If you have seen Instagram ads about making money online, you must have heard the name Digital Product at least once. With the rise of the Internet, business methods have been transformed and this opportunity has been provided for entrepreneurs and manufacturers to market new products in the form of digital products.

The term “digital product” may seem a little confusing at first. but do not worry. In this article, the introduction of the digital product, the difference between digital and traditional products, the design of the digital product, and its sale have been discussed.

What is a digital product?

Digital product means any type of product that is produced digitally or electronically and is available for buying and selling on the Internet. These products are often used online. Unlike a physical product that is purchased and needs to be packaged and shipped, digital products are delivered over the Internet and are usually available immediately after purchase.

For example, you used to have to go to a bookstore and buy a physical book to buy a new book, but now you can easily download e-books from the Internet and read them on your electronic devices.

Digital products include websites, computer programs, e-books, music, videos, audio and video files, software, computer games, and even graphic designs and formats. These products are offered online and are delivered to customers through the Internet without the need for physical delivery.

Difference between digital product and physical product

Physical products such as clothes, cars, electronic devices, books, etc. are tangible. However digital products exist only in the digital world and do not have a physical form. Because of this, they are easier to distribute and usually less expensive than physical products.

The biggest difference between digital and physical products is that digital products can be edited and updated. Also, usually, the customer can use it unlimitedly by purchasing digital products.

The impact of digital products on different industries

Digital products have had a wide impact on various industries and have significantly changed the shape and image of business processes.

The most important impact of digital products is in the e-commerce industry. Digital products have caused a significant increase in online sales by providing online sales platforms and changing the buying and selling pattern. In addition, digital products in the software industry such as Microsoft and Adobe have been affected by the development and provision of various tools, including management systems and business tools.

Another area that has grown well under the influence of the development of digital products is the online education area. By providing a space to provide online training courses, digital products have made it easier for people to access educational resources and also make the learning experience more enjoyable for people.

Online media and entertainment industries such as Netflix, YouTube, and Spotify have also changed the entertainment and media experience in a new way by providing digital content through streaming and online platforms.

Advantages of digital products

Designing and selling digital products is a great money-making option for creative entrepreneurs. Digital products are considered a safe and excellent choice for earning money due to their positive features.

1. Scalability

Digital products are often infinitely scalable. Once a training course or e-book is sold, there is no need to reproduce them. It is enough for the user to access that digital product after payment.

2. Permanent income

Some digital products or services are sold on a membership or subscription model. This can generate constant revenue for a business. Most software companies like Microsoft, as well as subscription content like Netflix, work this way.

3. Simplicity

Physical products require manufacturing, quality control, transportation, and many other things. Digital products do not have these challenges, in other words, digital business will be much more productive if it is implemented in principle.

4. automation

Digital products allow businesses to automate various processes such as sending welcome emails, responding to customer messages, automatically processing orders, or managing databases. By using automation in digital businesses, in addition to saving time and money, it also improves the quality of services provided to customers.

5. Easy development

Designing and developing digital products using dedicated tools, software, or platforms is not difficult. In other words, using these tools, product managers can design digital products at high speed without the need for deep knowledge in the field of programming or complex technical abilities.

Challenges of selling digital products

Along with all the wonderful features and benefits that digital products have, they may also create challenges for product design and development teams:

1. Market saturation

The market of digital products is full of creativity and new ideas. As a result, the saturation of the digital product design market reduces the desire of customers to buy your product. Because there are many choices in the market it may be difficult for the audience to understand the differences and values of different products.

2. High competition

With the entry of new people and companies into the digital products market and the increase in communication and advertising opportunities and facilities, the competition in this space has increased.

In general, competition in the digital space improves the quality of products, services, and marketing strategies. However, it may reduce prices, reduce differences between similar products or services, and even create a very tight and tough competitive environment. To win this competition, one should use unique marketing strategies by identifying strengths and differentiators in the product or service.

3. The presence of free content

With so much free content on the Internet, customers may feel that it might be better not to pay for a digital product purchase because there is so much similar free content available.

4. Customer fatigue

In today’s world where we are all exposed to advertising bombardment, people are faced with various digital product offers from all sides, which if too much, may cause the audience’s attention to digital products to decrease.

5. Feeling of the low value of the product

Some people consider digital products to be less valuable than physical products. For this reason, it is necessary to clearly show the value and advantages of the digital product to the user.

The common point of all the challenges raised in this section is digital marketing. In other words, a digital product is successful when various digital marketing strategies and tools are used to sell it.

Digital product design and manufacturing process

The stages of designing, developing, and selling digital products may vary depending on the type of product and business conditions. But the general framework of this process is as follows:

1. Determining the goal and requirements

The first and perhaps the most important step is to know exactly the needs of the market and the target audience. The product manager needs to determine what needs the digital product will address and how it will help them.

2. Research and planning

After knowing the needs, it is necessary to conduct more detailed research about the market and competitors. This stage includes investigating customer behavior, studying trends, and preparing business plans based on data obtained from research.

3. Product development

At this stage, the digital product is implemented. This stage includes coding, content editing, and design.

4. Test and feedback

After development, the product needs to be tested and evaluated from different aspects. Many product designers ignore this step. As a result, their final product is not efficient enough.

5. Marketing and sales

After the product is ready, the process of selling the product should be started by formulating marketing strategies.

6. Continuous support and improvement

The process of developing and selling digital products does not end with its sale. One of the most important factors that make users interested in a digital product and introduce it to others is the provision of after-sales services, customer support, and continuous improvement of the product based on the feedback received.

7. Analysis and optimization

Product design professionals should regularly monitor digital product data, and have a detailed plan to improve the processes and performance of the digital product, and its sales in the future.


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