How to sell digital products on Amazon.

Threecolts
Geri Mileva
Published
August 23, 2023
Modified
August 23, 2023
How to sell digital products on Amazon

Worldwide revenue for digital media is projected to reach $627 billion by the end of 2023. It’s a lucrative market with an annual growth rate of 14.8%. If you’re an author or a graphic artist, this is the perfect time to earn from your passions. But you may be wondering how to sell digital products on Amazon. 

While Amazon is popular for selling physical products that are stored in warehouses, this eCommerce giant is also a great venue to sell digital products. 

In this comprehensive guide, we'll delve into the ins and outs of selling digital products on Amazon and help you realize your entrepreneurial aspirations. 

What are digital products?

Before we dive into the nitty-gritty of selling digital products on Amazon, let's clarify what these products actually are. 

Digital products are intangible goods that can be delivered electronically, bringing consumers valuable information, entertainment, or functionality. 

Think ebooks, online courses, software, music, and artwork—they can be downloaded, accessed, or streamed, making them convenient for both sellers and buyers.

What digital products can I sell on Amazon?

Amazon opens its virtual doors to a diverse range of digital products. You can sell:

Ebooks 

You can share your knowledge, stories, or expertise through digital books. These are the most popular digital products you can find on Amazon since the company has its own self-publishing platform, Kindle Direct Publishing. 

You can create MOBI or EPUB formats for your books and upload them directly to KDP. 

Pro Tip: Create an appealing title, description, and book cover to entice readers to click and purchase your ebook. Check out our Guide to Kindle Direct Publishing for more details

Music 

Amazon offers TuneCore, a platform where you can directly upload audio content and have them directly available to Amazon, iTunes, Spotify, Google Play, and 150+ music stores worldwide. 

You don’t have to limit yourself to songs. You can also sell other profitable audio products like musical samples, reusable sound effects, and relaxing background music.

Pro Tip: Strictly follow TuneCore’s style guide, including its artwork formatting requirements, to ensure other music platforms will sell your content. 

Digital Art

Are you a photographer or graphic artist? Turn your talent into passive income with Amazon Merch. You simply upload your design to this tool and see how it's printed to physical products like shirts, hoodies, phone cases, pillows, and tote bags. 

Amazon Merch – digital art

Amazon takes care of production and shipping and will only print an item if there’s an order. You don’t need to worry about inventory or shipping costs and simply enjoy royalties from your design every time it’s sold. 

Pro Tip: Watch out for trending designs on social media and capitalize on their popularity to boost your store instantly.

 Other Digital Products You Can Sell

  • Videos: You can upload videos that customers will buy or rent on Amazon Prime Video through Amazon Video Direct. Some video examples you can upload are original documentaries, online courses, and indie films.
  • Audiobooks: If you’re an author, you can create an audiobook version of your masterpiece. You can narrate it yourself or use a freelance voice talent. Aside from selling it on Amazon, you can list it on Amazon’s subsidiary, Audible.
  • Software and Apps: If you’re a developer, tap the Amazon App Store to sell your software. All you need is an Amazon developer account to get started.
  • Digital Templates: Amazon KDP also allows you to upload digital templates that people can download and use. This can be anywhere from design files to lead magnets and other types of templates.

As you can see, there are many ways to earn from Amazon as a digital content creator. The only limit is your imagination. As long as you have original work and you follow Amazon’s guidelines, you can start earning royalties from your creations.

Step-by-Step Guide to Selling Digital Products on Amazon

Now that you have an idea of the digital products you can sell on Amazon, here’s a detailed guide on how to get started.

  1. Create an Amazon Seller Account

The first step is setting up your Amazon seller account. You can choose from an individual or professional Amazon seller account. This is a simple process, and you shouldn’t encounter any issues setting up your account. 

Also, depending on your digital product, you need to navigate to the correct Amazon site and sign up. 

  • To sell ebooks, sign up for the KDP account
  • To sell music and audio tracks, sign up for TuneCore.
  • To sell digital art as merchandise, sign up for Amazon Merch.

Take note TuneCore charges a fee to distribute an album or a single. For Amazon Merch, you need to wait for Amazon’s approval before you can start uploading your designs.

Sell your music on Amazon
  1. Understand Amazon's Policies

Familiarize yourself with Amazon's policies for digital products. Ensure your content doesn't violate copyright or intellectual property rights.

Amazon has a zero-tolerance policy for digital content that violates its policies. They will immediately take down your product if they find that it isn’t compliant. Make sure to follow the correct formats before uploading your item. 

Also, ensure your products are unique and not plagiarized. You can always copy what’s working but make sure to improve on these concepts.

Moreover, take the time to understand Amazon's formatting requirements and commission structure. This will make the upload process smoother later on and help you charge the right pricing for your products.

You can upload ebooks as HTML, Adobe PDF, Word, Plain Text, ePub, or MobiPocket. 

  1. Prepare and upload your digital product

Craft your digital product meticulously. Ensure that it's engaging, well-formatted, and offers real value to customers. 

When your product is ready, upload it to Amazon. As long as you follow the correct formats, it should upload instantly. If there are issues, try re-uploading another time.

When uploading your ebook on Kindle Direct Publishing, you need to provide its details like publishing rights, product images, and book content before uploading. You also need to state your content rights and royalty options. 

For Amazon Merch, you can upload your design, select the products to apply it to, then submit it to Amazon for review.

For music, you need to upload a cover art along with your music track. You must also mention any music contributors for credit, then wait for TuneCore’s approval.

Getting your digital product approved shouldn’t take long if you’ve followed everything in their policies and formatting. 

  1. List your product

When you get the approval, it’s time to list your digital product. A listing will identify your product as part of Amazon’s catalog so they can show it to customers searching for keywords related to your item. During this process, Amazon will also assign a unique ID to your item for easy reference during order fulfillment.

When creating your listing, write a captivating title and description. Use relevant keywords to boost discoverability and include eye-catching visuals to entice potential buyers. 

In the case of music, books, and merch on demand, the product descriptions are asked before uploading. Ensure you describe your products accurately and comprehensively as this will help them appear on search. Also, select the appropriate categories for your product.

Publishing content on Amazon Kdp
  1. Setup your payment and pricing strategies

Price your product smartly. Research your competition and assess the value you're providing. Set your price near them and also consider limited-time offers. Offering discounts will help boost your product’s performance.

You can use an automated repricing tool to help your products automatically adjust their prices based on market trends. 

When determining your prices, ensure that you understand Amazon’s cut. Factor this commission into your final pricing and other Amazon Seller fees. 

For KDP, your books must be priced between $2.99 and $9.99 to get a 70% royalty. Otherwise, you’d get only 35% royalty. 

Amazon also handles all of your payments. All you have to do is connect your payment information and make sure it's accurate and updated.

  1. Promote your products and leverage Amazon Marketing Tools

You need to promote your products so that they reach the right customers. Use Amazon’s Sponsored Products and advertising campaigns to enhance visibility. You can also use Amazon PPC. Just remember to keep an eye on the analytics and adjust strategies as needed.

Another great way to promote your content is through social media. Create an account on the top social media channels and consistently post content to create awareness for your work and send traffic to your Amazon listing. 

  1. Manage your product delivery

Amazon has an automated delivery system for digital products. Make sure the delivery process is seamless for your customers.

If you’re selling products from Amazon Merch, consider ordering a sample so you can see how the design looks on the actual product. This will allow you to adjust your design as necessary and perfect it so customers receive a stellar product.

  1. Aim for 5-star customer satisfaction

Offer top-notch customer service. Address any queries promptly and encourage customer reviews. Remember that your customers are the lifeline of your business. You can have the best digital product, but if your customers aren’t satisfied with it, then it’s nothing. 

Listen to customer feedback and show them that you value their opinions. This will also give you repeat purchases.

  1. Measure and analyze your performance

Amazon gives analytics tools to help you improve your sales performance. Keep track of sales, revenue, and engagement metrics. Use these insights to refine your approach.

If there are non-performing listings or designs, consider removing them and replacing them with better ones. 

  1. Implement security measures

Protect your digital products from piracy and unauthorized sharing. Explore digital rights management (DRM) options. Amazon also has in-built features like Amazon Brand Registry and Amazon Transparency to further help protect your brand from copyright infringement and counterfeits.

  1. Scale your business

Once you've mastered selling one digital product, consider expanding your offerings or exploring other platforms.

Create your own website and launch your online store selling digital products. You can also sign up under other niche online stores catering to your specific content. 

Advantages of Selling Digital Products on Amazon

There are multiple benefits to selling digital items on Amazon. It’s such an appealing concept that even non-creatives find ways to create ebooks and digital art to sell through the platform. Let’s take a look at these benefits:

Minimal Overhead Costs

One of the most enticing aspects of selling digital products is the stark reduction in overhead costs compared to physical products. 

With traditional products, manufacturing, raw materials, storage, and shipping expenses can often eat into your profits. 

Digital products, on the other hand, eliminate these costs almost entirely. You won't need to allocate resources for physical production, and storage becomes a non-issue. This translates to a higher profit margin and better control over your bottom line.

Global Reach

The virtual landscape knows no geographical bounds, and neither do digital products. When you sell physical products, you're often limited by shipping logistics and international barriers. 

In contrast, digital products can effortlessly transcend borders and time zones. Your ebook, online course, or digital art can be accessed and purchased by individuals from around the world. This global reach opens up an expansive market that knows no geographical limitations.

Scalability at its Finest

Imagine this: you've invested time and effort into creating a high-quality digital product. Once the product is ready, it can be replicated infinitely without incurring any additional costs. The effort remains the same whether you sell one copy or a thousand. 

This scalability provides the potential for exponential growth that's not bound by the constraints of physical inventory or manufacturing capacity.

Instant Gratification for Customers

In today's fast-paced world, instant gratification is a sought-after luxury. Digital products cater to this demand perfectly. 

When a customer purchases your digital product, they can download it instantly, whether it's an ebook to read on their device or a music track to enhance their productivity. 

This quick and seamless delivery adds value to the customer experience and contributes to positive reviews and repeat business.

Reduced Environmental Impact 

As society becomes increasingly environmentally conscious, the impact of our choices is under scrutiny. Selling digital products aligns with eco-friendly practices. 

There's no need for paper, physical packaging, or transportation, which reduces your carbon footprint. For print-on-demand products, there’s no need to store loads of inventory that can end up unsold.

This eco-conscious approach resonates positively with environmentally-minded customers. 

Infinite Repurposing Potential

Digital products possess the versatility to be repurposed and updated easily. An ebook can evolve into a series, an online course can be expanded with new modules, and software can receive updates to meet changing needs. 

This adaptability allows you to keep your offerings fresh and relevant, enticing customers to return for more.

Automated Sales Process

Selling digital products on Amazon often involves automated purchase, delivery, and customer support processes. Once your product is set up, these mechanisms work seamlessly, freeing up your time to focus on other aspects of your business, such as marketing or content creation.

Success Tips for Selling Digital Products on Amazon

Unlike selling physical products, you don’t need a huge capital to sell digital products on Amazon. All you need is your creativity and talent to get ahead. The following tips will also help propel your business forward.

  • Identify a profitable niche where your digital product can truly shine. Don’t market to the general public. Targeting a niche will help your brand grow faster.
  • Develop authority on the subject of your content. You don’t have to be an expert, but you must know enough to become credible in creating the content.
  • Deliver high-quality content that meets or exceeds customer expectations. The digital content industry is highly competitive, and customers demand the best quality.
  • Communicate the value your product offers to potential buyers. Customers will buy your product if they understand the value they’d get from it. 
  • Analyze your competition, understand your target audience, and tailor your approach accordingly.
  • Interact with your customers. Respond to reviews, answer questions, and build rapport. You can cultivate a social media community around your content to strengthen your market’s potential. 
  • Stay updated on the latest market trends and how customers consume digital content. As digital creators, you need to remain relevant to your target market. 

Do's and Don'ts to Follow for Selling Books, Music, and Art on Amazon

Here are further tips to help you make the most of selling digital products on Amazon.

eBooks

Do’s

  • Create an Amazon author page. This gives readers more information about you and consolidates all of your books in one place.
  • Actively ask readers to leave book reviews. This will help future readers evaluate your book. 
  • Double-check for any errors before uploading your book. You can use Kindle Previewer to check how your book will look once published.
  • Create the correct metadata so your book will appear on Amazon’s search results. 
  • Design an enticing and high-quality book cover.
  • Follow proper book formatting. 

Don’ts

  • Use Amazon as your only book distribution channel. Distribute your ebook on other platforms, like your own website, too.
  • Use marketing strategies that don’t resonate with your ethics. Market your books using strategies that feel comfortable.
  • Be intimidated by Amazon’s algorithms and platforms. Approach the platform as another exciting avenue to market your ebook.

Music

Do’s

  • Strictly follow TuneCore’s style guide and formatting requirements. 
  • Use a cover art that’s exactly square-shaped and at least 1600 x 1600 pixels in size.
  • Have ownership rights of the photos or art you’d use for the digital cover.

Don’ts

  • Include any other details in the cover art except for the title of the release and the artist’s name.
  • Use any blurry or low-quality cover image.
  • Reference other digital stores by displaying their logos in the cover artwork.

Digital Art / Amazon Merch

Do’s

  • Use your own original artwork.
  • Create age-appropriate artwork. 
  • Craft designs using RGB colors with 300 dpi print dimensions.

Don’ts

  • Violate someone else’s trademark or copyright.
  • Upload designs that violate Amazon’s content policy, such as designs that depict pornography, profanity, and violence.
  • Use images with a watermark.

Sell Digital Products on Amazon with Threecolts Help

Selling digital products on Amazon opens doors to a world of opportunities. In today’s digital age, people consume tons of digital content online, and there’s no reason for you not to jump on the bandwagon. As a creative person, this can be your ticket to a profitable venture of pursuing your passions.

To maximize your Amazon store, you should use tools that will help streamline your tasks so you can focus on content creation and leave the technical details to the experts. Threecolts offers dozens of software solutions to ensure you’re getting the most out of your Amazon selling strategy. 

Several examples include a solution to help you create multiple listings across global Amazon marketplaces and a solution to help you recover any unwanted Amazon deductions

With the right tools in place, you can embark on a successful journey of monetizing your content and inspiring others with your craft. So, seize the moment and put your digital products out there. Let Amazon’s vast marketplace bring life to your dreams.