Etsy is an online marketplace that connects independent artists with customers looking for unique and custom-made products. So, digital product sellers have also found their way to Etsy due to its easy setup and large audience.  

While sellers offer digital downloads as instant downloads or made-to-order items, Etsy takes care of processing payments and charges a minimal fee for the service. If you have been thinking about finally launching your Etsy store, you are in luck.

In this article, we will explore how to start selling digital downloads on Etsy step-by-step. So, stay with us throughout the entire article to learn everything!

What Is A Digital Download?

Digital downloads are electronic files that you can download from the internet. These files usually come in formats like PDF, MP3, or video.

Some of the most popular digital downloads you can sell are documents, eBooks, music files, software, and online courses.

As people are relying on the internet more than ever, there has been a huge demand for digital downloads in recent times. They're popular among both sellers and buyers because there's no need for physical stuff or shipping.

How to Sell Digital Downloads on Etsy in 6 Easy Steps

If you want to venture into the world of selling digital downloads on Etsy, the steps are pretty straightforward. 

In this section, we discuss 6 easy steps that will ensure the successful launch and operation of your store. 

1. Find Your Winning Niche

Figuring out the right Etsy niche might feel like a puzzle if you don't know where to start.

However, it's not complicated at all, and anyone can do it.

Here are 4 Simple Ways to Find Your Niche on Etsy:

• Check out popular categories, featured shops, and bestsellers on Etsy for inspiration. Even Etsy's blog, with shopping guides and gift ideas, is a great spot for niche ideas.
• Look into your hobbies, interests, and skills to find a niche that genuinely excites you. Creating products you're passionate about increases your chances of success. 
• Think about any special skills, knowledge, or advantages you have that can make your shop stand out. For example, if you've got a unique and low-cost source for materials, use that to your advantage in creating products.
• The Etsy search bar is a treasure trove for niche ideas. The autocomplete feature shows real data from Etsy shoppers. So, you can get an idea about what potential customers are searching for.

2. Create Your Digital Products

Once you've got your product idea good to go, it's time to create those digital downloads. How you do it depends on the type of product you're working with.

The cool thing about digital products is they don't cost much to make. The tools are usually cheaper than real-world stuff. Take advantage of that by using free tools. Here are some hot favorites:

• Canva: Makes templates, printables, and digital designs.
• Affinity Photo and Editor: A free alternative to Adobe Photoshop and Lightroom.
• Gimp: Another free alternative to Adobe Photoshop.
• Inkscape: A free alternative to Adobe Illustrator.

5 Unique Digital Products to Sell on Etsy

Zoom Backgrounds

With more people working from home, Zoom meetings have become very common. There's now a big demand for cool Zoom backgrounds. You could create and sell your stylish backgrounds on Etsy!

Sell digital artwork using Crowdfundly

Budget Trackers

Budget trackers are tools that help you keep track of your daily spending and income. You can sell budget tracking templates through your Etsy store to help others manage their finances.

Instagram Story Highlight Icons

These are digital graphics you can download to personalize your Instagram profile. People use these icons to make their Instagram Stories look nice and organized.

Lightroom Presets

Lightroom presets are like special filters for your photos in Adobe Lightroom. Since many Instagram influencers and new photographers want their photos to look unique, there's a big market on Etsy for high-quality Lightroom presets.

Wrapping Paper Patterns

During the holidays, many people buy wrapping paper. But store-bought wrapping paper can be expensive. That's why smart shoppers often prefer to buy digital wrapping paper patterns on Etsy and print them at home. 

3. Set Up Your Etsy Shop

You have found the right niche and developed your products, now it’s time to set up and launch your Etsy shop. Luckily the steps are very easy to follow.

Follow these five important steps to kickstart your Etsy journey:

• Start your Etsy journey by clicking "Sell on Etsy" from your consumer account, then hit "Open Your Etsy Shop."
• Personalize your preferences, like language, shop country, and currency.
• Choose a catchy name for your shop. Use only unaccented letters and numbers and keep it under 20 characters. 
• Boost your shop's visibility by creating at least ten eye-catching listings. Add photos, videos, product details, pricing, and shipping information. 
• Share your tax filing status, personal or business info, and banking details. Also, input your credit card details to cover Etsy fees and decide whether you prefer auto-billing or manual payments.

It's finally time to officially open your shop and make your mark on Etsy. Simply click the "Open your shop" button right after entering your credit card information. However, there are a couple more steps to truly stand out in the crowd.

To add a personal touch, spice up your Etsy shop by updating your bio. Introduce yourself with a short and sweet description and throw in a friendly photo. This step not only humanizes your shop but also makes customers feel a personal connection.

Another crucial step, often overlooked, is to set your shop’s policies. Make sure to include important information such as processing time, shipping policies, payment options, and return/exchange policy. 

4. Optimize Your Shop with Etsy SEO

By utilizing Etsy SEO, you can make your shop and products easier to find on Google and Etsy's search. It might sound a bit tricky, but it's essential to know some basic SEO tips. 

Here are some easy tips on how to optimize your Etsy Store with SEO:

Include your primary product in your shop title

• Briefly describe your store with a title that reflects what you make and sell.
• Your shop title is the page title for your shop and influences SEO.

Use keywords in your listings

• Determine relevant keywords by thinking like a shopper.
• Test keywords in Etsy's search tool to see what comes up.
• Consider long-tail keywords for less competition and higher chances of sales.

Avoid using the same keyword too often

• Etsy's search algorithm avoids displaying more than one or two listings from the same seller.
• Vary your keywords to avoid competing against yourself in search results.

Use all 13 tags in each listing

• Include a variety of tags to optimize your listings for search.
• Don't repeat tags, use plurals, or include tags in multiple languages.

Front-load listings with keywords

• Place important details and keywords at the beginning of listing titles, descriptions, and shop sections.
• Catch the shopper's attention and help Etsy determine relevance to search terms.

Renew your listings regularly

• Recency plays a role in Etsy's search algorithm.
• New listings and renewed listings get temporary boosts in search results.
• Manually renew listings during peak traffic times for better results.

Promote your shop to get inbound links

• Share items on social media for easy re-sharing.
• Reach out to websites and bloggers for features.
• Connect with other Etsy shop owners for cross-promotion.

5. Create A Pricing Strategy

To set the right prices for your digital downloads on Etsy, take some time to look at competitors' pricing. Think about how special and valuable your digital products are, and set prices that match that. 

Find the sweet spot between being competitive and making a profit. You can also try giving discounts or running promotions to get more customers interested and boost your sales. 

Feel free to test out different pricing strategies to figure out what works best for your Etsy business.

6. Promote Your Digital Downloads on Etsy

You have successfully launched your dream Etsy store, but how do you promote it to your customers? 

Here are some easy ways to promote your Etsy downloads and boost sales of your shop:

Create Your Niche Website

Make a website focused on your niche. Write content with relevant keywords to highlight your Etsy digital products. Link your site to your Etsy shop for more visibility and sales.

Get Social on Facebook

Set up a special Facebook page for your digital downloads. Share your Etsy products and other related content to grow your page and connect with followers. You can even share your blog if you decide to start one.

Pin It on Pinterest

Make a Pinterest Business Account to showcase your Etsy goodies. You can also use it to promote your blog and create a web of promotion.

Snap it on Instagram

Start a branded Instagram account. Share pics of your Etsy products, happy customer reviews, and shots of your products in action.

Show Off on TikTok

Join TikTok in your niche. Create fun videos and product demos to drive more people to your Etsy shop.

Grow Your Email List

Use your social media or website to gather email subscribers. With an email list, you can send special deals and let people know about sales and products. You can even offer one of your digital products as a freebie.

Marketing on social media might not sound easy, but it can boost your chances of selling more on Etsy.

Is It Worth Selling Digital Downloads on Etsy in 2024?

When it comes to selling handmade goods online, Etsy is often the first platform that comes to mind. However, as with any marketplace, there are pros and cons to selling on Etsy that crafty e-commerce businesses should consider.

Why People Use Etsy?

• Etsy attracts buyers seeking unique and handmade items, benefiting sellers with innovative products.
• With its accessible tools, Etsy suits merchants of all expertise levels.
• Etsy's popularity brings millions of monthly visitors, reducing the need for extensive marketing efforts.

Despite the advantages of the platform, there are many issues you should look out for when selling digital downloads on Etsy in 2024.

Some of the drawbacks of Etsy are:

High Competition: Etsy's vast marketplace makes visibility challenging, often requiring a substantial number of listings.

Limited Customer Loyalty: Buyers may prioritize price and shipping convenience over loyalty to individual sellers due to the platform's diverse offerings.

Increased Fees: Etsy's raised transaction fee and additional charges can squeeze profit margins for sellers.

Strict Policies: Adherence to Etsy's strict selling policies is crucial; violations may lead to shop suspension or closure.

Alternative to Etsy to Sell Digital Downloads: Crowdfundly

Crowdfundly is a tool exclusively for creators to earn donations, sell memberships, and sell any digital items to fans. 

Crowdfundly should be your go-to tool if you are a content creator and looking for a place to sell your digital downloads. Here, you can sell any type of digital product- ebooks, music, audio files, photos, videos, and so on. 

Why Do We Recommend Crowdfundly? 

Here’s why we recommend you use Crowdfundly:

You can build and customize your digital shop and sell digital items to your fans in 4 easy steps. Here are the steps to create a shop and sell your digital products on Crowdfundly:

• Create an account and set the payment getaway from ‘Settings’.
• Go to ‘Shop’ in the sidebar and then choose ‘Digital Art’.
• Fill up the required details and set the pricing of your artwork. 
• Choose ‘Create and voila you will have your shop in these steps.

Now enlist all the digital items you would like to sell to your community. You can even create different categories of the items you would like to sell.

Share your shop link to your social media platforms to reach out to more consumers. To get the link, go to ‘View My Page’ from the menu bar on the topmost right corner, go to ‘Shop’, and click on the art you want to share. 

Closing Words

Hopefully, now you have a clear idea of how to sell digital downloads on Etsy. Opening an Etsy shop may seem intimidating, but you can easily achieve it by following some easy steps. When in doubt, refer to our article for detailed steps to selling digital downloads on Etsy.