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Selling digital products and info-products: the business with no stock, no shipping and no physical returns

There's a type of ecommerce that skips right past most of the usual headaches of online retail: no stock to manage, no shipping to coordinate, no physical returns, no breakage or shrinkage. Digital products (online courses, ebooks, templates, plugins, music, presets, resource packs) have an almost zero marginal cost: once the product is created, selling it one more time costs practically nothing, which delivers margins a physical product business can only dream of. But that same ease has flooded the market with competition, and the most common mistake is diving into creating a digital product without first validating that anyone is willing to pay for it.

The most common types of digital product

  • Online courses and training. From a video-recorded course to a programme with live coaching, this is one of the formats with the most range, especially when the creator has recognised authority in their field.
  • Ebooks and downloadable guides. The simplest entry-level format, with lower production cost, though also the most saturated and the one that most needs genuinely differentiated content to justify the price.
  • Templates and downloadable resources. Design templates, spreadsheets, photo-editing presets: products that solve a very specific problem, easy to understand and buy on impulse.
  • Software and plugins. Requires more upfront development investment, but usually generates recurring revenue if structured as a subscription rather than a one-off payment.
  • Memberships and paid communities. Ongoing access to content, training or a community, with recurring monthly or annual payment, one of the more predictable revenue models in digital ecommerce.

Why validating before creating matters more than ever here

With a physical product, production cost acts as a natural brake that forces you to think twice before manufacturing a thousand units. With a digital product, that brake doesn't exist: you can create a forty-hour course without ever having checked that anyone will buy it, and find out too late that real interest was much lower than expected. The cheapest way to avoid this is to validate before producing the full content: open sales with a waitlist, offer a minimal version or a free preview to gauge real interest, or sell directly before finishing creation (a pre-sale model), committing to deliver by a specific date only if enough confirmed demand shows up.

The most common pricing mistake: charging too little

It's counterintuitive, but the most frequent pricing mistake with digital products isn't charging too much, it's charging too little. Many creators, unsure of the value of something that "isn't a physical object," set very low prices thinking volume will make up for it, and end up generating insufficient revenue even with reasonable sales, while also unintentionally signalling low quality (a 9-euro course communicates something very different from a 300-euro one, even if the content took a similar number of hours to produce). The price of a digital product should reflect the transformation or result it delivers to the buyer, not the hours it took to produce nor a direct comparison to the price of a similar physical object.

Platforms for selling: your own vs. third-party

There are two main paths, and they're not mutually exclusive. Selling through your own platform (integrated into your site with Shopify, WooCommerce or tools specific to info-products) gives full control over price, brand and customer data, but requires your own traffic to generate sales. Selling through established training or digital product marketplaces gives access to an existing audience with no acquisition work of your own, in exchange for a sizeable commission and losing much of the control over the customer relationship. The strategy that works best for most small businesses is usually starting on a marketplace to validate and generate initial revenue, then progressively migrating to your own platform as the business matures and already has its own audience to attract directly.

The piracy problem and how to handle it sensibly

It's a legitimate concern: a digital product can be copied and shared at zero reproduction cost. Chasing down every individual pirated copy is an exhausting, almost always losing battle. The more effective strategy is usually different: make buying the original easier and more valuable than looking for a pirated copy (with continuous updates, support, community, certificates), rather than pouring all your energy into aggressive technical protection measures that also complicate the experience for legitimate buyers.

An illustrative case: the creator who validated before recording a single minute of course

A professional specialised in a very specific business management niche wanted to launch an online course, but instead of recording it straight away, they announced the syllabus and opened a pre-sale with a notable discount for early sign-ups, committing to deliver the full course in eight weeks if a minimum number of sign-ups was reached. They hit the minimum within the first few days, which gave them the validation (and the money upfront) to spend time recording it calmly, instead of investing weeks of work with no certainty anyone would buy it afterward.

The mistake of trying to teach absolutely everything

A common failure in educational digital products is trying to cram absolutely everything the creator knows about a topic into a single course or ebook, producing something so long and all-encompassing that the customer feels overwhelmed before even starting to consume it. The digital products that work best usually solve one very specific, well-defined problem, not "everything you need to know about X." A short, focused course that clearly solves a specific problem gets better results (and better reviews) than a very long course that tries to cover everything but leaves the customer unsure what to do next after buying it.

How to keep a digital product updated without redoing it entirely

Unlike a physical product, a digital product can be updated after the sale with no manufacturing cost, which is both an advantage and a responsibility. A course or template that becomes outdated (due to a change in a tool it teaches, for example) and is never updated starts generating negative reviews and refund requests, even if the content was excellent at the time. Planning periodic content reviews, and letting past buyers know when something relevant has been updated, is a practice that builds trust and substantially reduces refunds due to outdated content.

The power of bonuses to justify the price

A common and effective technique in selling info-products is pairing the main product with one or more smaller bonuses (a complementary template, a Q&A session, a summary checklist) that raise perceived value without needing to lower the main product's price. These bonuses work especially well when they solve a specific friction point the customer would face applying the main content (for example, a ready-to-use template alongside a course that teaches a process), and they're much cheaper to create than the main product, because they draw on the same already-developed knowledge, just packaged differently.

Common mistakes when launching a digital product

The first mistake, already mentioned in passing but worth repeating because it's the costliest, is spending weeks or months producing the full content before selling anything. It's exactly the opposite mistake a prudent physical product business would make, and yet it's surprisingly common with digital products, precisely because the absence of manufacturing cost makes "just creating it" feel like the safe option, when the real risk (that nobody buys it) is still there, just hidden until launch.

The second mistake is neglecting the sales page, treating it as a minor formality compared to the effort put into the content. A digital product, more than almost any other type of product, sells almost entirely through the promise made on that page: the customer can't touch it, try it or see it before buying, so clarity about exactly what they'll get, who it's for and who it isn't for, carries more weight than in almost any other kind of online sale. A generic sales page, with vague benefits and no concrete examples of results, is the most common reason a genuinely good digital product doesn't sell what it should.

The third mistake is having no support or customer service system planned in advance, assuming a digital product, since it needs no shipping or physical handling, also needs no after-sales support. In practice, buyers of courses and ebooks have questions (access issues, content questions, refund requests) just like any other customer, and not having a clear channel and a well-defined returns policy from the start creates avoidable friction and negative reviews that could have been resolved with a simple quick response.

The fourth, more strategic mistake is setting a single price and never revisiting it, not even when the content changes substantially or when the market makes it clear the initial price was miscalibrated. Unlike a physical product with fixed manufacturing costs, a digital product allows much more freedom to experiment with price, testing different levels at different times or for different audience segments, a flexibility many creators simply never use out of inertia once the initial price "is already set."

A fifth mistake, easy to overlook, is not planning what happens to buyers when the product gets replaced by a newer version. Selling an updated edition of a course or template without any clear policy for existing customers (do they get a discount to upgrade? free access to the new version? nothing at all?) often generates more complaints than the original launch itself, because those customers feel treated worse than someone who hasn't bought yet. Deciding this policy before launching the updated version, not after the first angry email arrives, avoids an entirely avoidable conflict with your most loyal customers.

Frequently asked questions

How much does it cost to start selling digital products?

The initial investment can be very low compared to a physical product business: there's no stock to finance, and many platforms for selling digital products have free plans or low monthly costs. The main real cost is the time spent creating the product and validating that there's demand.

Do I need to be a recognised expert to sell an online course?

It helps, but it's not essential: what really matters is demonstrating you can solve a specific problem better or more clearly than the free alternative the customer already has available (searching online, watching scattered videos). Authority can be built in parallel while launching the product.

What VAT applies to selling digital products?

It's a special case within EU VAT regulation: for sales to individual consumers within the EU, the buyer's country VAT applies from the very first sale, without the threshold that does exist for physical products. It's worth checking this with a tax advisor before launching.

How do I stop my course or ebook from being shared without control?

It's impossible to prevent completely, but it can be reduced with reasonable measures (login-based platform access, watermarks on downloadable materials) without making the experience uncomfortable for legitimate buyers. The best defence is usually to keep delivering ongoing value that justifies having bought the original.

Is a subscription model worth it compared to a one-off payment?

It depends on the type of product: if the content updates regularly or includes ongoing access (community, support, new lessons), a subscription makes sense and delivers more predictable revenue. If it's a closed product that doesn't change (a specific ebook, a one-off template), a one-off payment usually fits customer expectations better.

Can I combine digital products with physical products in the same store?

Yes, it's common and can work very well: for example, a physical product brand that also sells a digital advanced-use guide, or a trainer who sells both online courses and physical merchandise. You just need to make sure the store platform properly handles automatic delivery of the digital item alongside physical shipping of everything else.

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