Payhip Vs Gumroad Comparison: Which Is Better

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Payhip and Gumroad are two of the most popular website platforms for selling digital products, with both destinations offering a free trial.

In order to help you decide which is better and how they compare, we've put together a comparison of the features each platform offers. 

While they have their differences, they also share several similarities. 

In this Payhip vs Gumroad comparison, I will break down some of the key differences between these two platforms and give my opinion on which one is better for you to use.

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What are they?

Payhip and Gumroad are essentially the same things. They're both pretty much digital shopping carts that allow you to sell your digital products, whether it be eBooks, music, video, or even software. 

Payhip Vs Gumroad Comparison Which Is Better

But even though both are almost the same, there are a few key differences between Payhip and Gumroad. 

What is Payhip?

Payhip is an eCommerce and software-as-a-service (SaaS) platform that allows producers sell their goods directly to consumers. It was created in 2012. 

payhip

You may choose to put your items on your social media sites or website and connect them with Payhip so that customers can shop, checkout, and pay without leaving the page.

Payhip also allows you to construct a landing page or shop on the platform where customers may explore your items and make purchases.

You may offer digital things such as music, ebooks, movies, photos, design elements, printables, software, and more, as well as memberships and subscriptions.

What is Gumroad?

Gumroad is an easy-to-use shopping cart that allows you to immediately start selling things online. It's a solid cart platform that takes a percentage of each sale, making it perfect for newcomers. 

gumroad

For vendors that need all of the bells and whistles, Gumroad isn't the greatest platform.

Gumroad was founded in 2011 and was the first shopping cart utilized by numerous online entrepreneurs, including Pat Flynn.

Thousands of bloggers, writers, and expert producers have used Gumroad to host and sell their goods since the company's start through word-of-mouth promotion.

Payhip vs Gumroad features comparison

The similarities between these two platforms are what make it hard to choose which is better. Since they have several similarities, you might get the impression that Payhip and Gumroad are exactly the same things with different features.

With that, I compiled a rundown of the key differences between Payhip and Gumroad:

Onboarding

Payhip's onboarding procedure is rather straightforward. To get started with the platform, go to the website and click Get Started, then enter your email address, choose a password, and click Create Account. 

After that, you can begin setting up your business, including payment choices, and shipping policies, and displaying the things for sale. That's all there is to it.

The fast and quick onboarding procedure is one of the reasons Gumroad is so popular among artists who want to start their eCommerce adventure. 

You may create a free account in minutes and begin promoting your digital or physical items to prospective buyers. 

All you have to do to get started with Gumroad is go to the website and click the Start Selling button, then enter your email and password to establish an account.

You may also join up for Gumroad using your Facebook or Twitter accounts and then fill out the rest of the form, including the shop name and landing page design.

Products you can sell on the platform

You may sell images, movies, ebooks, software, memberships, rentals, and other digital items on Payhip. It also allows for the sale of actual things like books, mugs, t-shirts, and other items

payhip product

You can get your items in front of people, generate traffic to your website, and start a profitable company from the bottom up using Payhip.

Ebooks, software, podcasts, movies, music, games, apps, graphics, and photographs are just a handful of the digital items available for sale on Gumroad.

Physical products such as t-shirts, mugs, crafts, footwear, and other items may also be sold on the site. 

Furthermore, you may offer things on a pre-order basis, allowing consumers to purchase items before they become publicly accessible and reducing the risk of stocking more items than you sell.

gumroad product

 

I also discovered that Gumroad enables you to sell memberships or rent films to consumers for up to 72 hours.

Custom domains

Payhip is a hosted eCommerce platform, so you won't have to worry about hosting the store-building software yourself. Payhip is in charge of hosting your online store on their servers

Payhip only offers you the flexibility of modifying your storefront to some extent, despite the fact that it comes with a professionally designed storefront. 

Gumroad offers a custom domain but only if you upgrade to a paid plan. If you upgrade to a subscription plan, you'll get extra options to help you modify your domain, but you won't be able to do much since it's not a self-hosted site. 

Gumroad—like Payhip, does not enable custom applications or plugins, therefore you won't be able to utilize them to personalize or expand the functionality of your business. 

You won't be able to make extensive changes to the look of your Gumroad storefront, product pages, or checkout pages unless you're familiar with CSS.

Gumroad, on the other hand, allows you to link a custom domain to your eCommerce store.

Payment processing

Customers may pay using Stripe, PayPal, or credit cards on the eCommerce website, and there is no payout threshold, so you can withdraw as much money as you have in your Payhip sales account

payhip payment

Payhip also provides quick payments, and you may get payouts to your PayPal or Stripe account on any day of the week. 

Payhip also offers a pay-what-you-want (PWYW) pricing option, which allows your consumers to choose and pay the amount they want or believe is best for the product. 

You may also specify a minimum payment so that people know what the smallest amount they can pay or contribute to a gift is.

Gumroad takes American Express, Discover, Mastercard, Visa, and other major credit cards. Furthermore, rather than utilizing a pre-built solution like Stripe, the firm handles all of your payments using a unique payment gateway

gumroad payment

Although PayPal transactions are supported, it does not support other online payment systems such as Skrill or Authorize.net. Nonetheless, you should have sufficient capacity to process payments from the majority of your target audience

Gumroad not only processes payments and ensures that they reach your bank account, but it also makes it easy to tweak your eCommerce approach.

Giving loyal clients discount coupons that function with a percentage discount or a specific amount off might help you create stronger ties.

Payment duration

When a consumer purchases anything from your Payhip shop, the money is sent to your PayPal or Stripe account right away

The monies will be put into your associated PayPal account when you make a payment using PayPal. The proceeds from a Stripe payment will be transferred into your associated Stripe account. 

If you're not sure which account to look at, go to the Customers tab of your Payhip dashboard and look for the PayPal vs Stripe label.

Gumroad pays out when you've made at least $10 in sales

Once you've reached that threshold, the Gumroad team reviews your purchases to confirm they're legitimate in the eyes of the Gumroad Terms of Service and the banking partners' criteria, which may take anywhere from one to three weeks.

User-friendliness

Payhip is designed to meet the demands of users of all levels, from beginners to experts. Here you will find a customer care staff that can help you set up your Payhip account and answer any queries you may have. 

payhip dashboard

The UI is also user-friendly and straightforward, which is particularly helpful if you've never used an e-commerce site like Payhip before. 

Payhip's basic design appeals to me; it's easy to get accustomed to and, unlike other ecommerce sites, does not seem crowded.

Gumroad's strongest feature in this respect is its very user-friendly design, which means that even a total newbie will have no difficulty navigating the site. 

gumroad analytics

Despite lacking many of the capabilities found in something like Payhip, you'll immediately realize how simple Gumroad is to use because of its minimalist design, barebones settings, and timely reminders. 

In the odd event that you get stranded, the support desk will usually be your first point of contact.

Design and customization

When it comes to design and customization, it’s hard to beat Payhip. One of its biggest advantages over Gumroad is how easily customizable the storefront is. You don’t need technical skill, and you certainly don’t need to hire a developer or designer to do it for you.

It offers you the flexibility of modifying your storefront to some extent, despite the fact that it comes with a professionally designed storefront. 

However, since the platform does not permit the use of new themes, you must work with the themes that are currently accessible.

You may modify your site's logo and colour scheme, add a profile picture, change the background colour of your store, advertise yourself with a bio and social network connections, and make it easier for buyers to locate your items.

You may also modify your email layouts and sales pitches using Payhip.

When it comes to the design of your storefront, Gumroad's free plan doesn't provide you with much leeway. Only the logo, colour, bio information, email logo, and background picture may be changed. 

If you upgrade to a subscription plan, you'll get extra options to help you modify your domain, but you won't be able to do much since it's not a self-hosted site. 

Gumroad—like Payhip, does not enable custom applications or plugins, therefore you won't be able to utilize them to personalize or expand the functionality of your business.

You won't be able to make extensive changes to the look of your Gumroad storefront, product pages, or checkout pages unless you're familiar with CSS.

Gumroad, on the other hand, allows you to link a custom domain to your eCommerce store.

Marketing and promotion

Payhip provides you with a variety of choices for promoting your shop and increasing social media visibility. 

The social boost function is unique in that it automatically updates your Facebook profile with new goods. This can help you improve the number of visitors to your business as well as social interaction.

The platform also collects the email addresses of your subscribers, followers, and customers to create an email marketing list and deliver customized messages to entice them to patronize you.

It seamlessly connects with email marketing platforms like Mailerlite, ConvertKit MailChimp, Constant Contact, Campaign Monitor, and others.

Users must opt-in to receive email messages from you; you cannot automatically add them to a mailing list.

Gumroad, on the other hand, is a one-of-a-kind service that allows it to promote and sell the work of other producers

If you choose this option, it will promote your items to visitors who are browsing the Gumroad Discover site. One way to promote your products and target potential and existing customers is to integrate Gumroad with your preferred email marketing tool.

The platform also allows you to embed checkout pages on your websites and social media pages, which may boost your store's brand recognition and reach, as well as increase sales. 

Unlike Payhip, Gumroad allows you to instantly add users to mailing lists without requiring them to opt-in. 

This is useful for sending transactional emails such as receipts, follow-ups, and more.

To increase traffic and sales to your shop, you may also generate discount coupons and set up an affiliate network. Your customers may become affiliates and earn money for every transaction made via their referral links.

Pricing and fees

Payhip has three pricing levels: $0/month, $29/month, and $99/month. All plans include all features such as unlimited products, store design customization, discount codes, and more.

payhip pricing

The following are the three price options:

  • Payhip Free Forever - $0 per month + 5% transaction fee, all Features, unlimited products
  • Payhip Plus - $29 per month + 2% transaction fee, all Features, unlimited products
  • Payhip Pro - $99 per month + 0 transaction fee, all Features, unlimited products

Gumroad, on the other hand, is fully free to use and does not need a subscription.

gumroad pricing

They charge you a percentage on each transaction based on your cumulative earnings milestones.

  • $0 – $999 – Gumroad fee is 9% +30c on each transaction.
  • $1,000 – $9,999 – Gumroad fee is 7% +30c on each transaction.
  • $10,000 – $99,999 – Gumroad fee is 6% +30c on each transaction.
  • $100,000 – $9,99,999 – Gumroad fee is 3% +30c on each transaction.
  • $1,000,000+ – Gumroad fee is 2.9% +30c on each transaction.

Customer support

I love that Payhip provides 24-hour customer support, 7 days a week. You can submit a support ticket through your account or through email.  You can also contact the Payhip team via their Twitter profile.

Gumroad also has excellent customer support options available to its users via email, online chat, and a ticketing system. 

There is also info available on the site about self-help options that can be used for common tasks, such as creating orders from scratch.

Similarities

Both E-commerce solutions offer a wide range of features with similarities, including:

Easy-to-use

Because Payhip and Gumroad are hosted ecommerce systems, you won't need any coding or web development skills to get started, and you'll be able to set up your business quickly.

Marketing tools

Both include effective email and affiliate marketing tools to help you promote your business. 

Store integration 

Both systems allow users to integrate into various social networking networks which you can use the platforms to redirect visitors from your website or social media pages to your Gumroad or Payhip shop. 

Payments

Payhip and Gumroad both have user-friendly, reliable payment processing systems in order to accept payments online. Payhip uses Stripe as its payment processor. 

This makes it easy for you to receive payments from customers around the world. Gumroad accepts Visa, MasterCard, American Express and Discover cards directly or via Paypal or 2Checkout account.

Pay-what-you-want feature

Both Payhip and Gumroad allow your consumers to choose and pay the price they want or believe is appropriate for the goods

You may also specify a minimum payment so that people know what the smallest amount they can pay or contribute to a gift is.

Differences

These two platforms have some notable differences, including:

Payment methods

Payhip has the capability of using multiple payment gateways. This enables you to accept payments using various modes of payment on your Payhip shop. While Gumroad only utilizes Bank Transfers and Paypal. 

Payment duration

You need to have at least $10 in your Gumroad account to get your payments from your customers. While in Payhip, payments are automatically transferred to your account depending on the mode of payment your customer chooses.

Transaction fees

The transaction fees for both platforms are very different. Payhip’s transaction fees range from 2% for a plus plan and 5% for the free forever plan. However, I find Gumroad’s transaction fees higher, from  9% +30c on each transaction.

Custom domains

When you increase your subscription with Gumroad, you may utilize a custom domain on your shop, while Payhip only accepts sub-domains no matter what subscription you choose.

Pros and cons

Before anything else, let’s sum up the pros and cons of each platform. Here’s a short walkthrough of what they each have to offer.

Payhip

Pros

  • Do not need any coding or programming knowledge
  • Provides fraud detection for debit and credit cards
  • It provides a completely free plan with no limitation
  • Provides analytics monitoring and social media integration
  • There are no set payout days or payment levels.

Cons

  • Customization features are limited
  • Support staff are slow in responding 
  • Custom domains are unavailable
  • Only designed for small and individual sellers
  • High transaction fees

Gumroad

Pros

  • Accepts credit cards and PayPal payments
  • Easy to understand user-interface
  • Decent looking checkout pages
  • One-time, subscription, & payment plan options
  • Built-in affiliate centre

Cons

  • Lacks native integrations
  • Does not accept Apple Pay
  • Only has email support
  • No A/B split testing
  • You can only get a payout if you reach or surpass the $10 barrier

How to choose between Gumroad and Payhip

Here are some things to consider when you're choosing between E-commerce sites like Gumroad and Payhip: 

Seamless vendor onboarding

The process of acquiring a vendor is seldom as simple as it seems.

Successful vendors with a wide choice of competing items are unlikely to join new distribution channels, particularly if getting on your marketplace costs a significant amount of time or money.

It is strongly suggested that the vendor onboarding procedure be easy and quick to eliminate this entrance hurdle. Your marketplace may be integrated with third-party e-commerce software to fit neatly within the vendor's current business environment. 

The marketplace owner and merchants will no longer have to spend hours or days manually inputting their product list, changing prices, and keeping track of inventory levels. Instead, they'll be able to just grab everything from their current webshop.

Vendor payout management

The platform's capacity to support numerous charge kinds is critical for organizing an efficient vendor payment procedure.

Specific vendor fee structure flexibility is also significant, particularly for marketplaces that seek to adopt fees and charges for individual Vendors based on agreed rates.

Pricing

Expensive does not always imply superior quality. Based on the business model and strategy of technology providers, the quality of the platform vs the price point differs throughout the sector. 

Your pricing may contain large markups transferred from sales and marketing, depending on the marketplace provider's go-to-market approach, while the platform itself may not meet your demands. 

Look for product-focused organizations that are always investing in their marketplace technology, introducing new features and capabilities, and enhancing user experience to obtain the most value for money. 

The correct platform will provide you with a strong foundation on which to develop a profitable and scalable marketplace.

The takeaway: Gumroad vs Payhip: which is the right choice for me?

Both Gumroad and Payhip are fantastic possibilities if you're looking for an easy-to-use online selling solution that enables you to get started for free. 

They offer a lot of tools and features built in to help you get the most out of the platforms and increase sales.

If I had to pick between the two platforms (which I do), I'd use Payhip since it's easier to use and provides more payment options and processes. Its pricing structure is also simpler to understand and less costly if you're just starting off.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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