Selling Digital Products on Amazon: A Comprehensive Guide

The Pandemic has boosted the digital product industry on a large scale. It is projected that the digital media industry will reach US$536.90 billion in 2023.

If you happen to be a digital content creator, and plan to open a digital business, selling on Amazon can be a good idea. With the rise of digital content consumption, an increasing number of customers are purchasing digital goods from Amazon, including ebooks, music, videos, audiobooks, software, games to online courses.

One of the most significant advantages of selling digital products on Amazon is the low to no upfront investment. Without investing in inventory, shipping or storage costs, you can exert all your efforts into creating high-quality digital products and marketing them effectively to increase sales.

In this article, we will explore the different kinds of digital products to sell on Amazon, the benefits and challenges of selling on the platform, and some tips for creating a successful digital product business on Amazon. If you are a digital content creator, please read on.

Why Sell Digital Products on Amazon?

Amazon has become a platform for many sellers to sell their products online. The platform is known for its massive customer base, easy-to-use interface, and efficient delivery system.

Here are some reasons to sell digital products on Amazon:

Reach A Great Customer Base

Amazon is now one of the most powerful e-commerce platforms around the globe. If you start your digital stores on the Amazon marketplace, you can get in touch with millions of active customers.

Sell Digital Products Without Inventory

Inventory management can be a huge hassle for those who are not yet familiar with the e-commerce business. If you sell physical products, you need to take storage space, shipping schedule, handling cost or order fulfillment cost, and restocking schedule into consideration and review your inventory management plan on a regular basis.

However, if you sell digital products, you no longer need to worry about inventory management or all the related costs. You can create your digital product once and sell it multiple times without worrying about restocking.

No Shipping Cost

Another advantage of selling digital products on Amazon is there will be no shipping costs. Since the products are delivered electronically, no shipping or handling costs are involved. This means you get to keep a higher percentage of the profits than selling physical products.

Passive Income From Automated Delivery

Once you set up your digital product on Amazon, it becomes available 24/7. Since you don’t need to manage the inventory, you can just leave the listing there and earn money even when sleeping or on vacation.

In addition, with Amazon’s automated delivery system, your customers can download the product instantly, and you get paid automatically, making selling digital content on Amazon a great source of passive income.

Types of Digital Goods to Sell on Amazon

When you start selling digital products on Amazon, it will be a great way to earn passive income. Here are some of the most popular types of digital products to sell on Amazon:

E-books

E-books are one of the most popular digital products to sell on Amazon. With Amazon’s Kindle Direct Publishing (KDP) program, anyone can upload and sell ebooks on the platform. E-books can be on any topic, from fiction to non-fiction, from celebrity gossip to urban legends, and can all be sold at any price.

Audiobooks

Audiobooks are also popular. With Amazon’s Audible platform, you can easily create and sell digital audio products to a broad audience.

Here are the categories it provides:

Fiction
Mystery, Thriller & Suspense
Science Fiction & Fantasy
Personal Development
Biographies & Memoirs
Children’s Audiobooks
History

You can also sell podcasts or audio products to help people get better sleep on Audible.

Music

If you’re a musician, you can sell music on Amazon through TuneCore, a part of AmazonMusic. TuneCore allows you to distribute your music to Amazon and other popular music platforms like Spotify, Apple Music, Amazon Music, YouTube and TikTok.

By 2006, musicians need a label to sell their music online. However, with the emergence of TuneCore, who partnered with various digital stores, musicians can simply upload their music without labels and sell their songs worldwide.

Digital Arts

Amazon Merch is a great platform for those who want to sell digital art products. If you upload your art design, Amazon Merch will take care of the rest – including printing the artwork on physical goods.

Once a customer orders from your store, a product will be printed on demand and shipped to the customer directly.

Videos and Movies

Amazon also offers a platform for selling digital videos and movies. With Amazon Video Direct, you can upload your videos and movies and make them available to Amazon’s large audience. In addition, you can sell your videos and movies at any price point or make them available for free with ads.

Software and Games

You can sell your products on Amazon if you’re a software developer or game designer. Amazon offers a platform called Amazon App Store, which allows you to sell your software, mobile APPs, and games to a broad audience.

Digital Courses

If you’re an expert in a particular field, you can create and sell online courses on Amazon. With Amazon’s self-publishing platform, you can easily create and sell courses on any topic, from cooking to marketing.

Online courses can be sold at any price point and can be a great source of passive income.

Creating and Preparing Your Digital Product for Amazon

When you are creating and preparing your digital product for Amazon, here are a few things to keep in mind:

File Formats and Requirements

Before selling your digital product on Amazon, you must ensure it meets the platform’s file format and technical requirements.

Check what file formats Amazon accepts: Amazon accepts various file formats, including MP3, JPEG, PDF, and MOBI.
Check Amazon digital services guidelines: To ensure your file meets their specific size, resolution, and all the technical specification requirements, check the guidelines.
Test your products thoroughly: Try your products on different devices to make sure they are functional and error-free.
Ensure your products are free of technical issues: Try to download your digital products to different devices and make sure they don’t have technical issues.

Pricing and Royalties

When pricing your digital product on Amazon, you can choose your own price point. However, it’s essential to consider the value of your product and the competition in your niche when setting your price.

Amazon offers two royalty options for Kindle ebooks: 35% and 70%.

If you select the 35% royalty option, your royalty will be 35% of your listing price without VAT for each unit sold.

However, suppose you select the 70% royalty option. In that case, 70% of your list price (without VAT) will become your royalty if you sell to customers residing in the 70% territories and 35% (without VAT) if your customer is outside the 70% territories.

Amazon also deducts a delivery cost for each sale. The average cost is $0.06, depending on your file size.

Cover Art and Product Description

Your digital product’s cover art and description are crucial for attracting potential customers and encouraging them to purchase. Therefore, your cover art should be eye-catching and relevant to your product, while your product description should be clear, concise, and informative.

When creating your product description, highlight your product’s benefits and how it can help your customers. Use bullet points and other formatting techniques to make your description easy to read and scan.

Creating and preparing your digital product for Amazon can help you maximize your sales, attract customers, and reach a wider audience. Following Amazon’s guidelines and best practices, you can ensure your product is high-quality and appealing to potential customers.

Setting Up Your Amazon Seller Account

Registration and Verification

To start selling digital products on Amazon, you need to create a seller account. Here are the steps:

Go to the Amazon Seller Central and click the “Register Now” button.
Follow the prompts to provide your personal and business information, including your name, email address, phone number, and credit card information.
Verify your identity by providing additional information, such as your Social Security number or tax ID. This step is necessary to ensure that Amazon can pay you for your sales and to comply with tax regulations.
Select between individual and professional selling plans. If you select the individual plan, you will be charged $0.99 per item you sell. If you subscribe to the professional selling plan, you will pay a $39.99 monthly fee.

Product Listing and Categorization

Once your account is set up and verified, you can start listing your digital products on Amazon. You must choose the appropriate category and subcategory for your product to do this. Make sure you list the product in the correct category and subcategory, otherwise, your product may not be indexed and thus can not be found by the customers.

When creating your product listing, be sure to provide a clear and detailed description of your product, including its features, benefits, and any special instructions for use. You should also include high quality cover art or graphics to help customers visualize your product.

Marketing and Advertising

After you have listed your products on Amazon, you can start marketing and advertising them to potential customers. Amazon offers a variety of advertising options, including sponsored products, display ads, and video ads, to help you reach your target audience.

When creating your advertising campaigns, choose the right keywords and targeting options to reach your desired audience. In addition, you should monitor your campaigns regularly and adjust your strategies to optimize your results.

Overall, setting up your Amazon seller account is simple and can be completed in just a few steps. By following these guidelines and best practices, you can maximize your sales and grow your business on Amazon.

Conclusion

Selling digital products on Amazon is a good idea if you are a digital content creator. By setting up your store on Amazon, you can have access to Amazon’s wide audience base without paying much attention to drive traffic to your own online website.

Selling digital products on Amazon is especially suitable for those who want to start their online business with minimal upfront investment and want to avoid the hassle of inventory management. Instead, they can exert all their efforts in creating quality digital products and marketing their product listings.

With the automated delivery of these digital products, the sellers need to invest almost no effort to maintain the listings and thus earn a steady passive income. As long as you follow the guidelines, you can turn your digital products into a successful business and generate passive income on Amazon’s platform.

Frequently Asked Questions

Can you sell digital items on Amazon?

Yes, you can sell ebooks, movies, videos, audiobooks, softwares and games, and digital art works.

Is selling digital products on Amazon profitable?

Yes, selling digital products on Amazon can be profitable, as it offers a vast marketplace with a diverse customer base. Success largely depends on the quality, demand, and marketing of your digital products. Proper pricing and promotion strategies are crucial to maximize profitability.

Can you sell a PDF on Amazon?

Yes, you can sell a PDF on Amazon, but it is recommended to convert it into an eBook format, such as Kindle’s MOBI or Amazon’s KDP Print PDF. This can be done using Amazon’s Kindle Direct Publishing (KDP) platform, which allows you to reach a wide audience of eBook readers. Proper formatting and metadata optimization are essential for a successful listing.