Can You Sell Digital Products on Amazon? Amazon's Digital Services Hub Explained

One of the best modern entrepreneurial opportunities is selling digital products. Not only are they highly scalable, they’re free or cheap to produce and allow passive income.

Choosing a platform to sell on is one of the most important considerations for anyone hoping to cash in, and with Amazon’s enormous reach and customer base, many creators and entrepreneurs are wondering if it’s possible to sell digital products on Bezos’ massive empire.

In this guide, we’ll go over everything you need to know about selling digital products on Amazon. You’ll also learn which products are best to sell and your income potential, along with whether or not this pursuit is worth it given other alternatives.

Can You Sell Digital Products on Amazon?

The short answer to this question is yes - however, the reality for those who want to pursue digital product sales on Amazon is that you need to adhere to the platform’s sometimes stringent rules if you want to play this game.

You can’t sell just any digital product on Amazon – we’ll get to the exact products you can sell later. For those that can fit into Amazon’s digital products ecosystem, a solid stream of income that reaches the largest ecommerce audience in the world is possible.

Amazon’s Digital Services Hub: Everything You Need to Know

For any aspiring digital product creator who is looking to tap into the full potential of the platform, it’s important to gain a solid base understanding of the nature of the digital products marketplace on Amazon.

Amazon’s Digital Services is the core hub that drives the distribution of all digital products on the platform. In addition to making for a pleasant buying experience for customers, it offers creators and sellers of its specific products an opportunity to launch to their large and loyal audience.

As a seller of digital products on Amazon, you’ll gain access to a seller dashboard complete with insights that can help you track your product sales and optimize listings. Depending on the type of product you’re selling, you can collect one-time payments, subscriptions, or royalties.

However, you can’t sell just any type of digital product here. Amazon’s Digital Services limits products to specific categories, complete with their own guidelines. In the following section, we’ll go over the exact products you can create and list on Amazon and examples complete with income potential.

8 Digital Products That You Can Sell on Amazon

1. eBooks

One of the most popular digital products you can sell on Amazon is an eBook. Amazon started as a marketplace for books, so it’s no surprise that it still stands as one of the largest categories. With the shift to everything becoming digital and the rise of the Kindle, a large percentage of all books purchased on Amazon are eBooks.

While there are many well-known authors who you will inevitably compete against if you list an eBook on Amazon, there’s still an audience for independent up-and-coming authors. There are many success stories about first-time authors who self-publish on Amazon with their Kindle Direct Publishing (KDP) program and go on to make a solid monthly income that is largely passive. However, one of the most important factors to success is the category and type of eBook that is sold, so although you should write about something you’re passionate about, you should also be strategic in your topic choice.

Best types of eBooks to sell

For independent authors, the best types of eBooks are those with high demand and more openness to newer authors. Some of the top selling categories that include independent authors in the upper ranks include personal development, kids' books, romance and thriller novels. It’s still important to write about a topic that you’re passionate about so you can more easily resonate with and target your intended audience.

How much can you make selling eBooks on Amazon?

As with every other product on Amazon, both digital and physical, your place on Amazon’s Best Seller Rank (BSR) will determine the volume and thus the revenue and how much you can make with eBooks.

An example of a highly successful eBook would put you in a BSR of around 1000, and according to the Kindle Best Seller calculator, you would be earning nearly $5000 per month with over 100 copies sold per day, based on a royalty rate of 35% at an average price point of $3.99. Royalties for eBooks on Amazon range from 35-70%, and pricing ranges from $0.99 to $200, although you’ll have the most success if you price the books on the lower end as this is what buyers are expecting.

Getting in the top 10,000 BSR in a popular category will earn you an income of at least $100 per month, and you can increase your rank with creative promotional strategies like BookTok which many new authors find an efficient pathway to success.

How to Sell eBooks Online: From Choosing a Niche to Publishing Your Book

2. Audiobooks

Audiobooks have seen a surge in popularity in recent years, and with Amazon’s acquisition of one of the most popular audiobook platforms, Audible, authors now have the opportunity to cash in with audio versions of their work.

Publishing an audiobook on Amazon is a bit more of a lengthy process than using KDP to publish an eBook, as you’ll first need to prepare the audio file for the narration which will then be uploaded for approval on Amazon’s Audiobook Creation Exchange (ACX). You can choose to narrate the audiobook yourself or find a dedicated narrator that matches the tone you are looking for right on ACX. The cost of narrating an audiobook is much higher than the production of a written eBook, with a price of around $1000 for an average book with 5 hours of recorded length.

Best types of audiobooks to sell

The types of audiobooks that do well are generally the same as eBooks, with many independent authors finding success with self-help, business, thrillers and romance.

How much can you make selling audiobooks on Amazon?

For audiobooks, Amazon pays a royalty rate 25-40%, depending on whether or not you grant the platform exclusive distribution rights. Customers pay an ongoing membership fee to access audiobooks for free, but your royalty will be based on a net sales price. This is around $10 on average, meaning you’ll earn $2.50-$4 per sale, which is higher than average eBook earnings. An example above shows a BSR of 4000 and 27 books per day sold, which is roughly $50-$100/day or approximately $1500-$3000 per month.

3. Music

With Amazon’s recent partnership with TuneCore, a leading distribution platform for self-releasing artists, independent musicians have a means to gain an audience and income stream with their reach.

Your exposure will then expand beyond Amazon Music to other distribution channels via TuneCore, giving you a wider reach and the ability to gain income through streaming royalties.

Best type music of to sell

Just about any genre can find success on Amazon if the creator knows how to engage with and reach a core audience. Some particularly popular categories on Amazon Music include indie and alternative rock, electronic and dance music, and ambient music.

How much can you make selling on Amazon?

The amount of money you can make as a musician who publishes work on Amazon is based on the number of streams you get, which is most easily calculated per 1000 streams, as the dollar amount per stream is quite low.

In the case of Amazon Music, artists are awarded roughly $0.0004 per stream, or about $4 per 1000 streams, meaning that to generate a side hustle income of about $400 per month, you would have to get 100,000 streams monthly.

4. Apps

Amazon’s app store is home to a variety of apps, many of which are made by indie developers. If you’re technically inclined and ready to launch to a large audience, you should consider publishing your app there.

Although its market doesn’t have the reach of Apple’s App Store or Google Play, it presents opportunities for unique products, particularly for those that are optimized specifically for Amazon devices such as Alexa Skills. There’s also a large international market for apps on the platform, with over 200 countries being served on Amazon’s App Store.

Best type of app to sell

The best-performing categories on Amazon’s app store include productivity and organization tools, children’s educational apps, health trackers, and ambient sound generators.

How much can you make selling apps on Amazon?

Amazon’s royalty structure for apps allows creators to keep 70-80% of the sales price of the app, depending on the app price. Most apps in the Amazon App Store cost between $3.99 and $9.99. So, if your app makes 100 sales per month – a fairly attainable goal – you’ll earn roughly $280-$800 monthly.

5. Games

One of the most popular categories on Amazon’s App Store is games, so if your goal is specifically to become a game developer, you should consider using Amazon as your home to launch.

With a large audience of people with Amazon devices seeking games that are native to their hardware, many developers have taken on the task of launching their games to this audience, with some making good amounts of money. Some independently made games such as Monument Valley which have found success on Apple’s App Store have been able to repeat it on Amazon, netting millions and proving the demand for games made specifically for the platform.

Best types of games to sell

The best types of games include brain puzzles, word games, role-playing games and games focused towards kids.

How much can you make selling games on Amazon?

The commission structure to Amazon for games is the same as any other app, meaning you’ll pay the platform 20-30% in commission. Games are more likely than apps to have in-app purchases, so adding those can increase your monetization. Games are mostly priced between $2.99-5.99, so if you sell 10,000 copies in a year you’re looking at an annual profit of between $21,000-$42,000 roughly with additional income based on in-app purchases.

6. Digital art

Amazon’s Merch by Amazon program makes it easy for anyone with an eye-catching design or piece of art to get their work out there on several mediums, from posters of various sizes to tees, coffee mugs, and phone cases.

Digital artists have found this program to be one of the best ways to monetize their work, with some even utilizing AI to aid in the design process in terms of ideation, speed, and volume.

Best type of digital art to sell:

Digital art that flies off the virtual shelves of Amazon will primarily be eye-catching, which is somewhat subjective but is either minimalist or intricate and inspiring. You can have a look at top sellers for design inspiration and keywords to use. Additionally, seasonal-themed work sells well.

How much can you make selling digital art on Amazon?

Your earnings on Merch by Amazon depend on what you’re selling, how you price it, and your royalty tier. Royalties range from 13-37%. Given a starting royalty tier and a product such as a poster priced at $10, you’re looking at earning about $600-700 per month if you sell 100 posters monthly.

7. Print-on-demand

Amazon offers print-on-demand in various categories, including tees, posters, phone cases, and coffee mugs. Kindle Direct Publishing is also technically a form of print-on-demand as it allows the option for buyers to get physical copies on request.

Best type print-on-demand of to sell:

While you can sell digital art to be printed on demand, you can also sell much simpler designs such as text like inspirational or trending quotes which always rank amongst the best sellers in addition to funny or intellectual text and word play.

How much can you make selling print-on-demand on Amazon?

Your royalty structure and thus income with print-on-demand on Amazon varies based on the product and category you’re selling. One of the most popular methods for beginners is to sell a tee, and with a starting royalty of 25% in that category, you’re looking at making around $15 per $20 tee sold, so if you sell 100 tees per month you’ll earn about $1500 monthly.

The best print-on-demand products to sell

8. Video Content

Prime Video Direct allows content creators to get their videos in front of Amazon’s massive audience of Prime subscribers, and it rewards creators based on hours streamed.

Since Prime Video isn’t quite as known for having instantly recognizable series like Netflix, you’ll have a shot at getting your film or show in front of a more curious audience with Amazon. Additionally, requirements and eligibility for listing on Prime Video are much less stringent than a larger publisher.

Best type of video to sell

As an independent producer, you’ll have the highest chance for success if you release a documentary or docuseries. Audiences are most open to documentaries on societally poignant or controversial topics and they don’t care who made it, they just care if it’s made well, thoroughly researched, and provocatively presented.

How much can you make selling videos on Amazon?

Video creators on Amazon get paid by hours streamed, and in the US, the earnings are set between $0.06 and $0.15 per hour streamed. So in order to make an income of $1000 per month from selling videos on Amazon, you’d need roughly 10,000 hours streamed per month, which is possible if you reach a viewership of about 5 to 10 times that amount if your average viewing duration is 10-20 minutes.

Best selling digital products on Amazon, and how you can sell them too

What are the Benefits of Selling Digital Products on Amazon?

Selling digital products on Amazon comes with several advantages that make it attractive for entrepreneurs and creators looking to move non-physical inventory.

Whether you’re an author, artist, developer, film producer or creative entrepreneur, the platform can be a good environment to launch and market your product.

Here’s a list of the top benefits for owners of virtual storefronts on Amazon:

Easy fulfilment

Once your digital product is uploaded and approved, Amazon will take care of the entire delivery process and even basic customer service. Since you don’t have to worry about shipping or inventory management, selling digital products is much more convenient than handling physical inventory so it’s even one step above the convenience of Amazon FBA, another business model in which the platform handles the delivery of inventory.

The ecommerce fulfillment process for digital products

Customer trust

Amazon has made a name for itself as a trusted and preferred place to buy products of any kind online, including digital products like eBooks and video especially with the popularity of Kindle and Prime Video. Even less well-known offerings like Merch by Amazon and Amazon Music and App Store still have associated brand-name trust, meaning that potential customers are more likely to give you a chance even if they’ve never heard of you simply because you’re listed on Amazon.

Wide and global reach

The customer base of Amazon is massive, with an estimated dominance of around 50% of the entire online shopping market in the US alone. Globally, the brand is making massive progress on its way to taking a larger market share, and with digital products, you can reach international audiences more easily thanks to instantaneous fulfillment over the internet without the complexities of international shipping or customs.

Actionable data

As a seller of any product on Amazon, you’ll be able to view public data surrounding best seller rank which will help you to gain insights regarding whether or not a product is worth launching based on BSR, competition, and overall market trends. Additionally, you’ll be able to access a seller dashboard which will give you a clear snapshot of your product’s reach and performance.

Are There Any Downsides to Selling Digital Products on Amazon?

While Amazon offers some attractive benefits for digital product creators, the downsides can be quite significant, especially for those who want more creative freedom and a stronger personal brand. Here are some of the most concerning drawbacks of selling digital products on Amazon:

Restrictive

Amazon is notoriously restrictive for all sellers, and with digital products, sellers must comply with formatting, requirements and pricing that align with the platform. Even when you’re done creating your product, you’ll have to wait for approval before going live, which can sometimes be a lengthy process. Additionally, you’ll need to sell in one of their established categories, and if your product doesn’t fit neatly into one of them, you will struggle to reach your intended audience.

High royalties

Although their reputation and reach will help you reach customers, the royalty you pay to Amazon can cut into profit margins quite a bit. Ebooks in particular have rates of up to 70% of your product’s price being paid to the platform. On average, you should expect to pay around 30% or more of your product’s sale price to Amazon, which is quite significant, and this doesn’t even include other potential seller fees associated with using the platform to sell digital products.

Exposure to competition

In most digital product categories on Amazon, you’ll be selling amongst highly reputable competition. For example, the Kindle store is full of well-known authors, and Prime Video and Amazon Music have established artists topping the BSR pages. Even more generic categories for digital products like Merch by Amazon will publicly expose you to competition who might be better funded or more experienced, cutting into your potential income.

Brand dilution

As a seller on Amazon, you’re inevitably tied to the platform, with some customers associating you completely with it. So, transitioning off the platform to gain awareness directly to your brand can prove quite difficult as you’re fighting against a name that will almost always overshadow your own. Your store page will look like every other seller’s page, making it hard to stand out and be memorable enough to gain loyal customers.

Is Amazon the Best Place for Selling Digital Products?

Amazon has some advantages for creators of digital products, including the immediate trust of customers, massive reach, and the ability to quickly launch particularly with Kindle Direct Publishing and Merch by Amazon.

However, the platform is not digital products first, and it shows. While some people can establish thriving digital product businesses on Amazon, it’s generally limited to highly experienced and previously successful authors and app or game developers. In general, it can be hard to find success selling any type of product on Amazon as it’s not the most beginner-friendly and is known for several restrictions, particularly with digital products.

So, if you’re just starting out in an online business, reselling physical products on Amazon is perhaps the best bet for you to leverage the platform’s advantages to turn a profit.

Whop: A Dedicated Digital-Product Platform

If you’re looking to cash in with digital products without any limitations, Whop is a platform that was made with digital product creators in mind first.

Unlike Amazon, Whop is full of creators offering a broad variety of products, ranging from info products like eBooks and video courses to SaaS and paid, private communities.

What sets Whop apart is its creator-first mentality, which is apparent in the ease at which someone can set up shop and start selling their digital products on the platform. Unlike more rigid platforms, Whop allows creators to launch their offerings with minimal friction, completely for free, with 24/7 help from real humans along the way.

Additionally, creators can create their very own corner of the internet - a whop, complete with numerous free apps that can host a forum, files, chat and more.

Success stories of sellers who launched digital products on Whop include:

On top of all the perks, features and support you’ll get as a seller on Whop, you’ll also get access to a powerful dashboard complete with easy-to-configure payments. Best of all, unlike other similar platforms, becoming a seller and listing your product on Whop’s thriving marketplace is free. Whop takes just a 3% cut of your sales - much better than Amazon's 35-70%!

Start Selling Your Digital Products with Whop

If you’re ready to join the ranks of savvy entrepreneurs who have taken advantage of the golden opportunity of selling digital products on an active and growing marketplace, there’s no better time than now to jump on board with Whop.

With millions of potential buyers coming through per month, here’s all you need to do to get started:

Head over to Whop.com and sign up for your free account
Set up your very own whop, which will act as your storefront
Upload your products
Pick your prices and payment method – you can pick one-time, recurring or a combination of both
Launch!

The next success story could be yours, so if you have an idea and an intended audience, take the first step and get your store set up and share it with the world with Whop today.

Start selling with Whop

FAQs

What digital product is best to sell on Amazon?

While this answer could vary depending on someone’s personal skill sets, in general, the digital product with the best opportunity to create income on Amazon are either ebooks or print-on-demand. Both are relatively easy to produce and have a large enough market to welcome lesser known creators. Developers who have experience creating apps or games can also make an Amazon-device specific version and do quite well with it on Amazon’s App Store.

How much money can you make selling digital products on Amazon?

The income potential from selling digital products on Amazon varies widely and depends on your product price, royalty structure, and potential reach. To give some specific examples, a moderately successful ebook author who is earning 70% in royalties on a book that is priced at $10 will make $700 per month if they sell 100 copies monthly. Top earners can earn 10 times that or more, but your earning potential depends on competition and how well you can market your offering outside of Amazon.

Is selling digital products on Amazon worth it?

Selling digital products on Amazon can be worthwhile for many creators who benefit from the platform’s large and loyal customer base and established infrastructure that allows for relatively easy publishing of offerings with Kindle Direct Publishing or Merch by Amazon. However, it’s good to keep in mind the generally restrictive nature of Amazon in terms of choice and formatting of digital products in addition to the extreme competition from seasoned sellers in many categories. Many people would consider Amazon to be a better home to a physical products store for these reasons.

What are alternatives to selling digital products on Amazon?

Several platforms cater specifically to selling digital products, including Udemy, Teachable and Whop. When picking a platform, be sure to consider important factors such as cost, fees, infrastructure, and ease of use. You should also consider whether or not the platform has its own marketplace and how relevant their audience is to your intended product.

How do royalties work for digital products on Amazon?

Royalty structures on Amazon vary by product type. A royalty fee means that Amazon takes a percentage of each sale, while the remainder, which is the royalty, goes to the creator. For example, an ebook with a 35% royalty with a price of $10 will pay out $3.50 to its creator for each sale, and at 70% and the same price, the creator will make $7. Keep in mind that other fees may be added each time you sell a digital product on Amazon such as VAT and potential delivery costs.

Is it better to sell digital or physical products on Amazon?

The choice between selling digital and physical products depends on a creator’s skills, resources and target market. In general, digital products can be launched with lower initial overhead, but are more likely to require extensive marketing to rise up the BSR ranking to get organic sales compared to physical products, particularly brand name items that resellers can list and sell quickly. Generally speaking, especially for beginners, Amazon is better for selling physical products rather than digital unless they have a specific approach and strategy that will give them an advantage.