How To Sell Digital Products On Etsy This 2023

Wondering how to begin your passion project by selling digital products on Etsy? You are in the right place.

Did you know that every year, people make thousands of dollars passively by selling digital downloads? Not only that, some even quit their full-time job! If this is something that interests you, read on, you might be on the path to changing the course of your life.

sell digital products on etsy


What is a digital Product?

Digital products are anything that you can purchase and download without any physical copy.

This can be in PDF, Doc or excel  form or even PNG and JPEG for image

Why sell digital Products on Etsy?

1. low to minimal startup cost

You dont have to prepare a huge budget like any other type of business. 

You might need a laptop or an Ipad to create and maybe need to purchase certain software, and that’s it.

So since the budget require is free and not much, this can be a good business idea for most people

2. It can be a source of passive income. 

 It’s not entirely passive as you need to spend some time creating it first, but after that, you dont have to do anything.

You can create it one time and sell it multiple time

3. No inventory, drop shipping required. 

Everything is stored on your laptop.

The transaction is fast, easy and smooth

4. Vast customers on Etsy

People from everywhere around the world use Etsy for craft sources. 

5. Cheap to get started on Etsy

It’s fairly easy to get started and sell items on Etsy so it fits beginner

What you can sell as a digital download on Etsy?

Anything that can be digitalised.

One of the most famous digital downloads is a digital planner and wall art. But dont limit yourself there as with your creativity, the creation is endless

  • Wedding Invitation
  • Resume Template
  • Instagram icons

This post has listed 39 ideas for your digital download on Etsy.

How much money can you make selling digital Products?

Ranging from 100 USD weekly, 2000 USD in the first month and up to 25k in a month!

Of course, it depends greatly on a few variables namely the niche, the quality of the digital product, the quantity of your listing and so on

Bottom line is, is do-able and it’s not impossible to generate a lot of money selling digital products on Etsy

In the video below, Alissa Rose shares how she make 70k in 10 months with ONLY 3 of her digital products on Etsy 

Step-by-step guide on how to create a digital product to sell on Etsy

Begin with the end in mind

Decide what type of niche or audience you are trying to help.

Put yourself in the customer’s shoes and think what is the type of digital products that you might purchase from Etsy

Having this kind of mindset or strategy will help you create more focused digital products that can help a certain group of people

For example, you are a busy mom who tends to forget a lot of things.

So the digital product that might help with your problem is the digital planner

Now, you can focus on creating the digital planner specifically to help out the busy mom

Market research is important

As lucrative as it might sound, digital products are quite competitive. And on top of that, you have to compete with the BestSeller account with lots of reviews

How can you make your digital product stand out from the rest?

You do proper ETSY SEO

Etsy SEO or search engine optimisation is a way of finding the user intent when they search for the listing.

Your aim should be those of high volume (lots of people search for it) but low competition (not many people selling it)

There are a few Ety SEO that you can use 



Sale samurai

But if you are just about to begin and dont want to spend on the Etsy SEO tool, you can just use the Etsy toolbar to search for the auto-suggestion. This might take some time, but it’s going to be worth your time

You dont want to spend time creating digital products that dont end up on the front page of Etsy.

Spend some time finding the market gap that can make your product desirable and stand out among the rest

Go for the longtail keyword when you search for the listing

Now you know what you want to create for a specific group of people you trying to help, you can now go and create the digital product

You can create on your own, but you can also outsource it if you have the budget and dont have the time to create on your own

Apps you can use to create the digital products for Etsy


Everybody’s favourite. It’s easy to navigate with lots of premade templates to choose from. And one thing you should always use is the free version to ensure your customer have the access to your design

You can use Canva to create basically everything in a digital product

Hire people in Upwork or Fiver

If you have this great idea about the digital product but couldn’t find time to create one, head on to Fiver or Upwork

Based on your need, find the seller that is affordable within your range to do the work.

This might be a better solution rather than just keeping the great idea inside your head without making them a reality

Yes, you need to spend a little money for your project creation, but if you do your market research properly, it’s going to be worth it

Now you have the digital products ready to be sold, what is the next step?

Selling your digital products on Etsy

How to sell your digital products on Etsy

1. Set up an Etsy shop

It’s pretty intuitive and straight forward so just follow the instruction given

Decide on the name that reflective what are you going to sell

You can look at what other Etsy Profile looks like to get a hang of what to fill in your About Page

2. Create your listing

Etsy not only will charge you when you sell the item but for your listing as well

So keep this in mind when you want to price your digital products

So each listing will cost 0.5 cents and selling fees are 5% of sales fees per transaction.

Make sure you write a proper title and description for your digital product and filled it in with correct keywords because it is essential for SEO

Provide very nice-looking photos of your digital product with a complete guide on how to use your product (use video if necessary)

3. Promote your listing

Now your digital products are on Etsy, its time to promote the item on your Instagram, Twitter or Facebook, tik tok

Use your existing social media to promote it first to your close family and friends. They might want to support you and will be your first potential customer

Do remind them to leave a good review as reviews are essential to make other people to purchase from your store

Tips on selling digital downloads on Etsy as a beginner

1. Provide high-quality products but lay low on the price

As many people dont know about your business (yet) it might be quite difficult to sell your product at a higher price

So as a starter, keep the price low but maintain high standard quality to make people trust your brand

2. Friends and family help

Encourage your friends and family to buy your product and leave a good review, this is to help kick-start your Etsy business. No one wants to buy from a seller without any review

3. Create a digital bundle

By creating a bundle, you provide a good chunk of your digital product at a  very good price, and people love discount

4. Good customer service

Give them thank you a message, contact them and ask whether the product is working fine and answer their question as quickest possible.

Good customer service goes a long way. They will tend to give you good reviews and keep coming for your planner

And video assisting on how to use your product is even better!

5. Provide coupon code

This will benefit you in 2 ways: One, it encourages the customer to do another purchase at your store and 2, they will give you a good review.

It’s not a must to provide coupon codes for each listing, but if they purchase, more, give them more discount codes.

6. Create seasonality and evergreen item

Some items sell well during certain seasons like planners during the new year. But to maintain the sales and income from your Etsy store you have to make sure the evergreen products are there in your Etsy store as well.

This will prevent wide fluctuations in your income and keep the income steady

Is selling digital products on Etsy really worth your time?

Yes and yes

Dont be sceptical and get worried if you see thousands of sellers selling products on Etsy. There is a market for everyone

You just need to take the first step and hustle for a few weeks to create your product and really see whether you want to continue selling the digital products on Etsy or not

FAQ on selling digital products on Etsy

How I can promote my Etsy listing better?

Create a separate business account for Instagram, Pinterest, TikTok, Facebook and even a website or blog!

In the beginning, you just have to try it first and see using analytics, which traffic brings you more sales and double down on that

If you dont have time to promote on social media, you dont have to do it. But make sure the SEO, and keywords are specifically mentioned in your listing and product description so that people can come across your product organically.

How to price my digital products on Etsy

Look at your competitor and the pricing for each item. Lower down the price as beginner Etsy tips but still make it profitable

You can use the Etsy calculator to roughly estimate the price of your digital product

How to sell digital products on Etsy this 2023