Is Etsy Good For Selling Digital Products?


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Yes, Etsy is good for selling digital products. One big benefit of Etsy as a digital product marketplace is the fact that Etsy handles the taxes in the majority of cases when it comes to selling digital products on its platform. Etsy is also one of the biggest marketplaces online, so there surely are customers buying digital products as well as handmade products.

In this article, we’ll explore all of the pros and cons associated with using Etsy as a marketplace for your digital products, whether it be artwork or printables, to determine whether it’s worth it in the long run.

Pros And Cons Of Selling Digital Products On Etsy

One of the main advantages of selling digital products on Etsy is its low barrier to entry. You don’t need any special skills or equipment to get started; you only need an idea for a product and the ability to create it digitally.

When you combine the benefits that Canva, for example, provides or what Creative Market gives you and Etsy, you can create some genuinely unique digital products to sell.

With no physical inventory required, you can save time and money by not having to worry about shipping costs or storage space. One potential downside is that your profits may be limited due to fierce competition in the marketplace. As Etsy is a huge marketplace, it also means a lot of competition your way.

Fees And Pricing Structures For Digital Products On Etsy

When selling digital products on Etsy, there are several fees associated with each sale, including listing fees (20 cents per item), transaction fees (5% of total sales price) as well as payment processing fees (2-3% depending upon which payment processor you choose).

Offering discounts or coupons through your store will also impact your bottom line since they reduce your profit margin per item sold. In terms of pricing structures for digital products, many sellers opt for tiered pricing based upon file size/resolution so customers can pay more if they want higher quality versions of their purchases while still keeping prices competitive overall compared with similar items offered elsewhere online.

Etsy Handles Digital Product Taxes

Etsy collects and remits VAT on digital items purchased by buyers located in certain countries. While Etsy does not cover VAT (JCT, GST, HST, SST, PST, RST, or QST -in some countries) for every country on the planet, it does cover a long list of countries like Australia, the whole EU, India, Norway, etc. You can read more about digital item taxation from Etsy.

Etsy Is A Huge Marketplace

Etsy is one of the world’s largest marketplaces when it comes to handmade and digital products. There are roughly 7.5 million active sellers on Etsy and somewhat of 96 million buyers in 2021. That amount of sellers only signals that sellers really do appreciate Etsy as a marketplace, and why wouldn’t they? Customers can easily use the search function Etsy provides to find unique creations in seconds.

When you enable Etsy ads, you can bring your creations to the front page even as a new store owner. Etsy is very similar to Amazon because when users land on the site, they have a buyer’s intent right at the start. So you are essentially selling to a person who is there to find something to buy.

Etsy’s revenue in 2021 was around $2.32 billion, which means that over 96 million customers are there to buy items of all sorts and digital products are only one of the product categories that sell on Etsy.


In conclusion, Etsy is a great platform for selling digital products. Its vast customer base and easy-to-use tools make it an ideal place to start or expand your online business. However, as with any other type of business venture, some challenges come with selling digital products on Etsy.

By understanding the potential pitfalls and taking advantage of the tips outlined in this article, you can maximize your chances of success in selling digital products on Etsy. Ultimately, whether or not Etsy is suitable for selling digital products depends on how well you manage your shop and what kind of customer service you provide – but if done right, it could be a great way to increase your income!

FAQs About Etsy And Digital Products

Is it worth selling digital products on Etsy?

Yes, it is worth selling digital products on Etsy. Etsy provides a platform for creative people to showcase their work and reach potential customers worldwide. Digital products are becoming increasingly popular as more businesses move online, and Etsy offers an easy way to start selling them without having to build your own website or store. With its wide range of users, Etsy is an excellent option for anyone looking to get started with digital product sales.

Is it legal to sell digital products on Etsy?

Yes, it is legal to sell digital products on Etsy. However, you must ensure that the product complies with Etsy’s terms of service and any applicable laws or regulations. Sellers are responsible for ensuring they have acquired necessary copyright and IP rights to resources used as part of the creative process and product.

Is it hard to sell digital products on Etsy?

Selling digital products on Etsy can be hard due to the large seller base, but it is not impossible. It requires good market research and preparation to ensure that your product stands out from the competition.

You will need to create a unique product listing with clear descriptions of your product, attractive visuals and mockups, and accurate pricing information. You should also research trends in the market and take advantage of any marketing opportunities (discounts, paid ads) available to help promote your product.

Is selling digital prints on Etsy profitable?

Yes, selling digital prints on Etsy can be profitable. With correct pricing, market research, and product promotion, you can successfully sell digital prints with profit on Etsy. Profit does not purely come if you price your product to be cheaper than the competition and that way get a market share for yourself.

Profit can also be generated by pricing your products higher than the competition and delivering something extra to customers when they buy your digital product.



Digital Artist

I’m a digital artist who is passionate about anime and manga art. My true artist journey pretty much started with CTRL+Z. When I experienced that and the limitless color choices and the number of tools I could use with art software, I was sold. Drawing digital anime art is the thing that makes me happy among eating cheeseburgers in between veggie meals.

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