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Digital Products To Sell On Etsy Review (2022 Update): Is It Your Best Money Making Option?

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Updated: March 05

By: Scam Risk - Expert Reviewer

Selling Digital Products on Etsy Is It The Best Way To Make Money

Etsy has been in the market since 2005. Vintage, handmade products, and digital products collected a good following.

You might be thinking of selling digital downloads, convinced that its all passive income.

Let’s see if it is the best money-making option for you.

DISCLAIMER:
This Digital Products To Sell On Etsy review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.

Table of Contents

Pros: What I Liked

  • It is a known platform with millions of customer base and individual manufacturers.
  • It has a low overhead cost as it doesn't involve physical products.
  • It is a do once, sell over and over type of product.
The Good

Cons: What I Didn't Like

  • Digital products templates are already available for free on certain apps.
  • You have to sell volume to have a substantial profit
  • It is not entirely passive for customized product requests
The Bad

Etsy – like most ecom options – wants you to believe you can build and run a successful e-commerce business that’s automated, profitable, and generates cash around the clock in less than 90 days…

With just a couple hundred dollars in inventory…

Sounds a little too good to be true, huh?

Look, as far as most online businesses go, you could do a lot worse than Etsy.

But does that mean it’s the best solution for you?

That’s what we’ll find out in this Etsy review.

The biggest things you have to consider here are:

  • Inventory Management
  • Product Selection
  • Time to Profit

While you can make good money with Etsy, it’s not as easy or simple as most course creators make it sound. Let’s break these 3 down real fast:

1) Inventory Management: If you’re doing an Etsy business, the promise is that you don’t need to worry at all about inventory, because Etsy takes care of packing, shipping, customer service, etc.

However, you still need to get products to Etsy. And Etsy has very strict rules all sellers have to follow when preparing products for their warehouses.

This includes packaging, labeling, and registering products in their system. If you’re preparing all products yourself, you’ll spend a TON of time on this step (potentially 4-5 hours a day). So if you’re looking for a passive, automated business that runs itself, this might not be the best fit.

Now, yes, you can hire an Etsy prep center to do all this for you, but that eats into your margins. And remember that Amazon takes around 30-40% in fees for using the FBA program, so your profits are pretty tight to begin with.

2) Product Selection: E-commerce is a cyclical business. “Hot” products are always going in and out of fashion, which means, as an Etsy seller, you constantly need to be on the lookout for the next big thing.

That means monitoring trends, searching for products that might be popular down the line, and constantly in a rat race to – essentially – predict the future.

Sure, you can play in the evergreen market (things people always need and buy), but how much profit margin are you really going to get on meal prep containers, rubber spatulas, and golf umbrellas? Especially when there are hundreds of thousands of other sellers all swimming in that same ocean.

And because you’re constantly hunting for new hot products to sell, that takes up all the valuable time you could be using to travel, explore, read, surf, hike, or whatever else.

3) Time To Profit: Now, this isn’t the slowest turnaround time, but if you think you can put a dollar into inventory today and come out with two tomorrow, you’re sadly mistaken. From the time you first buy products to sell, you could be looking at anywhere from 4-12 weeks before you see a dollar come back.

And it could take twice as long before you break even.

Now, that’s not terrible, but what if you could start building a different (non-Amazon) income stream today, and see your first profits tomorrow?

What if you could build a passive income stream that’s actually passive?

An income stream that doesn’t require:

  • Inventory
  • Low margins
  • Constantly looking for the next hot product

An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?

An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day packing, prepping, and researching?

TESTIMONIAL - STILL GETTING PAID

If that sounds like something you’d be interested in, check out Digital Real Estate.

This is nothing like Etsy, and that’s probably a good thing.

However, if you’d still like to know more about Etsy, keep reading.

What Is Etsy?

What Is Etsy

Etsy is a virtual marketplace for handmade creations. It is one of the biggest online retailers after Amazon and eBay.

An Etsy shop is a platform for small business owners and artistic creatives to showcase their talents and earn money simultaneously.

Etsy Shop With Best Selling Digital Downloads

Etsy has already built a large customer base who look for digital products on the platform. You can find digital downloads that are useful for you from the plethora of designs available.

Etsy values human connection by creating a creative atmosphere that makes unique, handmade, or vintage items available to its community.

One passive way to earn is by creating digital products to sell on Etsy, that is if your client is not asking for customized design.

Why Sell Etsy Digital Products?

A Digital Product Has Lower Overhead Cost

“Make once, sell forever”, is a creative’s dream. You just have to design once, and your piece can be bought repeatedly from your Etsy shop.

Etsy digital download work well for both buyers and sellers. It is beneficial for customers and saves them time and money. Hiring a designer can be time-consuming and expensive. With Etsy, you can find best-selling digital downloads and use the file in no time, at a fraction of the price.

Relatively Low Overhead Cost

Once they have invested in software to create their digital products, Etsy sellers’ costs are pretty minimal. The listing fee is only $0.2, and when they make a sale, they are charged 5%.

Time Saver

If you are making physical products, you have to repeat the process every time you have an order. You only have to make your digital products once and leave the platform to do the work for you.

Easy System

Tried And Tested System For Selling Digital Downloads

Etsy sellers who sell digital products can say they are earning passive income, as long as customers don’t ask them to customize the product for them. They sell their products even in their sleep.

It Is Fun To Do

For those who are artsy and techie, this is a fun way of expressing oneself and earning at the same time.

Convenient To Buyers and Sellers.

Easy Printable Digital Product

Just think there is no need to wait for the parcel to come or pay for shipping. The customers can have ready digital prints after purchase.

For Etsy sellers, the built-in traffic makes selling easy, they just attach their digital products, no need to drive their traffic.

What Etsy Digital Products Can You Sell?

The pandemic and working from home leveled up digital products a necessity, say Zoom background for meetings, or if you want to have the edge while job hunting, you can order nicely designed resume templates.

Wedding/ Events

Wedding Invitations Digital Products To Sell On Etsy

  • Party Invitations
  • Gift Tags
  • Wedding Planners
  • Wrapping Paper Patterns
  • Printable Cake And Party Decorations
  • Thank You Cards
  • Printable Cards (Birthday, Invitations)

Personal OrganizationCalendars

  • Meal Plan Templates
  • Resume Templates

Creative Modern Resume Digital Product To Sell On Etsy

  • Productivity Trackers
  • Budget Planners
  • Sleep Trackers
  • Class Schedule Templates
  • Printable Planners
  • Digital Planners
  • Self Improvement Printables
  • Cafe/Restaurant Printable

Business

  • Digital Stickers
  • Product/ Cosmetic Labels

Printable Cosmetic Label Digital Products To Sell On Etsy

  • Logos
  • Customized Invoice Templates
  • Clip Art
  • Branding Kits

Branding Kit Digital Products To Sell On Etsy

  • Website Templates And Themes
  • Purchase Order Templates
  • Business Cards
  • Excel Templates

Home Use

  • Wallpapers
  • Digital Art Prints

Digital Art Prints Digital Products To Sell On Etsy

  • Custom Portraits
  • Printable Wall Art
  • Pantry Organizer Templates

Learning Materials

  • Learning Materials For Children

Learning Materials For Kids Digital Products To Sell On Etsy

Social Media Templates

  • Pinterest Templates
  • Zoom Backgrounds

Zoom Background Social Media Templates on Etsy

Hobby

  • Sewing Patterns
  • Ebooks And Guides
  • Workbooks
  • Lightroom Photo Presets
  • Crochet/Knitting/Embroidery/ Patterns

Crochet Patterns Sell On Etsy

  • Recipe Cards
  • Kids and Adult Coloring Pages
  • Clip Arts
  • Digital Papers
  • Photography

Cellphone Presets

  • Phone Wallpapers
  • Ios Icon Pack

IOS Icon Pack Digital Products To Sell On Etsy

Is Selling Etsy Digital Products Profitable?

Is Selling Digital Products Profitable

It is profitable because you have a low overhead cost. With the increasing market for digital products, you get a higher chance of selling.

The cost is nothing compared to selling products on a physical store. The startup cost is minimal, Etsy fees are reasonable too; minus these and licensing the product, that’s your profit.

It is profitable, but you also have to consider that you need volume to enjoy substantial profit on this platform.

Things To Consider When Picking Which Digital Downloads To Sell

For your Etsy shop to flourish, you have to plan and consider a few things before you start selling digital products.

Find Your Skills and Passion

Find Your Skills and Passion

The sweet spot is when you can match your passion and skills with the market needs. You’re happy. They are happy.

Do A Market Research

The best-case scenario is finding a high-demand product and low in competition. You can do this by analyzing the market.

You can start by looking at the top keywords when you type in the Etsy search bar. If you type “templates,” it will automatically list the digital files that most likely have demand or sell on Etsy.

You may find “social media templates” or “website templates” on the list, which will give you an idea of what digital products sell on Etsy.

You may also look at products that sell well on eBay and Amazon.

Consider If You Want To Sell Seasonal Or Evergreen Items

Evergreen Digital Product On Etsy

Evergreen items are in constant demand, like digital wall art or gift tags. On the other hand, seasonal products are popular at only a particular time of the year, like Christmas Cards.

Think of the gap in the market you can fill, maybe start with evergreen products and slowly introduce seasonal ones once your Etsy shop is more established.

Stand Out From The Crowd

Etsy is already popular with thousands of sellers, selling digital products is not an easy feat. You have to stand out from the rest to ensure your products sell.

Is Etsy A Scam?

Is Etsy A Scam

Etsy is a safe platform to buy and sell digital products. Its crafters are already by the millions. They are all trying to make the experience remarkable for each customer.

So, is Etsy a scam? Not technically. You can make money with this program, but it’s definitely not as easy as it sound.

There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – you need to do a ton of volume to make any real money.

Now, there’s nothing wrong with front-loading the work and making the money later.

But if you’re grinding it out for 3 months and then your reward is 15% profit on a $12 product (which comes out to $1.80), it’s not really worth it.

What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (recurring revenue)?

And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?

And what if you could double it next week?

Well, that’s the power of Digital Real Estate

And, unlike with Etsy, you can legitimately do this from anywhere. It’s a true lifestyle business.

Your laptop and an internet connection is all you need.

Some of the most successful students in this program run their entire 6-figure businesses from:

  • A camper in the middle of the woods
  • A beach chair on the water in Mexico
  • A small villa in Greece

TESTIMONIAL - SAYING GOODBYE TO OUR JOBS

They’re able to travel around, living their lives first, and focusing on their income second.

Because even if they stop working for an extended period of time, the money keeps coming in.

So adventure, memories, and experience are the top priority.

And they never have to worry about how to pay for the next trip, or consider asking for time off.

If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.

Are There Alternatives To Etsy?

alternatives

Yes, there are plenty of other business models to choose from if you want to pursue making money online.  Here are just a few:

What Is My #1 Recommendation To Make Money Online In 2022?

Digital Real Estate

Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.

While there may be no “perfect business”, the research IS conclusive:

Digital Real Estate is the #1 online business model for those just starting out.

Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.

Why?

1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.

And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.

Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.

This is only possible if you have an income stream that’s not tied to your time.

TESTIMONIAL - JUMP ALL IN

2) You Own & Control EVERYTHING: With Etsy, you don’t really own anything. Yes, you technically own the products before you send them into an Etsy warehouse, but that’s it.
You don’t own the sales platform, you don’t own a brand, and you don’t own the customers.
Not to mention, Etsy can literally shut you down at any time if they believe you’ve violated their constantly changing terms of service.

So you’re building a business that could be completely taken away from you in the blink of an eye.

With Digital Real Estate, you own the assets, which means you have all the power and all the control.

TESTIMONIAL - FEELING BLESSED

3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.

Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.

TESTIMONIAL - LANCE LEAD GEN

4) No Inventory: As mentioned above, spending 4-5 hours a day prepping and packing products to send to Etsy is a huge time commitment.

Plus, you constantly need to be buying new products if you want to maintain your business. You need to spend even more money if you want to scale up.

With physical products, you’ll always have limits on your time and freedom.

With Digital Real Estate, a 100% online business, you never have to worry about that.

TESTIMONIAL - SCOTT LEAD GEN

5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).

Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.

Because you have more knowledge, more experience, more results, and more momentum.

If you wanted to double your income with Etsy, you’d have to double your inventory OR your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.

TESTIMONIAL - ANNA DONE DEAL

6) Make Money Helping Real People: This part is what makes it all worth it. Etsy is a decent way to make yourself money, but it doesn’t improve anyone else’s lives.

After all, there’s always someone else selling rubber spatulas and umbrellas. That might be fine in the short term, but in the long run you may feel like you’re missing a purpose.

With Digital Real Estate though, you’re actually helping people by solving your clients’ biggest problem…

Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.

You make money by helping them make money.

Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.

Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.

TESTIMONIAL - BOSS OF MY FUTURE

Now, the choice is yours. You could continue browsing, looking at opportunities like Etsy which could one day make you money.

You could continue researching, never making a decision.

OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.

A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.

All while genuinely helping real people who are grateful and happy to pay for it.

If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.

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