After conducting an in-depth comparison of both Gumroad and Payhip for 6+ months, I have come to a verdict.
It has been an exciting process to run both stores, with many factors to take into account and analyze in order to determine which of the two would be the more suitable platform for my needs or yours.
I’ve put my findings into a practical pros and cons list.
What is Gumroad?
Gumroad is an online platform that allows creators to sell digital products and services such as e-books, templates, designs, software, and artwork. It has a simple setup process, allowing users to quickly set up their storefront and start selling their products. It also offers features such as automated email marketing, a Discover feature for increased visibility, and an affiliate program. Gumroad takes a 10% fee on each sale plus payment provider fees.
What is Payhip?
Payhip is an online platform that allows creators to sell digital products and services just like Gumroad. Payhip does offer more for course instructors selling online courses, though.
It offers a range of design options and themes to choose from, making it easy to customize storefronts and websites. Payhip takes a 5% fee (or paid plans with even lower fees).
Pros of Gumroad:
- simple email automation included, making it easy to keep customers up to date with their purchases
- customer segmentation for email workflows
- the Discover feature brings in new customers by showcasing products in relevant categories
- the affiliate program allows customers to receive a commission for recommending products to their friends and followers
- easily redirect customers to a website after they make a purchase, allowing them to quickly access additional products or services
- VAT handling for EU & UK
Cons of Gumroad
- the 10% fee plus any applicable payment provider fees is steep
- extremely limited design options. If you want to customize your storefront, you will have to look elsewhere.
- no options for cross-selling or upselling (yet)
- no cookie banner (legally required in many countries around the world)
Pros of Payhip
- a range of design options and themes to choose from, making it easy to customize your storefront & website
- Payhip offers a 5% fee or paid plans with even lower fees for high-volume sellers
- Payhip also offers cross-sells, upsells, and other marketing options to help you maximize your profits. This makes it a great choice for creators looking for an all-in-one platform for their online stores
- VAT handling for EU & UK
- cookie banner
- customizable checkout form
- no email automation, a valuable feature to keep customers informed and to drive future sales
- the available email functionality is quite rudimentary and lacks the more advanced features found on other email marketing platforms, plus the editor is cumbersome
- the affiliate program, while present, is limited in scope and requires manual payouts to your affiliates
The bottom line
After 6+ months of comparison, Gumroad and Payhip both have their advantages and disadvantages. Gumroad offers email automation capabilities, if rather basic compared to true email marketing platforms like ConvertKit or EmailOctopus.
Gumroad’s simplicity is its best feature, making it beginner-friendly & ease to understand.
Payhip’s customization options are its best feature, allowing users to change the design, add pages & sections, and overall customize the look and feel of their shop/website. Additionally, it’s GDPR-compliant.
Ultimately, Gumroad is the better choice for people who need simple email automation and don’t make too much money, while Payhip is better for those who don’t need much email functionality, want lower fees & a lot of customization.
If neither of those platforms is your jam, you might want to check out Lemon Squeezy. I wrote a detailed review of this tool here.