To start a digital product business, you need a clear idea, a niche, and a strategy to create and sell your product online. You can sell through your own website or third-party marketplaces such as Etsy, Crowdfundly, or Thinkific.

In this guide, you’ll get an easy and informative guide on choosing the best product ideas, such as online courses, templates, or software, and step-by-step instructions for launching your business.

We’ll also recommend platforms to sell your products and tips to promote them effectively. Let’s get started, then!

10 Best Digital Product Ideas to Sell Online

Before getting into the details, here are some digital product ideas you can start a business with:

1. Online courses
2. Ebooks
3. Templates
4. Printables
5. Worksheets
6. Memberships
7. Photography
8. Music and Audio
9. Designs
10. Software and games

How To Start A Digital Product Business in 7 Steps

Let’s not wait a second to enter the digital product business world. Here’s everything you need to know to get started.

Step 1: Narrow Down A Niche

The first task for you when starting a digital product business is to brainstorm some potential ideas and pick a unique niche. This will help you connect with a specific group of people and solve their problems. Meanwhile, you’ll get a product with a better chance of success.

For example, if you’re into photography, you could make a fun course on advanced photo editing to help aspiring photographers improve their skills.

So, how can you explore market trends and end up with one definite niche?

You can use tools like Google Trends and Amazon Best Sellers to identify popular and emerging trends. These platforms can help you find market gaps where your digital products can provide value. 

You also need to analyze the type of audiences you’re going to serve. Consider their age, location, gender, hobbies, lifestyles, and values.

Step 2: Do Competitive Analysis and Find Market Gaps

With your Google Trends insights and list of ideas in hand, you can easily research existing digital products.

When roaming competitors’ worlds, I prefer taking notes of what’s popular and selling well. Try to find areas with strong demand but fewer sellers. These niches can be golden opportunities for success if you can offer something new and more valuable.

Ask yourself questions like:

• What’s missing in their content?
• What could be improved?
• Is there an audience they’re not reaching?
• What unique angle can you bring?

Step 3: Plan Your Product

After settling on an idea for your digital product, it’s time to plan its structure. Outline the components of your digital product, such as the content, resources, and any additional features you want to include.

For an online course or eBook, list the key topics and subtopics you want to cover. If you're creating printable items like planners, checklists, or templates, outline sections like daily, weekly, and monthly layouts, habit trackers, and goal-setting pages.

On the other hand, If you’re creating software or an app, decide what essential functions will provide the most value to your users. Think about how users will interact with these functions and the overall user experience (UX).

Step 4: Set A Budget

Set a budget considering factors such as…

• Your time
• Equipment costs
• Software subscriptions
• Platform fees

Step 5: Create High-Quality Digital Products

It’s time to build your digital product, where you can show your creativity and come up with something unique that adds value for your audience.

Stick to your outline and start creating your product. Try to create content that is clear, engaging, and professional. If you’re building software or an app, testing is a must-go step. Try to launch a beta version to a small group of users first. It will help you get valuable feedback and spot any issues or areas for improvement.

Here’s a set of tips for you to create high-quality digital products-

Write Engaging Content

• Audience-focused: Address the specific needs and pain points of your target group.
• Clear and simple: Avoid jargon and overly complex language.
• Be conversational: Maintain a tone that feels friendly and approachable. It’s better to skip the formal language to make it relatable.

Create Eye-Catching Designs

Your digital product should look polished and professional. It also should showcase your brand’s unique identity. Tools like Canva offer easy-to-use templates, which you can personalize to fit your product’s needs.

Take Advantage of Multimedia

To further engage your audience, try to use multimedia elements. Depending on your product, you can include:

• Audio clips
• Interactive quizzes
• Animations
• Embedded videos

Step 6: Sell on Third-Party Marketplaces

Now, it’s time to choose the right platform to sell your digital products. Choosing a third-party platform to sell digital products is a great idea, as you can get instant access to a large pool of potential buyers.

But if you don’t prefer depending on third-party marketplaces to sell your digital products, you can skip this step and move on to step 7, where we’ll show you how you can sell through your own website.

Here’s a list of marketplaces that can be easy and reliable for you to start selling your digital products.

Gumroad

Gumroad is a flexible platform that helps creators start and grow their businesses. It's great for beginners exploring digital entrepreneurship.

You can use features like posts, email newsletters, and automated workflows to connect with customers. You can also sell ebooks in multiple formats like PDF, ePub, or Mobi on this platform.

It offers a "pay-what-you-want" feature, so customers can decide how much they want to pay.

Shopify

Another leading e-commerce platform that makes it easy to start and grow your business is Shopify. Whether you’re selling online, in-store, or both, it’s designed to suit businesses of all types and sizes. It offers user-friendly design, custom templates, app integration, built-in tools for SEO, 24/7 customer support, and many more advantages.

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Crowdfundly

Crowdfundly brings together the best features of other platforms, all at a budget-friendly price. It’s an easy and safe option for selling digital products and building a loyal community around your brand.  

Crowdfundly's super-easy interface and powerful tools for connecting with your customers make it stand in the crowd. You can chat with your audience, collect feedback, and make improvements that truly resonate with them. With everything from shop creation to flexible payment options, Crowdfundly gives you all the tools you need to grow your digital business with ease.

Source: https://crowdfundly.com/pricing

Etsy

Here’s another go-to platform for creators, crafters, and DIY enthusiasts, making it a fantastic choice for selling digital products. Etsy helps you with a massive audience base, user-friendly design, expert customer support, automated delivery, custom website options, and so many great features and benefits.

If you are going to start selling digital downloads on Etsy, we have a detailed guide for you!

When using Etsy, there are two key fees you’ll need to keep in mind:

• Listing Fees: $0.20 per item listed
• Transaction Fees: 6.5% for every item sold

Etsy listings stay active for four months, but you can set them to auto-renew. If you go this route, an additional $0.20 renewal fee applies, so it costs about $0.60 to keep a product listed for a full year.

You can upgrade to Etsy Plus for $10 a month. With this subscription, you’ll get 15 free listing credits and $5 in Etsy Ads credits each month. Etsy Ads help you promote your products on the platform to boost visibility in search results and other areas.

Thinkific

Thinkific is a user-friendly platform suitable for both beginners and seasoned creators. Are you starting a small business or planning to expand? No matter what your answer is, Thinkific can grow with you.

This platform is best known for its course creation and management features. Besides courses, you can also sell a variety of digital products like templates, guides, images, spreadsheets, music, and more.

If you’re willing to sell art on Facebook, the complete guide is just a click away!

Step 7: Sell on Your Own Website

You can build your own website to sell digital products, it even gives you complete authority over your branding and sales process. You decide how your brand looks and feels, from design to messaging. Also, there will be no third-party platform fees that will maximize your earnings.

However, setting everything up and running might take some extra effort upfront. So, the choice is yours.

And voila! You’ve successfully walked through the whole process of starting a digital product business!

How to Promote Your Digital Products for More Visitors

Launching a product can feel exciting, especially when you see a few sales roll in during the first week. However, to maintain steady sales, you should create a sales calendar or timeline to keep your audience consistently engaged with your product.

• Content Marketing: You can start a blog or make videos to feature your offers. For example, if you sell personal finance templates, write articles like 5 Simple Budgeting Tips for Beginners or How to Achieve Financial Freedom with Smart Planning.
• Search Engine Optimization (SEO): Make your website easy to find on search engines by optimizing content and structure. Use search-friendly keywords in your content. If you sell online fitness programs, target phrases like home workout plans or customizable fitness routines.
• Social Media Marketing: When selling digital products, promoting your products through social media works wonders. Just choose the right platforms to get enough responses. For example, If you sell visual products, platforms like Instagram, Pinterest, and Facebook work best.

FAQs

How Are Digital Goods Distributed?

Digital products are intangible items that exist in digital form. eBooks, music tracks, digital artwork, software applications, and online learning courses are some of the perfect examples. Marketers deliver these products through downloads or emails and offer value without needing physical stock.

How Do You Sell Digital Products Without A Website?

You can sell digital products without a website by using online marketplaces like Etsy, Crowdfunding, or Gumroad. It’s also possible to use social media platforms to promote and sell directly through features like Instagram Shopping or Facebook Marketplace.

What Are The Best Countries In Which To Sell Digital Products?

China and the US are way ahead and will likely stay on top for many years. India is slowly moving up, while Brazil and Indonesia are competing for 10th place. Most other countries haven’t changed much and probably won’t anytime soon.

Last Thoughts

Now, you know how to start a digital product business from scratch. The journey indeed requires careful planning, creativity, and consistent effort. From identifying your niche to creating valuable products, setting up a sales platform, and promoting effectively, each step is unavoidable.

The good news is that you can achieve big success if you focus on understanding your audience, use tools for automation, and continuously refine your strategies.