Maximize Your Earnings: Avoiding Fees as an Online Creator
Written on
Chapter 1: Introduction to Selling Online
As a content creator, one of the most gratifying aspects is the ability to expand your business alongside the platforms you use to share your work. Many creators choose to do this through personal websites, courses, newsletters, or online shops. This strategy often serves as a valuable supplement to the royalty income derived from free platforms like YouTube, Twitch, and Substack.
The journey to selling your own products online can be incredibly fulfilling. You gain the autonomy to craft your offerings and curate your site’s appearance, from the homepage to the "Buy Now" button. Most importantly, you have the liberty to set your own prices. Whether you want to offer a $25 ebook on a specific subject or a premium product for $1,000, the possibilities are endless when you control your platform.
However, a significant drawback of utilizing your own store or a marketplace is the associated fees. Below are some of the leading store builders and marketplaces along with the portion of your earnings they retain:
- Shopify — 2.9%
- Squarespace — 3%
- Gumroad — 2.9% to 9%
- Selz — 0.5% to 2.9%
- WooCommerce — 2.9%
It's important to recognize that these platforms deserve a share of your profits for providing the infrastructure that allows you to sell. This is akin to paying rent for a physical storefront or hiring an accountant for financial management. However, for beginners or those looking to economize, these fees can accumulate quickly. In addition to platform fees, users typically incur transaction fees from payment processors, like PayPal and Stripe:
- PayPal fee: 1.9% to 3.5%
- Stripe fee: 0.8% to 2.9%
When you factor in potential currency exchange fees for international clients, your total fees could range from 10% to 20% of your retail price.
To mitigate these costs, some platforms offer a flat monthly subscription model, similar to what you might find with Spotify or Netflix. Here are three of my top recommendations:
- SendOwl — Starting at $15
- Big Cartel — Starting at $9.99
- Sellfy — Starting at $29.99 per month ($19.99 billed annually)
In this article, I'll begin by showcasing how to utilize SendOwl to embed and sell products on your blog or website. Then, I’ll provide a brief overview of Big Cartel and Sellfy, which allow you to build your store independently from your website.
Section 1.1: Understanding Your Options
Before diving deeper, it’s crucial to grasp the primary distinction between SendOwl and the other two options, Big Cartel and Sellfy. SendOwl doesn't allow you to create a full-fledged online store. I prefer this route because I am comfortable with coding and enjoy designing everything from the main product page to the checkout process. Additionally, SendOwl offers a clean, subtle design that inspires trust.
If you’d rather host your store on a third-party platform, then Big Cartel or Sellfy might be more suitable, and I will discuss those options later.
Section 1.2: Setting Up SendOwl
Creating a Product
To start selling, you'll first need to create your product. After signing up, navigate to the Products section of your dashboard and select "Add a product."
For this example, let's choose the Digital File option, ideal for ebooks, PDFs, or checklists. Input your product name, price, and upload the relevant file. You can also link to a product hosted on another site, though this could risk unauthorized access.
Payment Gateway Configuration
The final step before distributing your product link involves setting up payment gateways, which is a one-time process.
Stripe
Stripe is a popular payment processor that allows payments via credit or debit cards, accommodating various European payment methods based on currency selection.
PayPal
To integrate PayPal, simply enter your PayPal email, and you’re ready to receive payments.
Selling Your Product
Once you've set up your product, head to the Products section, click on your product, and select "View button code" for selling options.
Payment Links
The first option directs users to the payment page directly, while the second shows a product page with details before they proceed to payment.
Social Selling
Use basic social sharing buttons to promote your product on social media.
Website Integration
This option allows you to embed a "Buy Now" button anywhere on your site, creating a seamless purchasing experience.
Chapter 2: Exploring Big Cartel and Sellfy
The first video titled "AVOID PAYING SELLER FEES! 3 Ways I Pay NOTHING and Save BIG on Seller Fees - INCLUDING EBAY!" discusses strategies to minimize seller fees and maximize profits when selling online.
The second video titled "How To Increase Online Sales When They Are Down Or Non Existent" offers tips and strategies to boost online sales during slow periods.
Both Big Cartel and Sellfy function similarly to SendOwl but with added store features, allowing you to showcase products on a homepage, while the complete payment process occurs on their platforms. This is ideal if you prefer not to manage everything from your own website and are okay with limited design flexibility.
In terms of design options, Big Cartel offers predefined themes with some customization, while Sellfy provides a similar experience.
Conclusion
In summary, choose SendOwl for a straightforward, efficient payment solution that allows for maximum design control. Opt for Sellfy or Big Cartel if you lack a website and prefer a simple, secure online store setup.
I hope this article proves valuable. For many who are not familiar with coding or who do not have a website, SendOwl may initially seem daunting. However, it offers the best option for those wanting full control over their store’s design while benefiting from a solid backend payment system and useful analytics.
Whichever path you select, I wish you great success in your selling endeavors!