How to create Digital Products
for your Etsy Shop



written by Irene

Opening an Etsy shop is a relatively straightforward process. The more tricky part is deciding what products  to sell and the process of creating them.

In my case, I knew from the beginning I wanted to sell digital downloads, since I didn’t want to deal with shipping companies and costs. Also, selling non physical products is the cheapest way to start your own online business. The upfront cost is much lower than when you sell physical items.

So, this post is only for people who are planning or already selling digital products on Etsy (or other online platforms).

Now before we dive deeper, take a moment to make sure you have chosen a niche for your shop and write down 5 – 10 ideas for digital products you think will sell well in your shop. There are lots of different kinds of digital downloads you can create. It could be anything from educational materials, planner inserts, wall art décor, organizational tools or templates for small businesses.

Digital Products on Etsy

The steps I’m sharing with you, apply to any kind of niche as long as it’s about digital and not physical items:

Step # 1 : Make market research

A mistake a lot of new sellers make is to create random digital products, upload them and expect them to sell like hotcakes. Let me tell you this is not the route to take if you are serious about this business.

First, understand your target audience’s needs and preferences. Then, look at what is popular on Etsy in your chosen niche. You can do that by simply typing some keywords on Etsy’s search bar, or you can use a keyword searching tool. There are plenty out there, with the most popular being Everbee, eRank, Marmalead, Alura and more.


Step # 2 : Create unique designs that are cohesive with your shop’s aesthetics

It’s no secret people shopping on Etsy have high quality and aesthetic criteria. Ensure your designs are visually appealing and of high quality. Consider what designs resonate with your target audience. Use graphic design software like Canva (which I use and utterly love), Photoshop, GIMP or Adobe Illustrator.


Step # 3 : Choose the format of your Printables

You have two options with the digital products you create. They can non-editable, ready to pint products, or you can offer your customers the ability to edit some parts of the product they buy on a designing software.

Both have their pros and cons.

Some people are not tech savvy and feel overwhelmed by editable products. They are just looking for a pdf or jpeg they can instantly download and print at home or at a printing store.

On the other hand there are people who are looking for customizable digital downloads. For example a birthday card where they can edit on Canva and change the name and date multiple times.

What I suggest is selling both options if you can, so as to target both audiences.

Your digital downloads formats can be pdf, jpeg, png, psd (for photoshop only), etc. Make sure you offer high resolution files (at least 300 dpi) and not too large files, since this can be inconvenient for the buyer.

Digital Products on Etsy


Step # 4 : Price your products and upload them

Pricing can be an uneasy task for many new Etsy sellers. Before deciding, consider all the Etsy fees, the transactions fees, designing software you use and the hours of work you put in.
In our case (digital product seller) we don’t have to deal with shipping costs.

Research pricing strategies in your niche. What are the prices of your competitor’s products that sell the most? You don’t want to go too high or too low from other shop’s prices.

Consider offering bundles or discounts for multiple purchases.

Now you are ready to create your listings. Write compelling titles and descriptions and use relevant keywords for your products to be searchable.


Step # 5: Time for marketing

I am a firm believer that without the right marketing strategy, you can create the best quality products but no one will buy them. Simply because they will never come across them.

For me, Pinterest is the number one Platform that I use to drive traffic to my products. You can showcase your products effectively and build an audience that you can drive directly to your shop.


Step # 6: Provide excellent customer service

Respond promptly to customer inquiries. Be prepared to answer any question they might have within 24 hours. Go the extra mile and offer them a coupon code for a discount with their next purchase. Send them a kind email, expressing how grateful you are they bought one of your products.

If your customer service is excellent, you will build trust and a first time customer can become a loyal customer and recommend your shop to other people as well. ‘Word of mouth’ is super powerful in marketing.


Step # 7: Order Fulfilment

Once a customer makes a purchase, Etsy will guide you on how to fulfil the order. As long as you’ve uploaded your Digital Files, Etsy handles the delivery automatically.

Creating printables on Etsy can be a great start to your entrepreneurship journey. Pay attention to customer feedback. Improve your designs and add new listings often. Etsy’s algorithm favours sellers who are active.

Stay updated on trends in your niche. Update your shop accordingly.

You can offer freebies related to a product as a thank you gesture for a purchase.

Finally, I cannot stress out enough how important it is to ensure your designs are original and all the graphic elements and fonts you use have the commercial license necessary for you to use them. Never use copyrighted material without permission.

Building a positive reputation is not easy and takes time, but if you follow the above steps and stay consistent, you can create a sustainable business that will earn revenue consistently.