E-commerce websites are not new to the general public. The online stores are always trending as they offer small grade sellers to start their own business too. Though you have the masters in the business, selling digital items online is attracting both the seller and the buyer. Two of such platforms have gained attention in the recent past; Gumroad and Payhip. They both function similarly. The dashboards look identical too. However, there are a few critical differences between them.

Gumroad vs Payhip

The main difference between Gumroad and Payhip is the modes that you can sell. Though both Gumroad and Payhip allow you to sell digital as well as physical products, Gumroad offers the pre-order option, while Payhip does not have the feature.

Gumroad is an online store building platform that helps makers to sell their products hassle-free. Purchasing and selling are made easy using Gumroad. It is a complete package that offers the creators to launch the product and also process the payment with equal ease. Gumroad also offers marketing tools as well as communication tools for the products hosted.

Payhip is also an e-commerce platform that helps product creators to sell it directly to customers. Ideally, you might have to upload the product and start selling using social media platforms or using your website too. Payhip takes care of the processing of the payment as well as the product delivery. Of course, the product shall be kept available on the platform for people to view and purchase.

Comparison Table Between Gumroad and Payhip

What is Gumroad?

Gumroad is an e-commerce platform that helps product builders to sell their products directly to their customers. The company was established in the year 2011. Gumroad is essentially a digital product distribution platform. Especially used by creative artists. They may include

1. Musicians
2. Movie Makers
3. Software developers

And anyone who comes under this category. If you have a social media account, creating a subscription or onboarding to Gumroad becomes rapid. Alternatively, you can create the account using a separate username and password as well. Of course, you need an email address to do so.

Gumroad essentially sells

1. E-Books
2. Videos
3. Software
4. Physical Products

The good news is, the consumers can pre-order the items from the seller. You are also paid for it once the product is sold.

Gumroad has a strict procedure for the payment processing system. The payment is processed every Friday. Not only that, the payment threshold must reach $10 for the process to happen. Even if you reach the threshold on a Monday, you can receive the funds only on Friday.

Most importantly, all the items are charged in USD, while the products are also labelled with GBP. Moreover, Gumroad supports Paypal and only PayPal.

However, you shall receive your funds in your bank account if you live in the below-mentioned countries.

1. USA
2. UK
3. Australia
4. Canada

What is Payhip?

Payhip is an excellent e-commerce platform that allows product creators to sell their products to their followers. Incidentally, they function the same as Gumroad. Though you cannot sell pre-orders like Gumroad, Payhip continues to sell physical as well as digital products. Additionally, it also offers membership for digital software products.

You can host your product on Payhip’s platform and start selling it. The payment processing and the product delivery is done by Payhip. Though you do not have a custom domain as Gumroad used to offer, the payment patterns are relatively encouraging for the new product builders.

Yes, once your product is sold, you shall receive the payout in a week. Payhip supports Paypal and Stripes for payments. Payhip promotes the product online. It uses social media websites to promote the business.

Payhip has a monthly pricing plan. They have three types of payment plans. The features remain the same for all three plans. However, the transaction fee differs from plan to plan. The higher you subscribe for, the lesser you pay to Payhip.

You can readily choose Payhip if you are looking for

1. Instant payout without any payment threshold
2. Transparent price plans

Main Differences Between Gumroad and Payhip

1. The main difference between Gumroad and Payhip is the payment system. Gumroad processes the payment every week on Friday while Payhip pays instantly.
2. Gumroad uses bank transfer and Paypal as the option for payouts, while Payhip uses Paypal and stripes.
3. Pre-orders are available with Gumroad, while it is not available with Payhip.
4. Gumroad is not as impressive as Payhip for brand promotion through online social media platforms.
5. Gumroad charges customers in USD, while Payhip can charge in GBP.

Conclusion

The Online store builders have been in the market since 2004. Though these platforms are in the market for close to 10 years, they have still opportunities to improvise on. Most importantly, the customization part. Any seller would require the option to make it easy for them to launch the product.

Also, the price plan needs to be revised as well. Gumroad has more complicated price plans compared to Payhip. The excellent benefit the seller can relish is that they can avoid the Digital VAT. These two platforms have many customers, while Gumroad has made $272mn so far. Payhip has more than 1.3 lakh customers on its platform.

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