I read this educative post from ehow.com and I want to share with you. It was written by Luke Arthur, an ehow contributor.
While traditional products must be shipped or picked up when you order them online, digital products are delivered instantly. A digital product is any item that is stored or delivered in an electronic format. These products make it simple for product sellers to distribute and can cut down on overhead.
Many digital products are sold online and delivered immediately after payment is received. For instance, when you buy a digital product, you usually have the option of paying with PayPal or a credit card. After the payment is made, you are taken to a download page hosted by the seller. The seller then allows you to download the product and you gain instant access to it. Instead of having to wait on the product to arrive in the mail, it can be used right after you download it.
Types of Digital Products
Many products can be sold in a digital format. One of the most common types of digital products is the e-book. This is basically just like a regular book except that it is downloaded in a file on your computer. Another example of a digital product is a music file. When you download an MP3, this is a form of digital product. Software programs that you download from the Internet are also digital products. Phone applications are one of the more popular types of digital products available.
Why Offer Digital Products?
Sellers can benefit from offering digital products in several ways. One of the biggest benefits of selling digital products is that they can be sold passively. Once you make a sale, the customer can access it immediately without you having to ship anything. Another benefit of digital products is that they cut down on overhead. Once you make the product, you do not have to produce any more. You simply allow customers to download the same file again and again.
Although selling digital products can be cost-effective, sellers must invest something in customer service. Some digital products require technical support for customers. If you want to keep your customers happy, providing this support is essential. In some cases, simply answering emails from your customers will be enough. Other products require a dedicated technical support staff to assist customers. When pricing digital products, price them high enough to cover the costs of returned products and customer service.
What do you think? Let hear your thoughts in the comments below.