I’ve tried both — here’s why I believe digital products are the future of online business (and how you can start today).
If you’ve been thinking of starting an online business in 2025, you’ve probably come across two popular models — selling digital products and dropshipping physical products.
I’ve personally explored both worlds, and while each has its pros and cons, one model clearly stands out when it comes to freedom, scalability, and long-term profit: digital products.
Let’s break it down.
What Are Digital Products?
Digital products are any items you can sell online that can be delivered electronically — no shipping, no inventory, no warehouse.
Common digital product examples include:
- eBooks
- Online courses
- Notion templates or planners
- Canva templates or social media kits
- Stock photos and videos
- Software tools or plugins
- Membership programs
- Printables and guides
Platforms like Gumroad, Selar, Payhip, and Digistore24 make it easy for anyone to upload, price, and sell digital products — even without a website.
In Kenya and across Africa, creators can easily receive payments through M-Pesa, Paystack, or Flutterwave, removing one of the biggest barriers that used to exist a few years ago.
What Is Dropshipping?
Dropshipping is an eCommerce model where you sell physical products without holding inventory.
Here’s how it works:
- You create an online store (using Shopify, WooCommerce, or Wix).
- You list products from a supplier (usually from AliExpress or CJ Dropshipping).
- When someone buys, the supplier ships the item directly to your customer.
You never touch the product — you just manage the website and marketing.
It sounds simple, but it comes with challenges: long shipping times, customer complaints, slim profit margins, and heavy competition.
Digital Products vs Physical Products
| Feature | Digital Products | Physical Products / Dropshipping |
|---|---|---|
| Delivery | Instant download | Shipping required |
| Cost to Start | Very low (often $0) | Can be high (store setup, ads) |
| Profit Margin | Upto 100% | 10–40% |
| Scalability | Unlimited | Limited by logistics |
| Maintenance | Minimal | Customer service, returns |
| Market Competition | Based on creativity | Based on price |
| Freedom | 100% location-independent | Requires constant management |
In short:
💡 Digital products scale with your creativity. Dropshipping scales with your budget.
Digital Products vs Affiliate Marketing
Many people confuse digital products with affiliate marketing, but they’re not the same.
- Affiliate marketing means promoting someone else’s product and earning a commission for each sale.
- Digital products mean creating and selling your own — keeping all the profits.
If you’re just starting out, affiliate marketing is a great entry point. You can learn marketing, content creation, and how audiences buy.
But once you gain confidence, creating your own product gives you full control, brand ownership, and higher income potential.
For example:
- Instead of earning a 20% commission promoting someone’s eBook, you could create your own eBook and earn 100% of each sale.
- On platforms like Gumroad or Selar, you can even bundle your product and let affiliates promote it for you — combining both worlds!
Why I Prefer Digital Products Over Dropshipping
When I first learned about online income, dropshipping sounded exciting — the idea of selling products without touching them felt magical.
But reality hit fast. Here’s what I learned:
- Customer complaints about delayed shipping can drain your energy.
- Profit margins shrink fast after ads and transaction fees.
- It’s hard to build a brand around random products from China.
Then I discovered digital products.
With eBooks, templates, and courses, I could create once — and sell over and over again.
No shipping, no stress.
Even better, I could automate sales using platforms like Gumroad and collect payments instantly via M-Pesa.
That’s when I realized digital products are true leverage.
You build once, then focus on marketing — not fulfillment.
How to Sell Digital Products Like eBooks (Step-by-Step)
Here’s a simple process you can follow to start selling your first digital product:
1. Pick a profitable niche
Choose a topic you already know or one you can research easily.
Think: what problems can you help people solve?
Examples:
- “How to start a small business with no capital”
- “Beginner’s guide to using Canva”
- “30 social media post ideas for small businesses”
2. Create your product
Your product could be:
- An eBook written in Google Docs or Canva
- A template designed in Notion or Canva
- A mini-course recorded using your phone
You don’t need fancy equipment — just focus on delivering value.
3. Choose a platform to sell
Here are great beginner-friendly options:
- Gumroad – global reach, instant delivery, accepts cards and PayPal
- Selar – popular in Africa, integrates easily with M-Pesa and Paystack
- Payhip – clean design, free plan, marketing tools included
- Digistore24 – also works for affiliate promotions
4. Set up payment options
If you’re in Kenya or other African countries:
- Use M-Pesa via Selar or Paystack for easy local payments
- Use Gumroad or Payhip for international buyers
5. Market your product
Marketing is everything. Use:
- TikTok to share short educational clips
- Instagram for carousels and quotes from your eBook
- Email marketing to build trust
- YouTube or a blog to create evergreen content
Remember: focus on solving problems, not just selling.
Common Mistakes Beginners Make
When starting with digital products, I see beginners make the same few mistakes repeatedly:
❌ 1. Overthinking the product
You don’t need the “perfect” product — you need a valuable one. Start with an MVP (minimum viable product). You can always update it later.
❌ 2. Ignoring marketing
Many people create eBooks and wait for magic. Marketing drives sales.
Use social media, create lead magnets, and show up consistently.
❌ 3. Pricing too low
You’re not selling a file — you’re selling transformation.
People pay for clarity, not pages. Don’t underprice your expertise.
❌ 4. Not building an audience
Your followers are your future buyers. Share free value on TikTok, Facebook, or X to attract people who care about your niche.
❌ 5. Giving up too early
Digital products can take time to gain traction. But one good product can sell for years — especially if it solves a real problem.
Why Digital Products Win in 2025
Here’s the truth:
The online landscape is changing. AI tools, content creation, and automation are making it easier than ever to package knowledge into digital form.
You don’t need to be a guru — you just need to help someone solve a problem faster.
While dropshipping relies on trends and ads, digital products rely on value and positioning.
And in a world where knowledge sells, that’s a powerful advantage.
So if you’re serious about building a business that lasts — not just a quick hustle — start learning how to create and sell digital products.
Final Thoughts
Dropshipping can make you quick cash — but digital products can build you long-term freedom.
You own the product, the brand, and the relationship with your buyers.
No inventory, no suppliers, no headaches.
If you’ve ever helped someone with advice, solved a problem, or explained something clearly — that could become your next digital product.
Grab the Full Guide
Want to learn how to turn your skills, knowledge, or passion into digital products that sell — even if you’re starting from scratch?
👉 Grab the full guide to creating digital products that sell.