Why Sell Digital Products – Aphrosa
Digital products are intangible assets or content that are sold and/or distributed online. Digital products can come in a wide variety of different formats such as ebooks, images, videos, games, media, courses, templates, software, services, and more. They’re distributed digitally meaning that they don’t actually get shipped to customers which means that they can instead be downloaded, streamed or accessed immediately by the purchaser on their computer, smartphone or tablet.
Digital products have so many different advantages, many of which make them a desirable alternative to selling physical products. In general, digital products are simple to make, easy to distribute, are a sustainable business model, and have a high profit margin earning potential.
For example, ebook publishing revenue in the US is expected to grow from 5.31 billion dollars in 2018, digital album sales totaled 53.4 million units in 2018, and the global self-paced online learning revenue in 2018 totaled 43.84 billion dollars . Digital products in virtually all categories are lucrative, and since there are lower barriers-to-entry to create digital products and also simpler distribution methods compared to physical products, many ecommerce entrepreneurs are making the switch to sell digital products full-time.
- Passive Income: You don’t have to make a product every time a customer orders from you, you simply make one product, automate the selling process, and then earn income passively
- Personal Freedom: You can sell from anywhere, to anywhere — digital products put no limits on your lifestyle
- Lower Overhead Costs: Costs to produce digital products are generally low and there’s no need to hire a warehouse to store inventory
- Easy to Reach Target Market: You’re not bound by a brick-and-mortar location where your only potential customer base is dependant on who lives locally to you. There are few limitations to the audience you can reach online
- No Inventory Management: There’s no need to store products, manage inventory or SKUs
- Easy Manufacturing Process: There are no MOQs when ordering products from a manufacturer
- No Shipping Process: No need to pick, pack, and fulfill orders or hire a warehouse to do it for you
- Low Product Return Rate: No damaged products and a lower chance of customers receiving a faulty product
- Easy Automation: Pretty much the entire process of selling digital products can be automated
- No Shipping Limitations: Some physical products — like beauty products, food products, and machinery products — have limitations on where and how they can be shipped but digital products generally have no distribution limitations
- Lower Barrier-to-Entry: It generally costs less to create digital products and anyone can create a digital product
- Independence From Suppliers: Usually when creating a physical product you have to work with a supplier to actually manufacture the product and bring it to life but, with digital products, they don’t have to be created by anyone else unless you want them to be
- High Profit Margins: Because digital products are generally inexpensive to make and you just have to create the product once and then it can be sold an unlimited number of times — plus, there are generally low overhead costs — digital products usually have the potential for a very healthy profit margin
- They Don’t Break, Perish or Wear Out: Digital products can last a long time because they’re not subject to the same kind of wear and tear that physical products experience
- Always In-Stock: You can’t sell out of digital products so you’ll never miss out on sales and you’ll never over-sell your product
- Immediate Distribution: No need for customers to wait for their product to arrive, digital products are sent directly to the customer after the purchase goes through so customers don’t have to wait for the product to arrive
- Easy Refunds: Your customers don’t have to ship the product back to you to return it, simply refund their order if they’re dissatisfied
- Offer Free Trials: It’s much more difficult logistically to offer free trials for physical products but providing free trials is a great way to get potential customers to purchase your digital products
- Low Risk: Selling digital products is a much lower-risk option than many other types of products
In conclusion selling digital products is a great way to make money online, and because your only overhead is marketing cost and manufacturing cost if (there are any) it is a super low risk way of monetising your skills.