A digital product is an intellectual property created for distribution and sale on the Internet. E-books, manuals, courses, software, podcasts – all of these are paid and free digital products.
You don’t have to be a programmer to post a recipe for a delicious pie on a thematic forum or record and publish a podcast about buying an apartment. To create a commercial product, you need to analyze trends, generate ideas, and develop an MVP. This is done by special Digital Product Development Services.
Digital Product Description
E-commerce volumes are growing steadily. Thus, in 2022 they increased by 33% compared to 2021, amounting to 189 billion US dollars in monetary terms. This phenomenon is explained by the pandemic, which forced many sellers to switch to a remote sales format.
Today, the so-called digital reality is actively developing, in which many types of daily human activities are moving into a virtual format. An integral element of this process is the emergence of content distributed on the Internet. It is the same item of sale as material things, but it has some advantages. The main ones are that digital software products do not require space to store product inventories; they can be transferred from seller to buyer in a few seconds via the Internet from anywhere in the world.
Digital products, stored as electronic files on a computer, allow an unlimited number of copies to be created, which can satisfy even the highest demand. This product will be enough for all customers; it cannot expire. A store selling digital goods can be developed simultaneously with traditional retail outlets. Sales funnels, cross- and upselling will help increase turnover.
Advantages and Disadvantages of Creating and Selling Digital Products
Selling digital products has many advantages that distinguish them from traditional goods:
- Minimum costs. There is no need to spend money on warehouses and ensuring the safety of goods.
- High margins. As mentioned, replication is carried out by creating an unlimited number of copies of an electronic file, which does not require production costs.
- Ability to automate the sales process. To do this, you can use one of the popular electronic platforms.
- Product flexibility. The seller can provide all or individual customers with free distribution products to create a customer base, paid offers for subscription access, and licenses to use the product. There are countless possibilities for applying digital technology to a business model.
- Electronic education. This niche has huge potential. According to experts, the online learning market will reach $374 billion in 2026.
But not everything is so rosy. Selling digital products can present several challenges:
- You can find free analogs of the digital goods you sell on the Internet. Agree, not everyone will want to give money for something that they can get for free. Therefore, the basis of business is competent marketing planning, product positioning, creating its uniqueness, and achieving quality for which the user will be willing to pay.
- The digital goods market is flooded with illegal copies.
- There are certain restrictions on sales channels. Thus, material goods must be sold following their trade policy.
All these problems are not insurmountable; they can be overcome through competent and responsible development of a plan for promoting digital products.
How and Where to Sell Digital Products
To create an effective sales system for Russian digital products, several conditions must be met:
Create your website
On your web resource, you can post a release announcement of a product being prepared for release, tell the audience about its advantages, and place the product itself. It is first necessary to determine the user needs that need to be satisfied.
Place your product on marketplaces
Today you can find many marketplaces that will take care of promoting your digital product. You will have to pay a commission for this, but you will be able to fully concentrate on developing your product and bringing it to perfection.
● Develop an affiliate program
Your website allows you to post information about the affiliate program, which can be easily accessed by all potential counterparties. During the cooperation, partner companies themselves sell your digital product, receiving a commission in an agreed amount. All essential terms are fixed in a written agreement.
● Place your digital product on auctions
Any digital goods can be sold using eBay or other similar online auctions. To attract interest in your product, you will need to independently promote it through a website, blog, etc.
A digital product is a business expansion tool with enormous potential. It can also form the basis for a startup with an original business model. The most important thing is to study the needs of users, understand how such a product can satisfy them, and only then begin planning and development.
