Custom products, global reach
Want to know how to sell digital downloads on Etsy? This guide walks you through the entire step-by-step process with examples of best-selling digital products to sell.
Plus, explore how to sell your digital artwork on physical products with Printify’s print-on-demand Etsy integration.
This post may contain affiliate links, which means we may earn a commission if you make a purchase through those links. This comes at no additional cost to you.
What exactly are digital downloads?
Unlike physical Etsy handmade items, digital downloads are products that customers can buy and download online instantly without any processing and shipping wait times.
While some are designed for printing – often called Etsy printables – others, like fonts, eBooks, and software are fully digital. These printable graphic designs and digital items are widely popular on Etsy.
Other profitable and creative ways to offer digital downloads include selling digital assets like social media marketing templates, website themes, or stock photography.
Want to go beyond digital downloads without the hassle of inventory? Create print-on-demand merchandise with custom designs and let your POD partner handle logistics.
Why it’s worth selling digital downloads on Etsy
Etsy is a trusted and well-established online marketplace with a huge traffic of 91.6 million active buyers in 2024.
Here are some key benefits of creating and selling digital downloads on Etsy.
- Passive income: Create and upload once, then sell repeatedly with no extra effort.
- Simple payment processing: Etsy charges $0.20 per listing and 6.5% per sale, with taxes based on location.
- No handling or shipping: Digital products are delivered instantly, eliminating logistics.
- Beginner-friendly: Many digital products don’t require special skills, just the right niche.
- Consistent demand: Downloads and printables are always popular, especially for organization and DIY projects.
Learn how to sell on Etsy and discover all the beginner basics.
How to create digital downloads to sell on Etsy in 5 steps
Ready to turn your creativity into income? Follow these five simple steps to start selling digital products on your Etsy shop.
Pick a niche
A niche is a segmented portion of a market. It’s a target audience with specific preferences, needs, and characteristics. Think road-trip enthusiasts, soup connoisseurs, or yoga moms.
With a well-defined niche, your Etsy digital downloads can attract the right customers. Combine your own preferences with market demand and Etsy keyword research to develop a solid brand identity.
Go to the Etsy search bar and type a term for your niche – let’s say, cute animal downloadables. Analyze which listings stand out and check those stores, products, and customer reviews. Then, brainstorm how to make your downloads more attractive.
Find Etsy keywords related to your market using tools like Google Trends and Semrush Keyword Overview.
Observe which terms appear together and the queries people ask. Note the patterns and use this information to carve your unique, well-defined niche. These keywords will also be helpful once it’s time to craft engaging product listings.
Create your products
Create and offer digital downloads yourself, use pre-made assets, or hire a professional. Here’s how to proceed in each case.
Tweak pre-made digital products
One great way to learn how to sell digital art prints on Etsy is to use pre-made content with commercial licensing options.
Search stock photo databases, make tweaks that align with your niche, and sell them as Etsy digital downloads. These are some of the best platforms for commercial images:
1. Unsplash is one of the top stock photo platforms offering free high-quality images with a commercial license. While contributors share their work freely, you must modify the photos before selling online.
2. Shutterstock is a well-known stock platform with a subscription system selling credit packs starting at $29. The service offers a free trial that includes ten images and seamlessly integrates with other platforms, including Printify.
3. Adobe Stock is integrated with Adobe Creative Cloud and offers photos, videos, vectors, fonts, and plugins. While it’s packed with the industry’s top design features, it’s more expensive and primarily intended for professionals with an Adobe subscription.
Design Etsy digital downloads yourself
Create digital downloads from scratch or use templates depending on your skills and preferred graphic design tools. Here are some top digital software options for exploring how to sell digital art on Etsy:
1. Adobe Creative Cloud is an industry leader with over 20 apps, including Adobe Illustrator and Photoshop. Adobe Express, a versatile design tool, offers social media templates and stock assets. Access all Adobe tools for $59.99 per month (annual plan).
2. Affinity has three core tools – Affinity Designer for vector and raster work, Affinity Photo for editing, and Affinity Publisher for book and journal design. Each costs a one-time payment of $69.99, or you can buy all three with a universal license for $164.99.
3. GIMP is a free, open-source alternative to Photoshop. Just as powerful, it has a steep learning curve but doesn’t feature any display ads, making it a great choice for those looking for a professional but budget-friendly option.
4. Inkscape, an open-source alternative to Adobe Illustrator, is a free tool with vector graphic editing capabilities. It’s ideal for creating high-quality digital designs without the price tag.
5. Photopea is an online freemium editor compatible with Adobe and GIMP files. Both the free and $5 per month versions offer the same features, but the paid plan removes ads and provides customer support. It’s great for working with various formats, including SketchUp files.
6. Midjourney prompts are a fun and creative way to generate images and start selling digital downloads. Create designs or art prints in comic, gothic, or ultra-realistic styles based on your target audience.
If you’re planning to start selling digital downloads alongside physical products on your Etsy shop, use Printify’s free Product Creator. Easily create and apply digital designs to custom merch with our free graphics library, realistic mockups, and drag-and-drop design tools.
Hire a professional
Not into designing? Consider hiring someone to make visuals for your Etsy digital products. Many platforms help businesses find professionals based on the project’s needs and budget:
- Fiverr boasts a vast network of professionals in various creative fields.
- Upwork has an ample database of creative and technical experts.
If you’re just about to open an Etsy Seller account, you’ll need at least one digital download ready to upload to create your first listing. Note that the marketplace charges $0.20 for each listing.
Register and prepare your Etsy shop
Go to the Etsy website, then click Sign in in the upper-right corner.
You’ll start with a Customer account, but you’ll need a Merchant account to become an Etsy seller. Click the round icon with your photo in the upper-right menu, then choose Sell on Etsy.
Scroll to the bottom of the page, click Open your Etsy shop, and complete these steps:
- Fill in the localization information including language, country, and currency.
- Choose between a full-time or part-time seller status for your business.
- Enter an Etsy shop name. Use a generator like Namelix for ideas.
- Create your first Etsy listing. You can edit it later after completing the setup process.
- Set up payment and billing by providing a bank account or a card number. Note that card verification may take up to a few days.
Check out our step-by-step guide on how to start an Etsy shop.
Publish products and start selling
Once you’re ready to start selling digital downloads, create photo mockups for your product listings using tools like our Product Creator or HelloCustom.
Showcase your designs in real-life settings – like a framed art print on a wall or a planner page being filled out. You can upload up to ten product photos and one video for your Etsy shop listing.
Prioritize good image quality to highlight key features and attract new customers. Make sure to watermark or modify the image to prevent unauthorized use without purchase.
Here are the steps to list your digital download:
1. Sign in and open the Shop Manager in the upper-right corner.
2. Select Listings on the left-hand menu.
3. Go to the upper corner button and click Add a Listing.
4. Select Digital files. Under Who made it, choose I did, then click Apply. Indicate if you created the digital download with AI assistance.
5. Click Add file or drag and drop your digital product. Upload up to five files, 20MB each, totaling 100MB.
Etsy supports the following formats: .bmp, .doc, .ePUB, .gif, .iBook, .jpeg, .jpg, .mobi, .mov, .mp3, .mpeg, .pdf, .png, .psp, .rtf, .stl, .txt, .zip.
The following steps are similar to creating a physical listing, but be mindful of details when configuring your digital items. Read more in our Etsy guide.
- Etsy SEO: Consider Etsy SEO when preparing titles, descriptions, and tags. Use all 13 tags and relevant keywords (including long-tail), and don’t forget to add attributes. Leverage keyword tools like eRank to help you find relevant terms.
- Pricing: Research similar products and set a competitive price. Digital prints often sell for $5-$10, while niches like software, homeschooling resources, eBooks, woodworking plans, and sewing patterns can go higher. Factor in costs to price profitably.
- Automatic renewal: Scroll down to Settings and enable the automatic listing renewal option. Otherwise, your digital download will appear out of stock after each sale.
Once everything is configured, click Publish or save the listing as a draft to preview how it looks.
Market your Etsy store
To increase your digital product sales, learn the basics of Etsy marketing. Consider these strategies:
- Refine your niche and target audience periodically to keep up with trends.
- Optimize your listings with SEO by using keywords naturally wherever possible, including titles, descriptions, and tags.
- Follow Etsy guidelines to optimize your product and store images.
- Share listings on your website and social media for exposure. Think Pinterest pins and boards, Facebook posts and groups, and Instagram Reels.
- Use email marketing tools to increase your reach and improve customer service.
- Consider Etsy advertising after building organic traffic. Spot which products need adjustments or a boost from targeted ads.
Explore marketing strategies for various niches on our blog post about how to sell art on Etsy.
Best-selling digital products to sell on Etsy
Etsy is a flexible and affordable platform for selling digital products to a vast audience. Whether you’re a designer, writer, or hobbyist, there’s a niche for you.
Let’s explore the best digital products to maximize your success.
1. Exclusive digital assets
Exclusive digital assets designed for use in projects or tools rather than for printing are in high demand.
These include fonts, software, custom website themes, plugins, social media templates, Lightroom presets, and even collections of AI prompts for tools like MidJourney and DALL-E. They’re ideal for creative professionals looking to enhance their digital workflows.
2. eBooks and manuals
Offer value through your knowledge and expertise in a specific field. These can be anything from how-to guides, self-help books, or educational materials.
With minimal production costs, you can easily update them or publish newer versions, making them a sustainable source of income for writers and educators.
3. Event printables
Make digital designs for weddings, birthday parties, graduations, and other special occasions. Popular items in this category include invitations, gift tags, banners, and thank-you cards.
Increase your product’s appeal by letting customers personalize digital products on Etsy for a specific event or occasion.
4. Baby and child-friendly products
Digital prints for babies and children often include baby shower decorations, milestone trackers, and learning materials.
Buyers frequently search for educational materials for their kids, including growth charts, printable activity sheets, and nursery art. These Etsy digital products are perfect for giving parents a cost-effective, creative way to educate and entertain their kids.
5. Leisure printables
Leisure printables cater to both children and adults looking for entertainment. Offer high-demand products such as coloring pages, crossword puzzles, and printable games.
People love these digital downloads for personal use or party activities. Coloring pages for adults, in particular, have grown in popularity as a relaxing, stress-relief activity.
6. Utility downloads and digital printables for household chores
This category includes practical digital items to manage daily tasks and home organization. For example, sell digital planners, printable calendars, checklists, and jar labels.
These products help customers organize their homes, manage tasks, or prepare for special events like holidays.
7. Hobbies, DIY, and craft guides
These high-demand digital products on Etsy appeal to hobbyists and DIY enthusiasts. They include crochet, embroidery, knitting and sewing patterns, woodworking plans, and even electronics schematics.
Customers look for these digital files to pursue their interests or start new DIY projects. Clear, easy-to-follow instruction manuals add immense value to the purchase.
8. Business-related products
Business-related digital products are useful for small business owners and entrepreneurs. These include business cards, logos, resume templates, and printable custom stickers.
Help your customers save time and money with pre-made customizable templates for a polished, professional look that fits their brand.
9. Art-related products
Artists and designers can sell digital art on Etsy like stock images and photography. You can even learn how to sell digital wall art on Etsy through services like Printify.
People often look for printable custom posters to decorate their homes. Other items, like stock photos, are valuable for projects like websites, marketing materials, and social media content.
10. Online courses
This profitable digital product lets you share valuable knowledge on various topics like business, design, or personal development.
Sellers can create video lessons, PDFs, and interactive materials to help customers gain new skills at their own pace.
Check out our blog for up-to-date articles and tips, and learn how to make money on Etsy.
Start a print-on-demand business on Etsy
Printify is a leading print-on-demand platform that helps artists, designers, and entrepreneurs turn their digital creations into physical merchandise.
With over 1,300 customizable products, we make it easy for you to sell unique, high-quality items without handling production or shipping.
Expand beyond digital downloads – offer customers printed versions of your designs and gain a passive income stream with stunning custom products in five easy steps.
1. Sign up
Create a free Printify account and integrate your Etsy store for seamless product syncing.
2. Select products
Browse Printify’s Catalog for apparel, accessories, home decor, and more to find the best products for your designs.
3. Apply designs
Use our free Product Creator to apply your digital artwork, adjust placements, and generate professional mockups.
4. Publish to your Etsy store
List your products on Etsy with compelling descriptions, optimized keywords, and high-quality images to attract buyers.
5. Let Printify handle fulfillment
When a customer places an order, our global network of Print Providers produces and ships the item worldwide – no inventory, no fuss.
FAQ
Yes, selling digital downloads on Etsy can be profitable due to the low upfront costs, simple setup, and high potential for passive income. With over 90 million active buyers, Etsy’s online marketplace offers an excellent opportunity to reach a vast customer base.
Since digital products don’t require physical shipping or inventory, you can sell the same item repeatedly with minimal ongoing effort after the initial setup. If you create high-quality products that cater to a popular niche, it can become a profitable and scalable business.
Check the legal requirements for selling digital prints on Etsy in your region and comply with both Etsy’s policies and local laws. Here’s a general guideline:
- Create your original digital products or prepare the necessary commercial licenses for any pre-made assets or design elements you use.
- Avoid copyright infringement by not using protected content without permission.
- Set up your Etsy seller account and follow the listing guidelines, clearly marking your products as digital items.
- Follow tax regulations for your country or state, as Etsy may require you to submit tax information and collect sales tax on applicable transactions.
- Comply with Etsy’s terms of service to avoid account suspension or removal due to policy violations.
Profit largely depends on the quality of your Etsy offers, your niche, the number of listings, and how well you meet market demand. Some shop owners report monthly earnings of $3,000-$10,000.
For example, Emily McDermott started earning $700 in her first month selling printables and templates. She then scaled her earnings to $7,000 per month within three months by expanding her product range and offering bundles for more sales.
The marketplace charges $0.20 per listing along with a 6.5% transaction fee and a 3% + $0.25 payment processing fee. Aside from these Etsy costs, you can start selling digital products on Etsy with no seller subscription.
Use free programs or platforms to create your products, like Printify’s Product Creator. Depending on your skills and goals, you can hire professionals on freelance platforms like Fiverr or Upwork to expedite your design and brand strategy.
To summarize
Selling digital downloads on Etsy is a flexible and profitable way to earn extra income beyond your full-time job. Choose the right niche, create high-quality digital products, and optimize your listings to build your own Etsy shop with minimal overheads.
Get started today, and let Printify help you grow your shop with seamless fulfillment and a vast catalog of customizable products to combine with your digital designs.
