Want to start an online business with little to no upfront costs?
The global dropshipping market is predicted to grow at a compound annual growth rate (CAGR) of 21.4% from 2025 to 2029, reaching $720.64 billion by 2029.
Source: The Business Research Company
Digital products dropshipping might be the perfect solution for you.
This guide will walk you through this exciting business model… from its basics to advanced strategies for success…
And also where to source the digital offers/products from.
What is Digital Products Dropshipping?
It’s a business model where you sell digital items without creating them (the digital products) yourself.
When a customer makes a purchase, the product is automatically delivered to them electronically. This differs from traditional dropshipping, which involves physical products being shipped from a supplier to the customer.
The beauty of the digital products dropshipping business lies in its simplicity and scalability.
You don’t need to worry about product creation, shipping costs, inventory management, or storage space. Once you set up your store and list your products, the entire process can be automated, allowing you to focus on marketing and growing your business.
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Best Digital Dropshipping Products to Sell
eBooks and digital guides
Online courses and educational content
Software and apps
Templates and design assets
Digital art and multimedia files
eBooks and digital guides are like virtual books on any topic you can imagine. They’re easy to create and sell, making them a popular choice for many online sellers.
Online courses are like digital classrooms. With more people wanting to learn new skills from home, these are becoming a hot commodity.
Software and apps are digital tools that solve problems or make life easier. Think of them as virtual Swiss Army knives for computers and smartphones.
Templates and design assets are pre-made digital designs. They’re like LEGO blocks for websites and graphics, helping people build things faster.
Digital art and multimedia files are like an online art gallery. They include things like stock photos and digital paintings that businesses and creators use to make their work look good.
Each of these types of digital products has its own group of eager buyers. By picking the right ones to sell, you can tap into different markets and make your dropshipping business stand out.
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Set Up Your Digital Dropshipping Business in 3 Steps
Step 1: Choose your niche and target audience
Step 2: Select the right platform to source/buy digital products
Step 3: Set up your online store and product listings
Step 1/ Choosing Your Niche and Target Audience
Think of choosing your niche like picking a sport to play. You want to choose something you’re good at and enjoy, but also something that lots of people want to watch or participate in. Look around at what other “players” are doing, and see if there’s a game that needs more players or a new twist.
Your target audience is like your fan base. You need to know what they like, what problems they have, and what makes them cheer. This helps you choose the right “game” to play and the best moves to make.
For example, if you’re into fitness, you might notice that there aren’t many digital products for busy parents who want to stay in shape. That could be your niche. Your target audience would be parents who struggle to find time for exercise.
Research is Key
Do some detective work. Use Google, social media, and online forums to see what people are talking about in your chosen area. Are they complaining about something? Wishing for a solution to a problem? That’s your cue.
Look at what your competitors are doing. If everyone’s selling workout plans, maybe you could offer meal plans or stress-reduction guides for fitness enthusiasts.
Know Your Audience Inside Out
Create a picture of your ideal customer in your mind. How old are they? What do they do for a living? What keeps them up at night? The better you know them, the better you can serve them.
For instance, if you’re targeting busy parents, you might learn that they:
Have about 30 minutes of free time a day
Are most active on social media after 9 PM
Are worried about setting a good example for their kids
This information helps you choose products they’ll love and marketing messages that will catch their attention.
Test and Adjust
Don’t be afraid to try things out. Start small, see how people react, and be ready to change course if needed. Your first idea might not be a home run, and that’s okay. Learn from each attempt and keep improving.
Finding your perfect niche and audience is like tuning a radio. You might get some static at first, but with patience and tweaking, you’ll find that clear signal that resonates with your customers.
Step 2/ Selecting the Right Platform to Source/Buy Digital Products
To make sure you’re doing this legally, make sure to buy products that offer resell rights or private label rights (PLR).
To make it easy for you, I’ve researched and complied the top platforms/places to buy digital products from.
| Platform | Pricing | Unique Selling Point/Pros | Cons | Best Suited For |
|---|---|---|---|---|
| PLR.me | – Monthly plan: $99 for 100 credits – Annual plans: $379 (400 credits), $579 (800 credits), $990 (2500 credits) – Pay-as-you-go: $2.20 per credit (min. 10 credits) | – High-quality content – Flexible pricing options – Credit rollover for subscriptions – 12 free content marketing tools – Giveaway rights included | – Focused only on self-help and personal development niche – Higher price point for unlimited access | Content marketers and businesses in the self-help and personal development niche |
| PLRproducts.com | Varies by product (e.g., some eBooks at $7.99, article packs at $2.99) | – Wide variety of PLR and MRR products – Accepts Bitcoin payments – Regular new product additions | – Pricing structure not clearly defined – Website design may be outdated | Marketers looking for a variety of digital product types |
| IDPLR | Lifetime membership (one-time fee of $1997 for full PLR shop) | – 12,000+ PLR products – One-off lifetime fee – High-quality content – Reseller and master resale rights – Monthly new product releases | – High upfront cost – Additional franchise fees for downloads | Frequent PLR users and resellers looking for long-term value |
| MasterResellRights.com | $19.97 per month or $47 for 3 months | – Specializes in Master Resell Rights products – Provides training on using MRR products – Wide range of digital products | – Membership required (recurring cost) | Marketers focusing on reselling digital products with master resell rights |
| PLR eBook Supplier | – Silver Monthly: $59 – Gold Monthly: $89 – Platinum Monthly: $139 | – 800+ digital products – 370+ top-selling PLR digital products – Offers both PLR and Master Resell Rights – Wide variety of product types (eBooks, planners, templates, articles) – Provides training on creating and marketing digital products – Offers prebuilt PLR websites – Additional services like website creation and mentorship – Free consultation available | – Individual product pricing not readily available – Quality of individual products may vary – Potential plagiarism issues common with PLR content | Coaches, course creators, bloggers, business owners looking for ready-made digital content and PLR products |
| Content Sparks | Individual products range from $19 to $297+ | – Premium PLR courses and business content – High-quality, comprehensive materials – Includes marketing materials – Customizable content | – Higher price point – Focused on specific niches (business, coaching) | Coaches, consultants, and course creators looking for professional-grade content |
Step 3/ Setting Up Your Online Store and Product Listings
Next it’s time to set up your online store. Focus on creating a user-friendly design and clear navigation. Write compelling product descriptions that highlight the benefits and features of each item.
Ensure your checkout process is smooth and secure. Implement a system for automatic delivery of digital products upon purchase to provide a seamless customer experience.
Tools like CartMango can help with this. The setup of digital products is also quick, even if you’re a beginner. It’s point-n-click friendly.
Disclaimer: We’re the developer of CartMango 🙂
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Marketing Strategies to Sell Digital Products
With your store set up, it’s time to attract customers.
Here are some effective digital marketing strategies:
SEO optimization for digital product stores
Social media marketing tactics
Email marketing and lead magnets
Affiliate marketing programs
SEO Optimization for Digital Product Stores
Optimize your store and product pages for search engines to increase organic traffic. Use relevant keywords in your product titles, descriptions, and meta tags. Create valuable content related to your products to improve your site’s authority and rankings.
Social Media Marketing Tactics
Use visually appealing content to highlight the benefits of your digital products. Consider using platforms like Instagram, Pinterest, or TikTok for visual products, and LinkedIn or Twitter if it’s more professional.
Email Marketing and Lead Magnets
Build an email list by offering free valuable content (lead magnets) in exchange for email addresses. Use email marketing to nurture relationships with potential customers and promote your products. Segment your list to provide targeted content and offers.
You can use email marketing software tools like BirdSend and Mailchimp.
Disclaimer: We’re also the developer of BirdSend.
Affiliate Marketing Programs
Set up an affiliate program to incentivize others to promote your digital products. This can significantly expand your reach and bring in new customers. Ensure you have a system in place to track referrals and pay commissions accurately.
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Maximizing Profits
Smart Pricing: Finding the Sweet Spot
Pricing digital products can feel like a guessing game. You don’t want to charge so much that no one buys, but you also don’t want to sell yourself short. Think about how valuable your product is to your customers. Look at what similar products cost. Consider what your target audience can afford.
Try out different prices and see what works best. Maybe start a bit higher and offer a discount to see how people respond. Or start lower and gradually increase the price. Keep an eye on your sales and adjust until you find that “sweet spot” where you’re making good money and customers feel they’re getting a good deal.
Upselling and Cross-selling: Would You Like Fries With That?
I know the “would you like fries with that” is overused.
But there’s a reason for that. It works and is easy to understand.
By asking this question, you’re essentially upselling/cross-selling so customers spend more with your business.
In digital products, it might mean offering a deluxe version of an eBook with extra chapters or bonus content. Or if someone’s buying an eBook on healthy eating, you might suggest a meal planning template to go with it.
These techniques can increase how much each customer spends, boosting your profits without needing more customers.
Bundles and Subscriptions: More Value, More Sales
Bundles are like value meals in the digital world. Put together related products at a slightly discounted price. Customers feel they’re getting a deal, and you sell more items at once. Win-win!
Subscriptions are like a gym membership for your digital products. Customers pay a regular fee to access your content. This can provide you with a steady income stream and keep customers coming back month after month.
Reviews and Testimonials: Let Your Customers Do the Talking
When people are thinking about buying something online, they often look at what other customers say. Encourage your happy customers to leave reviews. You could offer a small discount on their next purchase as a thank-you.
Display these reviews prominently on your website. Real words from real customers can be more convincing than any sales pitch you could write. Good reviews can significantly increase the number of people who decide to buy from you.
Keep this in mind:
Maximizing profits isn’t just about making more sales. It’s about making smart decisions that increase how much you earn from each sale and keep customers coming back for more. Try out these strategies, see what works best for your business, and don’t be afraid to adjust as you go along.
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Overcoming Challenges in Digital Products Dropshipping
While digital products dropshipping can be a lucrative business, it’s not without its hurdles. Let’s explore some common challenges and how to tackle them head-on.
Protecting Your Digital Goods: Keeping Pirates at Bay
Imagine you’ve created a fantastic eBook, and suddenly you find it’s being shared for free all over the internet. Frustrating, right? This is where protecting your intellectual property comes into play.
One of the easiest ways is to send an OTP (one-time password) when people try to access your download/thank you page.
CartMango does this automatically out of the box so you don’t have to worry about employing digital rights management (DRM) to your products/offers. CartMango is also totally free for 2025. You do need to pay Stripe/PayPal fees though, which you pay them directly.
Keeping Customers Happy: Managing Expectations and Support
Have you ever bought something online and felt disappointed when it arrived? That’s often because the product didn’t match your expectations. In the digital world, it’s crucial to paint a clear picture of what customers are getting.
Write product descriptions that are detailed and honest. If your eBook is 50 pages long, say so. If your software works best on certain devices, mention that. It’s like giving your customers a preview before they buy.
When customers have questions or issues, be there for them. Offer support through email, chat, or even social media. Think of it as being a good host – you want your guests (customers) to feel welcomed and cared for.
Creating a FAQ section or knowledge base can be useful. It’s like having a 24/7 assistant that answers common questions. This way, customers can often find solutions on their own, saving you time and them frustration.
The Tricky Business of Refunds: Handling Returns for Digital Products
Refunds for digital products can be a bit of a head-scratcher. After all, you can’t exactly ask for the eBook back, can you? But having a clear refund policy is crucial for building trust with your customers.
Consider offering a short trial period or a money-back guarantee. It’s like letting someone test drive a car before buying it. This shows confidence in your product and can actually increase sales.
When you do need to process a refund, do it quickly and professionally. It’s like being a good sport when you lose a game – it leaves a positive impression even in a negative situation.
Overcoming these challenges is part of the journey in digital products dropshipping. By addressing these issues head-on, you’re building a stronger, more trustworthy business that customers will want to return to again and again.
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Case Studies: Successful Digital Dropshipping Businesses
1/ Ellen Finkelstein
Ellen purchased a “Power of Storytelling” PLR (private label rights) course and extensively customized it by:
Replacing one module entirely
Creating new PowerPoint slides
Researching fresh case studies
Results:
Initial launch brought in $1,250
Created a lead funnel for ongoing sales
Marketed to her 20,000 email subscribers and 100,000 LinkedIn connections
Connected it to high-ticket offers like her membership program
2/ Ken Krell
Ken purchased a $97 PLR course on how to become a podcast guest and transformed it into a new business venture by:
Customizing specific elements, like the Excel tracking spreadsheet, with his branding
Adding his unique personality, stories, and style to make the content his own (a process he calls “Kenergizing”)
Developing a “5 Days to 5 Digital Stages Challenge” from the original PLR content
Results:
Initially sold the challenge for $55
Offered a $197 VIP upsell
Enhanced the content by:
Bringing in industry experts as guest speakers
Creating an engaging experience with contests and point systems for participant engagement
Used the PLR as a “soup base” to build upon, creating a brand-new scalable business offer
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Both Ellen & Ken demonstrate how PLR content can be used as a foundation to create a unique and profitable business venture, rather than simply reselling the original product.
Future Trends in Digital Products Dropshipping
The digital products dropshipping landscape is constantly evolving.
Here are some trends to watch:
Emerging technologies (AR/VR, AI-generated content)
Evolving consumer preferences in digital products
Increased focus on personalization and customization
As technology advances, we can expect to see more innovative digital products entering the market. Augmented reality (AR) and virtual reality (VR) content are likely to become more prevalent. AI-generated content may open up new possibilities for creating and customizing digital products at scale.
Consumer preferences are shifting towards more interactive and personalized digital experiences. Digital dropshippers who can offer unique, customizable products (and experiences) will have a competitive edge.
TL;DR
Keys to Success with Digital Products Dropshipping:
Quality Control
Choose high-quality digital products from trusted sellers or platforms to ensure you’re providing value to your customers.
Customization
If using Private Label Rights (PLR) content, extensively modify and rebrand it to make it unique and align with your brand. This helps differentiate your offerings in the market.
Strategic Pricing
Analyze similar product prices and buyer expectations to set competitive rates. Consider the perceived value of your digital products when pricing.
Value Addition
Incorporate unique content, update information, and adjust designs to increase product value. This could include adding bonuses or creating product bundles.
Effective Marketing
Leverage social media, content marketing, and email lists to promote your digital products. Utilize various channels to reach your target audience.
Legal Compliance
Understand and follow license agreements for any PLR or resale rights products. Ensure you have the proper rights to sell and distribute the digital products.
Automation
Implement systems to automate the sales and delivery process of your digital products. This is a key advantage of digital dropshipping. A tool like CartMango can help with this.
Customer Support
Provide excellent customer service and clear product descriptions to manage customer expectations and reduce potential issues.
By focusing on these key areas, you can build a successful and sustainable digital products dropshipping business. Remember, the digital marketplace is ever-evolving, so stay adaptable and keep learning to stay ahead of the curve.
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