Payhip vs Etsy: Which One Is Better for Selling Digital Products

If you're ready to start selling digital products online, you may be torn between two popular platforms: Payhip and Etsy. Both are beginner-friendly, powerful, and well-known for different reasons. But which one is right for you?

In this post, we’ll break down the key differences between Payhip and Etsy — including setup, fees, customization, and the kind of seller each platform is best suited for. Whether you're launching your first printable, eBook, or digital toolkit, this guide will help you choose wisely.

1. What Is Payhip? 

Payhip is a simple, all-in-one eCommerce platform designed specifically for selling digital downloads, courses, and even subscriptions. It allows creators to:

• Upload digital files (PDFs, templates, guides, etc.)

• Create custom product pages

• Collect payments (PayPal, Stripe)

• Deliver downloads instantly to customers

• Run affiliate programs, offer discounts, and capture emails

It’s clean, easy to set up, and perfect for creators who want to build their own digital shop — without needing tech skills

Why people love Payhip:

• No marketplace competition (it’s your store)

• Very low fees (see below)

• Great for niche audiences and funnels

2. What Is Etsy? 

Etsy is a massive online marketplace known for handmade goods, vintage items, and digital downloads. As a seller, you create a storefront on Etsy and list your digital products alongside thousands of others.

This gives you access to built-in traffic and people who are already searching for things like planners, printables, and eBooks.

Why people choose Etsy:

• Massive buyer base (over 90 million active buyers)

• Easier for beginners to get early traction

• Built-in trust and platform visibility

3. Payhip vs Etsy Fees One of the biggest differences is in the cost to sell on each platform.

**Payhip Fees**                                                                                         | **Etsy Fees**

------------------------------------                                                                          |------------------------------------

**Transaction Fee**: 5% per sale                                                           | **Listing Fee**: $0.20 per item

**Payment Processing Fee**: 2.9% + 30¢ per transaction                 | **Transaction Fee**: 5% of sale price

**Monthly Subscription**: Starts at $0 for basic plan                        | **Payment Processing Fee**: 3% + $0.25

**No Additional Fees** for listing products                                         | **Etsy Ads**: Optional promotion fees

Verdict:

• Payhip wins on fees for most digital product creators, especially if you're starting small.

• Etsy’s fees can add up fast — especially when you start running ads or scale up.

4. Pros & Cons Comparison

Feature                            Payhip                                                    Etsy

Setup Time                      Very fast                                                Fast

Beginner Friendly           ✅ Yes                                                   ✅ Yes

Custom Branding           Full control                                            Limited

Built-in Traffic                 No (you drive it)                                    Yes

Fees                                  Low                                                         High

Product Types                 Digital, courses, memberships          Mostly physical + digital

Email Capture                 Built-in                                                    No (3rd party tools)

5. Which One Is Best for You?

• If you want instant visibility and don’t mind marketplace competition → Etsy is great for getting started.

• If you want to build your own brand, grow an email list, and keep more of your profits → Payhip is the better long-term move.

Many successful creators start with Etsy and transition to Payhip as they build their audience. Others go all-in on Payhip and use Pinterest or email to drive traffic.

6. What I Use (and Recommend) 

At BurchiesOnline, we’ve tested both — and we use Payhip to host all our free downloads, tripwire offers, and digital products.

Why? It gives us:

• Total design freedom

• Better margins

• Instant delivery

• Control over email growth and product funnels

If you're serious about growing a digital product income, Payhip + Pinterest + email = the dream combo.

7. Free Gift: 

Get Your Digital Product Starter Toolkit Want to launch your first digital product (even with zero experience)?

Grab our free Digital Product Starter Toolkit — it includes:

• 5 digital product ideas

• A beginner checklist

• Free tools to design & sell

• Tips to avoid common mistakes

✅ Click here to download it free

Final Thoughts: There’s no wrong answer — both Payhip and Etsy are solid platforms. But if you're looking for more control, lower fees, and freedom to grow your business your way, Payhip wins.

Start small. Start simple. But start today.

Explore more creator resources at BurchiesOnline.com