Read time: 5.5 minutes

I make over $3,000 per month selling simple downloadable files on Etsy without using any outside platforms. No FB ads, no Pinterest and no social media. In today’s article, i’m going to give you the beginners guide to selling digital products on Etsy. 

In this article, i’ll be covering:

  • Why you should sell digital products
  • How to figure out what to sell
  • What market research platforms to use
  • How to create your digital products 
  • How to get your shop found

Let’s dive in.

Why you should sell digital products

The easiest way to make money online is by selling digital products. Digital products are by far the best way to make passive income online. The best thing about digital products is that you make them once and they sell over and over.

Digital products have no inventory or shipping. They are digital and Etsy handles it all for you. When someone buys your digital product, Etsy delivers the file to the customer so all you need to do is create the product and list it in your Etsy shop.

Another reason to sell digital products is ​they are very low risk and cost little to start.​ To list your product it costs $.20 and if you make a sale, you pay a transaction fee of 6.5%. The best part? 

If you use this​ link​, you get 40 free listings so it costs you $0 to start your Etsy shop.

How to figure out what to sell

The last thing you want to do is to start selling popular products. If you do that, it will be much harder to make sales. You’ll be in an oversaturated market with lots of competition.

The best start to making a quick profit is to create a product with low competition but that is also highly searched. This means that few shops sell it and Etsy customers are looking for it. By doing this, you’ll be competing with fewer sellers and you’ll be selling a product that people actually want to buy.

But how do you figure out if a product has ​high search and low competition​?

A few years ago, we had to do trial and error and spend hours searching Etsy to figure that out. But now there are online tools like ​Alura​ and Marmalead to help.

To find a profitable product to sell, do market research. I recommend using a mix of Etsy, Alura, and ​Marmalead​

Here’s how to do the research: 

  • Type in the product that you’re thinking about selling into the Etsy search bar and look for a “Best Seller” tag.
  • Then go to Alura to see what other shops have sold. Use the shop analyzer tool to decide what to make. This shows which of their products are selling well so I get some ideas on what I should create. 
  • Then, use Marmalead to find keywords for your tags and titles. This will help you get found in Etsy search. You can also see how many people are searching for these products and the competition. The goal is to have green in every category. 

How to create your digital products 

If you’ve never heard of Canva before, get ready for a mind-blowing experience! ​Canva​ is a graphic design platform that takes the place of Photoshop. Canva makes anyone a graphic designer. It has thousands of creative resources available at your fingertips. These include templates, images, and fonts. You can create anything inside the platform for FREE!

So how do you create digital products inside Canva?

First, you’ll want to sign up for Canva by using this ​link​. You can get a free account. Once you’re in, you’ll want to create a new design by clicking the button in the top right corner. There are so many options to choose from, so choose the one that makes the most sense with what you are creating to sell.

If you don’t know how to use the platform don’t worry because there are tons of resources available online. You can go to Youtube and type in Canva Tutorial to see how other creators design or play around. That’s how I learned…


If you are creating a template to sell, I recommend using only free graphics, fonts, and images in it. This is because your buyer may not have a Canva Pro account. If you use pro elements, they will have to buy them. Most buyers don’t want to spend more after they have bought something unless it’s in your listing.

How to save your design:

After you’re done creating your design, you’ll need to save it.

  • Click the “download” button in the top right corner
  • Change the file type to PDF Print or PNG and download.

If you’re creating a template you’ll need to do the following:

  • Get the sharable template link from the design (see below)
  • Create a separate PDF that contains this link
  • Add the template link to that PDF

You will have 2 files for a product. One will be the actual file (a template or download). The other will be the PDF with the template link that Etsy will send to the customer.

Upload this PDF to Etsy. When someone buys the product, they get this PDF. Once they have the PDF, they will be able to access the design you created in Canva.

Get the template link: 

To get the sharable Canva template link that you will paste inside the PDF you will do the following:

  • Go to share, click on template link.
  • This opens up a the link to the template.
  • Click copy

Your customer clicks on this link from your PDF. The template that you made will then open and copy itself into the customer’s Canva account. And don’t worry. This leaves the original template intact. Even when a buyer changes the template.

“Can I sell pre-made Canva templates?”

The short answer is no because you cannot sell templates made by someone else. They need to be original designs created by you. Using a canva template and switching the fonts and colos will not be enough to be considered original either. You can read more about their licensing ​here.​

How to get your shop found

Etsy SEO is vital for starting an Etsy shop. It is how your shop will get found in Etsy search. If you skip this step, your shop will not be known, and you will not make any sales. 🙁

You need to do keyword research. It will help you figure out what keywords to use in your tags and titles.

The tags, titles and description area will be where you will put your keywords.

My favorite way to find keywords for my listings is to use ​Marmalead​. Type in a broad keyword for the product you will sell. This way, you can see how well that keyword ranks. You will also find other keywords to use in your listings.

You want to look for keywords where the search, engagement and competition is in the green. This is your sweet spot for keywords. But, a few orange and yellow keywords are fine too. Don’t stress over only using keywords that are in the green. You can mix it up! The only thing to avoid is anything in the red category. Those keywords are either not searched for or face high competition.

Get started with Etsy

In summary, selling digital products on Etsy is the best way to make money online. It’s simple and fun. 

You’ll need to put in some work on the front end, but once you do, you can create a low- maintenance online business that creates revenue on repeat every single month.

Need more guidance? 

You may find my course, ​Digital Shop From Scratch​ helpful. 

I hope you found this guide helpful.

Now get out there and start diversifying your income in a fun way.

See you next week.

Whenever you’re ready, here’s how I can help:

1. Digital Shop From Scratch: Join 5,000+ students inside my signature program, Digital Shop From Scratch. This beginner course will teach you my exact process for how I generate $3k per month selling my own digital products on Etsy.