What are digital products?

Okay, let’s start with brass tacks: Basically, a digital product is something that only exists in digital form, so you need a computer (laptop, desktop, smartphone, tablet, or even a smart TV) to access and use it.

The beauty of digital products lies in their boundlessness. You can create once and sell a million times—no inventory, no restocking, and certainly no frantic trips to the post office. Selling digital products is like owning a golden goose, except it’s less messy and won’t try to bite you.

Digital products vs. physical products: What’s the difference?

At first glance, the difference between physical products and digital products is pretty obvious. Physical products are the goods you can touch, feel, and stack on your shelf until the cat decides they’re her new bed. Digital products, on the other hand, are goods or services that are made up of the binary building blocks of ones and zeros, coming to us through our device screens and speakers.

When you look at it from the ecommerce angle, there’s another fundamental difference between these two types of products. Selling physical products involves a whole host of responsibilities including inventory management, shipping, handling, and the occasional wrestling match with bubble wrap. Contrast this with digital products, which can give customers wisdom, entertainment, and utility without ever weighing down a single shelf.

Plus, there’s the immediate gratification effect: Customers can purchase a digital product within just a few seconds (wearing only PJs), while the fastest way to buy a physical product requires you to put on some pants (or not, we won’t judge) and drive to the nearest store.