One of the biggest benefits of selling digital products through Gumroad is its creator-friendly fee structure. But how much does Gumroad actually take from your product sales?
Understanding Gumroad’s various fees is important for setting prices and building profit margin into your digital products. In this article, we’ll break down the different fees Gumroad charges on transactions.
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Gumroad’s Transaction Fees
The main fee Gumroad charges is a transaction fee on all sales. This fee is:
- 5% of the product price, plus
- 25 cents per transaction
For example, if you sell a $50 product, Gumroad would take:
- 5% of $50 = $2.50
- Plus the 25 cent transaction fee
- For a total of $2.75 per sale
So your payout would be the sales price minus Gumroad’s cut. These fees cover all of Gumroad’s features for listing, payment processing, delivery, and support.
Stripe Payment Processing Fees
Because Gumroad uses Stripe to process payments, you may also incur minor Stripe processing costs:
- 2.9% + 30 cents for U.S. credit card payments
- Additional fees for international cards, ACH, and other methods
These fees vary slightly based on your customer’s location and payment method used.
Optional Fees
Gumroad has a few optional fees to know about:
- A 1.5% fee can be paid to expedite payouts instantly instead of waiting the standard 7 days.
- A monthly subscription plan starts at $10/month for a customizable storefront and advanced features.
- Additional payment gateway fees apply if using PayPal (2.9% + 30 cents per transaction)
These extra fees are optional based on your preferences.
Taxes and VAT
For creators in the U.S. and Canada, Gumroad will automatically calculate, collect, and remit any sales tax due on transactions.
VAT and GST will also be handled for creators in supported countries. Applicable taxes are deducted from your payouts.
How Pricing Impacts Fees
When setting prices for your digital products, make sure to factor Gumroad’s cut into your profit margins.
For example, you may want to price an ebook at $20, but need to earn $15 yourself after Gumroad’s fees. In this case you would need to raise the price to $23 to account for the $3 (15%) in anticipated Gumroad fees.
Always overestimate fees when pricing products to avoid losing money. As your sales increase in volume, fee percentages become more favorable.
Tips to Minimize Gumroad Fees
While Gumroad’s fee structure is already appealing, here are some tips to further minimize fees:
- Price products higher to account for the 5% transaction fee
- Sell high-value products or bundles
- Promote custom coupons/discounts carefully
- Minimize payment gateway options beyond Stripe
- Drive external traffic to reduce promotional costs
- Sell additional units since fees don’t increase
With planning, creators can keep more revenue despite Gumroad’s necessary fees.
Is Gumroad Worth the Fees?
Compared to selling digital products on your own site, Gumroad’s fees are very reasonable for all the functionality provided.
For new creators without an audience, Gumroad eliminates the huge upfront investment normally required to sell online. The ease of use and built-in audience makes the fees worthwhile.
Even as you grow your own website, Gumroad can be useful for one-off sales pages, upsells, or special promotions outside your core offerings.
Overall, Gumroad’s creator-first fee structure makes their platform a cost-effective way to sell digital products directly to your audience.
FAQs About Gumroad Fees
Does Gumroad charge a monthly fee?
Gumroad is free to use with fees only on transactions. Optional paid plans with more features start at $10/month.
Can fees be lowered by selling more?
Yes, Gumroad offers fee reductions once you reach certain lifetime revenue milestones with them.
What is the minimum Gumroad can take from a sale?
The minimum cut is 30 cents per transaction (the 25 cent transaction fee plus 5 cents if product is $1).
Does Gumroad accept payment methods beyond credit card?
Yes, Gumroad also accepts PayPal, Apple Pay, Google Pay, cryptocurrency, wire transfers, and prepaid cards.
Can sellers access a fee discount code?
Unfortunately Gumroad does not provide special discount codes to lower fees. Their published fee structure applies to all users.
Selling digital downloads, online courses, and other digital products is easy and affordable with Gumroad’s fair and transparent fee structure.
