How to Sell Digital Products Online: A Comprehensive Guide 

Key highlights 

• Selling digital downloads is a great start for a business with high scalability and zero cost needed for inventory. 
• Automated delivery of digital files will make for passive income 24 hours a day. 
• An optimized digital store creates a seamless purchasing experience, helping customers navigate, purchase and receive their products effortlessly.  
• Strategic pricing is crucial in helping you maximize your profit and more buyers to trigger conversions as well.     

Introduction 

Do you want to start selling digital products and earn from your creativity? With the right strategy, you can sell digital downloads and build a thriving online business. Whether it’s eBooks, online courses, templates or music, digital assets let you earn without worrying about inventory, shipping or restocking.  

The best part? Setting up your online store is easier than ever.   

Selling digital products online requires minimal upfront investment and once created, your products can be sold repeatedly without additional costs. With a website hosting platform and the right marketing strategy, you make your business reach a global audience.  

This guide will help you learn everything you need to know to successfully launch and sell digital products online. Let’s get started! 

What are digital products and why sell them? 

Digital downloads or products are intangible assets that can be sold and distributed online. They include downloadable or streamable content that customers can access instantly in digital format. Some common examples include: 

• eBooks, PDFs and guides 
• Online courses and webinars 
• Software, plugins and themes 
• Stock photos, videos and music 
• Design templates (Canva, Photoshop, WordPress themes, etc.) 

Why should you sell digital downloads? 

Once you choose to sell digital downloads over physical products, you enjoy several benefits compared to selling physical goods. 

• Low initial investment – No production or stock cost. 
• Scalability – Sell to a number of customers at one time without added costs. 
• Automated shipping – Customers get products right away. 
• Worldwide access – Sell to anyone, anywhere. 
• Environmentally friendly – No wastage or shipping required. 
• Passive income possibility – Get paid for the same product multiple times. 

By choosing the right product and selling it through optimized channels, you can generate steady income while minimizing overhead costs. 

How to setup an online store?  

Selling digital downloads is not an instinctive job. It needs proper planning and strategy to start.  

Here is the set of steps that will help you sell digital downloads and earn profits online: 

Step 1. Define you niche 

If you want to create a successful business online, finding a niche is the first step. The best way to identify your niche is to reflect on what you truly like.  

Once you have shortened the niche, you need to get in-depth market knowledge before finalizing. This helps you to understand the demand in the online marketplace for the product you intend to sell.

Tools like Google Trends can help gauge consumer interest in your product and lay the foundation for a lucrative business model. 

Step 2. Identify your audience 

Identifying your audience is the first step to starting any business. Understanding the answer to these basic questions can help you get more success: 

• Where are your potential customers? 
• How old are they? 
• What is their purchasing power? 
• What are their pain points and preferences? 

Create a buyer persona using the answers to these questions that can help you further understand your audience. When creating your marketing strategies, this customized profile will serve as a valuable guide for your digital content.

Step 3. Create your digital product 

With a clear idea of your niche, product and target audience, it’s time that you start creating digital products. 

Whether it’s an eBook, online course or software, use the information you gleaned about your target audience to create a high-quality product that best meets their needs. 

Step 4. Create your WordPress website 

Building a professional online store no longer requires hiring web developers. With Bluehost eCommerce Premium, you can effortlessly set up and manage your WordPress website. 

Follow these steps to get started: 

• Secure a domain name  

Use the Bluehost domain name checker to see if your preferred name is available (or to get some great suggestions if you’re stuck for ideas). 

• Sign up 

Bluehost provides optimized hosting with pre-installed WooCommerce, which saves you time and effort. Bluehost eCommerce Premium comes with the following: 

• One-click WooCommerce setup – Get your store running in minutes with WooCommerce.   
• Free SSL certificate – Secure transactions and boost customer trust. 
• Automated updates & security – Keep your store running smoothly. 
• Integrated payment solutions – Accept payments via PayPal, Stripe and more. 

Read more: WordPress Solutions: Commerce 

• Install WordPress & WooCommerce 

When you choose Bluehost, WordPress and WooCommerce come pre-installed. Simply log into your Bluehost Admin dashboard, follow the guided setup and customize your store settings. 

• Choose a professional eCommerce theme 

A visually appealing and functional theme enhances the shopping experience. With our solution, you get access to WonderSuite, a powerful AI-driven website builder designed specifically for WordPress and WooCommerce. 

With WonderSuite, you can quickly design website templates and launch a fully optimized WooCommerce store. We ensure a smooth experience for both you and your customers. 

Read more: Introducing Bluehost WonderSuite: WordPress made WONDERful 

Step 5. Install an eCommerce plugin 

Once you have created your site, the next step is to install a plugin that is digital product-specific for selling. 

These plugins provide you with tools to display and sell digital files online. 

There are countless numbers of options. A thorough investigation will assist you in selecting the plugin that most suits your purposes.  

Below are some of the best options: 

• Easy Digital Downloads 
• Digital Goods for WooCommerce Checkout 
• WordPress iSell 
• Dokan 
• Download Monitor 

Also read: Best eCommerce Plugins for WordPress Website 

Step 6. Add products to your store 

After activating your eCommerce plugin, it’s time to add digital goods to your store. 

When adding new digital products to your store, include relevant details such as the name, description, images and price. 

You can combine this with powerful email marketing tools to effectively ensure your product’s outreach to the target audience. 

Step 7. Set up payment processing 

A secure and convenient payment gateway is crucial when you sell digital downloads. Select a WooCommerce payment gateway (for example, PayPal, Stripe or Square) supported by your chosen eCommerce plugin. It is important to consider that the gateway is convenient for your target customers. 

Follow the instructions provided to integrate your payment gateway with your store and configure essential settings like currency and tax. 

Step 8. Customize your online store 

If you want to enhance your store’s appearance and functionality before it goes live, you can use plugins. 

On your WordPress admin dashboard, go to Plugins > Add New and search for the plugins you need. 

You can use these plugins to customize your store as desired. 

Learn more: WordPress Admin Dashboard: Tips for Effective Management 

Step 9. Test and launch your store 

It’s important to test your website before it goes live. For example, you can make a mock purchase. This allows you to verify that the payment process and product delivery mechanism work seamlessly. 

You can also test other elements affecting your website’s user experience, such as page loading speeds or responsiveness across different devices. 

Once you’ve rectified all issues, you can start selling products digitally. 

Also read: 8 Quick Tips On How To Improve Website User Experience 

Now that you have learned how to set up an online store, it’s time to understand where can you sell digital products online? 

Which platforms to choose for selling digital downloads? 

Choosing the right platform to sell digital products online impacts your control, branding and revenue. Here are the top options: 

• Your own website – Hosting your store with Bluehost allows full ownership, no marketplace fees and complete customization. It’s ideal for long-term growth. 
• Marketplaces – Platforms like Etsy, Gumroad and Creative Market provide access to existing audiences but come with fees and limited flexibility. You can integrate them with your website for wider reach. 
• Course and membership platforms – Platforms like Teachable, Podia and Kajabi are great for selling courses and subscriptions. Hosting a course site on Bluehost with WooCommerce Memberships offers more control over content and revenue. 

A self-hosted WooCommerce store on Bluehost offers complete scalability. It is an all-in-one solution that allows you to sell directly, set your own prices and avoid platform restrictions. 

Why sell digital downloads using WordPress?

According to W3 Techs research, WordPress is the world’s leading content management system, powering over 43.6% of all websites.

Thanks to several compelling benefits, it’s a top choice for digital creators looking to sell digital files.

Here are some reasons why using WordPress is beneficial for selling digital products:

1. Customizability

WordPress provides extensive customization options, making it easy for you to build a unique website.

With a vast selection of themes, plugins and templates, you can design sales pages that align perfectly with your branding and enhance the customer experience from browsing to checkout.

2. User-friendliness

WordPress is known for its user-friendly interface, making it accessible even to beginners.

Setting up your own website to sell digital products is straightforward, regardless of your technical skill level.

Thanks to WordPress’s simple setup for profitable digital products and management, customers can quickly download purchased files.

3. Affordability

The core WordPress software is free. It offers an extensive library of free and cost-effective themes and plugins.

This affordability makes it ideal for creators to start an online business without significant upfront investment.

4. Strong community support

With a vast and active user community, WordPress users can access extensive support resources.

You’ll find solutions, advice and resources from the WordPress community if you encounter any issues.

This support can help you overcome challenges related to sales pages, downloadable files or customer data management.

Now that you understand the advantages of using WordPress to sell digital files, you can launch your online business and empower customers to download your creations seamlessly.

What are the best tips to sell digital products online? 

To sell digital products online requires more than just setting up a store. Having the right strategies in place will maximize sales and expand your business. 

Pricing strategy 

Pricing your digital goods right on the web ensures profitability yet brings in buyers. Here are some strategies to consider: 

• Value-based pricing 
• Tiered pricing and bundles  
• Promotions & discounts 

Marketing tactics 

Marketing is crucial for all businesses, whether on the field or digital. Here are some pointers to consider for your online business: 

• Content marketing   
• Social media and influencer marketing   
• SEO & paid ads   
• Email marketing 

Keep an eye out for Google trends and keep your search engine optimization on point to enhance your marketing tactics. This ensures that your strategy helps build strong lead magnets for the successful sales of digital products.

Final thoughts 

Digital products are a goldmine for those with the right skills and tools. You can break into this booming market by following the steps outlined in this guide. 

While a high-demand product is vital for profitability, you need a solid foundation to become successful as an online entrepreneur. 

You need to integrate your brand idea with a fully functioning WordPress website. That’s why you must choose a reliable web host. 

Bluehost is a trusted provider of WordPress hosting. With lightning-fast speeds, robust security and 24/7 customer support, we provide an optimal environment for your online business to thrive. 

Explore Bluehost’s WordPress hosting plans today to learn more. 

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