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I heard a joke last night.

“Yeah so I sell products online. No inventory. No shipping. And people can’t return or refund their purchase.”

Apparently…That’s exactly what thousands of Etsy sellers are doing with digital products.

Create a product once, list it on Etsy, and watch it sell on repeat to buyers around the world.

So, how do you turn a design into a steady stream of passive income?

Let’s break down the steps and get you started.

Today:

👆 Create It Once, Cash In Forever.

🎨 What Can You Sell? Popular Digital Products on Etsy

💻 What Tools Do You Need to Create Digital Products?

❓ Can’t Buyers Technically Request Refunds After Purchase?

💸 How Much Do Sellers Typically Spend on Ads?

🚀 Getting Started: Launch Your First Digital Product on Etsy

👆 Create It Once, Cash In Forever.

🎨 What Can You Sell? Popular Digital Products on Etsy

Digital products are a powerful income stream because they’re infinitely scalable: make one product, and you can sell it an unlimited number of times.

Etsy, with its 95 million active buyers, is a prime marketplace for this. Some of the best niches for digital products include:

• Printable Planners & Calendars: People love organizing their lives, and planners or meal prep calendars are high in demand.

  

• Social Media Templates: Businesses are always looking for tools to simplify their content creation.

  

• Digital Art: From wall art to motivational prints, art is timeless and universally appealing.

  

• Ebooks and Guides: Informative guides on everything from cooking to personal finance are popular choices.

  

• Lightroom Presets for Photography: Many photographers seek ready-to-use photo editing filters.

  

Starting in a niche with proven demand can help build a foundation for sales and steady income.

With such a variety of niches, you’ll find plenty of room to explore what works best for you:)

💻 What Tools Do You Need to Create Digital Products?

Creating a digital product doesn’t require expensive software. At all.

Here’s a quick roadmap of the most effective tools:

1. Design with Ease: Tools like Canva and Adobe Photoshop offer templates and editing options to make high-quality products. Plus, these tools are either free or budget-friendly, so you don’t have to break the bank to get started.

2. Mock It Up: Use mockup tools to showcase your product in action. A beautiful display of your product is key to making it appealing to Etsy buyers.

3. Editable Templates: Platforms like Google Docs or Notion make it easy to create editable templates, from workbooks to personal trackers.

With these affordable and easy-to-use tools, creating digital products becomes accessible for anyone—even if you’re new to design!

❓ Can’t Buyers Technically Request Refunds After Purchase?

It’s a valid concern! The answer is generally no!

Due to the nature of digital products, Etsy’s policy states that digital downloads are non-refundable, as buyers receive the item immediately upon purchase.

That said, if a customer has issues with the file, providing good customer service can help prevent negative reviews and keep your ratings high.

Be sure to clearly communicate your refund policy in your shop to set expectations and avoid misunderstandings.

💸 How Much Do Sellers Typically Spend on Ads?

If you’re wondering whether ads are essential, the answer depends on your goals.

Many Etsy sellers find that spending between $1 and $5 per day on Etsy Ads helps their products get noticed faster.

During peak times or new launches, some sellers increase their ad spend to $10-$20 daily for more visibility.

Etsy Ads are cost-per-click, typically between $0.20 and $0.50 per click, so you can adjust your budget based on your comfort level.

The good news?

Even small ad budgets can help drive significant traffic to your shop, especially if your product is priced well and in demand.

🚀 Getting Started: Launch Your First Digital Product on Etsy

1. Identify Demand: Research popular digital products on Etsy to find what’s selling. Start with one or two types of products, like planners or printable wall art, and see where the demand lies.

2. Use Affordable Tools: Canva, Google Docs, and PicMonkey are fantastic (and inexpensive) options to create polished, professional products.

3. Optimize Listings: SEO is essential on Etsy, so research keywords related to your product and use them in your titles and descriptions.

4. Promote Smartly: Invest in low-cost ads or use social media to bring traffic to your Etsy shop.

A super awesome thing: Etsy lets you gather customer information like names and email addresses. Which means you can build an email list that you can market to and use even if Etsy was to shut down!

Want to actually do something before the New Year?

Reply “New Year” to lock in.