Digital Products vs Handmade / Craft, startup cost comparison, StartupLenz

Digital Products

Higher net

Templates, presets, courses, printables — sell once, deliver instantly, no inventory.

Gross$2,514

Net profit$1,802

Margin71.7%

Orders/mo80

Refunds$78 3%

Payment fees$75 3%

Marketplace fees$201 8%

Affiliate payout$75 3%

Ad spend$300 12%

Fixed costs$60 2%

launch · 1–3$856

traction · 4–8$2,235

scale · 9–12$4,316

Excellent margins. Your real asset is the email list — you're capturing ~120 new subs/month.

Etsy-style handmade goods with material, platform, and shipping costs

Gross$504

Net profit$54

Margin10.6%

Orders/mo18

Materials$90 18%

Packaging$14 3%

Labor$180 36%

Platform fees$99 20%

Shipping$32 6%

Advertising$25 5%

launch · 1–3$36

traction · 4–8$54

scale · 9–12$79

Margins are thin, look at reducing material or shipping costs before scaling volume.