Digital products on Etsy are the closest thing to a passive income machine that most beginners will find. You create a product once — a template, a planner, a set of wall art prints — and sell it an unlimited number of times with zero inventory, zero shipping, and near-zero marginal cost.
The margins are extraordinary. A digital planner that took 8 hours to create and sells for $9.99 can generate hundreds or thousands of sales. After Etsy’s fees (roughly 10-12% per transaction), your profit on each sale is $8 to $9. No packaging, no post office runs, no restocking. The customer downloads instantly, and you earn while sleeping.
That’s the good version. The reality in 2026 is more complicated.
The digital product market on Etsy has exploded. AI tools have lowered the creation barrier to near zero, flooding categories with generic templates and AI-generated art. Competition in popular categories like “budget planner” or “wedding invitation template” is brutal. And Etsy’s algorithm increasingly favours sellers with established review histories and consistent sales velocity.
But opportunity absolutely exists — if you know which products are selling, how to differentiate in saturated categories, and where the gaps are that most sellers miss.
A Different Kind of Digital Income
Digital products on Etsy can work well. But they require ongoing listing creation, SEO optimisation, and competitive monitoring. If you’re looking for digital income that’s more hands-off once established, consider what I do.
I build simple two-page websites that show up in Google for local service businesses. Each site generates $500 to $1,500 per month in recurring revenue. No products to create, no marketplace competition, no customer support.
Now — what’s actually selling on Etsy.
Why Digital Products Are Etsy’s Fastest-Growing Category
Digital downloads have become Etsy’s most profitable product category for sellers, and for good reason.
Infinite inventory. Create once, sell forever. No restocking, no production capacity limits.
Near-zero fulfilment cost. Etsy handles digital delivery automatically. No shipping, no packaging, no materials.
High margins. After Etsy fees, digital product margins typically range from 75% to 90%. Compare that to physical handmade products where margins often land at 30% to 50% after materials, shipping, and packaging.
Global market. Digital products sell to anyone with internet access. No international shipping complications, no customs, no delivery anxiety.
Scalability. A physical product seller is limited by how many items they can make. A digital product seller is limited only by how many products they can create and how well they can market them.
The 12 Best-Selling Digital Product Categories on Etsy
1. Planners and Organisers
What sells: Digital planners for iPads (GoodNotes/Notability compatible), printable planners (daily, weekly, monthly, annual), budget planners, meal planners, fitness trackers, habit trackers, cleaning schedules, and homeschool planners.
Price range: $3.99 to $19.99. Comprehensive bundles (50+ pages) command premium prices.
What’s working in 2026: Niche-specific planners dramatically outperform generic ones. A “Veterinary Clinic Manager Planner” has far less competition than a generic “Daily Planner.” Wedding planners, pregnancy planners, and small business planners sell consistently because buyers are emotionally invested in the outcome.
AI impact: Generic planners created with AI are flooding the market. Differentiate with genuinely thoughtful page layouts, cohesive visual design, and niche-specific content that AI generators don’t produce well.
2. Wall Art and Printable Art
What sells: Minimalist line art, botanical prints, abstract art, nursery decor, gallery wall sets, seasonal art collections, and typography prints.
Price range: $2.99 to $14.99 per print. Sets of 4 to 6 coordinated prints sell for $12.99 to $24.99.
What’s working in 2026: Curated gallery wall sets (6 to 10 coordinated prints sold as a bundle) outsell individual prints because buyers want a cohesive look without doing the design work. Seasonal collections that rotate (spring florals, autumn landscapes, holiday themes) drive repeat purchases.
3. Social Media Templates
What sells: Canva-editable Instagram post templates, story templates, Pinterest pin templates, LinkedIn carousel templates, TikTok thumbnail templates, and complete social media branding kits.
Price range: $7.99 to $29.99 for template packs of 20 to 100+ designs.
What’s working in 2026: Templates for specific industries perform best. “Social Media Templates for Real Estate Agents” converts better than “Social Media Templates.” Bundles that include both feed posts and stories in a cohesive design system command the highest prices.
4. Resume and CV Templates
What sells: Modern, ATS-friendly resume templates for Word, Google Docs, and Canva. Cover letter templates, LinkedIn banner templates, and complete job application kits.
Price range: $5.99 to $15.99.
What’s working in 2026: Industry-specific resume templates (creative roles, tech, healthcare, executive) and templates optimised for ATS (Applicant Tracking Systems) sell better than generic designs.
5. Wedding Stationery
What sells: Editable wedding invitation suites (invitation, RSVP, details card, save the date), seating charts, table numbers, wedding timeline templates, and welcome sign designs.
Price range: $8.99 to $34.99 for complete suites.
What’s working in 2026: Canva-editable templates dominate because brides can customise without design software. Complete stationery suites that match (same fonts, colours, design elements across all pieces) outsell individual items significantly.
6. Business Templates
What sells: Invoice templates, business plan templates, proposal templates, client onboarding packets, service agreement templates, brand guideline templates, and media kit templates.
Price range: $5.99 to $24.99.
What’s working in 2026: Templates targeting specific professions — photographers, coaches, freelancers, consultants — sell better than generic business templates.
7. Educational Resources
What sells: Worksheets, flashcards, lesson plans, homeschool curricula, reading logs, and educational activity bundles for specific age groups or subjects.
Price range: $2.99 to $19.99 for bundles.
What’s working in 2026: Homeschool resources remain strong sellers. Grade-specific and subject-specific bundles (e.g., “3rd Grade Math Practice Bundle — 200 Pages”) perform well. Teachers-Pay-Teachers sellers are increasingly cross-listing on Etsy for additional reach.
8. Notion Templates
What sells: Notion dashboards, project management templates, habit trackers, content calendars, CRM systems, student planners, and life management systems — all built within Notion.
Price range: $3.99 to $19.99.
What’s working in 2026: Notion’s user base continues to grow, and demand for pre-built templates is strong. The most successful sellers create comprehensive “life OS” or “business OS” templates that bundle multiple systems (project tracking, finances, goals, habits) into a single purchase.
9. Spreadsheet Templates
What sells: Budget trackers (Google Sheets and Excel), financial dashboards, debt payoff calculators, inventory management sheets, and business analytics templates.
Price range: $4.99 to $14.99.
What’s working in 2026: Financial spreadsheets with built-in formulas and visual dashboards sell consistently year-round. “Debt Snowball Calculator” and “Monthly Budget Dashboard” are evergreen bestsellers.
10. Patterns (Sewing, Crochet, Knitting)
What sells: PDF sewing patterns, crochet patterns, knitting patterns, embroidery patterns, and cross-stitch designs.
Price range: $3.99 to $14.99.
What’s working in 2026: Detailed patterns with step-by-step photos or illustrations command higher prices. Video tutorial add-ons create upsell opportunities.
11. SVG Cut Files
What sells: SVG files for Cricut and Silhouette cutting machines — used for vinyl decals, t-shirts, mugs, tumblers, and craft projects.
Price range: $1.99 to $6.99 per file, $12.99 to $29.99 for bundles.
What’s working in 2026: Seasonal SVG bundles (Christmas, Halloween, Valentine’s Day) sell in volume. Niche-specific designs (occupational humour, hobbies, family milestones) outperform generic quotes.
12. Photography Presets and Digital Brushes
What sells: Lightroom presets, Photoshop brushes, Procreate brushes, and photo editing filter packs.
Price range: $4.99 to $19.99 for preset packs.
Profitability Comparison Table
| Product Type | Creation Time | Avg. Price | Monthly Sales Potential | Competition Level |
|---|---|---|---|---|
| Planners/Organisers | 4-12 hours | $5-$15 | 20-200+ sales | Very High |
| Wall Art | 1-4 hours/piece | $3-$15 | 10-100+ sales | Very High |
| Social Media Templates | 6-15 hours/pack | $10-$25 | 10-50+ sales | High |
| Resume Templates | 3-6 hours | $6-$15 | 20-100+ sales | High |
| Wedding Stationery | 8-20 hours/suite | $10-$35 | 10-100+ sales | High |
| Business Templates | 4-10 hours | $6-$20 | 5-30+ sales | Moderate |
| Educational Resources | 6-20 hours/bundle | $5-$20 | 10-100+ sales | Moderate |
| Notion Templates | 4-12 hours | $5-$15 | 5-50+ sales | Moderate-High |
| Spreadsheets | 3-8 hours | $5-$15 | 10-50+ sales | Moderate |
| Patterns | 4-15 hours | $4-$12 | 10-100+ sales | Moderate |
| SVG Cut Files | 1-3 hours/file | $2-$7 | 20-200+ sales | High |
| Photo Presets | 2-6 hours/pack | $5-$15 | 5-30+ sales | Moderate |
How to Stand Out in a Crowded Market
1. Go Narrow
The #1 mistake digital product sellers make is targeting broad categories. “Budget Planner” has tens of thousands of competing listings. “Budget Planner for Travelling Nurses” has a fraction of the competition and a highly motivated buyer.
Find your niche by combining a product type with a specific audience: profession, hobby, life stage, or lifestyle. The more specific, the less competition and the higher the conversion rate.
2. Create Bundles, Not Singles
Bundled products at higher price points generate more revenue per sale and appear more valuable. Instead of selling a single weekly planner page for $3.99, sell a “Complete Life Management Bundle” with 60 pages covering daily planning, meal prep, fitness tracking, budget management, and goal setting for $14.99.
3. Invest in Listing Quality
Your listing photos, title, tags, and description directly determine whether Etsy shows your product to buyers. Use mockups that show the product in real-life context (a planner displayed on an iPad on a desk, wall art framed in a living room). Write keyword-rich titles. Fill all 13 tag slots with researched terms.
4. Leverage Seasonal Demand
Digital products have massive seasonal spikes. New Year (planners, budgets, goal-setting). Back to school (educational resources). Wedding season (stationery). Holidays (party templates, gift tags, seasonal art). Plan your product calendar around these spikes and have listings ready before peak search periods.
5. Disclose AI Usage and Prioritise Human Touch
Etsy requires AI disclosure on product listings. More importantly, buyers increasingly prefer human-designed products. Use AI as a tool to speed up your workflow, but ensure your final products have genuine human design thinking — thoughtful layouts, cohesive aesthetics, and niche-specific content that AI alone doesn’t produce.
Etsy Fees for Digital Products
Understanding the full fee structure is essential for pricing correctly.
- Listing fee: $0.20 per listing (renewed every 4 months or upon sale)
- Transaction fee: 6.5% of sale price
- Payment processing: 3% + $0.25 per transaction
- Offsite Ads fee: 15% if Etsy’s advertising drove the sale (12% for sellers earning $10,000+/year; optional below $10,000)
Total fees on a $14.99 sale (without Offsite Ads): $0.20 (listing) + $0.97 (transaction) + $0.70 (processing) = $1.87 in fees. Your net: $13.12 (87.5% margin).
With Offsite Ads: Add $2.25 (15%), reducing your net to $10.87 (72.5% margin).
These margins are still exceptional compared to physical products.
Frequently Asked Questions
What digital products sell best on Etsy?
Planners, wall art, social media templates, and wedding stationery consistently rank as top sellers. Within these categories, niche-specific products targeting defined audiences outperform generic designs.
How much money can you make selling digital products on Etsy?
Ranges widely. New sellers typically earn $0 to $100 per month in the first 3 months. Established sellers with 50+ optimised listings often earn $500 to $2,000 per month. Top sellers with extensive catalogues earn $5,000 to $10,000+ per month.
Do I need design skills to sell digital products?
Basic design skills help, but tools like Canva make professional-looking design accessible to non-designers. Text-heavy products (planners, spreadsheets, Notion templates) require less design skill than visual products (wall art, social media templates).
Is it too late to start selling digital products on Etsy?
No, but the bar has risen. Generic products in crowded categories won’t gain traction. Success in 2026 requires niche targeting, quality design, listing optimisation, and patience.
For more on Etsy selling, see my guides on how to make money on Etsy, best things to sell on Etsy, and best digital products to sell online.
Create Once, Sell Forever — But Choose Wisely
Digital products on Etsy offer genuinely excellent margins and scalable income potential. The model works. But it works best for people who enjoy creating, are willing to research niches, and will invest months of consistent effort before expecting significant returns.
If creating digital products energises you, Etsy is a great platform to build on. Start with 10 to 20 well-researched, high-quality listings in a specific niche. Optimise your SEO. Add new listings weekly. The compounding effect of a growing catalogue is real.
If you’d rather build income without creating products at all — go here to see how I generate $500 to $1,500 per month from simple websites that require no inventory, no design, and no marketplace competition.
Build what fits your skills. Whichever path you choose, commit for at least 6 months before judging results.
Mark is the founder of MarksInsights and has spent 15+ years testing online business programs and tools. He focuses on honest, experience-based reviews that help people avoid scams and find real, sustainable ways to make money online.