What is a Digital Product?

The term “digital product” has become a common buzzword. From mobile apps to e-books and online courses to software tools, digital products have transformed the way we interact, learn, and conduct business. But what exactly is a digital product, and why are they so significant in our modern world? Here, we provide a comprehensive overview of what constitutes a digital product, its various forms, and its importance in today’s digital landscape.

Digital products are not tangible. However, practically everyone today possesses an item of what is considered digital products/property, whether it be music, ebooks, or online courses. Because of their widespread appeal and simplicity of distribution, digital objects are becoming the foundation of many entrepreneurs’ entire enterprises. Other businesses are introducing them to go along with tangible goods and services.

The appeal

Passive income is what attracts people to learn ways to sell digital things. You can restock digital items only if made once and sold continuously to various clients. These platforms are perfect for anyone seeking effective online income streams, such as bloggers, instructors, freelancers, and creators.

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Intangible things that are available on digital marketplaces are known as digital products. These consist of virtual effects in video games, software, music, digital art, ebooks, and online courses. Usually sent to clients by email or download, they allow companies to add value without owning actual inventory.

Digital things aren’t tangible like physical goods such as clothing, vehicles, electronics, books, etc. Rather, they are limited to the digital domain. Because of this, they are frequently less expensive than their physical equivalents and are simpler to disseminate.

Furthermore, because digital items are intangible, it is simple to update or modify them to keep up with evolving trends and technology. Again, digital items sometimes have an unrestricted use license attached to them.

So what are digital products? 

There needs to be more distinction between marketing physical and digital goods. It is essential to identify your target market, send them relevant messages to your company, and maintain open contact channels. However, the primary distinction between digital and physical products is that, on occasion, it might be more challenging to articulate a digital product’s necessity than to highlight the advantages of a tangible one.

Many businesses and brands have almost entirely shifted to selling digital items. Digital products may provide more profits, be more straightforward to service and distribute, and be more readily available to consumers. The significant benefits that set digital products apart from physical products are:

  • A physical products shop must manage inventory, supply chains, delivery, returns, and physical storage. These elements are eliminated from the conventional business model by digital products.
  • Digital goods provide consumers with instant pleasure. With only one click, you may order and have them delivered. No need to wait for delivery.
  • You can choose to provide products at a reduced price since you don’t have all the running costs connected with physical goods. Or keep a more significant portion of the earnings.
  • You keep more earnings since you’re not using your income for production, shipping, storage, or refunds.
  • Finally, the environmental effect of digital commodities is negligible. You’re not consuming fuel, packaging, materials, etc.

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Example of digital product

What are examples of digital products? 

We have a few. Mobile and web applications and eCommerce platforms are a type of digital products that satisfy customers – ones we have a lot of familiarity with. Therefore, here is a detailed list of some prominent examples of a digital product:

eCommerce Platforms

Although many individuals still value in-person purchasing experiences, customers now anticipate being able to perform anything in business or the workplace 24/7 online. According to a recent Forbes survey, 84% of customers would prefer to transact with a company offering digital self-service alternatives.

eCommerce systems provide prospective clients seamless access to your goods and services anytime. Companies driven by customer satisfaction will create cutting-edge user experiences (UX) for these platforms, ensuring their target market has an optimal purchasing experience.

Data Platforms for Employees

Knowing that digital goods may improve your analytical skills, let’s examine an example that goes above and beyond employee-facing data platforms. By centralizing insights throughout your company, these systems facilitate your business teams’ access to the required data.

A unified data platform provides your company with a shared source of truth and assists your business executives in making well-informed choices. Executives may also monitor their key performance indicators (KPIs) in this area, enabling them to measure their progress and identify areas of inefficiency.

Customer Relationship Management Software

Let’s examine a few digital items that might benefit business-to-business (B2B) enterprises, known as customer relationship management or CRM software. Numerous B2B companies cater to customers constantly seeking methods to enhance their customer experience and are customer-obsessed.

Creating a user-friendly CRM platform that focuses on the demands of your clients directly might bring in a sizable amount of money for your company. These clients will increase your revenue and client retention by paying you annually or monthly to utilize your software, saving them the trouble of developing and managing a CRM platform.

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Revenue Cycle Management Software

The wide utilization of revenue cycle management (RCM) software is one example of a B2B digital solution that is more sector-specific. Healthcare organizations may better understand their complex billing environment with the help of these digital tools. There are several actions to follow, from verifying a patient’s insurance before a visit to getting payment. If you operate a B2B business in the healthcare sector, providing RCM software as a digital product might be the ideal way to meet your client’s urgent needs.

Mobile and Web Applications

Customers switch between devices like tablets, smartphones, work PCs, and personal laptops daily. Whatever device your clients are using, web apps let them easily navigate your digital world. Meanwhile, mobile applications guarantee that you are well-represented on your clients’ phones, where, per a survey, they spend about 4.8 hours each day.

Digital products definition

What is a digital product?

A digital product is exclusively available digitally. Others might also describe it as an internet product that doesn’t have a physical form. But even brief explanations still need to fully capture the essence of what a consequence of this kind is. Consider an intangible product this way, even if you don’t sell it. An example of a digital product is a website where you may obtain helpful information without paying.

Value is fundamental to a product. Anything that exists digitally and provides value is the digital version. A digital product by itself could not bring in money for a business. However, it could be beneficial for the product’s creator to sell another one or generate revenue through advertising.

Apps like Facebook, Uber, and Google Search are excellent instances of digital goods. Some operate independently, while others are digital versions of tangible goods or components of enterprises. It could be essential to clarify that, despite common confusion, a project is not the same as a product. A project is a short-term endeavor that results in a release and is considered successful. In contrast, a product is a long-term endeavor that requires continuous labor to establish market fit and accomplish corporate objectives.

Another item that many people may mistakenly associate with a product is a feature, which might result in incorrect procedures. This discrepancy is only a feature that customers utilize within a product. For people to find a digital product worthwhile, it typically requires a few characteristics. A product’s features or functioning affect how the user feels.

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What is the benefit of digital products?

You cannot see a component in the same way as a feature, and vice versa. These are the only components you may use to make your product more valuable. However, it’s important to note that a part or component by itself has the potential to become a product. Facebook provides an excellent illustration of this by separating the Messenger app from the main product. We have a product package if you combine several digital items into one. One example is the Microsoft Office suite, which includes Word, Excel, and PowerPoint in one package.

Digital products represent a revolution in eCommerce, offering unparalleled convenience and diversity. They eliminate the need for physical inventory, reduce overhead costs, and allow for instant delivery, enhancing customer satisfaction. Their scalability and global reach make them ideal for businesses looking to expand their market presence efficiently and sustainably.

Digital goods are constantly changing. As you get fresh insights into the requirements and behavior of your customers, you keep trying to improve what they have to offer. The products enable you to create personalized offers according to the data you get.

New code releases introduce novel elements. Conversely, physical goods do not change in the same manner. With time, they usually grow outdated and are replaced. Unlike their physical equivalents, digital products are less susceptible to commoditization. Digital allows you to set your product apart with the help of data indicating what buyers find helpful.

Types of digital products

Hopefully, you’re starting to have a clear answer to the question, “What is a digital product?”=

While there are many variants when it comes to the type of digital products available online, the main digital products definition items include:

Educational Digital Products

Comprehensive information is best suited for online courses. They demand work up front, from making a video walkthrough to crafting a presentation. When designing a system, begin with the learner outcomes: what knowledge or skills do you want the student to have acquired after the course? You may break up the learning material and improve the engagement of your online course by using interactive exercises, knowledge tests, and quizzes.

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Digital Libraries

To create recurring revenue, group what are digital products together and make them available only through a paid subscription rather than concentrating on how to sell them separately. This method of selling digital goods is excellent if you want to keep up a growing collection of high-quality material and foster a vibrant community of users. Occasionally, Paid digital subscriptions provide a chance to profit directly from your current content marketing initiatives.

Digital Licenses

There is a global ecosystem of licensed digital assets published by creatives for use by other creatives in their work, ranging from stock pictures to music, sound effects, and video footage. It is possible to charge for using your images, films, music, software, and other high-quality digital items by providing licenses to individuals and companies. You have the option to sell through your store. Alternatively, you may trade on internet markets like these stock photo websites.

Digital Tools

Intangible tools that enable professionals to perform activities outside their area of expertise or require a significant amount of time can also be considered digital products. You may market digital solutions that address a particular group’s requirements and joint problems. Further kinds of digital product tools and templates include:

  • Templates for graphic design used for flyers, posters, brochures, etc.
  • Media editors can use Adobe Photoshop filters and plugins.
  • UX, typefaces, or icons Web designers’ kits
  • Entrepreneurial digital marketing strategy templates
  • Examples of resumes for job seekers
  • Mobile business applications

Digital Art

If you’re a musician or artist, you’ve looked into methods to make money from your skills or the following you’re developing. There are many digital products for selling music and art and print-on-demand options. Along with their merchandise, musicians may sell ringtones of their greatest hits. Cartoonists may sell their creations as phone backgrounds and prints. Movies made by filmmakers sell online in today’s landscape. Serving a particular target market might be a successful approach for this type of digital product sale.

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Digital Services

Services complement digital goods nicely. In addition to templates, a designer can provide logos. A personal trainer may provide a video exercise program. By capitalizing on this, you may market some services as bundles that include worthwhile digital goods. For instance, you may charge for a consultation and provide a customized report or Excel spreadsheet. After that, you may upsell your clients on more services or goods. Alternatively, you may use a strategy many modern internet firms use to build leads for your email marketing list: provide a free downloadable product.

What are examples of digital products?

The below mentioned are some of the most popular and profitable type of digital products that you can use for your eCommerce platform:


The software market is enormous and expanding steadily. Numerous opportunities exist in this field. In the next few years, experts anticipate that the worldwide software market will have a value of over $1 trillion. Every day, people utilize mobile devices and PCs. Product developers and coders can create applications consumers need and want to expedite daily chores and business-related ones. The most profitable digital product may be software.


For consumers and authors, ebooks are among the most well-liked digital items. They are comparatively easy to develop since they need written information and a few pertinent photos. Distributing eBooks on big marketplaces or independently built web shops is accessible. Customers may read them on computers, tablets, e-readers, and mobile phones, making them readily consuming.

Digital Graphics

Graphic designers and artists may make many distinctive and priceless items. Reaching an extensive client base is made possible by selling digital files. This move into digital files is a terrific method to generate money online because it allows you to repurpose your existing abilities for employment.

Cloud Design App Templates

With just a web browser and these tools, pros, and amateurs can rapidly create stunning designs. They are excellent for novices. Tens of millions of people utilize them. And as social media expands, this will only get bigger. You may profit from this growing industry by selling templates. Apply the design expertise you currently possess.

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One of the most widely sought-after digital items is premium, high-quality images. Website proprietors and bloggers are the most significant users of digital photos. Consider whether you should provide subscribers unlimited downloads of your pictures or sell each shot separately. An essential component of a photographer’s portfolio is a robust website. Raising your profile requires elegantly showcasing your work. You may make a good living selling your photographs or those commissioned by clients on your website if you have competitive shots and pricing.


Your brand can effectively deliver online content through the viral and helpful medium of video. Content may be amusing, instructive, or both. Text is less visually engaging than digital content. It’s simple to view by just pressing the play button. Some individuals view videos at 1.5x or 2x speed to learn more quickly. People adore video, and they frequently don’t mind paying for it.

Bottom Line

The internet abounds with digital products, given the technological advancements and global reach it has created. There are a ton of examples of digital products you can sell to scale your business because it gives you a large opportunity to grow your profit. If you require management tools or systems to upgrade your eCommerce game, contact us at Pimberly for the best services near you.

Take a deeper dive

In a personalized demo of our Product Information Management (PIM) platform, you’ll see how you can:

  • Easily create, enrich and automate complex product data, images, and videos.
  • Drive sales and deliver best-in-class online experiences.
  • Increase revenue by reaching new channels and markets with confidence in your data.
  • Give your teams a central hub to manage and update product data.