Payhip vs Gumroad: Which is the Better E-commerce Platform?

When it comes to selling digital products online, two popular platforms are Payhip and Gumroad. Both platforms offer features that can help you sell your products online, but they differ in certain aspects.

Payhip

Payhip is an online platform that allows creators to sell digital products including ebooks, music, software, and courses directly to their customers. You can also sell physical products, but Payhip does not have any built-in features to handle shipping or inventory management. It offers a simple and easy-to-use interface that makes it easy to set up and manage your online store.

Payhip

Payhip offers a range of features that can help you sell your products, including:

  • Customizable storefronts
  • Built-in payment processing
  • Automated delivery of digital products
  • Affiliate marketing tools
  • Integration with third-party services

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Gumroad

Gumroad is another popular platform for creators that specializes in digital products, including ebooks, music, software, and templates. Gumroad also offers a feature called “Gumroad Courses,” which allows you to create and sell online courses. However, Gumroad does not support physical products.

Gumroad

It offers a range of features that can help you sell your products, including:

  • Customizable storefronts
  • Built-in payment processing
  • Automated delivery of digital products
  • Affiliate marketing tools
  • Integration with third-party services
  • Post functionality that functions like social media on your storefront

Both platforms offer a similar process for uploading and selling your products, and they both provide tools to help you market and promote your products.

Selling and Transaction Features

When it comes to selling digital products, Payhip and Gumroad both offer a range of features to make the process as smooth as possible.

One of the most important factors to consider when choosing a platform is the transaction fee. Payhip offers a free plan with a 5% transaction fee, a Plus plan for $29 per month with a 2% transaction fee, and a Pro plan for $99 per month with a 0% transaction fee. On the other hand, Gumroad is completely free to use with a 10% transaction fee.

If you’re just starting out and want to test the waters, Payhip’s free plan might be a good option for you. However, keep in mind that you’ll have to pay a 5% transaction fee on each sale. Gumroad’s free plan might be more expensive with a 10% transaction fee, but it has more features than Payhip’s free plan.

If you’re serious about selling digital products, you might want to consider Payhip’s Plus or Pro plan. The Plus plan offers a lower transaction fee of 2% and more features than the free plan, while the Pro plan offers a 0% transaction fee and even more features. Gumroad’s Premium plan might be a good fit for creators who want to unlock more features, but don’t want to pay the higher monthly fee of the Business plan.

Both platforms offer easy payment processes, with Payhip accepting payments in USD, GBP, EUR, AUD, and CAD, while Gumroad accepts payments in USD, EUR, AUD, CAD, and GBP. Gumroad also allows you to set your own currency conversion rates, giving you more control over your sales.

Another important aspect to consider is the payment threshold. Gumroad has a minimum payout threshold of $10, while Payhip has a minimum payout threshold of $5. This means that you’ll need to reach the minimum payout threshold before you can withdraw your earnings.

In terms of payouts, Payhip offers weekly payouts, while Gumroad offers daily, weekly, and monthly payouts, giving you more flexibility in how you receive your earnings.

Customization and Branding

When it comes to customization and branding, both Payhip and Gumroad offer a decent amount of flexibility.

Both platforms allow you to use your own custom domain, which is great for branding purposes. They both offer the ability to customize the colors of your storefront to match your brand.

In terms of storefront design, Gumroad has a slight edge as it offers more pre-designed themes to choose from. However, Payhip offers more flexibility in terms of customizing the layout of your storefront using CSS skills.

Payhip also allows you to add custom HTML and CSS code to your storefront, giving you even more control over the design and branding of your store.

Here’s a quick summary of the customization and branding features of both platforms:

FeaturePayhipGumroad
Custom DomainYesYes
Customizable ColorsYesYes
Pre-designed ThemesNoYes
Custom Layout using CSSYesNo
Custom HTML and CSS CodeYesNo

Marketing and Promotion Tools

Marketing and promotional tools are crucial factors for the success of your business. Luckily, both Payhip and Gumroad offer a variety of tools to help you reach your audience and increase your sales.

Email Marketing

Both platforms allow you to collect email addresses from your customers and potential customers. This is an important tool for building your email list and keeping your audience informed about new products, sales, and promotions.

Payhip also offers integration with popular email marketing services like Mailchimp,Beehiiv and ConvertKit, making it easy to set up automated email campaigns and track your results.

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Discounts and Promotions

Discounts and promotions are a great way to incentivize customers to make a purchase. Both Payhip and Gumroad allow you to create discount codes and run sales on your products.

Payhip offers more flexibility when it comes to creating discounts. You can set up a percentage or fixed-amount discounts, limit the number of times a discount can be used, and even create custom discount codes for specific customers or groups.

Gumroad, on the other hand, only allows you to create percentage discounts and limits the number of times a discount can be used.

Upsell and Cross-Sell

Upselling and cross-selling are effective ways to increase your average order value. Payhip offers a built-in upsell feature that allows you to offer customers a related product or an upgraded version of the product they just purchased. My wife has had a lot of success creating products with cross-sells that have significantly increased her sales.

Gumroad doesn’t offer a built-in upsell feature, but you can use their “thank you” page to promote related products or offer a discount on a future purchase.

Coupon Codes

Both Payhip and Gumroad allow you to create coupon codes for your products. Coupon codes are a great way to reward loyal customers, offer exclusive discounts, and track the effectiveness of your marketing campaigns.

Payhip offers more flexibility when it comes to creating coupon codes. You can set up percentage or fixed amount discounts, limit the number of times a coupon can be used, and even create custom coupon codes for specific customers or groups.

Gumroad, on the other hand, only allows you to create percentage discounts and limits the number of times a coupon can be used.

Integration Capabilities

When it comes to integration capabilities, both Payhip and Gumroad offer a wide range of options to connect with other services.

Payhip has integration possibilities with popular payment gateways like PayPal and Stripe. You can also integrate your Payhip store with Shopify, which enables you to sell your products on your Shopify store. Additionally, Payhip offers integration with Zoom and Calendly, which can be helpful for creators who offer online courses or consultations.

On the other hand, Gumroad also offers integration with PayPal and Stripe, which are two of the most popular payment gateways. Moreover, Gumroad has integration with Zapier, which enables you to connect your Gumroad store with many other services like Mailchimp, Salesforce, and Trello.

Support and Onboarding

When it comes to customer support, both Payhip and Gumroad offer email support, but Gumroad also has live chat support available.

Payhip provides a comprehensive knowledge base that covers most of the common issues you may face while using the platform. Gumroad, on the other hand, has a help center that contains articles and videos that cover various aspects of the platform. In terms of onboarding, both platforms are user-friendly and easy to set up, but Payhip offers a more straightforward onboarding process.

Payhip has a step-by-step process that guides you through the setup process, making it easy to create your account, add products, and start selling. Gumroad, however, has a more open-ended approach that allows you to customize your store to your liking. Both platforms offer free trials, so you can test them out before committing to a paid plan.

When it comes to user-friendliness, both platforms are relatively easy to use, but Payhip has a more intuitive interface that makes it easier to navigate and find what you need. Gumroad, on the other hand, has a more complex interface that may take some time to get used to.

Pros and Cons of Payhip and Gumroad

Here are some pros and cons of each platform to help you decide which one might be the best fit for your needs.

Payhip

Pros

  • More affordable pricing: Payhip charges a 5% transaction fee on sales, compared to Gumroad’s 10% fee.
  • Customizable storefront: Payhip allows you to customize your storefront with your own branding and design.
  • More features: Payhip offers features like affiliate marketing and email marketing integrations, as well as the ability to sell physical products alongside digital ones.

Cons

  • Limited payment options: Payhip only accepts payments through PayPal and Stripe, which may not be convenient for all customers.
  • Limited customer support: Payhip’s customer support is only available through email, which may not be as responsive as other platforms.

Gumroad

Pros

  • Easy to use: Gumroad is known for its user-friendly interface and easy setup process.
  • Built-in marketing tools: Gumroad offers features like post functionality and email marketing integrations to help you promote your products.
  • Large user base: Gumroad has a large community of creators and customers, which can help increase your visibility and sales.

Cons

  • Higher transaction fees: Gumroad charges a 10% fee on all sales, which may not be as cost-effective as other platforms.
  • Limited customization: Gumroad’s storefronts are limited in terms of design and branding options.
  • Limited features: Gumroad does not offer as many features as Payhip, such as affiliate marketing and physical product sales.

If you’re looking for a more comprehensive review of both platforms, you can check out this video below:

As you can see, both Payhip and Gumroad offer robust e-commerce features that make it easy to set up an online store and sell your products. Depending on your specific needs, one platform may be more suitable for you than the other. It’s essential to consider your specific needs and priorities when choosing a platform to sell your digital products.