Digital products have obvious appeal: no stock, no shipping, and each sale costs almost nothing to fulfil. They can be a business on their own or an addition to a store that sells physical goods. Shopify handles both well.
What sells as a digital product
- E-books and guides: practical knowledge in a specific niche.
- Online courses: video lessons, often with worksheets.
- Templates: design files, spreadsheets, planners, website or presentation templates.
- Printables: art prints, patterns, labels, educational materials.
- Audio and music: sample packs, sound effects, meditations.
- Software and licences: plugins, presets, fonts.
The products that sell are specific. "Meal-prep planner for shift workers" beats "planner".
Setting up a digital product in Shopify
- Install Shopify's free Digital Downloads app.
- Create the product as usual, and in the shipping section untick This is a physical product, so no shipping is charged.
- Open the product in the Digital Downloads app and attach the file.
- Place a test order. The customer receives a download link on the order status page and by email.
For courses, memberships, licence keys or download limits, use a specialised app; there are several on the Shopify App Store for each case.
Pricing
Price on value to the buyer, not on cost to produce. Compare similar products in your niche, and consider tiers: a basic version, a version with extras, and a bundle. Bundles of related templates or guides often become best-sellers.
Licences and protection
State clearly what the buyer may do: personal use only, commercial use, number of users. Put it on the product page and in the file. You can't fully stop copying, but clear terms, watermarked previews and limited download links reduce casual sharing.
Taxes
Tax on digital products follows its own rules. In the EU and UK, VAT on digital sales to consumers is generally due at the rate of the customer's country, and many US states tax some digital goods. Set up your tax settings in Shopify, mark products correctly, and check registration requirements with an accountant before you scale.
Refund policy
Decide whether you offer refunds and say so on product pages and in your policy. In the EU and UK, consumers can lose their right to cancel a digital download once it starts, but only if they agreed to immediate delivery and confirmed that at checkout. Our guide to return policies covers the wider points.
Marketing digital products
- Show what's inside: preview pages, sample lessons, screenshots.
- Offer a free sample in exchange for an email address, then follow up. See Shopify email marketing.
- Write helpful articles around the topic your product solves.
- Collect reviews; they matter even more when buyers can't touch the product.
Want a store built for digital products, or digital products added to an existing store? See our Shopify store setup service.
Frequently asked questions
Can Shopify deliver digital files automatically?
Yes. Shopify's free Digital Downloads app attaches files to a product and sends a download link after purchase. For courses, memberships or licence keys, specialised apps add more features.
Do I charge VAT on digital products?
Often, yes. In the EU and UK, VAT on digital services sold to consumers is generally charged at the rate of the customer's country. Shopify's tax settings help calculate it, but registration obligations should be checked with an accountant.
Should I offer refunds on digital products?
Decide and state it clearly. In the EU and UK, consumers can lose the right to cancel once a download starts, but only if they agreed to immediate delivery and acknowledged this at checkout.
Author
Uğur KeskinFounder @ShopiuzmanFounder of Shopiuzman. He builds, migrates and grows Shopify stores for brands in Türkiye, Europe and the US, and leads the development of our apps on the Shopify App Store.
