Payhip vs Gumroad

Payhip vs Gumroad – Which is Better Platform To Sell Products in 2022

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Selling digital products like e-books, music, and videos has always been a challenge for online stores. The reason behind this is that digital products are much easier to pirate, unlike physical products like CDs or books.

E-commerce platforms need to be creative in finding ways to prevent digital piracy. Payhip and Gumroad are two platforms aimed at providing a pay-as-you go solution for selling digital products online.

Both Payhip and Gumroad have some similarities as well as a few differences. In this blog post, we will compare Payhip vs Gumroad and will find out what is best for you.

The main differences between Payhip and Gumroad are:

  • Gumroad and Payhip both provide the option to sell digital and physical items, however Gumroad offers the pre-order feature, whereas Payhip does not.
  • Payhip offers powerful store builder, whereas Gumroad provide only basic store customization.
  • Only when the payment minimum of $10 is reached does Gumroad process the payment, whereas there are no restrictions on Payhip.
  • On Fridays, Gumroad Payment is paid whereas after selling the product on Payhip, you will be paid.

Payhip vs Gumroad: Payhip Overview

Payhip is a hosted e-commerce platform that allows you to sell digital products online. It provides everything you need to set up and manage your business, from establishing a suitable store to uploading and managing your files, as well as marketing.

Payhip vs Gumroad

Payhip was created in 2011 by Abs Farah and Kahin Farah, both London-based engineers and designers. Payhip is one of the most simple platforms to sell digital downloads and memberships. It even takes care of the payment process, including PayPal integration and collecting customer payments.

You can even use Payhip Subscriptions to sell access to your content on a recurring payment basis. Payhip also provides Analytics tools which allow you to keep track of your customers’ activities.

You can also sell physical products on Payhip, but Payhip does not provide inventory management or shipping features. You may sell your products on your existing website or social media platforms by simply embedding them and adding buy buttons.

Some features and benefits of Payhip are as follows:

  • Easy-to-use – Payhip does not require any coding or development skills. Payhip is a simple and straightforward platform that can easily be used by beginners.
  • Easy to integrate – Payhip also integrates with social media platforms such as Facebook and Twitter. Payhip also provides a WordPress plugin for adding Payhip buttons on your blog posts.
  • Secure – Payhip uses SSL encryption to ensure that your customer’s data remains secure. Payhip also provides fraud screening for debit and credit cards. Payhip also offers Pay on Delivery, allowing you to first verify that the cardholder is at the delivery address.
  • Mailing lists – Payhip allows you to quickly build a mailing list of your customers. Payhip also provides the ability to easily subscribe and unsubscribe from your newsletter by using Payhip’s subscribe and unsubscribe links.
  • Payment collection – Payhip takes care of all payment processing, including PayPal integration. Payhip also allows you to add a tax rate, and some countries require Payhip to collect sales taxes on your behalf. Payhip also provides a Pay Later option, giving you an opportunity to delay payment collection.
  • Marketing tools – Payhip provides analytics tracking and some social media integration for your Payhip store. Payhip also provides Pay Per Click (PPC) advertising opportunities through Google Ads and Facebook Advertising.
  • Analytics and Reporting – Payhip provides a powerful analytics dashboard, which shows you everything from sales and revenue statistics to where your visitors are coming from. Payhip also has a reporting function which allows you to easily create customized reports.

Payhip vs Gumroad: Gumroad Overview

Gumroad is an online platform that allows you to sell digital products directly from your website. You can use Gumroad to sell your products, or you can even use it for crowdfunding.

Gumroad vs Payhip

Gumroad was created in 2010 by Sahil Lavingia. Gumroad is a simple platform that allows you to collect payments from your customers and deliver files directly to your customers, and allows you to organize files into collections.

You can also create an online store using Gumroad Pay With Pay What You Want (PWYW) pricing, which lets you set a minimum price and allow your customers to pay what they want.

The Pay What You Want pricing is a popular model used by musicians and video producers to sell their products. The Pay What You Want pricing approach can also be used by authors, entrepreneurs and academics to sell their digital products.

Some features and benefits of Gumroad are as follows:

  • Simple – like Payhip, Gumroad is also easy-to-use. It does not require any coding or web development skills, and you can easily set up your store.
  • Secure – Gumroad uses SSL encryption to ensure that your customer’s data remains secure.
  • Easy to integrate – Gumroad also integrates with social media platforms such as Facebook, Twitter, and Pinterest. Gumroad has a number of integrations with other services such as PayPal, Pay With Amazon and Stripe.
  • Direct Payouts – Gumroad uses PayPal to process all payments, and PayPal will transfer the funds to your bank account in 1-2 business days. Gumroad does not take any commission fees on the transactions.
  • Marketing Tools – Gumroad provides smart tools such as URL shorteners and Google Analytics integration, which help you market your store.
  • Pay Later – Pay What You Want offers a Pay Later option to all your customers. Pay Later lets customers place a product in their shopping carts and checkout later.
  • Mailing lists – Gumroad allows you to quickly build a mailing list of your customers. This allows you to stay in contact with your customers, sending them updates and even special discounts.
  • Analytics – Gumroad provides a powerful analytics dashboard, which helps you see how your products are performing.

Payhip vs Gumroad: Features

Ease of Use

Payhip is simple to get started and use, requiring just your email address and a click on the Get Started button on the website.

Payhip get started

You may use the Payhip dashboard to add products, modify your store, manage payment options, establish coupons and affiliate programs for your Payhip shop.

Payhip allows you to list and sell your products in an easy and straightforward way. Adding your product is simple, as all you have to do is add your product title, picture, file, and description.

You may start selling from the hosted storefront or social media by simply including Payhip’s checkout button (or cart) on your preferred sales channel.

Payhip Pay button is compatible with PayPal and Pay With Amazon – both of which are known to be popular payment options for customers making digital purchases.

Payhip Pay button is a convenient way for your buyers to check out the products from social media or websites without redirecting them to Payhip.

Gumroad is also easy-to-use, with minimal setup required. You can start selling your products online in minutes. You can create a free Gumroad account with an email and password.

Gumroad get started

Gumroad also allows you to use social logins, such as Facebook and Twitter, to make it even easier for your customers to sign up.

You simply need to enter your product title, description, price, file name(s) and select some tags for your new Gumroad product page. You can either use Gumroad flexible page editor to create a storefront or use your own website and embed Gumroad Pay button.

Gumroad’s Pay button should be embedded in the web page or blog post you want to sell through Gumroad Pay button. You can easily integrate Gumroad Pay button to your website by copying and pasting simple HTML code provided by Gumroad for this purpose.

Verdict – Ease of Use

Both Payhip and Gumroad are easy to use, and It only takes a few minutes to set up an account. However, if you want to use your existing social network – Gumroad wins.

Setting Up Products

Payhip offers a simple product management and user interface, making it very easy to list your items. You may submit an unlimited number of products in your shop using Payhip’s simple and straightforward product management system and interface. There is no limit on the storage; however, they advise that individual files should be less than 5 GB in size.

To add a new product, go to your dashboard and click the Add Product button. It will ask you to select the type of product you want to create. Payhip supports four types of products: digital, subscriptions, coaching service and physical items.

Payhip product type

After selecting the product type, you need to enter the details such as product files, product title, price and a cover image for your product. Payhip also allows you to sell physical products and add variations (e.g. different colors or sizes) to a product.

You can also add a subscription product to your store, you need to choose the recurring price, i.e. the amount that subscribers will be charged on a recurring basis. The recurring period can either monthly, every 3 months, every 6 months, yearly, or a custom period of time.

Adding products in Gumroad is also an easy process, all you need is to enter the name of your product and price to get started. The on the next page, you can customize other information such as description, thumbnail, add files, product variations and other details.

Gumroad add product

Gumroad allows you to sell both digital and physical products as well as membership subscription similar to Payhip. Apart from this, you may list products on a pre-order basis, allowing consumers to purchase goods before they are publicly available and reducing the chance of having too many products on hand.

Verdict – Setting Up Products

Both Payhip and Gumroad offers simple product management and user interface, the ability to sell pre-orders on Gumroad gives it an edge over Payhip.

Customization

Both Payhip and Gumroad are hosted store builders, which means you don’t host the eCommerce software yourself. Instead, your storefront is hosted on Payhip’s and Gumroad’s servers.

When it comes to customizing your store, neither Payhip nor Gumroad allows you a lot of choice. These two platforms let you customize your store to a certain extent. For example, no custom theme may be used on any of these platforms. Furthermore, Payhip or Gumroad will not enable the usage of any custom plugin or app.

Payhip store builder

Both platforms allow you to customize the buy button and cart button, as well as changing the background of your product page. They also allow you to redirect your customers to a different page like our own custom thank you or checkout success page, after the checkout process.

Gumroad custom domain

Both Payhip and Gumroad allow you to connect your store to a custom domain as well show you the options to add your own custom questions while checkout. Apart from all these, Payhip also has a powerful store builder, which allows you to add header, footer, navigation links, edit colors etc.

You can even add or remove pages and create a custom home page for your store. This gives you the power to create a complete small ecommerce store to sell your products.

Verdict – Customization

Both Payhip and Gumroad allow you to customize your hosted store, but Payhip goes one step ahead and provide you a powerful store builder to customize your store. So, Payhip is a winner in customization.

Payments and Security

Payhip allows you to take payments straight from your store and uses PayPal and Stripe as two payment processors. With Stripe, you may accept credit card payments from customers in over 200 countries and also let them use their PayPal account.

Payhip payment

To safeguard the privacy of your clients, Payhip utilizes SSL encryption. Payhip also includes fraud detection for debit and credit cards. Pay on Delivery is another option provided by Payhip that allows you to double-check that the cardholder is at the delivery address before delivering the goods.

On the other hand, Gumroad offers secure payment with its PayPal integration. Users may choose to pay via credit/debit card or PayPal. Gumroad doesn’t support Stripe integration.

Gumroad payment

Gumroad follows PCI compliance standards, which are mandated by the Payment Card Industry Security Standards Council, to keep your financial information safe and secure.

There is also a difference in both platforms payouts, Payhip does not have a minimum payout amount. Whereas, Gumroad has a minimum payment threshold of $10. You will not receive your money from Gumroad unless your outstanding balance reaches this amount.

Verdict – Payments and Security

Since Payhip supports both PayPal and Stripe as well as do not have any thresholds for payments, Payhip is a clear winner here.

Marketing and Promotions

Both Payhip and Gumroad offer easy sharing. It is an important factor when it comes to marketing your products on social media.

To share a product on Facebook, Twitter, or Instagram, you only need to hit the Share button that will appear in addition to each product. No need to copy and paste anything!

Payhip coupon

You may also use Payhip and Gumroad to create discount coupons. You can develop affiliate programs. You may collect emails from followers and subscribers for email marketing purposes. Both Payhip and Gumroad work with email marketing platforms like Mailchimp, CampaignMonitor, and others.

Payhip gives you many options to promote your store and raise an awareness about it in social media. You can use different apps to share news about your products on Facebook, Twitter etc.

Payhip social discount

Payhip social boost has an interesting feature that automatically posts about new products on your Facebook page. This helps you to increase the number of visits and social engagement to your store.

You may use Payhip to market your products using the power of social media. You may give buyers incentives for tweeting or like your products. If you already have a following, this may be an effective marketing strategy to increase sales.

Gumroad discount

On the other hand, Gumroad Discover is a unique feature by Gumroad to showcase and sell the products of other creators. Gumroad will recommend your products to people who are viewing the Gumroad Discover portal if you choose this option.

Gumroad adds a 10% premium to every transaction that it helps with the Gumroad Discover platform. Both platform enables affiliate marketing. You can provide a link to your affiliate program to your followers, and they may share this link to get more sales.

Verdict – Marketing and Promotions

Both platforms offer similar marketing and promotions features, except Payhip has social boost feature whereas Gumroad has Discover features. So, it’s a tie in marketing and promotion.

Analytics and Reporting

Payhip offers great analytics and reporting capabilities, including the ability to see where your visitors are coming from, what your top-selling items are, and more.

You may follow the sources of traffic to your Payhip site, such as Direct, Google, Bing, Facebook, Pinterest. You may also monitor your sales and views using several useful graphs.

Gumroad reports

Gumroad has taken the effort to make its analytics features user-friendly. You will find all the options needed for tracking, editing, and reporting under one tab only. The reports include sales metrics in an easy-to-understand visualization.

Verdict – Analytics and Reporting

Both Payhip and Gumroad provide useful analytics features for monitoring and tracking your transactions. So, it’s a tie in analytics and reporting.

Integrations

Payhip enables you to connect Payhip with other applications, thus increasing the functionality of your online store and allowing you to automate it. You may use Google Analytics to monitor your store’s performance, including e-commerce data, by setting up tracking for it in Google Analytics. To run Facebook advertising successfully, you can add Facebook pixels to your website.

You may also connect to different email marketing applications to add purchasers to an email marketing campaign, or segment them into various groups based on the product they purchase.

Payhip integrations

You may utilize Payhip to connect with Zapier, which gives you the ability to combine with over 2000 distinct third-party applications, including MailerLite, Trello, Salesforce, and others.

Gumroad offers an extensive selection of third-party integrations that allow you to enhance the functions offered by your website. You can integrate Gumroad with WordPress, Weebly and other CMS applications to sell directly on your website.

Gumroad integrations

You can integrate Gumroad with email marketing platforms like HubSpot, Mailchimp, Campaign Monitor and others. It also supports integration with marketing automation platforms including InfusionSoft, Ontraport, Drip and many more.

You can also integrate Gumroad with Printful to create a high-quality print-on-demand product catalog that you can sell on your Gumroad store. You can also connect Gumroad with Zapier for increased functionality.

Verdict – Integrations

Both Payhip and Gumroad offer great options to integrate with other applications. So, it’s a tie in integrations.

Payhip vs Gumroad: Pricing

Payhip has three pricing levels: $0/month, $29/month, and $99/month. All plans include all features such as unlimited products, store design customization, discount codes, and more.

Payhip pricing

The three pricing plans are as follows:

  • Free Forever – $0 per month. +5% transaction fee, all Features, unlimited products
  • Plus– $29 per month, +2% transaction fee, all Features, unlimited products
  • Pro – $99 per month, No transaction fee, all Features, unlimited products

The basic difference between all plans are the transaction fees, Payhip charges for per sale. Please note – PayPal and Stripe will still charge at their standard rates once they complete a transaction. This applies for all plans.

Gumroad pricing

On the other hand, Gumroad is free to start and does not charge any monthly fees. They charge you a percentage of fee per transaction based on your lifetime earnings milestones.

  • From $0 – $999 – Gumroad fee is 9% +30c on each transaction.
  • From $1,000 – $9,999 – Gumroad fee is 7% +30c on each transaction.
  • From $10,000 – $99,999 – Gumroad fee is 6% +30c on each transaction.
  • From $100,000 – $9,99,999 – Gumroad fee is 3% +30c on each transaction.
  • From $1,000,000+ – Gumroad fee is 2.9% +30c on each transaction.

All tiers include unlimited number of products, and access to all the features. PayPal will still charge at their standard rates on each transaction.

Payhip vs Gumroad: Customer Support

Payhip provides 24-hour customer support, 7 days a week. You can submit a support ticket through your account or through email.

You may also choose to receive updates via SMS, which is sent if you have an order that’s ready for review.

Gumroad has excellent customer support options available to its users via email, online chat, and a ticketing system. There is also info available on the site about self-help options that can be used for common tasks, such as creating an order from scratch.

Currently, there are no support options available via phone.

Payhip vs Gumroad: Which One Should You Use?

In general, both Payhip and Gumroad are excellent e-commerce solutions that help entrepreneurs and online publishers create, manage, and sell their products on the internet. They both offer a wide range of features to enhance your store’s capabilities and increase its visibility.

However, you should consider some factors before deciding which platform is best for you:

  • If you need a simple solution that can help you sell a product or service, then Payhip is an excellent choice.
  • If you run a business with online transactions from all over the world, and your product isn’t downloadable, Gumroad is a better option for you.
  • Customer support offered by each platform may also be considered – Gumroad offers a ticketing system and online chat, while Payhip only provides a ticketing system.
  • If you wish to utilize an email marketing application or integrate with other applications like Zapier, then Payhip may be the better option for you.

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