Digital product sales are naturally inclined to be profitable by cutting out shipping, packaging, and other selling costs. However, your online business will still have to offset some overhead to achieve a profit.
The experts at SamCart are here to unpack 5 ways you can make digital product sales profitable.
1) Keep Your Digital Products Selling
Once you produce a digital product, you can make passive income as it sells to different customers over and over again. Naturally, the more an item sells, the more revenue it will generate.
It can be easy to make digital product sales profitable by boosting your conversions:
- Order bumps and upsells: Make the most of each customer purchase with order bumps and upsells.
- Order bumps will prompt customers to add additional items to their purchases.
- After a customer has purchased your digital product, an upsell will offer a discount for additional digital or physical products related to that item. Both of these methods can boost your digital product sales.
- Subscriptions or memberships: You can sell access to your online courses or digital products as a package deal with subscription services. This method can help earn recurring revenue while showcasing the value of all your popular digital products.
- Pricing: Increase dwindling digital product sales with advanced pricing options. For example, Pay What You Want pricing can help close sales while bringing in revenue. You can also offer free trials, limited trials, and other payment structures to tailor your pricing to your target audience
2) Limit E-Commerce Costs
E-commerce costs are a natural part of selling online. However, you can make digital product sales more profitable by cutting unnecessary fees. From transaction fees to listing fees and even in-person selling fees, platforms like Etsy find every excuse to take a cut of your revenue.
SamCart’s set monthly e-commerce membership limits these overhead costs and eliminates unnecessary fees to make your digital product sales more profitable. Our platform is also more affordable than other monthly e-commerce memberships and online course platforms—putting more money in your pocket.
3) Limit Software Expenses
The most foundational way to profit is by earning more than you spend producing your products. Thankfully, digital products are easy to create on a low budget.
One of the most significant expenses many creators encounter is software. At the time of publication, Adobe Creative Cloud alone costs $54.99 per month (or $659.88 per year). Here are some tips on lowering your overhead software costs:
- Cut unnecessary software: Are you paying for any software systems that you do not need? Limiting these overhead costs can quickly boost your digital product profits.
- Find affordable alternatives: With some research, you can find free or more affordable software alternatives to expensive creator solutions. For example, Canva offers a free membership level that still includes valuable tools for creators.
- Sharing solutions: If you have friends or family interested in creative software, you can save money by sharing an account or upgrading to a family plan.
Thankfully, the software systems that creators use often pay for themselves with digital product sales. However, these cost-saving tips can help when your profitability needs a boost.
4) Affordable Materials
Whether creating demonstrations for your online courses or building visual representations for your how-to guides, you might need physical materials to produce your digital products. Thankfully, there are plenty of easy ways to save on material costs:
- Get creative: Creativity comes naturally to many influencers and creators. You can save money by making the most of items you already have around the house.
- Thrifting: You can easily find affordable art supplies and hidden treasures when visiting your local thrift shop. This also helps make your business more eco-friendly.
- Discount stores: Buying from budget stores can help save money on your supplies. Your customers will also appreciate the ability to access affordable items when following your tutorials.
5) Take Marketing In-House
Are you paying for social media ads and digital marketing? These methods can boost your sales and profits as you monetize your content. However, their upfront costs can put your digital product profitability at risk. You can lower overhead promotional costs by managing your marketing in-house.
Resources like CreatorU can show you the ropes by offering expert insight from creators earning 6+ figures in online sales. Unlock a library of online courses designed to boost the success and profitability of your online business.
Make Digital Product Sales Profitable with SamCart
SamCart’s e-commerce platform is designed to make digital product sales profitable. We keep our costs low while giving creators the resources they need to thrive in the online marketplace. Sign up for your free SamCart trial to start profiting off your digital products today!