Selling digital products online has never been easier. Over the last decade, platforms have emerged that allow individuals and small businesses to reach a global audience without the need for complex e-commerce systems or expensive web development. Payhip is one such platform — simple yet powerful, designed for creators who want to sell digital downloads, memberships, courses, or even physical products, directly to their audience.
If you have never heard of Payhip, this guide explains exactly what it is, how it works, who uses it, what makes it different from its competitors, its pricing, and what you stand to gain if you sign up.
What is Payhip?
Payhip is an online e-commerce platform that allows anyone to sell digital products, online courses, memberships, or even physical items directly to customers. Unlike more complex e-commerce solutions that require technical skills, plugins, or custom setups, Payhip makes the process straightforward: upload your product, set your price, share your link, and start selling.
The idea behind Payhip is simple: it provides creators with a secure, hosted storefront and payment processing without needing a separate website or complicated shopping cart. Creators can embed their Payhip store on their existing website or use Payhip’s own product pages.
Where is Payhip Based?
Payhip was founded in London, United Kingdom, in 2011 by Abs Farah and Kahin Farah. It remains a UK-based private company and operates as a fully online service. There are no physical stores or branches — all services are delivered through its website, www.payhip.com.
Today, Payhip serves independent creators, writers, educators, musicians, and small businesses worldwide. Its simplicity and global payment support make it especially popular among solo entrepreneurs and micro-businesses that want to sell directly to customers without relying on large third-party marketplaces.
Who Uses Payhip?
Payhip’s users are a diverse group. They include:
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Authors selling ebooks directly to readers without going through Amazon.
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Artists and designers selling digital art, printables, or templates.
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Course creators selling online learning content or private video lessons.
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Musicians selling singles, albums, or sample packs.
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Coaches and experts offering paid memberships or digital workbooks.
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Small brands selling a few physical products alongside digital offerings.
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Nonprofits and organizations distributing paid digital downloads, tickets, or subscriptions.
Payhip is popular with creators who want to maintain control over their customer relationships, pricing, and branding — all while avoiding the fees and restrictions of large online marketplaces.
Key Features of Payhip
At its core, Payhip is designed for simplicity and direct selling. Its main features include:
1. Digital Product Sales
Payhip was built for selling digital downloads — ebooks, music, software, templates, printables, and more. Files are securely hosted, with instant delivery to buyers after purchase. Sellers can set prices, add discount codes, and manage licenses for digital products.
2. Online Courses
Payhip now supports online course creation. Sellers can build simple course structures with modules, lessons, and file uploads. You can offer video lessons, PDFs, quizzes, and drip content over time.
3. Memberships
For creators who want recurring revenue, Payhip includes membership tools. Sellers can build membership tiers with different pricing, exclusive content, and member management.
4. Physical Products
Although digital sales are its strength, Payhip also supports selling physical products. This allows creators to add items like books, merch, or physical art prints alongside digital products.
5. Customizable Storefront
Sellers get a fully hosted storefront on Payhip’s platform. You can customize your store with branding, custom domains, images, and product descriptions. If you already have a website, you can embed Payhip’s checkout directly into it.
6. Secure Payments
Payhip handles all payments securely through PayPal or Stripe. Customers can pay with credit/debit cards or PayPal. Sellers get paid instantly, with Payhip taking a small fee (explained below).
7. EU VAT Handling
A significant advantage for European creators is Payhip’s automatic EU VAT handling. Payhip calculates, collects, and remits EU VAT for digital product sales, removing a major compliance headache for sellers.
8. Marketing Tools
Payhip includes simple marketing tools such as coupon codes, affiliate marketing management, upselling, cross-selling, and email list building to help sellers grow their customer base.
9. Analytics and Reporting
Sellers get access to dashboards that show product performance, sales data, traffic sources, and payout history, all in one place.
What Makes Payhip Different?
Payhip has earned a strong following by solving real problems for creators in a way that is straightforward and cost-effective.
1. Low Barrier to Entry
Unlike platforms that charge high monthly fees, Payhip is accessible to hobbyists and side-hustlers. There is no upfront cost or monthly subscription required to start — you pay only a small commission per sale if you choose the free plan.
2. No Marketplace Restrictions
Selling through large marketplaces like Amazon, Etsy, or Udemy often means giving up control over pricing, branding, and customer relationships. Payhip lets sellers maintain complete ownership — customers buy directly from the seller’s page.
3. EU VAT Compliance
Handling EU VAT is a known pain point for digital sellers. Payhip’s automatic VAT system removes the need for complex manual tax calculations and reporting.
4. Simple Setup
Creators can launch a product in minutes. There is no complicated store setup, hosting, or plugin installation. Everything is managed through Payhip’s web interface.
5. Flexible Product Types
Most platforms specialize in one product type — courses only, or physical products only. Payhip allows creators to combine digital downloads, memberships, courses, and physical products in one store.
Pricing and Fees
Payhip’s pricing is designed to be flexible for creators at all stages.
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Free Plan: No monthly fee. You pay a 5% transaction fee per sale.
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Plus Plan: $29 per month with a 2% transaction fee.
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Pro Plan: $99 per month with no transaction fee.
All plans include the same core features — there are no hidden costs for premium support or features locked behind higher tiers. The only difference is how much of a transaction fee you pay.
Payment processing fees charged by Stripe or PayPal still apply and are separate from Payhip’s fees. These are typically around 2.9% + $0.30 per transaction, depending on the payment processor and the customer’s country.
Advantages of Signing Up for Payhip
Sellers choose Payhip for several reasons:
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Ownership: Sellers own their customer list, branding, and pricing strategy.
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Simplicity: No technical skills required to launch.
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Low Risk: Free plan means you pay nothing until you make a sale.
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Secure Delivery: Digital files are protected and delivered instantly.
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Global Reach: Sell to customers anywhere with secure payments and tax handling.
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Recurring Revenue: Membership and subscription tools help build predictable income.
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Direct Payments: Payments go directly to your PayPal or Stripe account.
Ease of Navigation and Delivery
Payhip’s dashboard is intentionally simple. Uploading products, creating pages, setting prices, and managing customers can all be done without coding knowledge.
Customers who purchase digital products receive secure download links automatically. Online course content is hosted and accessible through a private portal. Physical products are handled by the seller — Payhip manages the order, but shipping and inventory are the seller’s responsibility.
If you wish to connect Payhip with an existing website, you can use embed codes for products or the checkout form. Many creators simply link to their Payhip store from their blog, social media, or newsletter.
What Payhip is Not
Payhip is best suited for small businesses and solo creators with simple product lines. It does not offer advanced e-commerce features like large inventory management, multi-warehouse shipping, or advanced SEO capabilities you’d find on platforms like Shopify.
Likewise, if you want a massive online marketplace with built-in traffic, Payhip will not provide this. It is a self-serve storefront — you are responsible for driving your own traffic.
How Does Payhip Compare to Competitors?
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Compared to Shopify, Payhip is more limited in physical product features but much simpler for digital goods.
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Compared to Gumroad, Payhip’s fees are competitive, and it offers more control over EU VAT.
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Compared to Teachable or Thinkific, Payhip’s online course tools are more basic but are included for free rather than as a high-ticket feature.
Why Should a Creator Try Payhip?
The main benefit is speed and simplicity. Instead of spending weeks building a full e-commerce site, Payhip lets you start selling today — with a product page and secure checkout ready in minutes.
For new creators, the free plan removes risk. You can test an idea or a product without committing to an expensive monthly subscription. Many creators use Payhip for quick product launches, side projects, or simple membership sites.
Getting Started with Payhip
If you want to start selling digital products, courses, memberships, or simple physical goods directly to your audience, Payhip is worth considering. There is no long-term commitment, no hidden charges, and no need for advanced technical skills.
You can sign up, upload a product, set your price, and share your product link with your audience on the same day.
To get started, visit payhip :https://payhip.com?fp_ref=tabitha82 and create a free account.
Final Thoughts
Selling online does not need to be complicated. Payhip is a practical, affordable option for anyone who wants to turn digital creations into income — whether you are an author, artist, coach, or small business owner.
With instant payouts, automatic VAT handling, secure digital delivery, and simple membership tools, Payhip helps you maintain full control of your business while reaching a global audience.
If you have a product idea ready to share with the world, now is the time to launch it.
Visit Payhip : https://payhip.com?fp_ref=tabitha82
to set up your store and start selling today. https://payhip.com?fp_ref=tabitha82
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