Summary: Do you run an ecommerce company? Did you know that the best way to maintain the success of your company is to invest in more than just physical products? Here’s a quick look at how selling digital products can actually push your business further than your ecommerce competitors.
Are you ready to let digital products boost your overall revenue stream?
First things first, let’s take a look at what digital products are. As the name suggests, digital products are just that: digital. They are virtual items that you can sell online to your clients. They aren’t tangible, which means they don’t have the physical expenses attached to them. There is no overhead, no cash flow demand, and they don’t generate shipping expenses. As such, they represent a secure means of generating profit—and a high profit margin—but they also go a long way towards generating interest in your business.
What might digital products look like?
Are you still unsure about the types of digital products you can offer? A few examples include membership fees, templates or worksheets, online courses or webinars, and even eBooks.
For instance, let’s say you sell cameras in your business. You can channel your expertise on cameras into an e-book. Don’t be intimidated; it doesn’t have to be a 200-page book. In just 2-5 pages you can offer the information that will help your customers find the right camera. You can also offer an e-book on photography techniques where you discuss lighting techniques—including information on which external flashes and other camera accessories work the best in different scenarios, and on which software allows the best photo-retouching experience. These are valuable products that don’t cost you anything but your time to make. You can either sell them or offer them for free as a means of generating leads. Informative leads like these can lead to significant conversions, which can end up saving you time on your sales pitch while boosting your profit margins.
Looking for something a little more engaging than an e-book?
Take the same principle and apply it to an instructional video or webinar. You can offer access to these for a fee (for example, as an online course), or, as with e-books, offer them for free on a platform like YouTube and use them for lead generation. Just think how many leads you’d generate if your video went viral.
Another good example of a digital product involves creating a membership or club. These work well because they generate recurring revenue, especially if you get your members set up on an auto payment program. You just have to offer your customers something in exchange for their fee each month. For instance, if you have a fitness business, you can create a club where members can pay a monthly fee to gain access to instructional fitness videos. If your business sells makeup, your club could similarly offer monthly makeup tutorials. You can even pair the videos with the products you are featuring every month to encourage sales. Providing members with discounts is also a good way to boost sales, generate recurring monthly revenue, and even generate more leads—everyone wants to be a part of the in-crowd!
Are there risks involved?
The good thing about digital products is this: since there is no overhead the risk is minimal. They do require a time commitment from you, and they do work best if you already have an audience for them. Of course, you can promote your digital products to your blog or social media followers, and you can sell your digital products to your actual Amazon customers or to Amazon sellers. Plus, if they are done properly, the time you spend creating your digital products will be rewarded with higher sales of the physical products your digital products compliment; higher lead generation, lead conversion, and customer retention; and a potentially steady revenue stream with minimal overhead.
So, what are you waiting for? Start creating some digital products. You and your customers will both love the results.
Want more advice for online sellers? Stay tuned to Wizards of Amazon.