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As an Etsy coach, I specialize in helping Etsy sellers turn their passion into profits. With my expertise in Etsy's marketplace, I guide Etsy sellers and develop a marketing strategy to increase their visibility and sales. 

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Do you currently sell digital products on Etsy? Or Are you planning to? Either way, this is the perfect blog for you. I will be sharing everything I wish I knew before selling digital products on Etsy. 

I have been selling digital products on Etsy since 2016, and after 13K + sales, I have learned a lot from my failed shops, the many mistakes that I have made, and my success. 

I jumped in headfirst without knowing anything about digital products, and I wanted to share my top tips with you today to help you get started the right way. Make sure to stick around all the way until the end because I am sharing many valuable tips that might even shock you.

So, let’s dive right in!


  1. Create Digital Products for A Niche Market

Defining your niche market is the first step in starting a successful Etsy shop with digital products. Ensure your niche market focuses on a unique target market vs. trying to target your products to everyone. Using this strategy will help you create products based on your specific audience, and you will have customers that will buy from you over and over. 

The key is to find a niche market that you can dominate on, become an industry leader, and have a viable customer audience.

2. Learning how to sell the value of your products

People don’t buy products. They buy the results the product will give them. I have learned this lesson the hard way by not being clear on my products’ value and focusing more on the price, leading to too many discounts or lowering prices in general. The best way to sell a product without lowering your prices or giving a discount is simply highlighting the benefits of using the product. You need to include this in your Etsy listing, emails, and pretty much anywhere you promote your product/services. 

3. Add Your Unique Selling Proposition

 Another huge mistake I made was creating similar products like everyone else and blending in instead of standing out. You need to add your unique selling proposition to every product you create.

What makes your product outperforms your competitor? Making a no-brainer for prospective buyers who come across your products to purchase from your shop.

4. You have to protect your digital products.

When selling digital products, make sure that your buyer is clear on the Terms of use. Some Etsy sellers use specific licenses to receive fair payment based on what the prospective client will be using the files for. For instance, I grant a license to wedding event coordinators to resell with my wedding printable shop. Thank you cards and certain signage to their local clients. Still, they are not allowed to sell on their website or other creative marketplaces. 

Make sure to add your terms of use in your Etsy listings, shop, and anywhere else you promote your digital products. 

5. Be Prepared To Deal With Individuals Who Resell Your Content 

This has been the most frustrating part of selling digital products online for me. I used to get super annoyed and lose sleep over this. Still, after speaking to several of my colleagues, this happens pretty often, especially when you start growing your online presence.

The #1 thing I recommend is having a legal professional create one page cease and desist notice. 

This letter will nicely inform and warn copycats of any copyright infringement, giving them a short period to take your materials off of their shop or anywhere else you found it, and It works!

The reason why I was affected by this was mostly my fault. I would create videos or share my top store with FB Etsy support groups, use my main store as an example of what a successful digital shop looks like, and that’s when I started noticing other people copying me, buying from me, and using my own work on their shops, using the exact tags including my shop name, and it was really frustrating. At one point, I have over 10 stores in a matter of months that had copied the majority of my listings.

So, that’s when I created my new shop for tutorials and ended up changing my shop name and social media profiles for that particular store. It sucks but having the one page cease and desist and be careful where I place my shop’s link really helped get it under control. 

6. Be Transparent In Your Listing Description

Make sure that you’re super clear on what exactly you’re selling and does it require any specific software to open or any skill to use your product in your listing description. You want to educate your customer to make an informed of whether they want to proceed and finalize the order. 

This will help you with unnecessary messages and, most of all, bad reviews. 

I wanted to share these tips with you because making passive income on Etsy with digital products is pretty amazing, but it has some cons. 

If you prepare yourself and educate yourself on things that can happen, it will be easier to handle them later. I hope these tips help you in the long run with your business.


If you have any additional questions about what I talked about, please let me know in the comments below. Thanks for stopping by!

Let me know if you found this post helpful. And if you haven’t already, make sure you check out our FREE resources!

Rooting for you!

– Nancy

P.S. Have you attended my free masterclass yet to help you scale your Etsy business to the next level with my 4 step framework for a profitable Etsy shop. If not, CLICK HERE to register before seats fill up.

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  1. skylar says:

    Hey Nancy,

    Great things to keep in mind for sure. I never really thought about the reselling of content to be honest, that really sucks! Thanks for sharing the advice, really appreciate it.

  2. Laris says:

    I will begin to sell Etsy digital products, so this post come in very handy

  3. Laris says:

    I will begin to sell Etsy digital products, so this post come in very handy. Thanks!

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Hi, I'm Nancy.
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I help Etsy sellers turn their passion into profits is a rewarding and fulfilling endeavor. Many sellers have great ideas and the drive to succeed, but they lack the knowledge and experience needed to start, manage, and scale their Etsy businesses effectively. As a business coach, I help Etsy sellers by teaching them the exact steps needed to turn their passion into a full-time income.

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I'm Nancy Badillo

Pizza obsessed, quote slayer, loving mom, and chronic achiever with a deep passion for all things Etsy.