Selling digital products can be a very appealing way of building an online business without the need of managing physical inventory, packaging orders or shipping products to customers. From printables planners and templates to ebooks and educational guides, digital products let you create something just for once and sell it repeatedly.
But the question here is:
- Where should you start?
- Should you sell on Etsy, publish an ebook on Amazon, or try both?
The answer is dependent on what you are going to sell, who your customers are and how you are planning to create your products?
Let us start this How to sell digital products on Amazon and Etsy guide and see which products you can create, how to find relevant keywords and how to build listings that can be appealing to potential buyers.
You will also get to know about a resource which can help you if you need guidance on creating and packaging your first digital product with AI.
What are digital products?
Digital products are goods that customers buy and access electronically. The buyers get to download a file, read an ebook, use a template or access digital content rather than receiving a physical item.
Like if someone is planning a wedding then they might buy a printable checklist. A small business owner might purchase a social media template and a student might download a study planner.
The biggest advantage of digital products is that you don’t have to manufacture a new physical item for each and every order. But you will still need to invest time in research, product creation, customer support, marketing and updates.
Your goal should be creating something which can solve a specific problem or make a task easier.
What digital products can you sell on Etsy and Amazon?
Before opening a store, you need to understand what each of the platforms is designed for selling.
Digital products to sell on Etsy
Etsy is suitable for many originals, design-focused digital products. The rules are that the digital items must be made or designed by the seller as subject to Etsy’s Creativity Standards.
Popular product ideas are:
- Printable planners, calendars, and habit trackers
- Wedding invitations and event stationery
- Birthday party games and holiday activity sheets
- Budget planners and financial tracking spreadsheets
- Social media templates and business forms
- Wall art and printable decorations
- Educational worksheets and activity packs
- Original digital patterns and design resources
Like, rather than creating a generic planner, you can develop a printable weekly planner for busy parents in which you can include meal planning, school schedules, household tasks and a shopping list.
This is how a product gets a clearer audience and a much practical purpose.
Etsy supports both instant-download files and made-to-order digital products.
It is advisable for sellers to check its current digital listing requirements before publishing.
Digital products to sell on Amazon
Amazon provides several publishing opportunities, like through Kindle Direct Publishing (KDP). KDP lets authors publish ebooks and print books which makes it a very useful option for people who are interested in selling written or educational content.
Possible products are:
- Original ebooks and practical guides
- Cookbooks and recipe collections
- Educational books and study guides
- Children’s books
- Niche nonfiction books
- Workbooks and journals in eligible print formats
The important point to understand is that Amazon KDP is not a general-purpose marketplace where you can upload any downloadable file. It is a publishing platform with specific content and formatting requirements.
Like, a guide teaching freelancers how to find clients might work as a Kindle ebook while a downloadable Canva template pack can be a better fit for a marketplace which is designed for digital design files, provided that it meets the platform rules.
It is advisable to review Amazon’s official ebook formatting requirements before preparing a manuscript.
Etsy vs. Amazon
Both platforms help sellers in reaching customers but they serve different purposes:
|
Feature |
Etsy |
Amazon KDP |
|
Best suited for |
Original digital downloads and creative designs |
Ebooks and eligible print books |
|
Examples |
Printables, invitations, templates |
Guides. Cookbooks, educational books |
|
Product delivery |
Instant downloads or made-to-order files |
Digital books or printed books |
|
Main preparation work |
Design files, previews, descriptions, keywords |
Manuscript, cover, formatting, book metadata |
|
Discover |
Etsy search and external marketing |
Amazon search and book discovery |
|
Main challenge |
Competition and listing visibility |
Book quality, discoverability and reader demand |
Which one is better for beginners?
You should choose Etsy if you enjoy designing useful visual products like invitations, planners, worksheets and templates.
You should choose Amazon KDP if you like writing educational content, original ebooks or books for specific audiences.
And you can explore both but it would be easier for you to begin with one product type and understand its marketing before expanding.
How to create a digital product that people want to buy
This is where many beginners struggle.
Finding a platform is very easy but the difficult part is deciding what to create, make it useful and present it in a way which encourages customers to buy.
A product idea must be something that comes from a real customer need and not simply anything that can be created easily.
i) Choose a specific audience
You need to start by understanding the people you want to help.
Rather than targeting each and everyone who needs a planner, consider college students who manage their assignments, parents who organise family schedules or freelancers who track client projects.
A smaller audience will help you in understanding what features your product needs and what language potential buyers would use when searching for it.
ii) Research demand and competing products
You should thoroughly search Etsy or Amazon for your proposed product idea and then examine relevant listings, titles, product images, descriptions and customer reviews.
Then go through the questions that customers repeatedly ask, features they appreciate and complaints about existing products.
Like if a buyer wants a family activity planner but the existing versions are too complicated then you can create a much simpler product with clearer instructions and reusable planning pages.
Research should not be considered as guaranteed demand but it does help you in avoiding creation of such a product which might be fully based on assumptions.
iii) Create and improve the product
Your tools are dependent on what you are planning to sell.
Designers might use Canva or similar design software for creating printables and templates, writers can use a word processor for preparing ebooks and guides, spreadsheets and presentation tools can be used for planners, trackers and educational resources.
AI helps in brainstorming ideas, organising content, drafting initial tests and generating product-description ideas. But keep in mind that it should support your work instead of replacing quality control.
Then review the final product for accuracy, originality, usability and formatting. Check the licensing and commercial-use permissions for any fonts, images, templates or other assets that you use.
If you use AI for creating a product on Etsy then review the current rules and disclosure requirements of Etsy. Not every AI-related product or file is eligible for sale.
iv) Package it professionally
There are chances that a useful product might underperform if buyers are not able to understand what they are purchasing.
You need to include clear previews, dimensions, file formats and printing instructions for an Etsy printable and create a readable layout, a relevant cover, a logical table of contents and helpful examples for an ebook.
Think about the experiences of customers after purchase:
- Is the file easy to open?
- Are the instructions clear?
- Does the product deliver what the listing promises?
These details can make your product potentially more competitive.
Need help in creating your first digital product with AI?
If you are able to understand where to sell but feel unsure about turning an idea into a finished product then it may help you in following a structured resource.
One option is Entrepreneur Digital’s guide, How to Create & Sell Digital Products with AI.
This guide is a PDF ebook for $19.99 as a one-time payment which focuses on using AI for creating and packaging digital products and understanding how to price and promote them.
It might be worth exploring if you are looking for a starting point for organising the product-creation process before you begin selling on Etsy or Amazon.
But still you need to keep your expectations realistic. Just by buying a guide, you cannot get guaranteed sales and it cannot replace researching your audience, improving your product or learning the rules of your chosen marketplace. You need to consider if the material is fitting your needs and budget before making a purchase.
And after you have a product idea and a workable creation process then you can move on to preparing your store or publishing your book.
How to sell digital products on Etsy
If you are looking to sell printable files, templates or other eligible creative downloads then you should follow these steps:
a. Open your Etsy shop
You need to create an Etsy account and follow the shop setup process. You will need to choose a shop name, configure your shop preferences, create listings and set up the required payment and billing information.
You should review the official seller information for the current requirements and fees applicable to your location.
b. Create a clear product listing
Your listing must explain exactly what the customer will receive.
Like if you are selling a printable family game pack then mention the number of game sheets, the file format, the intended age range if relevant and if the customer will receive a physical item.
Use attractive preview images for showing the pages and explaining how they work. Make it clear that the product is a digital download if it is what you are selling.
c. Add your digital files
Etsy lets eligible digital listings be offered as instant downloads or made-to-order downloads. You upload the files that customers will receive for instant downloads.
You need to check the current file limits and supported formats of Etsy before publishing. If your product is containing multiple pages then organise them so that the customer can find and use the files easily.
d. Optimize your listing for search
Keywords help Etsy in understanding what your product is and which searches might be relevant.
Think how a buyer would describe the item. A person who is looking for a wedding invitation might search differently from someone who is looking for a printable wedding budget planner.
You need to use relevant phrases naturally in your title, tags and descriptions. Avoid repeating keywords unnaturally or adding unrelated terms.
e. Promote and improve
You should share useful previews on Pinterest or other appropriate channels for creating content which demonstrates how a product can be used instead of just posting a sales message.
Then monitor visits, clicks and purchases wherever the data is available. If people are viewing your listing but are not buying them you need to review the product images, pricing, description and perceived value before making an assumption that you need a completely new product.
How to sell digital products on Amazon KDP
Amazon KDP is a publishing route for people who are interested in selling ebooks and eligible print books.
1. Select a focused book topic
You need to choose a subject that you understand or can research responsibly. Your book should be of use to a clear audience and provide useful information, entertainment or instruction.
Like a beginner’s guide for organising freelance projects which can include practical workflows- checklists and common mistakes.
You should also examine competing books and reader reviews before writing. Go through the areas where your book can offer a clearer explanation, a more focused audience or more useful examples.
2. Write and format your manuscript
You have to prepare original content and organize it into logical chapters. Use headings, consistent formatting and readable typography.
KDP provides support to several manuscript formats like DOCX, EPUB and KPF with requirements that are dependent on the book type. You need to preview the converted book before publishing in order to see any formatting errors.
3. Design the cover and book description
Your cover should be a good fit for the subject and intended audience. Your description must explain the problem that the book is addressing, what the readers will be learning and why the content might be useful.
And avoid making misleading claims and promises which the book cannot support.
4. Set your price and publish
You need to follow KDP’s publishing process for entering your book details, uploading your files, selecting available territories and setting a price.
Amazon provides different ebook royalty options like 35% and 70% wherever applicable. Eligibility and calculations are dependent on the selected options, marketplace, price and many other requirements. You need to check the current KDP pricing and royalty rules before estimating earnings.
Keep in mind that just by publishing a book, you are not going to get readers. Your performance is dependent on your topic, quality, cover, metadata, reviews and promotion.
How to find the right keywords for digital products
Keyword research connects your product with the phrases that can be used by potential customers when searching.
You should start with a main phrase that describes the product and then identify specific variations which reflect the audience, purpose, format or occasion.
Here I am listing down examples that can guide your research:
|
Product idea |
Example keyword phrases |
|
Printable planner |
Printable weekly planner, family planner PDF, daily schedule printable |
|
Party game pack |
Printable party games, family game night activities, holiday party game PDF |
|
Wedding stationery |
Editable wedding invitation, printable wedding invitation, wedding stationery template |
|
Business templates |
Social media templates, small business planner, content calendar template |
|
Kindle ebook |
Beginner’s guide to freelancing, freelance business ebook, client management guide |
|
Recipe ebook |
Easy vegetarian cookbook, meal planning ebook, quick family recipes |
These are not verified search-volume rankings, just examples. You need to validate your chosen phrases with platform search suggestions and suitable keyword research tools.
And use your main phrase naturally in your listing title and descriptions.
- Provide complete relevant tags and attributes on Etsy
- Use accurate book metadata and relevant keywords without misleading readers on Amazon KDP
What does it cost to sell digital products?
Your expenses are dependent on the platform and product type
Etsy fees
Etsy currently charges a $0.20 USD listing fee and a 6.5% transaction fee. Payment processing fees are also applicable and vary by seller location. Other charges are- applicable setup fee, advertising fees, taxes or currency conversion fees which might affect your costs.
You should see the official selling fees of Etsy and especially check the fees for your location before calculating profit.
Amazon KDP
KDP lets the author publish ebooks without paying any standard upfront publishing fee. But you might still have to spend money on editing, cover design, formatting, research or marketing if you choose to use paid services.
Printing costs will affect royalty calculations for print books. Ebook royalty is dependent on the selected royalty option and applicable conditions.
Product creation costs
You might have to pay for design software, AI tools, fonts, images or other resources. Check the commercial-use rights before using any third-party assets in products that you are selling.
A reasonable starting point is keeping your initial costs manageable, validating demand and investing more only when you have enough evidence that your product would be useful to customers.
Common mistakes to avoid
a. Creating a product before researching demand
An attractive idea is not something that buyers want but researching completing products and customer needs first.
b. Replying entirely on AI-generated content
AI produces inaccurate, generic or repetitive material which you need to review and improve before publishing.
c. Using copyrighted or unlicensed material
Do not think that images, templates, text or designs that you find online are free for commercial use.
d. Ignoring marketplace rules
Etsy and Amazon do not have the same eligibility, formatting and content requirements. You need to confirm that your product belongs to the platform that you will choose.
e. Expecting instant sales
A listing or ebook might require improvement and promotion before it starts attracting customers. You should not think of potential earnings as guaranteed income.
f. Using vague titles and descriptions
Buyers need to understand what the product is, who it will help and what they will receive.
Final Verdict
Selling a digital product on Etsy and Amazon is a very practical way of exploring an online business but choosing a marketplace is only one part of the process, you will also need a product which can serve a real need, a professional presentation, relevant keywords and a plan for reaching potential buyers.
Etsy is best for exploring eligible original downloads like printables and templates.
Amazon KDP is best for ebooks and eligible print books.
If you face the problem of figuring out how to create and package a digital product then Entrepreneur Digital’s How to Create and Sell Digital Products with AI guide at $19.99 one-time payment is the one resource that you can think of before starting. You need to review the details and decide if it provides the guidance that you need.
I would recommend you to start with one focused product, learn customer feedback and improve your process as you go. You do not need to have a huge catalogue on day one, you just need a useful product, a clear audience and a realistic plan to read them.