The Problem We Were Actually Solving
As a developer who also teaches coding courses, I needed a way to sell my products without relying on Gumroad or Payhip. Both of these platforms have their own set of limitations, but the real issue was that they don't work in my country at all. Attempting to purchase a plan from them results in an error message from their servers – an error message that reads "country not supported" – which, to say the least, is not exactly welcoming.
What We Tried First (And Why It Failed)
Initially, I tried using PayPal as a workaround. PayPal, after all, is a well-established payment processor that supports a wide range of currencies. However, the problem with PayPal is that it also has its limitations. Any transaction made through PayPal requires the recipient to have a PayPal account, which, in my case, is nonexistent. Furthermore, the fees associated with PayPal are steep – 3.4% per transaction, which, when added up, quickly became too much to bear.
The Architecture Decision
So, I made the decision to use a platform called Paddle, which is a payment processor specifically designed for digital products. Paddle allows me to create a custom checkout experience for my customers, which is not something that Gumroad or Payhip can compete with. One of the key features that drew me to Paddle is their support for multiple payment gateways, including Stripe. Paddle connects to my existing Stripe account, which, in turn, connects to my bank. This setup allows me to collect payments from customers without worrying about the intricacies of payment processing.
Another crucial aspect of my setup is the use of a delivery platform called Digital Products. This platform allows me to create, manage, and deliver digital products, such as ebooks and courses, in a matter of minutes. With Digital Products, I can share direct links to the products with customers, making it easy for them to access the products immediately after purchase.
What The Numbers Said After
Using Paddle and Digital Products has allowed me to sell a significant number of products, with zero errors and zero failed transactions. The fees associated with Paddle are lower than those of PayPal, and I can create my own custom checkout experience for my customers. In terms of numbers, Paddle charges 2.9% per transaction + 30c per transaction for domestic payments, which works out to be significantly lower than the fees associated with PayPal. For international payments, the fees are a bit higher, at 4.9% per transaction + 30c per transaction, but still much lower than those of PayPal.
What I Would Do Differently
If I had to do it all over again, I would probably explore additional payment gateways, such as Square and Square Virtual Terminal, and compare their fees to those of Paddle. However, based on my experience so far, I would stick with Paddle and Digital Products as the cornerstone of my digital product sales platform. These tools have allowed me to overcome the platform restrictions that were once a major obstacle to my business, and I'm confident that they will continue to serve me well in the years to come.
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