and functionality of open SaaS, BigCommerce is built on total cost of ownership and highly flexible APIs, allowing you to build, innovate and grow your business.
5. Increase and drive traffic.
But just building an online store doesn't guarantee success - you need to optimize your website to drive traffic and increase sales.
Here are some examples of marketing strategies that can help you on your way:
Search Engine Optimization (SEO): Optimize your site by including relevant keywords, reducing page load speed and mapping your website structure. This will help you rank higher in Google and other search engines and hopefully increase the chances of your page being found
Influencer and Blogger Outreach: Considering 49% of consumers rely on influencer recommendations when making a purchase, influencer marketing is a strategy that shouldn't be overlooked. Partner with influencers and bloggers with established reputations to promote your content and reach new audiences.
Affiliate Program: Affiliate marketing can be a significant way to drive traffic and increase sales, so try encouraging third-party businesses or influencers to promote your digital products in exchange for a commission on each sale.
Offer a lead magnet: A lead magnet is a free product or service in exchange for a potential customer's contact information, such as an email address or phone number. Offering your product for free initially not only builds trust between you and the customer, it also gives you the opportunity to upsell or retarget customers with future promotions or discounts.
Benefits of selling digital products
You may already have some leverage selling digital products, and you've probably already jumped ship. But if you're still not sure about incorporating digital products into your business, here are a few benefits to consider:
**Flexibility:**Since you don't have to worry about replenishing inventory or packaging and shipping, you have the freedom to create new products or adapt existing products - however and whenever you want.
High profit margins: Adding to the previous point, no inventory or shipping costs means high profit margins. You can sell the same product as you wish, with little or no additional cost from your end.
Efficiency: By not packaging and shipping products, you can save time on operations and logistics, and you can save money on sourcing, storage and other overhead costs.
Scalability: The beauty of digital products is that you can create a great product and sell it as often as you like. You may start with 10 units per day, but if you scale to 1,000 units per day, the only change is how many you are selling. But of course, as your business grows, you may need to consider hiring additional customer service representatives to support the increased traffic.
Tips for selling digital products
Now that you're set up with your product, platform, and action plan, here are some final tips for selling digital products online and the best channels for marketing them.
1. Email customers.
One of the best ways to drive traffic to your online store is through email marketing. By building relationships with leads and offering them personalized recommendations and content, you'll be able to nurture potential customers into loyal, paying customers.
This all goes back to your lead magnet.
Although we've already touched on it, it's worth noting again. A lead magnet isn't just a "subscribe to our email list" popup—it's a free offer of a product or service that will encourage potential customers to share their contact information with you. If you sell an e-book, give them a free download of the first chapter. This will give them a taste of how good your product is and keep them coming back for more.
2. Social Media Marketing.
With the advancement of social commerce and the increase in the number of social media users year after year, this may seem like a no-brainer.
But many of the most successful e-commerce businesses are those that adopt a strong omnichannel strategy This means that all channels, both online and offline, must be woven together to create a seamless experience for the customer — and social media marketing is a primary function. . . . . . . . . . . This is the way to achieve it.
To increase customer loyalty, make sure you're creating interesting, relevant content that will actually resonate with your target audience. But don't feel like you have to create new content 24/7 — that can be time-consuming and resource-intensive. So don't be afraid to reuse and repurpose existing content, or even try to reformat it and distribute it on other social platforms.
Also, you can use social media to strengthen your sales cycle. With the growth of social commerce functionality across multiple social platforms, there are many opportunities to get creative with how you sell online.
Try including social media ads, one-click checkout or product widgets in your stories to make the buying process more efficient. The fewer steps a customer has to take to complete a purchase, the better.
3. Third Party Websites.
Fortunately, as the digital goods market becomes increasingly popular, there are many tools available to help make your life easier From selling music to online courses and online videos, there's an app for almost all your business needs
These are some third-party tools that can help get your digital products business off the ground:
Gumroad: An ecommerce tool for selling digital products such as subscriptions, rentals and licenses.
Single Music: An easy way to let artists sell music online with free music clips on your product page
Thinkific: An app for selling online courses and curricula.
FetchApp: Able to integrate with some popular eCommerce platforms, this tool is great for selling digital downloads such as music, videos, e-books, art and software.
FlickRocket: Easy to integrate with your BigCommerce store, this app lets you sell DRM-protected digital content, including videos, PDFs, and music.
The final word
Whether you are an experienced online merchant or an aspiring entrepreneur, digital products are a promising way to sell online. They can complement your existing physical content or stand on their own for a successful online business — all you need is a little creativity and time investment to make your products and online strategy really shine. And without worrying about inventory replenishment or overhead costs, you can put all your energy into making the best of your digital products.
