How to Sell Digital Products on Shopify (Step-by-Step)

Selling digital products on Shopify is one of the simplest and most scalable ways to run an online business. You don’t need inventory, fulfilment, or logistics.

Once the files are uploaded and the delivery system is in place, orders can be handled automatically. I’ve set this up for client stores and my own test projects, and the process is reliable when done properly.

In this guide, I’ll walk through the full setup—from creating the product page to testing the delivery process—along with the tools I use and the limitations I’ve run into.

You’ll also find real pros and cons, tips on pricing, and comparisons of the most-used digital product delivery apps.

What Are Digital Products?

Digital products are anything the customer can download or access online after purchasing. These are not physical items, so you don’t need to manage inventory or handle shipping.

Once the file is created, it can be sold repeatedly without any production cost.

Examples of digital products I’ve worked with:

• PDF ebooks and guides
• Canva and Notion templates
• Spreadsheets (Excel, Google Sheets)
• Printable designs or planners
• Audio files like music loops or podcast templates
• Software files or license keys
• Online courses or membership content

They’re often bundled together to increase value, or sold with different licensing options for personal and commercial use.

Because there’s no shipping, delivery is instant, and customer satisfaction often depends on clear file access and reliable formatting.

Pros and Cons of Selling Digital Products on Shopify

I’ve used Shopify to sell both physical and digital products. Here’s a realistic comparison of the benefits and the limitations you need to be aware of.

✅ Pros

Benefit	Why It Matters
Low Overhead	No physical stock, no warehouse, no fulfilment costs
High Margins	Most digital products have 80–100% profit margin after creation
Fully Automated Delivery	With the right app, files are delivered instantly after checkout
Unlimited Scaling	Sell to any number of customers with no added delivery cost
Global Reach	Sell to anyone, anywhere, without worrying about shipping logistics
Flexible Pricing	You can charge more for licenses, bundles, or premium file formats

❌ Cons

Limitation	What to Watch Out For
File Sharing Risks	Customers may share download links unless limits are applied
Limited Native Support	Shopify doesn’t offer file delivery without a third-party app
VAT and Tax Complexity	Selling to EU buyers requires correct VAT handling
Refund Issues	Digital products are hard to refund or revoke once downloaded
Less Visual Feedback	You can’t always “show” the product—strong mockups and demos are key

These trade-offs are manageable, but they’re important to keep in mind. Choosing the right delivery system and handling legal issues like VAT properly can make a big difference to the customer experience and compliance.

Step-by-Step: How to Sell Digital Products on Shopify

This is the full process I follow whenever I’m setting up a store to sell digital products. It’s tested, and avoids the common problems I’ve seen in rushed setups.

Step 1: Set Up Your Shopify Store

Any Shopify plan will work. The Basic plan at $39/month is more than enough for digital products. Once your store is live, a few key settings need to be changed so that the digital setup functions properly.

Key Setup Tasks:

• Disable Shipping
  Go to the product settings and uncheck “This is a physical product.” This removes shipping requirements from checkout.
• Turn Off Inventory Tracking
  Under inventory, make sure “Track quantity” is disabled. You don’t want a digital product showing “out of stock.”
• Product Page Formatting
  Treat your digital product page like any product: add images (mockups work well), write a clear description, and explain what’s included. For example, if you're selling a Notion template, show a few screen previews and list the features.
• Create a Digital Collection
  Organise all digital products into a single collection to keep your navigation clean and make future automation easier.

This setup stage takes 20–30 minutes if done correctly. Once everything is toggled, you’re ready to handle file delivery.

Step 2: Choose a Digital Delivery App

Shopify doesn’t support digital file delivery natively, so you’ll need to install an app to handle download links, access permissions, and emails. I’ve used all the main apps in this space. Here’s how they compare.

Digital Product App Comparison

App Name	Price	Best For	Key Features
Digital Downloads	Free	Basic products, single files	Instant email delivery, PDF/ZIP support
SendOwl	From $9/month	Licensing, bundles, upsells	PDF stamping, access limits, license keys
Sky Pilot	From $15/month	Courses, video/audio streaming	Stream-only delivery, gated member content
FetchApp	Free to $5/month	Lightweight delivery setups	Syncs directly with product listings

My Recommendations:

• Use Digital Downloads if you’re just starting with a single PDF or template.
• Go with SendOwl if you need advanced features like:
  • License options (personal vs commercial)
  • PDF watermarking
  • Download limits (like 3 per customer)
  • Time-limited access (e.g., 7 days)
• Choose Sky Pilot for content you don’t want downloaded, like streamed courses or audio.

Make sure to test the app with your product before launch. I’ve seen issues when large files are used or when links expire too quickly.

Step 3: Upload Your Files

This part looks simple, but poor file management causes most support issues I’ve had to deal with.

What I Always Do:

• Use simple file names: digital-journal-template.pdf is better than FinalDraftV3_(updated).pdf
• Avoid special characters: Some apps break with symbols like #, @, or &
• Compress large files: Keep file sizes under 2–3GB unless the app supports more
• Organise your uploads: If using bundles, group your files into folders or ZIPs for easier downloading

File Size Limits by App:

App	Max File Size
Digital Downloads	5GB per file
SendOwl	5GB (extendable)
FetchApp	Depends on plan

For video content, I usually don’t allow direct downloads. Instead, I use Sky Pilot or embed private links from Vimeo or Wistia. It helps reduce piracy and improves delivery reliability.

Step 4: Test Checkout and Delivery

Never skip testing. I’ve seen stores launch with broken links or missing files because they didn’t go through their own checkout process.

Testing Process:

1. Enable Shopify test payments
2. Set up a fake product (set to $1 or use test mode)
3. Complete the purchase using a test card
4. Check:
   • Does the product say “Digital Download” on the checkout page?
   • Is there a download button after purchase?
   • Does the customer receive a download link by email?
   • Is the file working and accurate?

If any part of that fails, fix it before launching. Customers will refund quickly if they don’t get access instantly. Worse, they’ll leave bad reviews if it happens after launch.

How to Price Digital Products on Shopify

Pricing digital products is one of the biggest advantages of selling online. You’re not dealing with manufacturing or shipping costs, which gives you more room to price based on value instead of cost.

That said, pricing too low can undercut perceived value. And pricing too high without enough context will kill conversions. I usually look at pricing in terms of format, audience, and use case.

Factors I Consider When Pricing:

• Value to the customer: How much time or effort does this save them?
• Use rights: Personal vs commercial license? Commercial files can often be priced 2–3x higher.
• Format complexity: Is this a simple PDF or a full interactive Notion dashboard?
• Competitor pricing: What are similar products going for on Etsy, Creative Market, or Gumroad?
• Bundling: Can I increase perceived value by grouping multiple items?

Common Price Ranges for Digital Products

Product Type	Typical Price Range	Notes
Ebooks	$9 – $29	Bundle with templates or checklists for more
Templates	$10 – $79	Canva, Notion, Google Docs, Resume kits
Spreadsheets	$15 – $49	Business planners, budgeting tools
Digital Planners	$10 – $45	Undated planners work year-round
Courses	$49 – $299+	Hosted on Shopify or integrated LMS
Stock Assets	$9 – $59	Photos, icons, music, SFX packs
Software/License	$29 – $299+	Include tiered licenses

What’s worked for me is leading with a core offer (like a $19 template), then offering bundles at $49–$79 for customers who want more. That helps anchor the price and lifts your average order value.

License Options

Another thing I recommend is offering multiple licenses. Here’s how I usually structure them:

License Type	Who It’s For	Pricing Strategy
Personal Use	End users, hobbyists	Base price (e.g. $19)
Commercial Use	Freelancers, small teams	2–3x base price (e.g. $59)
Extended/Agency	Agencies, unlimited use	Custom or high tier ($199+)

You can build this into the product options in Shopify or use an app like SendOwl to manage license tiers. Just make sure the license terms are clearly spelled out on the product page and in the confirmation email.

How to Market Digital Products Effectively

Once your product is ready, the next step is traffic. Most people rely on ads or Instagram to push their products, but that’s not sustainable long-term. Here’s what I’ve found works best—especially for digital products.

1. SEO: Long-Term, Free Traffic

If you’re running a Shopify blog or store, SEO gives you organic traffic that compounds over time.

Things I do for SEO:

• Target keywords like “Notion templates for business” or “best budget planner PDF”
• Write blog posts comparing your product to free tools (e.g., “Free vs Paid Daily Planner Templates”)
• Add long descriptions on product pages with relevant phrases
• Use tools like Surfer SEO or Ahrefs to find keywords your competitors rank for

Internal linking is key. Link your blog posts to your product pages. Link products back to blog content. It’s simple but often missed.

2. Email Marketing: Build a List

People don’t always buy on the first visit. Email lets you follow up.

Here’s my process:

• Offer a freebie (like a sample page or a checklist) in exchange for an email
• Use Klaviyo or Shopify Email to automate welcome sequences
• Send value-first content: tutorials, “how to use” videos, or case studies
• Promote bundles or time-limited offers to nudge action

Even a small list of 300–500 subscribers can generate steady sales each week.

3. Paid Ads (Optional)

For some products (especially those under $30), paid ads can work. But I treat them as scaling tools, not a starting point.

What I’ve tested:

• Instagram ads with mockups for planners and templates
• Retargeting ads on Meta for people who visited product pages but didn’t buy
• TikTok UGC showing how the digital product is used in real time

Keep budgets low until you find a product/ad combo that converts.

4. Social Proof and Content

It’s harder to sell digital products without real-world proof. I try to include:

• Customer reviews or testimonials
• Screenshots of the product in use
• Demo videos or walkthroughs
• Case studies (how someone used the product to solve a real problem)

These don’t just help with sales—they improve conversion rates, reduce refunds, and build trust.

Legal and Tax Considerations for Digital Sellers

This part isn’t exciting, but it’s important. Digital sellers often overlook tax, refund policies, and licensing—and it can cause issues later.

1. EU VAT Rules

If you sell digital products to buyers in the European Union, you’re required to collect VAT based on the buyer’s location. This rule applies even if you’re outside the EU.

How I manage VAT:

• Use Lemon Squeezy, Quaderno, or Payhip to automate VAT calculations
• Avoid selling directly to the EU if you want to skip compliance (not recommended if you’re scaling)

Some apps like SendOwl also offer EU VAT support, but you’ll need to configure it properly.

2. Refund Policy

Digital products aren’t easy to refund—once someone downloads the file, they can keep it. Still, you should have a clear refund policy in place.

My approach:

• I clearly state “Digital products are non-refundable once downloaded”
• If someone hasn’t accessed the file yet, I’ll offer a refund manually
• Use download tracking to monitor access (SendOwl provides this)

Be transparent. It saves time in disputes and chargebacks.

3. Licensing and Terms of Use

Every digital product should include a license. At minimum, add a simple PDF with your terms, or include them in the product description.

I cover:

• What the product can and can’t be used for
• Whether commercial use is allowed
• If redistribution or resale is banned
• What to do if they need a different license

This protects your work and sets boundaries upfront.

Frequently Asked Questions

Can I sell digital products on Shopify Basic?

Yes — the Basic plan at $39/month works fine. Just install a delivery app like Digital Downloads or SendOwl.

What’s the best app for selling digital downloads on Shopify?

Digital Downloads is great for simple files. SendOwl gives you control, and Sky Pilot is best for streaming content.

Can I sell courses on Shopify?

Yes — use Sky Pilot for video delivery or embed from Teachable or Vimeo. You can also restrict access with apps like Locksmith.

Do I need to charge VAT?

If you sell to the EU, yes — VAT is required. Use tools like Lemon Squeezy or Quaderno to handle compliance automatically.

How do I stop customers from sharing my files?

Use apps with PDF stamping and download limits. Set time-restricted access links to reduce sharing.

How do I deliver updates to a digital product?

Use an app like SendOwl to resend updated files. You can also email customers manually with the new version.