There are countless reasons to sell digital downloads on Etsy. Some sellers sell downloads as a way to make extra money, while others use digital downloads as a way to promote their handmade items. Whatever your reasons for selling digital downloads, there are a few things you need to know before getting started.
First, you’ll need to create a shop on Etsy. Once you have an Etsy shop set up, you can begin to sell downloads.
To sell digital downloads, you’ll first need to create an item listing. On the listing, you’ll need to provide information about the download, such as its price and the number of downloads it includes.
In this video/article, we are going through all the steps of creating a professional digital product listing on Etsy. Stay with us until the end of the video/article.
How to Start an Etsy Shop?
If you are a beginner at Etsy, first you have to set up a new Etsy account and selling account. You can go to the Etsy website and click the “sign in” button in the upper right corner.
In this popup window, you can create your Etsy account using Google, Facebook, and Apple accounts. Also, you can just open a new account with your email address using the “register” button.
Once you create a new Etsy account, you can buy any item on this marketplace. To sell on Etsy, you have to open a selling account after opening a normal Etsy account.
After logging in, a gray circle icon on it may be found in the upper right corner next to the shopping cart icon. You can choose “Sell on Etsy” from a drop-down menu when you click on the circle.
1. Set up Shop Preferences
Then you may enter the 5 step process to open a selling account. First, you have to enter your shop preferences, including language, country, currency, and whether or not your shop is your primary source of revenue.

2. Select a Unique Name for Your Etsy Shop
In the second section, you can select a name for your shop. Your shop’s name must be unique and contain no more than 20 characters. You may only modify your shop name once after it is set, so be careful.

3. How to Upload Digital Files to Etsy
In this third section, you have to create at least one listing. Let’s add your first digital downloads on Etsy. When you add your product for the first time, you will see a similar interface to this.

Add Product Images & Videos
Before you start a listing, you have to ready your product images and the digital product file. In the photos section, you can add up to 10 images of the product. The primary image is the thumbnail of your product.
Additionally, you can add video clips to the product. It will help to have better competition with other shoppers.

Set Renewal Method & Product Type
Once you list a product on Etsy, it expires after 4 months in absence of sales. So you have to set renewal methods, whether automatic or manual. For each renewal, you may pay the $0.20 listing fee.
In this example listing, I selected the manual method because I don’t want to renew this item if it does not get any sales after 4 months.
Next select the product type, physical or digital. We are going to list a digital product so I selected digital as the product type.
About Listing on Etsy & Upload Files
After that, you have to fill in the “About this listing” section to enable the digital product “upload” button.
Then you can see the upload button at the bottom of the listing page. Upload your digital downloadable product here.
In total, five digital files can be uploaded. Each file may not exceed 20 MB in size.
Product Title, Description & Tags
Next, fill the “product details” section, and add your product title, description, and product tags. These things are very important to rank your product on SEO results.
Select Product Category and Fill Other Sections
Select the best category for your product, for that you can simply copy and paste the title into the search box. It will give you recommendations relevant to your listing.
Based on the category you selected some other sections can be added to the listing page. You can fill those sections according to your product. Some are optional so you can leave those as blanks.
Now I am adding tags to this product. You can find SEO-optimized tags with the help of some third-party Etsy SEO platforms. See the end of the article to know about those platforms.
Price & Inventory Size
Next is the most important part, set your price and inventory size. This is a digital product so you can add the maximum number of inventory which is 999.
Finally, I add the product description, this is the template I used for every listing. After adding this I adjusted and replaced some parts to match the current listing.
You can also create these types of templates to minimize the time you spend on a single listing. Check your listing profile again before publishing your listing.

If all the parts are correct, you can publish your listing by pressing the “Publish” button at the bottom of the page. For each listing, you will cost $0.20, which is the same as the renewal fees.
You can preview each listing before you save it. Once you’ve added all of your listings, select “save and continue”.
4. Payout and Tax Details

Next, you have to input your payout details and tax details. Etsy asks whether you are an individual, sole proprietorship, or a registered legal entity as the first question under the payment settings because it needs to know your tax filing status.
Give your country, full name, birthdate, address, phone number, and the last four digits of your social security number (SSN) if you choose “individual or sole proprietorship”.
After your tax status, based on the country of your bank, the payout method will decide whether Paypal or bank transfer. Input your Paypal email or routing number and checking or savings account number.
5. Billing Details for Etsy Selling Fees

In the last section, you have to add a billing method to pay Etsy fees. There are three main fees you’ll encounter as an Etsy seller:
- Listing fees,
- Transaction fees, and
- Payment processing fees.

Your Etsy payments must be made with a credit card (or some debit cards may allow). Enter the full name on the card, the credit card number, the CCV, and the expiration date.
Enroll in auto-billing as then Etsy can charge your card on the first of each month or whenever you reach your fee threshold.
The “open your shop” button will become black after you have entered your credit card information. Congratulations! Your store is now open. You can sell your digital or physical products on Etsy.
What is Etsy SEO and Etsy Keyword Tool
Etsy SEO and Etsy keyword tools are great tools to help you optimize your Etsy shop for search engines. By identifying which keywords are being searched for most often, you can help to increase your traffic and sales.
The Etsy SEO and Etsy keyword tools also provide you with suggestions for increasing your traffic and sales with targeted keyword advertising. You can find all the best Etsy SEO platforms in the link below.
Digital Product Ideas to Sell on Etsy
There are so many digital product ideas to sell on Etsy. Here are a few to get you started: Check the below article.
- SVG Files
- Digital wall arts
- Editable invitations
- Art prints
- Birthday cards
- Business cards
- Business planners
- Business logo
- Cricut files
- T-Shirts designs
- Funny cards
- Invitations cards
- Photo editions
- Greeting cards
- Lightroom photo editions
- Meal plans
- Party banners
- Stickers
- Digital planner templates
- Website template
- Product invoices
- Clip art
- Ebooks
- Excel templates
- PowerPoint presentation templates
- Facebook post templates
- Instagram post templates
- Facebook/Instagram banners
- Fonts
- Party décor
- Thank you cards
- Shopify themes
- WordPress Theme
- Printable stationary
- Quote prints
- Build plans
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