Digital Vs. Physical Products: Why More and More Webpreneurs are Crushing It With Digital Products
- Author Joanna Black
- Published May 23, 2021
- Word count 1,079
Not long ago, telling someone you make a living online was akin to telling them you were some kind of archaeologist. Sure, many people knew it was possible to work online and make money, but if you told them how easy and lucrative it was, they still gave you a sideways look.
Nonetheless, times have certainly changed. The advancements in technology and the broader use of the internet (especially during the pandemic), have made online business ventures more lucrative than ever. Today, you can purchase (or sell) a wide range of products through various eCommerce platforms. For example, everyone knows how well Amazon is doing to fill consumer demand having cornered almost every niche on the market!
Even so, while you can sell both physical and digital products online, the latter tends to be more popular and profitable. This article endeavors to give you an overview of what digital products are and why they are in great demand inside a multi-billion dollar industry. After reading this article, it will be easier for you to decide which approach you should choose in becoming an online business.
What are digital products?
Simply put, a digital product is any product, whether for sale or not, that is in an intangible format as a digital file. These products can be downloaded, streamed, or translated into mediums such as templates, software or eBooks. However, the primary point of interaction with digital products is through the use of technology and the internet. The most sold digital products include online courses, eBooks, software, graphics, website themes, photographs, and artwork. Physical products, on the other hand, are tangible and you need to ship them out to your customers. These include a vast-range of merchandise that need to be manufactured, labelled, packaged, stored and delivered.
6 Main Reasons why digital products are gaining more popularity in the online entrepreneur space than physical products:
When considering becoming eCommerce sellers, many people tend to veer towards traditional, faithful physical products. But not so fast. You may be missing out on some critical time and money savings. Below are some of the greatest benefits you can get from selling digital products:
- Lower Operational Costs
When selling digital products you'll eliminate numerous costs you would have incurred had you been selling physical products. Here is a quick summary of some operation expenses that you'll either incur way less of or do away with entirely:
• No more shipping, handling and storage costs or hurdles like border inspection
• No manufacturing and purchasing inventory (the highest business expenses)
• No need to sell on competitive e-tail sites or set up bloated eCommerce stores
• Insurance isn’t necessary for digital products. Insuring physical products can get complicated and very expensive quickly, especially if those products don't sell fast or when a disaster strikes like a fire.
• No costly overhead. You will need to invest in an internet service, a fast running computer and a few other tools to create digital products, but considerably less than setting up shop for physical products.
- Less Recalls & Refunds
When dealing with digital products, you have complete control over your sales process. You won't need to handle numerous product recalls that are common when selling physical products, or risk losing precious retail shelf space. It is unlikely that someone will recall an ebook because the editor missed a typo. On the other hand, if a physical product has any malfunction or fails to meet a customer's preference, they will likely request a refund. Recalls are not only expensive but can also drive away customers from buying your future products. With digital products, you'll have fewer dissatisfied customers, which helps build a positive image for your brand.
- Quick Setup Time
Setting up a digital product for sale and out to market is much easier and demands less time compared to physical products. As is the case with physical products, you won't have to contend with processes like designing a prototype, negotiating with various manufacturers, or finding a fitting fulfillment company when setting up a digital product. In most cases, all you have to do is create the digital product once and set it up for sale on your own dedicated website.
- A Convenient Purchase
Purchasing digital products is more convenient, given that after completing the purchase process, the customer can immediately have access to the product. They don’t have to wait for days or weeks to access their purchase, as is the case with most physical products sold online. Your customers will only need to press a few buttons, and walla, they have the digital product right on their computer.
- Infinite Merchandise
With physical products, you'll have to replenish your stock continuously as they are purchased. The cost of restocking bulk inventory can be outrageous, especially in the apparel and footwear space. Digital products, on the other hand, are infinite, intangible goods. After creating a superior digital product, you can continue to sell it forever. You will neither run out of downloads for your digital product nor will you have to incur expenses such as storage or logistics.
- Higher Return-on-Investment (ROI)
Digital products have an ROI of approximately 80-90%. This incredible return-on-investment is one of the main reasons internet marketers everywhere are tapping into this goldmine. As long as the product is adding value and solving a problem for the customer, they are way less prone to recalls. Without the usual costs incurred in setting up a traditional business, selling digital products online far outweighs the profit potential of selling physical products.
Final Thoughts
Here’s the Bottom line: digital products can be made inexpensively and sold at great profit margins. They are more resistant to hit or miss trends; eliminate the common barriers to purchase; involve fewer if any middlemen; and most importantly, keeps control squarely in the hands of the business owner. You don’t have to be worried about opening hours or being tied up to one local market either. The internet is borderless and you can reach tens of thousands of consumers with similar interests – something that would be nearly impossible with a physical product.
Most internet entrepreneurs start their online businesses by selling either ebooks, audiobooks, ecourses, coaching memberships or a combination of these, which involve little technical skills. If you would like to learn more about how to successfully set up your own digital product business that will prove both enjoyable and profitable, then please check out my book The Digital-X Product Formula at the link below.
Joanna Black is an indie author, wealth builder and infopreneur in the digital product space serving as a guide to other online entrepreneurs. She is the proud author of The Digital-X Product Formula found at www.digitalxpayday.com
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Cost-Effective Strategies for Business Owners in 2024: Maintaining Efficiency Without Reducing Staff
- Navigating Compliance for Personal and Professional Contributions
- Smart Savings: The Benefits of Buying Out of Season
- Youtube To MP3 Converter -- Free
- The Benefits of Outdoor Training
- A Fashionable, Artistic, and Modern Adventure: Three Days in Paris
- Why buy stock footage on mediaCastpro? Here are the benefits.
- GoPDF An Online PDF Editor Releases Mobiles Apps Compatible with iOS & Android: A Faster Solution for PDF Editing
- The Best AI Logo Generators in 2024
- How to prepare for a house clearance, a few tips from experts
- Adapting to Rising Parcel Rates in 2024 with Business Central and Order Ship Express
- Not All LED Lights Are Created Equal
- Zoviz Launches New Solutions Day by Day to Users as An AI Logo Maker
- Campervan Maintenance: All You Need to Know
- Fighting the Silent Epidemic: Safeguard Your Child's Future with Vitamin D Screening at KinderCure | Dr. Garima Mengi
- 5 Inspiring Stories of Women Who Achieved Gorgeous Lashes with Careprost Eye Drops
- Is Your Finance Strategy Ready for ERP Software?
- A Beginner's Guide to Starting a Career in Web3
- The Vital Role Of The Courier Industry: Connecting People, Businesses, And Communities
- Learning From Successes And Setbacks: The Importance Of Post-Bid Analysis In Professional Bid Writing
- Music And Identity: Exploring The Role Of Music In Shaping Culture And Identity
- Demystifying Dental Myths: Separating Fact From Fiction
- Expert and Little Known Tips for Limestone Floor Maintenance
- Explanation of how to improve the quality of low-resolution videos
- Do Compelling Marketing Pictures Unlock Sales Potential?
- Combining Science and Aesthetics: The Practical Benefits of Veneers
- These are my thoughts about the audience, topics, and purpose of my writing.
- Enhancing Child Health with Mindfulness: Insights from KinderCure’s Dr. Garima Mengi
- Blast Off into Adventure: 15 Must-Read Science Fiction Books!
- The Journey to Self-Love: Embracing Your Inner Worth