Business Idea

Start An Etsy Digital Products Business

About

Starting an etsy digital products business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell etsy digital products, or selling etsy digital products online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an etsy digital products business ➜

Key stats

market size
$239B
revenue (monthly)
$4K
starting costs
$12.4K
gross margin
78%
avg product price
$50
time to build
5 months
growth
Pay Per Click Advertising
business model
E-Commerce
time investment
Side project

About

Starting an etsy digital products business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell etsy digital products, or selling etsy digital products online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an etsy digital products business ➜

Key stats

market size
$239B
revenue (monthly)
$4K
starting costs
$12.4K
gross margin
78%
avg product price
$50

 

time to build
5 months
growth
Pay Per Click Advertising
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Equipment & Supply Expenses $550 $6,000
Inventory Expenses $50 $9,750
Software Expenses $0 $525
Advertising & Marketing Costs $0 $3,000
Website Costs $17 $275
Other Expenses $0 $800
Specific Industry Expenses $0 $500
Total Startup Costs $652 $24,100

Successful Businesses

Business URL Rank
Klaviyo klaviyo.com #13,633
BELDARA beldara.com #26,441
Silhouette America silhouetteamerica.com #37,783
Zazzle zazzle.co.uk #78,213
Nancy Badillo nancybadillo.com #297,068
How To Copyright a Logo, Song, Book, Poem, Educational Courses and Other Creative Work protectmywork.com #609,103
Heart Handmade uk hearthandmade.co.uk #688,170
Eishops eishops.com #780,381
Felt felt.co.nz #788,021
The Design Trust thedesigntrust.co.uk #868,556
Handcrafted Art Jewelry jewelspan.com #5,650,036

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a etsy digital products business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a etsy digital products business. This could be the start of an incredible business opportunity!
Quick build time The average time it takes to build your product is quick - typically around 5 months. This will allow you to bring your product to market faster.
Cons Description
Crowded Space Competition is high when it comes to your etsy digital products business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Low margins The gross margins for your etsy digital products business are typically around 78%, which can make it more challenging to incur new expenses and maintain profitability.
Work can be inconsistent As a etsy digital products business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits With a etsy digital products business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Taxes As a etsy digital products business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net Typically, as a etsy digital products business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    The most tried and true way to grow a etsy digital products business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to etsy digital products business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜