Digital Product

By /

A Digital Product is a non-physical item that can be sold and delivered online repeatedly without restocking.1

Unlike physical products, digital products are sent electronically to the customer and usually have meager production costs after creation.2

Visual Representation:

digital product visual representation

Key Characteristics

  • Intangible: Digital products have no physical form and exist in digital format.
  • Scalable: Once created, digital products can be sold to unlimited customers without additional production costs.
  • Immediate Delivery: Customers receive digital products instantly through downloads or streaming.
  • Global Reach: Digital products can be sold and delivered worldwide without the constraints of physical shipping.3

Examples of Digital Products

  • Software – Applications, programs, and operating systems that users can download and install on their devices.
  • eBooks and Audiobooks – Digital versions of books that can be read on e-readers, tablets, or listened to on audio devices.
  • Online Courses – Educational content delivered through videos, text, and interactive modules on e-learning platforms.
  • Music and Videos – Downloadable or streamable content from artists and creators.
  • Digital Art and Graphics – Illustrations, templates, and design elements for various digital projects.
  • Subscriptions and Memberships – Access to premium content, software, or services for a recurring fee.4

Advantages

  1. Lower Production Costs: Eliminates the need for manufacturing, warehousing, and shipping.
  2. Higher Profit Margins: Once developed, digital products can be sold repeatedly with minimal ongoing expenses.
  3. Convenience: Instant access and delivery enhance customer satisfaction and convenience.
  4. Passive Income Potential: Once created, they can generate revenue repeatedly without ongoing effort.5

Related Terms

References:

1. Wikimedia Foundation. (2024, May 31). Digital Goods. Wikipedia. https://en.wikipedia.org/wiki/Digital_goods

2. Hui, K. L., & Chau, P. Y. (2002). Classifying digital products. Communications of the ACM, 45(6), 73-79. https://dl.acm.org/doi/fullHtml/10.1145/508448.508451

3. What are digital products?. BigCommerce. (n.d.). https://www.bigcommerce.com/ecommerce-answers/what-are-digital-products/

4. Wells, J., & Klosowski, C. (2024, January 2). 14 most popular digital products to sell in 2024. Easy Digital Downloads. https://easydigitaldownloads.com/blog/the-12-most-popular-digital-products-you-can-sell-online/

5. Wells, J., & Klosowski, C. (2024b, January 2). The astonishing benefits of selling digital products. Easy Digital Downloads. https://easydigitaldownloads.com/blog/top-10-benefits-selling-digital-products/

Scroll to Top