

A Micropreneur’s Perspective: Selling Physical Products vs. Digital Products - rwalling
http://www.softwarebyrob.com/2009/05/04/selling-physical-products-vs-digital-products/

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herval
"Though I haven’t acquired anything yet (I have my eye on a few), the return
on those funds will be much higher with a software product or SaaS website"

so he's basically assuming 'digital' is better because your experience with
'physical' didn't sell enough? What about thousands of purely digital sites
out there that don't sell anything? Would that disprove the comparison in any
way?

imho, the assumption that the margin is higher on digital ignores one simple
fact: most 'digital products' on the web are free anyway...

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brc
No, digital is better because you own the IP, the distribution and take home
almost 100% of the gross. Returns are not a factor because there's no physical
product to worry about. He is sharing the bulk of the revenue (40%) with the
dropshippers, and if he didn't do that, he'd tie up a lot of capital in
inventory and warehousing, plus have to pack and ship orders. None of these
are problems with a digital business.

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netsp
pigs are better then cats

I don't mean to be snarky, but any comparison between digital and physical
products that's weighing them up in abstract is just silly. There are good and
bad business models doing either one.

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HeyLaughingBoy
My problem with this article is he mentions that to avoid being a commodity,
you need to build your own product, then ignores the rest of that path.

There is obviously lots of money to be made that way, even by 1-man shops. I
do it (sell custom/semi-custom electronics) and my fulfillment and inventory
costs are minimal.

Sure, reselling most products is relatively low margin (but profit is
profit!), but it's not like the only choice is "digital" vs. "resale."

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bemmu
<http://marketplace.sitepoint.com/auctions/55207>

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snowbird122
Key point here: When you sell physical goods, unless you manufacture the goods
yourself, you are a commodity, therefore, margins will always be low.

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netsp
_One major benefit of selling a physical product is you don’t have to build
anything; the work is all in finding a supplier and putting up a site. This is
great because you avoid the 200-400 hours to build something._

I don't know where to start.

