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Selling Digital Products Vs Physical Products

There are benefits of having either a digital or physical product to sell however as you will find after reading this page that one of them is a better choice than the other. First I would like to make clear that a Physical Product is a Product that you actually have offline, like a Garden Gnome, a Golf Club or a homemade necklace. Where a Digital Product is something like a EBook, Software or even things like Desktop Wallpapers.

Pros and Cons

Let's start with a Physical Product. In some cases people tend to like physical products better as they are actually buying real solid goods, unlike a Digital Product where they get to download something. Now there probably are other benefits of a Physical Product but that's the main one I see as important here.

Now it's time for the Digital Goods to shine. Online in almost all cases it’s more beneficial to create a Digital Product over a Physical one. Why? Well to start with you have nothing to ship, there is no postage or handling, once it's bought the buyer is sent a download link and simply downloads it and you get paid. It doesn't matter how many copies of a Digital Product you sell because you can never run out of stock and you do nothing when people buy it. You could sell 1000 copies and you do no more work than if you sold 1. Whereas if you sold 1000 Physical Products that's a lot of work for postage and handling and even more if you have to make each Product.

Also you can make a lot more money with a Digital Product, once it's made it costs you nothing to sell a copy so you pretty much get to keep 100% of the sale price (unless sold by an affiliate). Compared to a Physical product which might cost something like $20 to make and you can only sell it for about $40, that's half the money gone in production costs.

Conclusion

There are more Pros for going with a Digital Product but those mentioned above should be more than enough to show you why a Digital product is better. So in my opinion if you are able to make a Digital Product for your Niche (which everyone should be) than it is a much better option too.