EBay is the home for selling just about anything, and while the vast majority of products sold on the platform are physical, there’s a market there for digital products as well.
Let’s go over why it’s a good idea to sell digital products, what the market for them on eBay is like, and if it is the right place to sell them.
Why Should I Sell Digital Products?
If you don’t know whether or not you should sell digital products, you might be convinced to do so after considering the many benefits they present, which include:
High profit margins
There is essentially no cost to produce or distribute digital products, meaning that your profit margins will be incredibly high from the beginning of your business as you’re basically selling a free item. Physical products, on the other hand, typically need to be purchased in bulk in order to achieve high profit margins.
Decreased overhead
The only associated costs for selling a digital product will be platform fees and any potential marketing. This means that you’ll be able to operate your business at a much lower overhead compared to a store selling physical products which requires shipping, packing, and storing to fulfill inventory.
Increased ease of scalability
Physical products can be hard to scale, as doing so will require an increased overhead that includes buying and managing large amounts of inventory, which also makes the fulfillment process complicated and potentially costly. Digital products have none of these aforementioned constraints, so there is very little difference in terms of fulfillment if you’re selling one product a day or a thousand.
Instant global reach
Since delivering a digital product happens online without any shipping cost, there are no restrictions to instantaneous delivery for a worldwide base of customers. One tip for broadening your digital product even more is to translate it into different languages so you can further take advantage of this immense reach that is possible.
Is it Legal to Sell Digital Products on eBay?
While you are in fact allowed to sell digital products on eBay, their selling policy in this area is not nearly as liberal as it is when it comes to physical products.
One reason for these standards is because it is difficult to track and confirm delivery of digital products. Also, it is hard to vouch for the quality of a product or to sometimes accurately describe it in the same way that one can do with a physical product.
The biggest thing that eBay is against in terms of digital products is the selling of pirated content, which is illegal on any platform.
As per their official policy related to electronically delivered items, the category that digital products fall under, a seller must first be approved to sell in their “Everything Else -> Information Products” category. Eligibility will require some degree of history and feedback on the platform.
There are also certain items that are not allowed to be sold as a digital product, such as an ebook or course that one is not the original creator of, as this is a violation of copyright infringement. You also can’t sell a license key to cracked or illegally acquired software.
Other digital products, such as tickets, NFTs, and digital trading cards can be sold, but only if a seller meets individual requirements for each item and category.
To summarize, it’s legal to sell digital products on eBay, however, doing so comes with restrictions which we’ll dive into more later.
The Best Selling Digital Products on eBay
EBay puts all digital products underneath a broad category called “Everything Else”. Subcategories include Information Products, How-To Guides, and Wholesale Lists.
Here are some products that are best sellers on eBay in the digital product category:
1. Tickets
The market for tickets reaches far and wide, and when a popular event with sold-out tickets is nearing, many shoppers will turn to eBay to try their luck. However, eBay is a bit more of a last resort option, with many buyers preferring other platforms like Stubhub and Ticketmaster to grab tickets. If you want to learn more about ticket reselling, you can check out our article about it and the best related Discord groups here.
2. Domain names and websites
The demand for unique URLs in the form of domain names is steady, and eBay is a marketplace that some buyers and sellers use to sell them. Sometimes, a domain name might include a built-out website complete with a structure, blog posts and maybe even some ad revenue. Keep in mind that with domain name delivery, it’s necessary to ensure prompt and accurate ownership transfer, which may take some time and communication that isn’t within the scope of a typical eBay sale. While there’s no escrow service, you do benefit from buyer protection and you can also review the reputation of the seller before buying anything.
3. Online Gaming Virtual items
The gaming industry produces a significant amount of revenue, with many fanatics spending real-life money to receive in-game perks and items. Games like Minecraft, Runescape, and Second Life have a market for rare or hard to acquire items, characters, or mods. Since these games don’t offer a market inside of the game for you to find these items to equip your game with, there’s market demand for these items which eBay serves.
4. Software License Keys
Most software today doesn’t require any physical disk or component to install as the programs can be downloaded online. However, in order to give each paying user access to the full function of the software, companies issue unique license keys that grant individual access. Giving the key to someone else will give them the capability to use the software as any other paying customer does, so you can resell these on eBay. As with all reselling, you need to be the rightful owner of the original key in order to sell it.
5. Templates
One of the best categories in general for digital products is templates, and they can be found in numerous different forms serving several platforms. Popular templates that can be sold as digital templates include those that are made for web design, Excel, Notion, and Canva. Many templates are sold in bulk packages and can be quite cheap, so be sure to check competition before pricing and listing yours to see if you have a viable offer.
Of course, these aren't the only digital products that you can sell on eBay - but they are the most popular. You can also sell digital items such as art, ebooks (if you are the original creator), video content, Chat GPT prompts, courses, guides, music, audio, and photography. For more digital product ideas, check out the most popular digital products to sell in 2024.
How Easy is it to Sell Digital Products on eBay?
Selling digital products on eBay is not as easy as selling a physical item, as you first have to be approved to sell in the specific product category. This is typically not possible for a brand-new seller until you gain a certain level of feedback and reputation. However, if you do want to proceed, you’ll first have to pick a category.
Just about every digital product will fall under the “Everything Else” item category:
This category will include most info products.
However, be sure to check if there is a specific category for your intended item, for example, Domain names have their own place on eBay.
A quick and easy way for you to find which category your intended item should be in is to search eBay for current listings and then see which category the seller used.
You can even scroll down and click the “Sell one like this” button to auto populate your listing, including the category, if you’re selling the exact same item or something similar
The delivery is the tricky part.
EBay typically requires a tracking number that is tied to a specific delivery service in order to ensure product delivery.
However, in the case of digital products, you aren’t able to physically ship the item.
There also is no delivery system or option to send a digital product to the buyer on eBay outside of communication through eBay messaging, so your best bet is to choose the local pickup option so you don’t have to choose a shipping service or input a tracking number.
You will often be selling a PDF or a digital download, and since eBay’s messaging format doesn’t allow for attachments, you will need to get the buyer’s email and deliver it to them there.
Be sure to write out clearly in the description that you need the buyer’s email in order to deliver the product, and give them a reasonable timeframe to give your email and expect delivery.
Most digital product sellers on eBay offer a 24 hour timeframe, but whatever timeframe you give, make sure you adhere to it to ensure a good experience from your buyer.
Another reason that you really need to make sure the buyer is happy is that sharing email addresses can be outside of eBay’s TOS, so you can receive negative feedback or even an account suspension or ban from a dissatisfied seller.
Is it Worth Selling Digital Products on eBay?
While it may seem like a good idea to sell a digital product on a platform that is a household name, stocks just about anything, and is more beginner-friendly than Amazon, it should only be used as a secondary channel or a last resort if you’re not selling something physical.
To summarize all the points we have previously made in this article, although there is a market for some digital products on eBay, the platform simply is not made for selling digital products and lacks even the most basic capability for effectively delivering them.
Whop - The Best Place to Buy and Sell Digital Products
If you want to sell on a marketplace that was made specifically for digital products, look no further than Whop.
Although it was first known for a reputable marketplace for Discord communities, today Whop has expanded beyond these paid groups, and now supports the seamless selling of a vast array of digital products on its thriving marketplace.
You can sell just about any digital product you can think of on Whop.
Product types encompass everything from online courses in multiple formats, to online courses, paid communities, a diverse range of SaaS, and more.
It boasts a well-documented and robust API, allowing for seamless integration into the backend of any existing website. This allows sellers to leverage the user-friendly seller dashboard and built-in payment processing features that offer diverse payments that are great for the buyer as well as the seller.
The icing on the cake is the customer service, which Whop sets a high standard for. You can access around-the-clock live chat with knowledgeable representatives, as well as the option to arrange video calls for more hands-on assistance with any stage of the selling process.
To sum it up, Whop’s features include:
- Effortless hosting and delivery of digital products in numerous formats
- Seller exposure to a thriving marketplace of targeted potential customers
- Broad payment system with integrations and multiple options including crypto
- No monthly payment to sell, with an industry leading 3% fee
- User-friendly, powerful dashboard
- Over-the-top customer support which includes 24/7 live chat and free video calls
If you want to join the group of modern-day online money-making entrepreneurs who are cashing in with digital product businesses, sign up to sell on Whop here today–it only takes a few minutes, and it can be the start of a life-changing and lucrative journey.
