I Tried Selling Digital Products for 90 Days

Summary

The speaker shares their experience of transitioning from a physical Etsy shop selling children's labels to a digital product shop, highlighting the benefits of scalability and location freedom. Despite facing challenges such as market saturation and piracy, they find joy in the passive income digital sales provide. With a lifetime revenue of $1,165 in three months, they discuss the importance of high profit margins and the potential to expand into print-on-demand services. The video also offers advice for beginners on choosing a niche and focusing on solid product ideas, standout photos, and SEO.

Takeaways

• 🚀 Starting an Etsy shop from scratch can lead to growth, as seen with the digital product shop's increase in visits and sales over three months.
• 📈 The shop's revenue increased from $182 in December to $283 in January, and then to $67.7 in February, totaling $1,165.110 in three months.
• 💼 The speaker finds the results impressive, especially considering the nature of the digital products being sold.
• 🏭 The speaker has experience running a physical sticker shop, which involves more labor and machinery compared to the digital shop.
• 🌐 Digital products offer scalability and location freedom, allowing sales without the need for physical fulfillment.
• 🌐 The downside of digital products is the saturation in the market, with global competition making it harder to stand out.
• 💼 Copying digital products is easy, leading to a high likelihood of piracy and competition.
• 💰 Digital products can have higher profit margins compared to physical products, allowing for more flexibility in business operations.
• 💡 The speaker suggests focusing on products or services one is familiar with and solving problems in a better way than what is currently available.
• 📸 For marketplace success, having a solid product idea, standout photos, and proper SEO are crucial.
• 🌟 Etsy is recommended as a beginner-friendly platform despite its challenges, offering opportunities for new shops to succeed.

Q & A

What was the initial goal of the speaker when starting their Etsy shop?

The speaker started their Etsy shop with the goal of selling digital products and growing the business from zero visits and zero sales.

What were the monthly sales and visit statistics for the speaker's Etsy shop in the first three months?

In the first month, the shop had 351 visits and $182 in sales. In the second month, there were 560 visits and $283 in sales. In the third month, the shop received 983 visits and made $67.7 in sales.

Why did the speaker find their results amazing despite the low sales figures?

The speaker found their results amazing because they were selling digital products, which have the advantage of being infinitely more scalable and requiring less labor compared to their physical sticker shop.

What is the main advantage of selling digital products over physical products according to the speaker?

The main advantage is that digital products are infinitely more scalable, can be copied and distributed for free, and do not require additional labor or resources for each sale, providing a sense of location freedom.

How does the speaker fulfill orders for their digital shop compared to their sticker shop?

The speaker fulfills orders for their digital shop by simply having the digital files ready for download, which is much easier and less labor-intensive than the process of printing, cutting, and shipping physical stickers.

What was a significant challenge the speaker faced with their sticker business during their trip to Disneyland?

The challenge was that they could not fulfill orders while on their trip because all the equipment and resources for making and shipping stickers were at home.

What is the speaker's perspective on the concept of 'location freedom' in relation to their business?

The speaker appreciates the concept of location freedom, which allows them to make money regardless of where they are in the world, and sees it as a major appeal of running a digital business.

Why does the speaker believe that selling products with a large profit margin is advantageous?

The speaker believes that a large profit margin allows for more flexibility in business operations, such as including bonuses and promotions, experimenting with new product lines, and investing in advertising and marketing.

What are some of the downsides the speaker has experienced with selling digital products on Etsy?

The downsides include the saturation of digital product niches, ease of copying digital products, piracy issues, and some customers' reluctance to spend money on digital products.

What is the speaker's plan for the future regarding their digital shop and sticker shop?

The speaker plans to continue running both shops, exploring the possibility of working with a print-on-demand provider to turn digital products into physical ones, and sharing more about their digital shop in future videos.

What advice does the speaker have for beginners starting an Etsy shop?

The speaker advises beginners to focus on products or services they know well, take standout photos, get SEO right, and stick to the basics. They also emphasize the importance of not comparing one's own business trajectory with others.

Outlines

00:00

📈 Starting a New Etsy Shop: Digital Products Journey

The speaker launched a new Etsy shop three months ago, focusing on digital products. Initially, the shop had zero visits and sales. However, by December, they achieved 351 visits and $182.40 in sales. January saw a significant increase with 560 visits and $283 in sales, and in February, the shop garnered 983 visits and $67.7 in sales, totaling $1,165.10 in revenue over three months. Despite the modest results, the speaker is impressed due to the nature of digital product sales. They contrast this with their existing sticker shop, which requires physical production and shipping. The speaker appreciates the scalability of digital products and the joy of passive income, especially during a trip to Disneyland where they couldn't fulfill orders from their sticker shop. They also discuss the concept of 'location freedom' and the appeal of being able to work from anywhere.

05:02

💼 Digital vs. Physical Product Business: Pros and Cons

The speaker discusses the advantages of digital products over physical ones, particularly their scalability and the ease of fulfilling orders. They highlight the freedom of not needing additional resources or personnel to scale a digital business. However, they also acknowledge the challenges, such as the saturation of digital product niches and the ease with which digital products can be copied and pirated. The speaker notes that while physical businesses face regional competition, digital businesses compete globally, requiring exceptional quality. They also mention the reluctance of some consumers to pay for digital products, leading to lower profit margins and the need for careful pricing strategies. Despite these challenges, the speaker remains optimistic about the potential of their digital shop and considers expanding into print-on-demand services to increase profits.

10:04

🌐 Embracing Digital Freedom and Future Plans

The speaker reflects on their experience with digital products and how it aligns with their personality and lifestyle. They express a preference for the freedom digital products offer over the stress of managing a physical business and a team. The speaker is open to the idea of letting go of their sticker shop, despite previous long-term plans. They are considering sharing their new digital shop in the future and are excited about the potential for growth. The speaker also offers advice for beginners, emphasizing the importance of focusing on familiar products or services, understanding the market, and mastering the basics of product quality, photography, and SEO. They encourage new sellers to learn from their experiences and adapt their strategies accordingly.

Keywords

💡Etsy Shop

An 'Etsy Shop' is an online store on the Etsy platform where sellers can offer handmade, vintage, or craft supplies. In the video's context, the creator discusses their experience of starting a new Etsy Shop focused on digital products, which contrasts with their previous physical sticker shop. The term is central to the video's theme of transitioning from physical to digital commerce.

💡Digital Products

Digital products are items that exist in a digital format, such as software, e-books, or printable files, which can be downloaded or accessed online. The video emphasizes the scalability and convenience of digital products compared to physical ones, as they can be easily duplicated and distributed without the need for physical storage or shipping.

💡Visits and Sales

In the context of online retail, 'visits' refers to the number of times the shop or product page is accessed, while 'sales' are the actual transactions completed. The video script details the growth in visits and sales over the first three months of the new digital Etsy Shop, illustrating the progress and potential of the business.

💡Scalability

Scalability refers to the ability of a business or process to handle a growing amount of work, or its potential to be enlarged or expanded. The video discusses the scalability of digital products, highlighting how they can be produced and distributed without the same logistical constraints as physical products, thus allowing for greater growth potential.

💡Location Freedom

Location freedom is the ability to live and work from any location while maintaining a career or business. The video script mentions the creator's realization of the importance of location freedom, especially when running a digital business that allows for global sales without being tied to a specific geographic location.

💡Profit Margin

Profit margin is the measure of how much profit a company or business makes for every dollar of sale. The video explains that digital products often have higher profit margins compared to physical products, as they involve less production and distribution costs, allowing for greater flexibility and investment in business growth.

💡Pricing Strategy

Pricing strategy refers to the method or approach used by a business to set the price of its products or services. The video discusses the challenges of pricing digital products, noting that it must be profitable for the seller and acceptable to customers, which can be more difficult than with physical products due to differing customer perceptions and values.

💡Saturated Market

A saturated market is one where the supply of a product or service exceeds the demand, making it difficult for new entrants to compete. The video script points out that digital product niches tend to be more saturated than physical ones, as the ease of entry leads to increased competition from sellers worldwide.

💡Print on Demand

Print on demand (POD) is a service that allows businesses to print and ship physical products only when an order is received, eliminating the need for inventory. The video mentions the creator's plan to use a print on demand service to convert some digital products into physical ones, potentially increasing profits and customer appeal.

💡SEO (Search Engine Optimization)

SEO is the process of improving the visibility of a website or a product listing in search engines through organic, non-paid results. The video emphasizes the importance of SEO for marketplace success, as it helps products rank higher in search results, increasing visibility and potential sales.

💡Beginner Friendly

Being 'beginner friendly' means being accessible and easy for those who are new to a particular activity or field. The video script describes Etsy as a beginner-friendly platform, suggesting that new sellers, even without an established audience, can still achieve sales and grow their businesses.

Highlights

Opened a new Etsy shop with zero visits and sales in digital products, achieving 351 visits and $182 in sales in the first month.

In the second month, the shop received 560 visits and made $283 in sales.

In the third month, the shop saw a significant increase to 983 visits and $567.7 in sales.

Total lifetime stats after 3 months include 1,938 visits and $1,165.110 in revenue.

The shop owner operates another Etsy shop selling sticker labels for kids for the past 3 years.

Digital products offer the advantage of scalability without the need for physical fulfillment.

Digital product sales provide passive income without additional work for each sale.

The shop owner faced challenges in fulfilling orders during a trip due to physical business limitations.

Digital businesses offer location freedom, allowing sales and operations from anywhere.

High profit margins in digital products enable more flexibility and investment in business growth.

Digital product niches are generally more saturated than physical ones due to global competition.

Copying digital products is easy, leading to widespread replication and potential loss of sales.

Piracy is a concern for digital products, with the potential for customers to share files after purchase.

Some consumers are reluctant to spend money on digital products, valuing physical items more.

Pricing digital products profitably and attractively for customers is more challenging than physical products.

The shop owner plans to explore print-on-demand services to convert digital products into physical items.

Despite the challenges, the shop owner finds digital products more aligned with their personality and freedom.

Advice for beginners includes focusing on a niche they understand and eliminating options to avoid overwhelm.

Basics for marketplace success include a solid product idea, standout photos, and effective SEO.

Etsy is recommended as a beginner-friendly platform despite its downsides.

Transcripts

90 days ago I started a brand new Etsy

shop with zero visits and zero sales

trying to sell digital products and here

are the results in my first month in

December I got 351 visits and sold $182

40 in my second month in January I got

560 visits and sold

$283 and just last month in February I

got 983 visits and sold $

67.7 so my total lifetime stats 3 months

in is $ 1,93 8 visits and

$1,165 110 in Revenue maybe you're

seeing these results and you're thinking

to yourselves wow that's pretty

underwhelming I was expecting way more

or maybe you're seeing these results and

you're thinking that's pretty amazing

that's like a good amount of money I

have no idea who you are or what your

circumstances are but if you're asking

me I think this is pretty amazing

because of what I'm actually selling

here but before we dive deeper into it

just to give everything a bit of context

we need to talk about my other shop if

you're an old friend of the channel you

know that I've been running another SC

shop for the past 3 years or so it's a

sticker shop that sells labels for kids

stuff this is me formatting the stickers

for

printing this is me getting those prints

from the

printer this is me loading the prints

into the cutting

machine and this is me popping them out

after they're

cut after that I have to organize them

pack them and get them ready for

shipping this is how I fulfill orders

from my sticker shop and depending on

the amount of orders I'm doing this

maybe 2 to three times a week and just

for comparison this is me fulfilling

orders for my digital

shop

nice this is one of the main reasons why

I really wanted to start selling digital

files even though my sticker shop isn't

as labor intensive as a lot of others

out there I mean if I'm being honest the

machines are doing most of the work here

not me the obvious advantage that

digital products have over physical is

that they're infinitely more scalable

don't get me wrong physical products can

be scaled too I've managed to increase

my output by investing in bigger more

capable machines and the next step if I

wanted to would be to actually hire

people to help with fulfillment but if I

wanted to do this with my digital

products I wouldn't have to get anything

or hire anybody since the things that

I'm selling are digital and they can be

copied and distributed for free it

scales all by itself plus there's no

better feeling than getting that not

notification for a sale and not having

to do any extra work to earn that money

every time I get sales it's just pure

joy which is

nice I took a trip to Disneyland last

year and it was pretty fun by the way we

went for the kids but we actually ended

up having a really great time too I Now

understand why so many adults are

choosing to go to Disneyland even when

they don't have kids anyways while I was

there I encountered another problem with

my sticker business since all of my

equipment to make and ship stickers was

at home there was no way that I could

fulfill orders while while on my trip

usually with my shorter trips I could

just change my dispatch times to

compensate for my days away but with

this being a longer trip I really only

had two options and that was one to put

all orders on hold or two to drastically

extend my dispatch times in the end I

chose to extend my dispatch times which

was fine with the majority of my

customers but I could see this becoming

a bigger problem if I wanted to travel

during one of my busier months when my

customers need their sticker labels more

quickly I realized during this time that

I've been focusing too much on find

ccial freedom and time Freedom that I

overlooked another type of freedom and

that's location Freedom there's no

denying how nice it would be to be able

to make your money regardless of where

you are in the world while I'm a family

man now and my digital Nomad days are

probably behind me that type of

lifestyle has always had major appeal to

me I just imagine being somewhere

tropical with the low cost of living

working on the beach with my laptop I've

never actually done this so I don't know

the reality of it but the dream of it

seems nice

running a business selling products with

a low profit margin can feel like you're

constantly Treading Water since you're

not making much money on the products

that you sell you have to constantly

worry about keeping your costs low and

your operations efficient it's hard to

try new things your margins are so thin

that taking a risk that doesn't pan out

could lead to financial disaster on the

other side if you're lucky enough to be

selling products with a large profit

margin you have the flexibility to be

creative with your business you can

include bonuses and promos with

purchases and you have enough money to

be able to experiment with new product

lines and marketing techniques basically

you can go above and beyond for your

customers and more importantly since

you're making more money on each sale

the work that you do will actually be

worth it one of the biggest reasons that

I started a sticker business 3 years ago

was because of the good margins the idea

of taking a sticker pack that cost $1 to

$2 to make and selling it for $15 to $20

was really appealing and while those

margins are pretty good especially for a

physical product nothing can compare

with digital products this is a huge

advantage and you can see this with a

lot of other companies that sell

software or other purely digital

products compared to physical companies

they're able to spend more on

advertising and marketing they're able

to funnel their profits into things that

actually grow their

company while this all sounds amazing in

the last 3 months of being in this

digital product space I've learned about

the downsides I think it's it's

important to talk about this too just in

case you're thinking of doing this it's

good to have a realistic picture of what

you're getting into and the first one is

that in general digital product niches

are more saturated Than Physical ones

making physical products is not easy and

it's something that most people don't

even want to try not only that if you

live in a more remote area of the world

the equipment to make the things that

you need might not be available and the

distribution channels to get your

products delivered might not exist

because of that certain physical product

businesses in certain parts of the world

is actually not possible this is why

especially for people outside North

America Europe or Asia they're flocking

towards digital products so yes one of

the pros is that you can do this from

anywhere in the world you have location

freedom but the other side of this coin

is that you'll now be competing with

people from everywhere around the world

this makes it harder because you're

going to have to get really good at what

you do generally if you're doing a

physical business and you're just

competing within a specific spefic

region you just have to be as good as

the people in that region but now since

we're working with a global scale you

have to compete with the best the next

downside is that copying is easy Etsy

Marketplace is a copy Fest if you do any

browsing on the platform you'll just see

that everyone's just copying each other

less successful shops are copying more

successful shops it's just the way it

works and you have to accept it what

makes this particularly worse with

digital shops is how easy it is to copy

a digital product when you're making

physical products your competitors that

are trying to copy you may not have the

same access to the machines that you use

or the specific processes that you use

to make your products so even if they do

try to copy you their products won't be

exactly the same but in the digital

world all it takes is for a competitor

to buy one of your items they can make

some small tweaks and put it up on their

shop and now they're selling an item

that is just as similar if not exactly

the same as yours and also because of

this digital files are easier to Pirate

there's nothing stopping people from

buying your products and sharing it with

everyone they know or posting it on

their blog or website for other people

to download there's going to be some

lost profit due to this and that's

something that you have to accept as

well another downside is that some

people are still reluctant to spend

money on digital things we all know

these people the ones that think that

spending five bucks on a productivity

app to improve your life is too much but

they're more than happy to spend that

same amount of money on a coffee or

something similar I was actually one of

these people for a long time while I

think sentiments are starting to change

there there's still people out there

that will never spend a single scent on

something that's not physical or even if

they are they're not going to value a

digital thing as much as something

physical this is the reason why you see

so many Etsy shops charging peanuts for

their digital products I've even seen

people sell things for less than a

dollar which makes absolutely no sense

to me because Etsy already charges 20

cents for each listing so that's a huge

cut into your profits for me I think the

sweet spot for digital products

especially on Etsy is somewhere between

the $10 to $20 fun range that's enough

of a sale to make each spread worth it

but also not impossible to convince

somebody to spend that much on a digital

product but yeah in general when it

comes to digital products pricing in a

way that's both profitable for you and

doable for customers is going to be much

more difficult than physical

[Music]

products so what's next for me I don't

know if this new shop is going to be a

long-term thing but for now I want to

keep going so I'm going to keep going

since this new shop doesn't take take

too much time to maintain I feel like I

can add this to my current workload and

commitments and it should be fine I have

firsthand experience on how fast and how

big an Etsy Shop can grow I don't know

if this new shop will be able to match

what I did with my sticker shop but I'm

excited to see if it can the next step

is probably to work with some kind of a

print and demand provider just so I can

turn some of my digital products into

physical products I feel like if I can

do that I can actually make more profit

on each sale since people are more

willing to spend on physical things than

digital things also going this route

isn't going to add any extra work on my

part since fulfilling and shipping is

done by the print on demand service I

will be sharing more about this shop in

future videos and I do planning on

making more of a step-by-step guide on

how I got everything up and running up

to this point so if you're interested in

that you can subscribe as for my sticker

shop I'm not going to shut it down or

anything I'm going to keep going with it

as long as it makes sense but it's kind

of funny because for a long time I

thought my sticker shop was part of my

long-term future I had all these big

plans for eventually getting a physical

space and hiring a small team to run it

but after playing around with digital

products just for the past 3 months I'm

starting to be okay with the idea of

letting it go there's something about it

that I feel just fits my personality a

little bit better I like the freedom of

it and honestly running a physical

location and managing a small team

doesn't actually seem like something I

want to do it seems like it would be

stressful for someone who's a natural

introvert like me I don't think I could

handle the stress of having employ EMP

that rely on me and my business to pay

their bills it just doesn't seem fun so

Props to those who are doing it also I

know I'm going to get comments about it

but I'm not going to be sharing this new

shop yet uh it's something that I might

share in the future like I did with my

sticker shop but for now I want to

continue to be able to show realistic

results for people who have no audience

and those who are starting from

[Music]

scratch it's been a while since I've

been a beginner but now that I'm deep

into it again I feel like it's

everything is just fresh in my mind I

feel like I can relate more to The

Beginner's struggle so I thought I'd

share some advice for people starting

out there's an infinite number of things

that you can do it can be easy to be

overwhelmed by all the options and

thinking about it too much can usually

lead to not doing anything at all if you

want to really get started the best

thing to do is to eliminate as many of

these options as possible focus on

products or services that you know best

look around you and look for things that

you've bought in the last month or so or

things that you're thinking of buying

why did you buy it what problem are you

hoping it solves is there a way that you

can solve that problem for others in a

better way and do you have the skills to

do it or are those skills something that

you'd have fun developing these are the

questions that you should be thinking

about if you're trying to find a winning

product that's right for you because

you'll be familiar with it there's no

point in entering a niche that you don't

understand it all or you don't care

about it all so try to avoid that

Everyone is always looking for shortcuts

and hacks but what actually works at

least for me is sticking to the basics

if you're selling in a Marketplace these

Basics are one having a solid product

idea that clearly solves a problem two

taking photos that stand out from the

competition and three getting your SEO

right if you get all three of these

things right the sales will eventually

come with all the bad talk and bad press

that Essie gets I still feel that it's

really beginner friendly new shops still

have the ability to get sales even

against established ones despite all its

downsides it's still a platform that I

really recommend especially if it's your

first time trying to sell things

online again I don't know who you are or

what your circumstances are I don't know

if your numbers are better or worse than

mine but it really doesn't do any good

to compare every business has its own

trajectory some will start really slow

and then they'll take off some will

start off really fast and then burn out

some will have super steady sales every

month and some will feel like being on a

roller coaster I think it's important to

know that each business is different and

to not get discouraged if your business

isn't matching what you're seeing around

you also even though my Etsy Shop is

starting from zero just like everyone

else I'm not actually starting from zero

I've had another Etsy shop for 3 years

and I've learned a lot during that time

so I'm actually starting from experience

I've done my best to distill that

experience into 10 tips in this video

over here so if you want you can check

that out if not thanks so much for

watching I hope you found this useful

take care of yourself and I'll see you

in the next one

[Music]

bye