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The versatility of eCommerce allows owners to sell a variety of different items. More commonly, eCommerce businesses tend to market tangible items such as phones and clothes. It is also the case that many eCommerce websites are selling digital products. Digital products are not physical goods like a mobile phone, instead these are products such as software, logos and fonts.
This blog will discuss the various types of digital products, their benefits and how to sell them on your eCommerce website.
Types Of Digital Products
Generally, all digital products fall into 4 main categories: educational, licensed, tools and memberships. We will now cover in a bit more detail what these types of digital products entail.
Educational Digital Products
This type of digital product is self-explanatory in purpose. The focus of this form of intangible media is to be marketed for the purpose of education and instruction. Mostly, this type of digital product consists of items such as tutorials, courses and guides.
An example of such a product can be a marketing guide for using Twitter or Facebook. People don’t only search online for products they can just simply consume, but to also learn something new or build a skill. Getshop Today also provides easy-to-follow guides on how to set up your own eCommerce website and market effectively – best of all, these tutorials are free!
Digital Templates and Tools
Templates and tools are great products to market as they can help alleviate certain tasks or help people fulfil things they cannot do themselves.
Plugins are a great example of this. These are software integrations that provide features that can help the functionality of your eCommerce website. In addition, products such as overlays, filters and editing programs are all digital items that are in great demand for many website owners.
Licensed Digital Products
These are more well-known digital products that those who are familiar with music industry dynamics are aware of. Licensed digital products consist of items such as music loops, stock images and videos, as well as software.
A good example of an entity that sells such content would be Epidemic Sound, who sell music loops that are licensed. These loops of music and instrumentals can be bought outright or rented by artists, producers and DJs.
Some business owners choose to sell access to digital service, products and other items through their eCommerce website.
Items such as coaching, tutorials and online groups can all be marketed as digital products.
Generally, what sells memberships is the appeal of exclusivity. Customers want to feel like they are getting a product or service they cannot get anywhere else.
The Benefits of Selling Digital Products
There are numerous benefits for businesses selling digital products on their own eCommerce websites.
One such benefit is the efficiency that selling digital products provides as opposed to physical ones. With digital products, there is no need for packaging, secure sourcing or shipping. Because of this, selling these products can be done more fluidly and without inhibiting factors such as courier issues and the like. Moreover, you will be able to save much time and devote that to more pressing aspects of your business.
Another advantage is the sheer scalability of selling digital products. As in the case of selling physical products, there can be a large difference in effort to supply and distribute a10 units of a product compared to just one. However, with digital products the scaling of its distribution is infinite. Whether you sell 10 units or 10,000, there is nothing preventing you from selling both options with the same level of ease. Though this sounds very promising, you may need to consider hiring more staff to manage sales if you plan to greatly boost the units you aim to sell. As with the increase in sales comes a greater increase in traffic both to your business and eCommerce website.
Furthermore, you seek to gain much higher profit margins than you’d otherwise receive by only selling physical items. This is as with physical products comes the need for managing inventory and shipping costs. These are all rendered void by selling digital products since there is no need for the extensive managing of intangible items.
Guidance on How To Sell Digital Products on an eCommerce Website
There are many ways to sell your digital products effectively.
One way to do so is through social media. Platforms such as Twitter and Facebook not only have daily active users in the 100s of millions, but also feature services to help promote your products.
Twitter Ads is one example of a paid service that helps to improve the rankings of your content and ads on the platform. It is important to understand the budget you want to set before embarking on using a paid ads service. You need to weigh up the costs and decide whether the product you are selling is worth the investment in paid ads.
On another note, when advertising on social media you want to ensure that your content is relevant and engaging. This means establishing your target audience and tailoring your content towards that group. While doing so, you need to consider relevant keywords and terms related to the product you are marketing. Since your goal is to increase conversions through your ads and content, you want to ensure that they are concise and feature information necessary in capturing their interest.
Ultimately, you want to have an efficient customer journey from seeing your ad to purchasing the product on your eCommerce website. This will be decided by the amount of bottlenecks there are between both points and how effective your marketing content is.
Email marketing is also another way to sell your digital products. Through email, not only can you send information to customers about offers and updates but also develop consistent communication. Many customers value businesses that are transparent and active with responding to their queries and giving recommendations. Because of this, email can be a very beneficial way to market your products and keep your customers informed on your services. You can also drive traffic to your eCommerce website via email marketing by linking your site in the emails.
Digital products provide a great opportunity for eCommerce businesses. From increasing your profit margins and efficiency to no inventory management, selling digital products can transform your business.
Despite how relatively easy it can be to sell these items, it is important to consider factors such as piracy and effective marketing techniques. Regardless of how good the item is, if it’s not being marketed well it won’t sell. Good thing is that there are some great ways to sell your products through avenues such as email and social media.
Overall, digital products are a promising business venture that you should consider if you're an eCommerce business. You also don’t have to forgo the physical products you may be selling already to implement this into your business.