How to Sell Digital Downloads on Etsy (Complete Guide)

How to Sell Digital Downloads on Etsy
Table of Contents

Did you know Etsy is a hotspot for selling digital downloads? People from all around the globe are jumping on this lucrative bandwagon.

With no inventory and upfront expenditures, offering digital downloads on Etsy is an easy way to earn passive income.

Want to learn how to sell digital downloads on Etsy? You’ve come to the right place.

In this guide, I discuss everything you know, including the definition of digital downloads and other valuable information to remember when selling digital products on Etsy.

Let’s begin.

How to Sell Digital Downloads on Etsy

What Are Digital Downloads?

A digital download is a digital product people can buy online.

People often think that a digital download is another term for a printable.

On Etsy, though, there are several kinds of digital downloads and digital printables. Examples of digital product ideas include:

  • Digital Art Prints
  • Digital Planners
  • Wall Art
  • Fonts
  • Logos
  • Graphics
  • Custom Website Themes
  • Sewing Patterns
  • Resumé Templates
  • Ebooks
  • Stock Photos
  • Printable Stickers
  • and more

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Why Is Selling Digital Products on Etsy a Good Idea?

You’re probably wondering why you should sell digital items on Etsy.

One of the advantages of selling Etsy digital downloads is that you don’t have to go through the hassle of sending buyers a physical product since they can just download the item upon purchase.

For example, Etsy sellers that sell digital art prints don’t have to worry about shipping and delivery issues.

Selling digital files is a popular tactic since they are simple to make. To start, all you need to do is build the product and create your Etsy listing.

Etsy shop owners can also enjoy being part of Etsy Teams, which enables you to participate in groups of other merchants, contribute to discussion boards, and advertise your digital designs and downloads.

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How Much Can You Earn Selling Digital Downloads on Etsy?

The amount of money you earn selling printables and other digital products on Etsy depends on your niche, product, and price.

Digital products generally do well on Etsy, but there’s a lot of competition. A quick Google search revealed some sellers earn thousands of dollars monthly.

The key to earning more is investing more time. The more time you give your business, the more successful you’ll be in the long run.

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How to Create Digital Downloads

Creating digital prints and other downloads isn’t as difficult as it seems. Some applications and websites can even help you make them.

Adobe Photoshop is a popular option for an Etsy printables business, even though the software has a high learning curve.

Canva is another free and easy-to-use tool to create digital products, especially if you’re an inexperienced graphic designer. Using Canva correctly can result in professional-quality work.

Apple Pages and Microsoft Word are great tools if you plan to write and sell ebooks.

Adobe Draw is an ideal choice if you are selling digital art or printables. It’s also free and easy to use!

Before creating digital products, know first which ones sell well.

Here’s a quick guide to learning how to do this.

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1. Research and Study the Market

Perform market research by exploring Etsy to see which products in your niche are selling well.

Here are some questions you can answer in the course of your research.

  • Are individuals shopping for things similar to what they want to sell?
  • What kind of prices are they willing to settle for?
  • What are non-negotiables for buyers?
  • Is there anything you can do to set yourself apart from the other businesses in your industry?

Etsy keyword tools can help with your research. There are both free and paid tools available. You can start with a free tool and upgrade to a paid one when your earnings improve.

You can also enter some of your ideas on Etsy’s search bar and see what comes up. The search results indicate what people are already looking for on the online marketplace.

Talk to people you know who may be part of your target audience.

Conduct a survey. Ask people how much they’re willing to spend on the products you want to offer and which specific types of digital items would appeal to them.

Create your digital downloads and list them on Etsy once your market research is complete.

Consider taking an Etsy course f you want to sell on Etsy but know nothing bout it.

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2. Make the Item and Set the Price

Have you decided on the type of products you want to offer? Start making them and think about their selling price.

Factor in labor costs and Etsy fees when determining the selling price of your digital products.

Note that Etsy charges both listing and selling fees. The listing fee is 20 cents per listing, while the selling fee is 5% of the transaction price.

You can offer competitive prices to gain an edge, but avoid undercutting your competitors.

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3. Open Your Own Etsy Shop

The process of setting up your business on Etsy is relatively straightforward.

Here’s what you need to do.

  1. Select the “Open Your Etsy Shop” option from the drop-down menu.
  2. Next, sign up for an account by providing your email address.
  3. Etsy will require essential information, including:
  • The name of your shop
  • The language you use
  • The currency you prefer

You can use an Etsy shop name generator to help you think of store names in case an existing store has already taken the name you want.

Complete your Etsy profile by adding a photo.

A personal photo is better than a company logo or product image. Let people see your face. Doing so helps foster more profound and meaningful connections with shoppers

Congrats, you’re now an Etsy seller!

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3. Add Your Digital Product

Add your digital products after customizing your Etsy storefront.

Start by clicking the “Add a Listing” button.

Place the mockup you created as the listing’s primary image.

Next, create a listing title. Include a focus keyword near the beginning of the title to improve your rankings and increase the chances of shoppers finding your listing.

Next, write the product description. Be as specific as possible.

Choose a type for your product. Configure it to renew automatically after a certain period.

In the “Tags” box, add search terms or tags shoppers can use when looking for your product. Maximize your tags by using all 13 slots.

You can upload files with a maximum size of 20 megabytes per digital file.

If your file is too large, lower the image quality or break up the file into smaller files.

Just remember that the printed version of the file should still have a high resolution.

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4. Add Keywords to Your Title and Descriptions for Etsy SEO

Researching keywords doesn’t have to be time-consuming. The key is to put yourself in your target customer’s shoes and consider how they would go about searching for your products.

What would your customer type into the Etsy search when looking for your products? The terms you come up with will be your foundation for the Etsy keywords you include in your listings.

Once you have your keywords, add them to your listing titles and create detailed product descriptions. Include relevant keywords organically throughout the product description.

Fill out the information about prices and shipping. Add a few tags with keywords that describe your printables to help shoppers find them on Etsy.

Don’t forget to highlight that your product is a digital item. Include the format of your item in the description (PDF, PNG, etc.)

Remember that your descriptions should answer buyers’ questions and give them reasons to buy your product.

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How to Market Your Etsy Digital Downloads

Once your listings are up, it’s time to spread the word.

Here are some digital marketing strategies you can try.

  • Run Etsy advertisements.
  • Promote your items on Facebook, Instagram, Tiktok, and other platforms.
  • Create a Pinterest account.

You can also design a lead magnet to build an email list. You can promote your products to the people who subscribe.

Set up social media accounts and email lists for your Etsy store.

Create and share videos of your products in use.

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Get Great Reviews

You need good reviews if you want your Etsy products to rank higher.

Good reviews are a form of social proof that can also help increase your sales.

Here are some suggestions to get good reviews as a new shop.

  • Respond promptly to all customer inquiries.
  • Be proactive when fixing issues.
  • Provide incentives to customers, like a complementary item or free shipping.

Enhance the customer experience by going above and beyond expectations. Ask buyers if there’s anything else you can do for them after the purchase.

You can also ask them to leave you a review in your follow-up message.

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Keep Selling on Etsy

Etsy is a great way to make money if you have things to sell. It’s a busy market, but you and what you have to offer can fit in.

Make things that people want and sell them to the right people. Get to know your customers and ask them for feedback. Repeat these steps while you watch your Etsy shop income grow.

Having a brand for your Etsy shop makes you look more professional and can help you make more sales by bringing people from over the web to your shop.

Use your own website or social accounts to get people to sign up for your email list. With an email list, you can offer unique coupons to customers to get them to buy from you more than once. That’s where you can also let interested leads and customers know about sales and new products, among other things.

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Discount Your Products or Provide Coupon Codes

Most people look for deals when they shop. Put your goods on sale if you want to sell more of them.

Your Etsy shop should have sales often. Make coupon codes for your email subscribers and people who follow you on social media.

Create unique coupon codes for customers who have already bought from you as another way to get them to buy from you again.

Promote Your Products

You don’t have to use Etsy ads to promote your products, but doing so is a big step that will help you make more sales or grow the ones you already have.

I wouldn’t jump into Etsy ads without learning how to run them profitably. If you do that, you’ll lose a lot of money.

If you want to run ads on Etsy, you should first think about taking an online course about Etsy ads to get the best return on investment.

The Bottom Line

Selling digital products involves a lot of work in the beginning.

Once you make your products, promote them heavily to ensure you spread the word and encourage people to buy.

Selling digital downloads on Etsy doesn’t require much capital, so it can be lucrative if you do your homework. Digital downloads also require much less manual labor than handmade items.

You may not earn a lot at the start, but with proper research, dedication, and intelligent execution, you can create a highly profitable business.

Start selling digital downloads today. You can’t go wrong.

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