Creating Digital Products to Sell on Etsy: A Step-by-Step Guide

What is Etsy? 

Esty is one of the biggest e-commerce marketplaces to sell digital products, founded in 2005. More than 7.4 million active sellers are serving their duties to 94.1 million active buyers. Etsy is a golden opportunity for small businesses to find potential customers and grow their business. Etsy focuses on handmade and unique products. It supports creative people who have new and brilliant ideas.

Although Etsy is a marketplace for handmade goods, you can still sell digital products on Etsy and earn a passive income stream. Selling your digital products through Etsy is much easier than selling on your website because Etsy has a great audience.

Digital products cost fewer expenses and generate high profits. You can create a digital product in a short time and can sell that product repeatedly with a slight change to different clients. Selling your products on Etsy requires you to create a shop on Etsy first.

However, It is essential to know everything about Etsy and digital products.

What are digital products?

Digital products are files that clients can purchase and download into their computers. You can sell them for a limitless amount of time to different customers. Creating digital products is easy, and it is easier to sell them. It does not require you to spend your money on it. You only have to consume your time to make quality products. Digital products include,

  • Online courses: Online courses are available in a wide variety in Esty stores. You can generate a good income by selling these online courses.
  • Ebooks: Esty is an excellent platform for downloading ebooks. Ebooks in every field are available on Etsy. 
  • Printables: It is the best-selling product on Esty. It includes Worksheets, calendars, stickers, Banners, logos, birthdays cards, thank you cards, invitation cards, and more.
  • Instagram post templates: Instagram post templates are the most demanded digital products these days. It is easy to create while using Canva or other designer apps.
  • Videos: You can make different tutorials by selling videos on Etsy. 
  • Audio: Audiobooks and songs are powerful digital products. You can sell your unique audio on Etsy and earn money independently.

 You will always have stock. Moreover, these products are consistently profitable. You can sell them many times.  

How to create digital products?

To create digital products, you need graphic design tools. There are different tools to design digital products, suchlike Adobe Illustrator, Canva, Adobe Photoshop, Visme etc.

  • Canva is one of the best tools; it is available in free and premium versions. With the help of Canva, you can create stunning and professional designs very quickly. It has a large number of templates available in every size and pattern. You can change colors, structure, and sizes and create whatever you want as logos, banners, cover photos, Facebook and Instagram posts, etc.
  • Adobe XD is a paid tool. It is a very creative tool for creating digital products. If you want to edit, draw, and design an image. Adobe XD contains all of these features.
  •  The sketch is the all-in-one designer toolkit that provides you with all the tools required to create a design. It is popular among UI and UX designers. 
  • Figma is a web-based graphic editing and user-friendly app for designers. You can use it for each type of graphic design to build your digital product.
  • Adobe Photoshop is a superb tool for creating, editing, and designing images. You can use it for a variety of tasks.

Market research before creating a Digital Product for Etsy

As a seller on Etsy, knowing the market well and its audience is an essential thing to do first. 

There are some fundamental things to know suchlike

  • What do customers look for on Etsy?

You can know what customers are looking for on Etsy by visiting It will provide you with complete data about customers and their demands for the product. 

  • What do sellers are selling on Etsy?

When setting up a shop on Etsy, you must know what your competitors are selling. You can check the information on the internet and create your products accordingly. It would help if you knew the difference between your products and your competitors. 

  • What is the top-selling product on Etsy? 

It will help you a lot by knowing the top-selling product, and you can create the best product that will help you earn passive income quickly.

  • Proper SEO of the product

Good SEO optimizes your visibility clearly in the online market. It is vital to do proper SEO to grab the attention of customers.

  • Correct keyword research of the product

The keyword is a word or phrase used to find the exact product and brand quickly. Proper keyword research is a crucial step. You must choose the keywords carefully. Well-researched keywords will help to attract potential clients.

How to Sell Digital Products on Etsy?

You need to open an Etsy shop to sell your digital products on Etsy. Think carefully and choose a unique and impressive name for your shop. If you are a beginner, go to How to Start an Etsy Shop, follow the steps, and set up your shop quickly. 

  • Add your digital products to your Etsy shop.

Write eye-catching and compelling product descriptions with well-researched keywords. Well-written and detailed descriptions will make people buy your digital products. Remember to add eye-catching pictures of your products to your Etsy shop. You are allowed to upload five types of files to your digital shop they are:

  • Audio: Mp3, Mpeg
  • Photos: png, gif, jpeg, and, tiff, pdf.
  • Text: text.
  • Set pricing of the digital product after creating it. 

As a seller, you must set the price of the product you have created. The price should be reasonable and reasonable. When selecting the price, you should remember to include your time, documents, and fees you need to pay to Etsy to list your products. Highlight the particular and different features of your product description that will make your product valuable and draw customers’ attention. Always compare your price with the price of your competitors. However, make sure that the price should be profitable.

When you know all of these things, you have done the important part of market research thoroughly. It is vital to be prepared now to invest your time and resources on Etsy. 

  • Market your digital products. 

After adding your products to your Etsy shop, it is time to market them. You have to work and spend a lot of time introducing your items to people. One of the best ways to promote your products is to introduce and publicize your products on social platforms. Such as

  • Pinterest 
  • Instagram Reels
  • Facebook Ads
  • Tiktok 

You can inspire people through your marketing strategies on social platforms easily.

  • Get reviews about your digital product.

As a professional seller getting product reviews is a crucial part of upgrading any business. A good product review will build a strong relationship between you and your clients. It will make new buyers trust you and buy from your shop repeatedly. 

Benefits of selling Digital Products on Etsy

Digital products play a vital role worldwide and have become people’s need. It is the era of social media such as Facebook, Instagram, Twitter, TikTok, and Pinterest. Every individual wants templates for these social media platforms to post something daily and upload reels, statuses, and ads.

When people need more time to create these impressive templates themselves, they prefer to buy them from Etsy digital shops. People need to go and invite each other to events. They request each other by sending invitation cards made by Etsy digital product designers.

Moreover, selling digital products online has become a significant and valuable business for people who possess innovative ideas and create unique items not available in physical markets. Etsy provides people with amazing things only available at their digital stores.


Etsy is a profitable platform to earn money and spend a good life. As you read, digital products are more beneficial than physical products. There are so many benefits of selling digital products on Etsy. 

It can be a great chance, but it also requires hard work and time management. 

Always remember that building any business is slow and steady, but you must be consistent and motivated. It will help you to boost your business and earn passive income.

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