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Selling Digital Products on Gumroad or Payhip in 2025: Which Is Best for You?

 

Selling Digital Products on Gumroad or Payhip in 2025: Step-by-Step Guide for Beginners

Selling Digital Products on Gumroad or Payhip in 2025: Which Is Best for You?

Are you wondering how to start selling digital products on Gumroad or Payhip?

Whether you're a designer, writer, educator, or hobbyist, selling digital products online has never been easier—or more profitable. In this guide, we’ll break down everything you need to know about Gumroad vs Payhip, how to get started, which platform fits your goals in 2025, and how to maximize your income with digital downloads stores.

Why Sell Digital Products in 2025?

The global digital goods market is booming. According to Statista, the e-learning and digital content industry is projected to surpass $300 billion in value by 2026. From eBooks, printables, Canva templates, to Notion dashboards, digital products are low-cost, scalable, and perfect for passive income.

Benefits of Selling Digital Products

  • Low upfront cost (no inventory, no shipping)

  • Automated delivery

  • Unlimited sales potential

  • Work once, earn forever

  • Great for side hustlers, creators, and small businesses

Gumroad vs Payhip: Quick Comparison

FeatureGumroadPayhip
Setup CostFree (10% fee on free plan)Free (5% fee on free plan)
Product TypeseBooks, courses, templates, music, membershipseBooks, courses, templates, memberships, coaching
Payment OptionsPayPal, Credit CardsPayPal, Stripe
CustomizationModerateHigh
Affiliate ToolsYesYes
VAT HandlingYesYes
Marketing ToolsEmail, coupons, upsellsEmail, cross-sells, discount codes
Storefront HostingYesYes
AnalyticsBasicDetailed
Great ForCreators, artistsBeginners, educators

👉 Winner for Customization & Beginners: Payhip
👉 Winner for Community & Simplicity: Gumroad

Step-by-Step Guide: How to Sell Digital Products Online

Step 1: Choose the Right Platform

Ask yourself:

  • Do I want a simple setup? → Go with Gumroad

  • Do I need detailed store customization and VAT automation? → Choose Payhip

💡 Tip: You can try both platforms for free to see what suits your workflow best.

Step 2: Decide What to Sell

Some of the best digital products to sell on Payhip or Gumroad in 2025 include:

  • eBooks (guides, tutorials)

  • Printables (planners, journals)

  • Canva templates (social media kits, resumes)

  • Notion templates (trackers, dashboards)

  • Stock photos or music

  • Online courses or video lessons

Need inspiration? Check out our full guide on Best Passive Income Ideas for Beginners.

Step 3: Create Your Digital Product

Use the best tools to create digital products:

  • Canva Pro – For creating templates, eBooks, and printables

  • Notion – For dashboards, planners, and productivity kits

  • Google Docs/Slides – Great for writing and presentations

  • Screen recording tools – For course creation

  • Creative Market – For icons, fonts, and design assets

📌 Make sure to:

  • Use professional templates

  • Export in downloadable formats (PDF, PNG, MP4, ZIP, etc.)

  • Add value—solving a real problem sells best

Step 4: Upload to Gumroad or Payhip

On Gumroad:

  1. Create a free account

  2. Click "New Product"

  3. Choose product type (digital, subscription, etc.)

  4. Upload files, add title/description

  5. Set price or pay-what-you-want

  6. Publish!

On Payhip:

  1. Sign up for free

  2. Click "Add Product" → Digital Product

  3. Upload your file, add title/description

  4. Choose price and delivery options

  5. Set VAT preferences

  6. Go live!

Key Features to Set Up Before Launch

1. Automate Product Delivery

Both platforms automatically deliver files upon purchase. This makes it easy to sell digital products without a website.

2. Payment Gateways

  • Gumroad uses built-in payments (PayPal and cards)

  • Payhip integrates with PayPal and Stripe, giving you more flexibility

3. VAT and Licensing

  • Both platforms handle EU VAT automatically

  • You don’t need a license to sell most digital products, but check local regulations

  • Add a license note if your product needs usage rights (e.g., commercial use)

Marketing Your Digital Downloads Store

Getting traffic is key. Here’s how to monetize digital products effectively:

1. Build an Email List

  • Use the built-in tools on Payhip or Gumroad

  • Offer a freebie or discount in exchange for emails

  • Launch new products to your list

2. Leverage Content Marketing

Create blog posts, YouTube videos, or social media content around your niche. Examples:

  • “How to Sell Canva Templates on Gumroad”

  • “How I Made $500 in a Week Selling eBooks on Payhip”

👉 Read more: How to Make Passive Income with YouTube Shorts

3. Use SEO and Keywords

Optimize your product pages with keywords like:

  • “Sell Notion templates online”

  • “Digital downloads store for planners”

  • “Gumroad digital products for beginners”

4. Pricing Strategies for Digital Goods

  • Test different price points

  • Use psychological pricing ($9.99 vs $10)

  • Bundle related products

  • Offer launch discounts or upsells

FAQ: Common Questions from Beginners

❓ Which is better: Gumroad or Payhip?

  • Gumroad is better for simplicity and community tools.

  • Payhip is ideal for customization, coaching, and analytics.

❓ Do I need a website to sell digital products?

No. Both platforms give you a hosted store. You can sell digital products without a website.

❓ Can I sell on both platforms?

Yes. Many creators list products on both Gumroad and Payhip to increase visibility.

❓ Can I make passive income with digital products?

Absolutely. Once created, your product can generate sales 24/7. Combine with marketing automation for best results.

Final Thoughts: Best Way to Start Selling Digital Downloads in 2025

Selling digital products on Gumroad or Payhip in 2025 is one of the most beginner-friendly ways to earn online. Both platforms are:

✅ Free to start
✅ Easy to use
✅ Packed with tools to grow your digital income

Start by creating a simple eBook, printable, or template. Use the platform that matches your goals—Gumroad for creators, Payhip for customization. Then focus on marketing, email building, and adding value to your audience.

👉 Ready to start earning?

If you found this helpful, share it with your fellow creators and bookmark our blog The Extra Coin for more guides like this!

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