If you’re looking to make passive income, selling digital products or digital downloads on Etsy is a great way to do it. With digital products, you can create them once and sell them over and over again.
In recent years, selling digital products (otherwise known as digital downloads and printables) has become increasingly popular as a side hustle for entrepreneurs looking to make money online.
In fact, while I was writing this article, CBS news popped up on my TV with a story on the popularity of digital products.
They reported that 30% of Americans read an eBook last year.
Types of Digital Products to Sell on Etsy
The types of digital products you can sell on Etsy’s online marketplace are almost limitless.
Some popular types of digital downloads and digital products include:
- Digital artwork (such as posters or prints)
- Editable design templates (like logo templates or resume templates)
- Digital planners and scheduling tools
- Printables (like coloring pages or party decorations),
- Photo editing software tutorials and presets
Best digital products to sell on Etsy for passive income
The million-dollar question- which digital product is best for passive income or making money online?
The key is finding digital products that are a mix of:
- high search volume (determine through sales volume/engagement)
- low competition (less supply, more demand)
- high value (product priced for profit)
I mined Etsy digital product listings for hours to find the highest price, most in-demand Etsy products for passive income (plus, it helps I do keyword research for a living).
You may have heard of Etsy SEO
Recently, there has been a number of popular Etsy SEO tools entering the market.
These tools claim to report on Etsy search volume and keyword rankings.
Honestly, though, I’m not yet convinced these tools offer any benefit.
However, I definitely understand the Etsy craze- both buying and selling.
For one, who doesn’t want their own work-from-home, creative, money-making shop?
Two, I don’t know about you, but when I need something I can’t find on Amazon, I’ll often go to Etsy next.
Planning your Etsy business?
Use the new Etsy SEO traffic calculator to plan promotion and monthly revenue for your Etsy shop.
My data-driven Etsy digital product research
I took a deep dive into the Etsy marketplace to find out which digital products were selling the most and making sellers the highest profit.
The best digital products to sell on Etsy
While many digital products stuck around the $1-$5 range, financial and data-based excel and google sheet templates topped the list at $15-$50, even up in the $200-$300 range.
“The best digital products to sell on Etsy for passive income, based on my research, definitely include financial, marketing, and business planning spreadsheet templates.”Alex Medawar, Search Engine Marketing
These are some of the highest-priced Etsy digital products but are also in high demand, as I found out.
It makes sense, considering the largest Etsy demographic, according to Similarweb, is 25-34 year-olds on Desktop devices (desktop usage usually indicates business intent as opposed to mobile-even if that’s changing).
2023 Trending on Etsy
Etsy, itself reported this month in their 2023 Etsy search trends blog post that budgeting and planning digital downloads have seen a 206% YoY increase in searches on Etsy containing “monthly budget.”
That’s a pretty convincing statistic.
People look for Google Sheets and Excel templates because they are looking for a way to make their lives easier.
These templates can help people organize their business, finance, and marketing data to stay informed and make better decisions.
So, if you’re looking to make a passive income from digital products on Etsy, I highly recommend exploring these options:
- Spreadsheet template (or, CV template)
- Budget spreadsheet template
- Bookkeeping template
- Financial planner spreadsheet
- Etsy financial spreadsheet bundle
- Etsypreneur success bundle
Best digital products to sell on Etsy for small business owners
- Instagram product posts
- Product roadmap PowerPoint template
- Lead magnet template
- Ebook editable templates
- 30-day small business success plan
- List of digital product ideas
- Social media templates
- Secret tips for passive income
- Monthly budget spreadsheet
- Small business bookkeeping template
- Income and expense tracker
- Invoice template
- Digital product instructions template
- License graphics for digital product
- Canva template
- Freebie template
- Fitness program template
- Business planner
- Small business plan template
- Printable business card template (see digital business cards)
- Website design
- KPI dashboard excel template
- Excel data charts
- Ecommerce KPI tracker
- CRM template
- Digital to-do list/printable to-do list
- Content calendar
- Website checklist
- Website planner
- Website themes
- Shopify theme
- Build a website workbook
- Course launch toolkit
Best digital products to sell on Etsy for Etsy sellers themselves
- How to sell on Etsy guide
- Etsy listing planner
- Etsy product launch guide
- Etsy SEO keyword pack
- Etsy shop bundle
- Etsy business coaching planner
- Etsy shop assets (i.e., banner, icon)
- Etsy branding kits
Best digital products to sell on Etsy for wedding planners
- Wedding invitations
- Wedding planner
- Wedding program template
- Wedding game template
- Wedding venue sketch print
- Custom wedding vows print
- Custom wedding welcome sign
- Wedding planning spreadsheet
Best digital products to sell on Etsy for graphic designers
Anything custom goes for a higher price tag ($13-$15)– whether it’s a custom logo design, an illustration, or a PDF guide.
- Custom signature design
- Custom star map
- Custom digital line drawing
- Custom portrait
- Custom digital watercolor portrait
- Digital Planner (use with your digital notepad)
- Digital paper patterns
- Seasonal icons
- Custom pet portrait
- Device mockup templates
- Etsy product listing mockup templates
- Lightroom presets
- Wall art
- Quote wall art
- Quilt patterns
- Gift tags
- Party invitations
- Branding kits
Best digital products to sell on Etsy for educators
- Educational posters
- Coloring pages
- Learning bundle
- Teacher clipart
- Teacher planner
- Academic planer
- Digital stickers
- Class schedule templates
Best digital products to sell on Etsy for real estate agents
- Home portrait/sketch
- Checklist bundle
- Seasonal social media posts
- Instagram bundle
- Real estate agent planner
- Real estate postcard template
- Real estate marketing bundle
- Prospecting letter template
- Real estate buyer and seller guide
- Realtor branding bundle
- Real estate rental analyzer spreadsheet
- Airbnb income and expense tracker
How to Get Started Selling Digital Products
The first step in getting started selling digital products on Etsy is to create a seller account.
Once you have an account set up, you can start creating your listings.
Upload high-quality images of your products so people can see what they’re buying before they purchase them.
You can even add video content to increase visibility and engagement.
Of course, you can always optimize your listings for Etsy search so people can find you more easily.
If you are selling any kind of Google sheet or Google slide template, don’t forget to share a “make a copy” digital download link.
Marketing Your Digital Products
Once your digital products are listed on Etsy, you can focus your time next on marketing your digital product.
Etsy SEO is a great way to make sure your listings are seen by the people who are looking for them through Etsy search.
Start with keyword research to find out which terms and phrases people are searching for when looking for digital products on Etsy.
Once you have your list of keywords, make sure to include them in the title and description of your listings so they can be found more easily in search results.
In addition to Etsy SEO, you should also consider optimizing your digital product listings for Google search.
This is a great way to get more eyes on your products and increase sales.
To do this, make sure that the titles of your digital products include relevant keywords and terms that people might search for in Google.
New: SEO Copywriting
Don’t forget to use SEO copywriting for search visibility.
This involves writing content with keyword-rich, relevant, and targeted copy.
SEO copywriting on its own has proven to generate more organic traffic and higher conversion rates (Etsy generates 58.99% of its total site traffic through this tactic alone).
Paid advertising can also be a great way to drive traffic to your digital products.
You can create ads on Google, Facebook, Instagram, and other social media platforms to promote your digital products and attract more customers.
Email marketing can be an effective way to connect with your customers, build relationships, and ultimately boost sales.
You can use email newsletters to promote new products, announce discounts and promotions, or send exclusive content to your subscribers.
Best tools to start selling digital products on Etsy
Once you have everything ready to go, there are several tools that can help make selling digital products on Etsy easier.
Canva Design Tool: Create Custom Content
Grammarly | Great Writing, Simplified
Jasper - The #1 AI Content Platform For Business
Create Email Marketing Your Audience Will Love - MailerLite
Microsoft Excel (PC or Mac)
Features to help grow your affiliate and referral program | Rewardful
AI Art & Image Generator | Jasper Art
With thousands of professional templates, images, and quality content to choose from, get a headstart on bringing your best ideas and work to life.
Compose bold, clear, mistake-free writing with Grammarly’s new AI-powered desktop app.
Jasper is the AI Content Platform that helps you and your team break through creative blocks to create amazing, original content 10X faster.
Use with Surfer SEO for content that ranks.
Digital marketing tools to grow your audience faster and drive revenue smarter. Backed by 24/7 award-winning support.
Turn data into useful insights and share your spreadsheet with others to edit together in real-time.
Compatible with Windows 11, Windows 10, or macOS
Rewardful is a simple way for SaaS companies to setup affiliate and referral programs with Stripe & Paddle. Just connect your account and let us track referrals, discounts and commissions for you!
Meet Jasper, the AI art generator who turns your imagination into unique images and photos in seconds. Finally, you’ll have the perfect picture to match your message. No more hunting for stock images or waiting weeks for new creative.
What are the best digital items to sell on Etsy?
The best digital items to sell on Etsy are spreadsheet and financial planning templates, as these require specialized knowledge, more or less, and go for a higher price on Etsy.
What is the most profitable item on Etsy?
The most profitable item on Etsy is digital downloads, with items such as printables, graphics, and mockup templates being particularly popular.
How do I start selling digital products?
To start selling digital products, you’ll need to create a seller account on Etsy and list your products. You can create your product in Canva, Photoshop, or Google sheets.
What items sell the fastest on Etsy?
Items that sell the fastest on Etsy are digital downloads, as they can be downloaded and purchased instantly.
How do I get more sales on Etsy?
To get more sales on Etsy, you should optimize your listings for SEO, use paid advertising to drive traffic to your shop, and build relationships with customers through email marketing.
Is Etsy good for selling digital products?
Yes, Etsy is a great platform to sell digital products. It has a wide range of tools and features that make it easy to list and market your digital products.
Although Etsy is more known for its handmade, unique items, digital products that help creators, well, create (i.e., patterns, business plan templates) go hand-in-hand with physical product offerings.
Is it worth selling digital products on Etsy?
Etsy offers great tools for online selling because they handle the distribution for you. Once your product is made, the files can be uploaded to Etsy if you add the product to your store. Like any “easy” online business, you won’t always hear about the hard work and marketing efforts needed to promote and, ultimately, gain sales momentum.
If you’re looking for a way to generate income from home without the burden of ecommerce, I recommend getting an online career certificate for a high-paying job in tech.
Selling digital products on Etsy is a great way for entrepreneurs looking for extra income streams to make money quickly and efficiently without having to invest heavily in inventory or overhead costs upfront.
By choosing the right types of digital products for your target audience and marketing them effectively, you should be able to increase sales quickly and start seeing a return on investment soon!
So what are you waiting for? Start creating those listings today!