How to Sell Digital Products on Shopify | 2023 Guideline

Are you creative? Are you going to sell your digital pieces online? If you’ve got into this article, you may want to get the answer to these questions “is selling digital products profitable”, “is selling digital downloads online easy” and “how to sell digital products on Shopify”, right?

Congratulations! You’re in the right place!

Keep reading for 11 steps to learn how to start selling digital products on Shopify. Curious in detail? Let us clarify the process:

• 💡 Step 1: Create a Shopify store
• 💡 Step 2: Add products to Shopify
• 💡 Step 3: Use a digital downloads app
• 💡 Step 4: Add digital files to an existing product
• 💡 Step 5: Customize email templates
• 💡 Step 6: Customize Shopify storefront
• 💡 Step 7: Add essential Shopify apps
• 💡 Step 8: Test orders and checkout flows
• 💡 Step 9: Add a custom domain
• 💡 Step 10: Register for sales tax collection
• 💡 Step 11: Launch and promote Shopify store!

Don’t wait anymore! Let’s get in!

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What Is a Digital Product? Is Digital Product Profitable?

What is a digital product?

First, let’s understand what exactly a digital product is.

A digital product is a product that can be electronically delivered, eliminating the requirement for physical production or shipping. There are many different types of digital products, and new ones are constantly being created.

For example, here are some common categories of digital products:

• Ebooks
• Online courses
• Videos
• Software
• Mobile apps
• Digital art
• Photography
• Graphics and templates
• Webinars
• Music

Is digital product profitable?

Digital products can be sold online through various platforms and marketplaces, and they have become increasingly popular in recent years due to their convenience and accessibility.

Is digital product really profitable? Selling digital products can be a profitable business if done right.

Digital products are often cheaper to produce and distribute than physical products, triggering higher profit margins. Additionally, digital products can be sold and delivered online, so there are no shipping or inventory costs to worry about.

However, like any business, the profitability of selling digital products depends on various factors, such as:

• demand for your products
• competition
• marketing efforts
• and, pricing strategy.

Another key factor is the quality of your products. When you create high-quality digital products that provide value to your customers, you are more likely to attract repeat customers and build a strong reputation in your niche!

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How to Sell Digital Products on Shopify in 11 Steps

Now, let’s come to the main section on how to nail a store that sells digital products.

1. Create a Shopify store

You cannot sell without an online Shopify store, so let’s create one! Currently, this eCommerce platform offers a 3-day free trial for you to discover, so don’t miss the chance!

To have a Shopify store, simply follow these steps:

• Firstly, go to Shopify homepage.

• Secondly, fill in your email address.
• Next, answer some questions from Shopify (we highly recommend you do this because you will get a more personalized store in hand).
• Or, just skip every step to get access to Shopify dashboard.

Want more details on setting up your store? Don’t forget that we got you a detailed Shopify tutorial video to guide you through single steps:

2. Add products to Shopify store

Now, you’re in the Shopify dashboard. Let’s go through how to add digital products to Shopify store.

This is how to create digital products on Shopify store:

• First, go to ‘Products’ > ‘Add product’.

• Next, fill in essential information about your digital products.

• After that, remember to mark your products ‘Digital product or service’.

As you choose to sell digital products, you must also use an app to provide a download link to your product.

So, be careful when you do so.

3. Add a digital download app

Shopify App Store has over 40 apps for digital downloads management. However, in this tutorial, we will choose Digital Downloads. Why did we choose this app?

Here’re 4 key reasons why:

1. Digital Downloads is developed by Shopify. We can leverage Shopify’s features and functionalities to manage digital products.
2. The app generates encrypted download links for each purchase, preventing unauthorized access and piracy. This safeguards digital assets and helps control intellectual property.
3. With the app, we can customize the download experience for customers. We can create branded download pages and include relevant upsell or cross-sell opportunities.
4. Once a customer completes a purchase, the app handles the entire delivery process, automatically sending them the download link.

And you see, right? The Digital Downloads app by Shopify offers a comprehensive solution for managing your digital products!

As said above, you must connect to a digital product app to manage your digital products on Shopify.

To add Digital Downloads app, simply follow these steps:

• Go to Shopify App Store > search for ‘Digital Downloads’ (or click here to find it easily).
• Hit the ‘Add app’ button.

• Click on ‘Install app’ to add the app to your Shopify store

Now, the Digital Downloads app is on your Shopify dashboard.

4. Add digital files to an existed products

In this section, let’s learn how you can add digital files to your products.

• On the Digital Downloads app dashboard, hit the ‘Add digital files’ button (as highlighted in the image below).

• Next, click ‘Add files’ and add digital files to your products.

For example, I’m adding digital files to the product name “digital courses” on my Shopify store.

The download limit is automatically set to unlimited.

So if you want to limit the number of times customers can download a product, navigate to the ‘Fulfillment’ section > Untick the “Unlimited downloads” and set ‘Max downloads’ number for the file > Then click ‘Save’.

• Finally, click the ‘Save’ to further manage your digital product files.

To create a download link, navigate to ‘More actions’ > ‘Create download link’.

And that’s how to sell downloadable files on Shopify store!

5. Customize email templates

The next step on how to sell digital products on shopify is to customize the email templates, automatically or manually, to customers who purchase your digital downloads.

When using the Digital Downloads app by Shopify, the email flow is easier than ever, with two main temples to customize:

1. Download ready
2. Digital file update

We will show you one by one right below.

5.1. Download ready

‘Download ready’ emails are sent when a digital file is ready to download. Below is how the default template looks like.

5.2. Digital file update

Similarly, ‘Digital file update’ emails are sent when a digital file is updated. Below is how the default template looks like.

For both email templates, you may see Shopify Liquid variables appear. With the help of Liquid, you can see how automatic and simple, at the same time, it is for you to deliver personalized emails quickly to customers!

6. Customize Shopify storefront

One of the most essential steps on how to sell digital products on Shopify is to customize the online storefront. Why so?

A theme is a template that controls how your online store looks and feels.

A well-designed and visually appealing storefront can convey the value of your digital products. Creating an aesthetically pleasing and professional-looking storefront enhances your offerings’ perceived quality and legitimacy.

When you first access Shopify, Dawn is the default theme. However, you can always find other options on the theme store.

By browsing the Shopify Theme Store, you can find hundreds of Shopify themes in different categories. When you click on ‘Book, music and video’ industry, Shopify will recommend the most suitable theme for your digital products Shopify store.

Find a theme that suits your brand identity?

Simply click on ‘Try theme’ and feel free to customize it. Remember that within a 3-day trial, you have an unlimited free trial for all Shopify themes (even the paid one) and only have to pay when you publish.

There will be some tasks you must complete here:

• Add Shopify collections (refer to this Shopify collections to have more insights)
• Add Shopify pages (refer to how to add products to a page on Shopify)
• Organize your store’s navigation

And all tasks will be well explained via How to custom Shopify themes – 3 ultimate methods. So don’t miss it!

One of the most exciting parts we like about Shopify is that changing the theme or switching to a new one doesn’t affect the other parts of Shopify account.

7. Add essential apps

Needless to say, a digital download app is the most important app you must have on Shopify when selling digital products. In this tutorial, we got one – Digital Downloads app.

However, it’s not enough for a successful selling effort. On Shopify App Store, we recommend several other apps to enhance your selling capabilities in these categories:

• Email Marketing
• Upsell/Cross-Sell
• Social Proof
• Affiliate Marketing
• Analytics

8. Test orders for digital products

This guide on how to sell digital products on Shopify cannot be completed without the proper checkout flow. To see how your store performs in reality, let’s:

• First, go to the storefront.
• Second, create a test order.
• Next, test Shopify payment.
• Finally, check the download link (and files) for digital products.

Back to checkout flow, there are 2 main methods to test Shopify payment, which are using:

1. Shopify Bogus Gateway
2. Shopify Payments (learn more about Shopify Payments)

For a thorough understanding, please visit our ultimate guide on how to test Shopify payments.

9. Add a domain name

Next on this how to sell digital products on Shopify guide is to add a domain name. By using a custom domain for your online store, you can create a strong brand presence with your customers.

To add a domain, follow these steps:

• First, go to ‘Setting’ > click ‘Domains’
• Second, click ‘Buy new domain’ if you haven’t had a domain name yet.
• Finally, click ‘Connect existing domain’ if you already have a domain and want to connect to your Shopify store.

10. Register for sales tax collection

If your store is physically located in a specific state, you may have to meet certain tax obligations and potentially be liable for taxes in that state. If your business operates within the United States, please refer to this document.

To begin, you need to register with the state authorities before enabling sales tax collection. Since each state has its own unique process, we strongly recommend you to carefully review the requirements and consult a tax professional if you have any queries.

11. Launch & Promote your digital product business

Congratulations to both of us!

We’ve got to the final steps on how to sell digital products on Shopify! Once you’re confident about your Shopify store and ready to spread your word, it’s time to launch it officially!

To clarify, here are some tips to help you promote your digital product business:

• Optimize store for SEO
• Make use of social media channels
• Offer free samples or trials of digital products
• Utilize email marketing
• Collect customer feedback and reviews for social proofs
• and more.

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Why Selling Digital Products on Shopify? What to Sell on Shopify?

Why sell digital products on Shopify?

Is Shopify a good place to sell digital products?

Yes! Shopify is one of the best eCommerce platform for digital products.

This platform offers several features specifically designed for selling digital products, and here are 5 most outstanding features we find about Shopify.

1. Firstly, we can create product listings specifically for digital products.
2. Secondly, we can secure the delivery of digital products to customers. Whenever a customer purchases a digital product, Shopify generates a unique, encrypted download link for the customer.
3. Once a customer completes a purchase of a digital product, Shopify will handle the order fulfillment process automatically.
4. Next, we can monitor the status of digital product orders.
5. Last but not least, Shopify enables us to effectively manage our customer base during checkout with email addresses and contact details.

These features and the Digital Downloads app make Shopify a robust platform for selling digital products.

Whether you’re selling e-books, music, software, or any other digital content, Shopify provides the tools and functionalities to streamline your digital product business and deliver a seamless shopping experience.

Profitable digital products to sell on Shopify (divided by niches)

How to sell digital downloads on Shopify? To clarify, here are some profitable niche ideas to sell digital assets on Shopify:

• Health and wellness: ebooks, online courses, fitness, nutrition, and meditation.
• Personal development: coaching services on productivity, time management, and self-improvement.
• Business and entrepreneurship: ebooks, online courses, and coaching services on marketing, business planning, and social media strategy.
• Education and training: online courses, study guides, and educational materials on language learning, coding, and test preparation.
• Design and branding: website templates, graphic design elements, and branding guides to help businesses improve their online presence.
• Technology and software: software, plugins, and website themes that can help businesses or individuals with their digital needs.
• Creative arts: digital art prints, photography, music, and video content.

These are just a few niche ideas when selling digital products on Shopify. The key to success is identifying a niche you are passionate about, with a demand for digital products.

How to find digital products to sell on Shopify?

Finding ideas for digital products requires research, creativity, and a deep understanding of your target audience. If you ask us where to find the best products to sell on Shopify, we will recommend these options:

• Use Google Trends
• Research your competition
• Check social media channels like Instagram, Twitter, and Pinterest for inspiration (small tip: you can look for hashtags related to your niche and see what content and products are popular).

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Successful Shopify Stores That Sell Digital Products for Your Inspiration

In this nearly final section of this article, after you learn how to sell digital products on Shopify, let’s visit some Shopify stores selling digital products to get inspiration.

1. Pixel Surplus – offers a wide range of digital design resources such as fonts, graphics, and templates.

2. MyFonts – provides a wide range of digital fonts for designers and typographers.

3. One Tree Planted – offers digital products such as wall art, prints, and posters to support reforestation efforts.

4. The Luxe Lens – sells high-quality presets and tools for photographers.

However, these are just a few successful stores selling digital products on Shopify where you can take some digital products ideas and inspiration.

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Selling Digital Products on Shopify – FAQs

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How to Sell Digital Products on Shopify – Recap

What have we gone through? Let us wrap up everything for you in this guideline on how to sell digital products on Shopify!

Via this article, we, together, answer all the key questions on how to sell digital products on Shopify, which are:

• What is a digital product?
• Why sell digital products on Shopify?
• How to create digital downloads to sell on Shopify?
• How to sell digital products on Shopify?
• And, discover some successful stores that sell digital products.

And that brings us to the end of this article! We hope that, with our detailed guide on how to sell digital products on Shopify, you will soon start your own digital business and succeed!

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Final Words

In short, if you’re selling somewhere else and wish to migrate to Shopify, LitExtension – #1 Shopping Cart Migration Expert will always be here to help. With 12+ years of experience in the data migration industry, we ensure your data will be migrated seamlessly and accurately to Shopify.

Should you have any further questions, don’t hesitate to contact our support team.

Finally, don’t miss any eCommerce tips and tricks on the LitExtension blog and let’s join our eCommerce community to meet other eCommerce enthusiasts!

Happy selling!