A professional photographer from Berlin ventured into selling his Adobe Lightroom presets online, aiming to reach a global audience. His journey through different sales platforms, from Creative Market to Etsy and finally to 1D3 Digitech, showcases his search for the best way to sell digital products. This story highlights how the right distribution platform can make a big difference in the digital marketplace.

Client

A Berlin-based professional specializing in wedding and family portraiture developed an innovative series of Adobe Lightroom presets that streamline the photo editing workflow.

Recognizing the broader applicability of these tools, he curated them into a comprehensive bundle for commercial distribution as a digital product. This strategic move evolved into a lucrative business venture, marking a significant transformation in his professional trajectory.

Capitalizing on an expansive TikTok audience exceeding 100 000 followers, he leveraged his online presence for product promotion. His tools became popular among photographers all over the world, including in Germany, India and the USA.

Distribution before 1D3

Initially, he selected two platforms he knew well: Creative Market and Etsy, for distribution. Although these platforms are well-regarded by creators globally, they didn't perfectly suit his needs.

Creative Market

Creative Market is an online marketplace that enables designers and artists to sell digital products like graphics, fonts, templates, and presets. This platform offers creatives an opportunity to monetize their work, while buyers enjoy a vast selection of high-quality design elements for their projects. Despite the high regard customers have for Creative Market due to its quality and diverse range of design assets, the platform's policies, especially the high transaction fees, pose challenges for sellers. Here's a closer look at the issues:

• 50% Commission on Sales: Sellers, like our client, receive only $10 from every $20 preset bundle sold due to a 50% commission policy. While this commission includes payment processing fees, such a high cut forces sellers to consider raising their prices. This adjustment, however, can make them less competitive compared to other preset vendors.
• Diluted Social Media Traffic: Promoting a Creative Market shop on social media platforms doesn't always yield the intended results. Traffic directed from these promotions can inadvertently benefit competitors, as potential customers might explore and purchase from other sellers within the platform, diluting the effectiveness of the original promotion.

Given these challenges, our client ultimately decided to move his business to Etsy. This shift was aimed at finding a more favorable selling environment that could offer lower transaction fees and a more direct marketing approach to his target audience.

Etsy

Etsy is celebrated as a top-tier online marketplace for handmade goods, crafts, vintage treasures, and unique personal items. Additionally, it has gained traction as a preferred venue for selling digital goods, including printable art, patterns, website templates, and digital design assets.

Despite Etsy's seemingly more lenient commission structure, a detailed analysis of its fee schedule unveils a more complex financial landscape for sellers. To illustrate, consider the sale of a $20 USD preset bundle to a customer in India:

• Listing Fee: $0.20
• Transaction Fee: 6.5% ($1.30)
• Payment Processing Fee: 5% + $0.30 ($1.30)
• Regulatory Operating Fee: 0.29% ($0.058)
• Currency Conversion Fee: 2.5% ($0.50)

After deducting all applicable fees, the seller nets $16.64 from each $20 sale. This outcome is significantly more favourable than what one might encounter on Creative Market. However, the issue of traffic dilution — where potential customers may be diverted to competitors — remains as pronounced on Etsy as it is on Creative Market.

Distribution with 1D3 Digitech

Embracing 1D3 Digitech for digital distribution represented a strategic pivot for the client, aimed at boosting traffic conversion and sidestepping the fees associated with traditional platforms. 1D3 Digitech's digital product monetization toolkit offered an integrated approach to achieving these goals. By opting for the Merchant of Record service, the client accessed a range of tools tailored to enhance the digital selling experience:

• 1D3 Website Builder: This tool enabled the creation of a central website that acts as a community hub, consolidating social media traffic without the distractions of competing offers. This website became the focal point for all interactions and promotions related to the client's digital products, which resulted in a 24% conversion increase.
• 1D3 WebStore: Customizable to the client's branding and product range, the WebStore facilitated an exclusive online storefront for selling Lightroom Presets. It provided a seamless shopping experience for customers, showcasing the presets in an organized and attractive manner.
• 1D3 Checkout: Recognizing the global nature of the client's audience, the Checkout system was designed to accept payments from a wide array of countries, including key markets like India. It supported various payment methods, ensuring convenience for customers regardless of their location.
• 1D3 Tax Module: Compliance with international tax laws can be daunting. The Tax Module simplified this aspect by automatically handling Sales Tax/VAT/GST calculations, collection, and remittance, ensuring the client's operations were in full compliance without requiring manual oversight.

Regarding distribution fees, 1D3 Digitech offers a more affordable structure. Consider a $20 Lightroom preset bundle sold in India as an example. For such sales, 1D3 Digitech applies only two fees:

• A 3% distribution fee ($0.60)
• A 3.7% international payment processing fee ($0.74)

After subtracting these fees, the seller receives $18.66 for each $20 sale. This results in a 12.14% higher net income than on Etsy and an impressive 86% increase over Creative Market.

Conclusion

Switching to 1D3 Digitech proved to be a game-changer for the photographer. By moving away from platforms with high fees and choosing 1D3 Digitech, he saw a 24% increase in sales conversions and a significant boost in net revenue, ranging from 12% to 86% more than on previous platforms. Furthermore, the partnership with 1D3 Digitech ensured that he became VAT compliant worldwide, simplifying international sales. This experience underscores the value of selecting the right distribution partner and the positive impact it can have on reaching global markets and increasing profitability.