How to Sell Digital Products on Etsy


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Sell Digital Products on Etsy
In this guide, I will explain some of the pros and cons of creating a shop with Etsy. The fees described in this guide are for sellers in the United States.

Creating digital products will require the investment of your time. However, you will not need to manage inventory and coordinate shipping.

You can get started with earning money online with Etsy in one weekend. Ready?

Examples of Digital Products

  • Photography
  • Graphics and Digital Art (clipart, logos, printable wall art, printable stickers, invitations, etc.)
  • E-courses
  • Editable PDF Files (planners, checklists, resumes, etc.)

Depending on what you would like to sell, you need to invest in software for designing graphics. Adobe Photoshop and Adobe Illustrator are the most popular. To save backups of your work, you can use an online storage tool called Dropbox.

Reasons to Sell Digital Products on Etsy

Product Exposure

In 2017, there were more than 33 million buyers around the world that spent more than $3 billion on Etsy. By selling on Etsy, you will reach millions of shoppers.


Etsy will handle the steps required to keep your online shop secure. They handle all payment information and customer account security.

Reasonable Shop Cost

Each listing costs $0.20 and will remain posted in your shop for up to 4 months or until it sells. When you sell a product, Etsy will receive 5% of the transaction and 3% and a $0.25 payment processing fee.

Set Up Sales and Coupon Codes

Etsy provides tools for you to offer free shipping or take a percentage off specific product listings. You can send coupons to shoppers that add items to their cart or favorite an item. If you would like to offer coupons to share on social media, you can create unique coupon codes.

How to Become an Etsy Seller

When you create a seller account, you will have the choice of three shop plans:

Standard Plan:

  • No monthly fees
  • Post unlimited product listings for $0.20 each
  • 3% + $0.25 payment processing fee per transaction
  • 5% transaction fee

Plus Plan:

  • $10 monthly fee
  • 15 listing credits ($3 value) with additional listings only $0.20 each
  • $5 Etsy Ads credits
  • 3% + $0.25 payment processing fee per transaction
  • 5% transaction fee
  • Shop banner templates
  • Additional layout options for featuring products
  • Option to email shoppers when a product is back in stock
  • Get 50% off a custom .com or .store domain for your store and direct it to your Etsy shop

Premium Plan:

  • Details about this plan option are not available yet.

Accepting Payments and Requesting Payouts

When you create a seller account with Etsy, you will be able to accept the following payment methods from customers: Credit Cards, Debit Cards, PayPal, Google Wallet, Apple Pay, Etsy Gift Cards.

After a customer pays for a transaction, your funds will be available for deposit within one business day. All payments, regardless of the payment method, will be deposited into your checking account. Etsy collects a 3% + $0.25 fee for payment processing through Etsy Payments. Daily deposits for United States sellers require a $25 minimum.

You have likely read about earning a passive income by selling digital products on Etsy. Although you can sell products while you’re away from your computer, you will still need to check your account to ensure that everything is running smoothly.


When you create a digital product listing, you will upload the files that the customer should receive. After a customer’s payment clears, they will receive a download link by email and in their account.

Tips for Running an Etsy Shop


  • Reply to questions or concerns throughout the day whenever possible. If you are on vacation or closed during specific timeframes, post this information in your shop announcement and message auto-responder.
  • Respond to common questions concerning products and technical issues using saved message snippets.
  • Create resources (blog posts, videos, PDF tutorials) that address common questions and problems.

Determine Your Terms and Conditions

  • Provide a clear policy that explains how a customer can use your products. Refer to shops that sell similar products for ideas.
  • In addition to posting terms of use in your shop, you can include a printable PDF or text document with the product download.

Product Theft and Copycats

Theft of digital products on Etsy is a problem for many Etsy sellers. Stating that someone may not resell, share, or modify your work is not enough.

Here are a few things you can do to protect your work:

  • Add your logo or a semi-transparent watermark to product preview images.
  • Share new product updates on your blog or social media to show when a product was released.

Product Mockup Files

If you want your product to stand out in Etsy search results, I recommend that you create unique preview images. If you want to save time, though, you can use product mockup files.

How to Build Traffic to Make Sales

Although Etsy has millions of shoppers, you will need to take steps to build an audience. You can use social media and email newsletters to notify your followers about new products, promotions, and free product giveaways.

As you are building your business, a blog can function as a place to provide resources and examples of how to use your products. A blog will help you find potential customers through search engines and send them directly to your shop. A WordPress site will provide you with the most flexibility. If you want to offer products through your own site in the future, you can add a shopping cart to a WordPress site.

+ What Blogging Platform is Best for a Craft Blog?

+ How to Start an Email List for Your Blog

+ Increase Email Subscribers with Lead Magnets

+ How to Use E-Courses to Increase Business

Earn Money with Etsy’s Affiliate Program

A popular way to earn money online with blogging and social media pages is to use affiliate links. When you find a product you love and want to share it with your followers, you can apply to become an affiliate for the company that sells the product. Etsy uses a company called Awin to manage its affiliate program.

+ How to Join Awin Affiliate Network

+ Earn Money Online with Affiliate Marketing

Awin will provide you with a unique tracking link and when someone clicks on the link and buys the product, you’ll earn a small commission. You can become an affiliate for complimentary products that will be helpful to your customers. However, you cannot earn commissions on products sold in your shop.