If you’re thinking about starting a business and deciding between selling physical or digital products then this article will provide you with 12 powerful reasons as to why digital products are the future and why the digital market is where you should be selling!
While there will always be a need for some physical products — food, clothing, shelter, when it comes to any products where you can choose a digital product over a physical one then here are 12 reasons why digital products reign supreme.
You don’t have to add this expense to the purchase price, and you also don’t have to ship the product yourself.
There is no need to add shipping to the price of the product because there is no shipping. All it takes is a good setup e-mail sequence to automatically do everything for you.
Retailers must usually keep an eye on the inventory of physical goods. In addition to providing a sophisticated system for tracking and monitoring objects, they often need physical space to store the product. It’s important to realise that inventory is running low to stay ahead of consumer purchases at all times. There is no such thing as out-of-stock goods for digital products.
When a customer completes an order, they are given full access to whatever they ordered. You, the seller, are not a party to the transaction. You simply see that you made sales, while the consumer is delighted to be able to enjoy their freshly purchased products right away.
There is no need for packing, handling, or shipping time.
There will be no unforeseen delays. The products are shipped the moment the payment is successfully processed.
There are limitations everywhere when it comes to touchable products. The time it takes to fulfil orders, the materials used to manufacture the products, the ability for shipments, the amount of room available for inventory, and so on. For a seller, waking up to a thousand new orders for a physical good can be both thrilling and frightening.
It’s terrifying because they might have a hard time following those orders. When you wake up to a thousand new digital purchases, it’s time to rejoice because you made sales without having to do anything. It doesn’t matter whether you have one order, ten orders, or ten thousand orders. Since digital goods have no limitations and can be repeated indefinitely, they can be sold in large quantities with no drawbacks.
No Cost Of Goods Sold
Whatever the physical product, it will always have a starting price. You measure the COGS and then mark up the price before selling to make money as a seller. There is no base cost per product for digital items. There simply is none. They can be infinitely repeated at no extra expense, allowing you to charge whatever price you want and still make a profit from an accounting viewpoint. This makes selling more enjoyable because you can set the price depending on what consumers want and then play with it, offering steep discounts and deals whenever you want.
Easy To Produce
Aside from computer and internet access, digital goods normally do not require any technology to create.
To produce the product initially or on a continuous basis, no special equipment, materials, warehouses, factories, engineers, workspaces, laboratories, computers, or anything else is needed.
Only your expertise, time, and computer are required to create an ebook, a software program, an online course, or most other digital items.
Easy To Update
When it comes to physical products, You normally don't have much time to do fixes or updates. If you’re selling a book, a movie, an appliance, or a car, making changes after the sale is usually out of the question. For digital goods, this is no problem. If you’re selling an online course and want to upgrade the content, you simply do so. The revised information is then immediately accessible to all future and present students. You can create new releases of the software and immediately distribute them to actively paying customers.
No Size Limitation
It makes no difference whether the product is big or small because it is digital. A ten-page ebook is no more expensive to create and sell than a ten-thousand-page ebook. A single-file software application can be marketed just as easily as a complex software suite. From a technological standpoint, a single quiz is equivalent to an extended sequence of rich academic courses. Physical goods will cost more if more material is used, and larger objects will be more difficult to transport. Furthermore, larger goods take up more warehouse space and generate more waste.
There are no landfills full of digital items that have been discarded (although there are some fun online graveyards). There were no trees felled in the development of any stock picture site or video course. In every way, digital goods are environmentally friendly!
The majority of physical goods will become useless in the near future. They’ll have a really short lifetime if they’re consumable. Even if it’s a reusable object, it will rust, rot, crack, fade, warp, tear, or crumble over time, and will ultimately end up in the trash or a junkyard. Digital products, on the other hand, ignore these natural laws and last forever. They are only vulnerable to a loss of significance or applicability, which the seller can easily address with product updates.
No Accidental Loss Of Goods
Digital goods, with the exception of the occasional unintentional deletion of a required file, cannot be lost, stolen, broken, or expired in a way that makes them worthless to customers and therefore a financial loss to the seller. Any seller of physical goods will inevitably have an item made incorrectly, dropped, misplaced, lost in transit, water damaged, shoplifted, or something similar, resulting in the item’s expense being written off as a loss and, in many cases, more waste being thrown away.
Easy And Convenient For Customers To Use
Customers who buy digital goods can appreciate the product’s value quickly and efficiently because there are so many devices that can be used to access websites, display images, watch videos, install apps, and so on. From our phones, tablets, computers, and other devices, we can now read ebooks and take online courses.
A person might be sitting on a subway train and buy an ebook on their computer, which would provide entertainment for the duration of the trip.
So what are the main 5 points to have in mind while making this important decision? Let’s see.
- No Shipping: The customer pays, your e-mail sequences get kick-started and the Digital Product is delivered. That's literally how easy it is!
- No Limits: There are absolutely NO limits to how many of your products can be sent per day, hour or even minute.
- No Product Cost: Sure, you have to work to build or make your digital product first and no one is paying you to do that, but after that, you have something that you can sell as much as you want for FREE!
- Easy To Produce: Expanding on our previous point, it's not only free to sell after building your Product but it's also really easy. All you need is internet and computer access, and there are so many tutorials on building digital courses, ebooks, videos or even music that you really don't have an excuse.
- No Size Limitation: Unlike physical products, The digital version has no limits when it comes to size! The product you are selling can be as massive as you want. Just make sure it still fits in an e-mail.
I hope these points helped you to make your mind up on what you are trying to sell or even convinced you to do things differently in the future. At least I hope to have provoked some thought!
Physical Products are not bad, but they are MUCH more limited when it comes to shipping and production. Choose wisely!