Let’s compare Payhip vs Gumroad based on their features, pros and cons, and key differences.
By Joanna Taylor • Updated 26 May 2024
Writing an ebook, creating a course, or building a community is already quite challenging. The last thing you need is the hassle of switching platforms because one doesn't suit your online business needs.
Payhip offers a wide range of built-in features like a course builder, marketing tools, product variants, an affiliate program, and more.
Gumroad, on the other hand, is easier to use and best for someone who is just getting started with selling digital products.
So, how do you decide which one to use?
This article will help you choose. We'll compare Payhip vs Gumroad based on their features, pros and cons, and key differences. Let's get started.
Features | Payhip | Gumroad |
---|---|---|
Pricing Structure | Flat monthly fee + transaction fee | Percentage-based transaction fee |
What you pay | Free plan-5% transaction fees Plus plan- $29/month + 2% transaction fees Pro Plan-$99/month ( zero transaction fees) | 10% fee + processing fees (~2.9% + $0.30) |
Customizable Storefront | Limited customization options for the storefront | Extensive customization options for the storefront |
Video Hosting | Free (YouTube, Vimeo, Wistia)…or $9 per month for Payhip video hosting + video player | Free (but no video player) |
Online Course Delivery | Proper course player with online course delivery | Videos can be downloaded or streamed |
Physical Products | Does not support physical products | Supports physical products |
Analytics | Basic analytics features | Robust analytics features |
Landing Pages for Courses | Yes | Limited |
Marketplace | No | Yes |
Mobile App | Does not offer a dedicated mobile app | Offers a dedicated mobile app for managing sales |
Customer Reviews | Does not support customer reviews | Support customer reviews |
Community Support | Smaller community presence | Thriving community with resources and support |
Instant payout | Yes | No |
Payment Processing | Stripe and PayPal | Direct Deposits Plus & PayPal |
When selling coaching programs, memberships, online courses, or digital downloads, there are features that an all in one platform should have. Let's see what features Payhip and Gumroad offer to their users, along with the potential pros and cons.
Payhip is an easy-to-use ecommerce platform that is designed to sell courses, digital downloads, subscriptions, coaching services and more without having to create a storefront or deal with payment processing.
You can view detailed analytics relating to what's selling on your store and how you can improve conversions. In addition to this, you can make use of marketing features like upgrades and cross-sells, email updates, coupons, and more.
Gumroad is one of the oldest ecommerce solutions that lets you quickly start selling your products online. It offers an incredibly easy way of turning any blog or website into an e-commerce store.
Gumroad was primarily launched to help content creators and artists make money online. All you have to do is put your work on Gumroad, and it will help potential customers to directly purchase your offer from the platform.
From hosting your online store to handling product delivery and file sharing, Gumroad handles it all.
Gumroad has recently revised its pricing, and it's definitely a hot topic to discuss before making a decision.
Previously, Gumroad’s pricing was on a sliding scale. That meant the more you process transactions through Gumroad, the less its fees would be.
The new Gumroad pricing removes the sliding scale and replaces it with a flat 10% fee + processing fees (~2.9% + $0.30). This means if you are selling a $100 product, Gumroad will take $10 dollar from each sale.
This is not a huge deal for small creators ( < $10,000 lifetime earnings) but twice as expensive for those over $10,000 in earnings.
Without any added benefits for big creators, the changed pricing is unjustifiable to users.
On the other hand, Payhip continues with the sliding scale revenue method. It offers three plans-
All of these plans have the same features. The only difference lies in the transaction fees.
You can either save money on the plan and settle for a free plus plan or ditch transaction fees entirely and go with the Pro plan.
Even though Gumroad doesn't have a paid plan, the transaction fees change how much money you make.
If you are someone who makes good money (>$10,000) selling on Gumroad, then you will have to pay a hefty price as a traction fee compared to Payhip, which rewards high-volume customers with zero percent transaction charges
Both Payhip and Gumroad are built with beginners in mind. Along with keeping simplicity as their primary focus, they also help users scale their business through its marketing, affiliate, and course-building features.
Now, you might think that if both platforms are similar, you can choose any of them.
Not so fast; let's discuss some of their major differences that will help you make a decision.
When it comes to promoting your online store, both Payhip and Gumroad offer some solid features.
Gumroad Discover is one of Gumroad's coolest features, and it recommends products to potential buyers. It helps its customers grow beyond their existing audience and find more people who will be interested in their work.
You can consider this as another marketing tool for your product. But it's not free. Gumroad will take a 10% share of each transaction of products featured on Gumroad Discover.
Payhip doesn't have any such marketplaces where its customers can showcase their products. However, Payhip allows you to use the power of social media to promote your store. You can provide extra discounts to customers if you tweet or review your product.
This can be an excellent feature for someone who has an existing follower base.
If you are new to selling digital products and want to reach a vast audience, then Gumroad Discover is an excellent option.
It will give your store that initial engagement required to scale your business. However, if you don't want to pay a 10% fee to Gumroad, then Payhip's social boost feature is an affordable alternative.
Gumroad offers very limited flexibility when it comes to store customization..
There are no store theme options, which means your page won't be different from any other checkout pages powered by Gumroad.
You can only add some custom fields to the page, customize virtual receipts, create product categories, add a custom domain, and change some colors.
On the other hand, the Payhip store builder offers far more control over the design and layout of your store. You can make your store match your brand style with new customization options like-
Payhip definitely has better customization options compared to Gumroad. If you want to sell digital products right from the second you enter a platform, then Gumroad is your option. However, if you want your store to look presentable and unique, then Payhip should be your option.
Gumroad has a payment threshold of $10. Unless your store sales revenue reaches that amount, you will not receive your payment.
Not only that, Gumroad releases payment only on Friday, so even if your balance reaches the threshold on Monday, you will have to wait till Friday for payments.
If you live in Australia, Canada, the UK, and the USA, you will receive payments directly in your bank account. But, if you live elsewhere, you can only receive your payments via Gumroad. In simple terms, without PayPal, you cannot get your payment from Gumroad.
In comparison, Payhip has no threshold payment. So, with Payhip, you don't have to wait for a specific day of the month to receive your payments. You can use Paypal or Stripe to run your Payhip online store.
If you want quick payouts, then Payhip should be your option. The platform also offers more diverse payment options that are accessible worldwide.
Unlike Payhip, Gumroad offers free marketing features that allow you to create or import an email list. However, the Gumroad email tool has limited functionality, but it can help you get more sales by:
On the other hand, Payhip offers advanced marketing tools like referrals, cross-selling and upselling, coupon codes, and affiliate marketing. Both Payhip and Gumroad integrate with tools like CampaignMonitor, MailChimp, etc.
Most of the marketing features in Payhip and Gumroad are similar. However, if you don't want to spend any money accessing these features, then Gumroad should be your choice. Otherwise, Payhip offers vast marketing options, but it's not free.
Both Payhip and Gumroad are excellent ecommerce platforms for selling your digital and physical products.
However, they differentiate in features, pricing, and user experience. Choosing between Payhip and Gumroad depends on your specific needs and preferences.
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