How to Start Digital Dropshipping with AI
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Digital Dropshipping Guide (2024)

digital dropshipping
dropshipping productsDaniel Kozlov
9 minute read-July 8, 2024

Within today’s quickly growing e-commerce landscape, digital dropshipping has surfaced as a highly innovative business model, shifting the way entrepreneurs tackle online retail. With the combination of Artificial Intelligence (AI), digital dropshipping has grown to be convenient and proficient. AI-powered tools can streamline most sectors of the business, from product research and selection, to marketing and content creation.

Undoubtedly, the strength of these systems makes it easier to sell digital products. In the following guide, we’ll analyze what digital dropshipping is, how you can start digital dropshipping, the benefits that digital dropshipping has over physical, and some of the best digital products to sell.

Let’s leap into the world of digital dropshipping and explore how you can utilize AI to create a successful online business.

Key Takeaways from this Guide

  • What digital dropshipping is and how AI has made it so much easier.
  • How you can start your own digital dropshipping business, with little to no experience.
  • The main benefits digital dropshipping has over physical dropshipping.
  • An up-to-date list of highly demanded digital products.
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What is Digital Dropshipping?

First off, let’s get a clear understanding of what digital dropshipping is. It may sound similar, but it differentiates itself from traditional dropshipping, which focuses on the sale and shipment of physical products. In other words, digital dropshipping is the distribution of digital products like e-books, virtual courses, templates, digital art, software, and more. This approach offers various advantages such as higher profit margins, lower costs, instant delivery, the removal of inventory management, and AI automation opportunities.

More importantly, the sale of intangible online goods provides a seamless customer experience. Many headaches come with refunds, returns, chargebacks, delayed shipping, etc. With digital dropshipping, customers don’t have to wait days or weeks to get their order. They purchase and receive their product instantly. As a result, customer service is less of a hassle, allowing for more time to scale the business. The following section will showcase the best AI tool to start your digital dropshipping business.

creating a new digital dropshipping product

How to Start a Digital Dropshipping Business

As we dissect how to start a digital dropshipping business, we must understand some basic steps. However, don’t worry too much about this because AI can do it all for you. But for now, here are the steps:

  • Choose Your Niche: Research and identify a specific niche to sell your digital product to. Some examples include entrepreneurship, self-help, and academic success. Once you find a niche that aligns with your interests and has market demand, you need to choose a type of digital product.
  • choosing a digital product niche
  • Find a Digital Product to Sell: From e-books to video courses, the options are endless. If you’re just starting out and want to get familiar with online business, e-books are the way to go. They are not only the easiest to sell, but also the easiest to create, especially with AI. Nevertheless, other options are just as suitable if you’re willing to put in the work.
  • creating an e-book to sell online
  • Create Your Digital Store: Once you have your product, you need to make an online store. Platforms like Shopify make this process very smooth. If you have money to spend, you can hire a professional web designer. But to start off, you should familiarize yourself with Shopify’s customization options.
  • creating a digital dropshipping website to sell an e-book
  • Market Your Product: The most important step - marketing. At this point, you just need to be consistent. Get tons of footage to post on social media. This will direct traffic to your website for free. Depending on your budget, paid ads can also be campaigned on Facebook, Instagram, and Google Ads.
  • creating ads for digital dropshipping
  • Offer Exceptional Customer Service: Every successful business, online or in-person, has great customer service. It makes your brand trustworthy and promotes customer loyalty. If customers are satisfied and loyal, the odds that they buy again are greatly increased.
  • Monitor and Optimize: Once you have things running, the next step is to maintain and scale. Focus on keeping track of your sales performance, customer behaviour, and market trends to optimize your online store’s growth.

Of course, this is a brief overview of the essential steps in creating a digital dropshipping business. The truth is that there are many challenges that can arise and many skills must be mastered. The good news is that Glitching allows you to start instantly, with no skills or experience. Next up, we will examine some benefits that digital dropshipping has over physical.

Digital Dropshipping vs. Physical Dropshipping

There are several key differences when it comes to comparing digital dropshipping and physical dropshipping. Primarily, physical dropshipping sources products from suppliers, who then handle the inventory, packaging, and shipping. The traditional model can be profitable, but it comes with certain challenges like lower profit margins, higher costs, shipping delays, inventory management issues, refunds, and returns.

Conversely, digital dropshipping removes these problems with its focus on digital products. There is no need to purchase physical goods, allowing for higher profit margins and lower costs. Digital products are also delivered instantly, removing any shipping delays and inventory management. Moreover, refunds or returns can be done online in a matter of seconds. Here are descriptions of key characteristics of digital dropshipping:

  • Higher Profit Margins: Since you don’t need to buy goods before selling them, the profit margins are much higher. For example, if you sell a digital product for $19.99 on Shopify, you only need to pay a 3% transaction fee, making your profit 97% on the sale. Whereas in physical dropshipping, the average profit margin is about 50% on each sale.
  • Lower Costs: Similar to the previous point, you don’t need to pay suppliers or shipping costs. Consequently, this allows digital dropshippers to direct more time and money on marketing. In physical dropshipping, suppliers and shipping are a recurring costs, which can get quite costly over time.
  • Instant Delivery: When a customer makes a purchase on your website, they receive their digital product right away. All they need to do is download your product. This becomes a great advantage compared to physical dropshipping, where many problems can arise with late deliveries.
  • Removal of Inventory Management: With digital dropshipping, you don’t have an inventory. Therefore, no storage is required and one digital file can be sold repeatedly. With physical dropshipping, you need to pay a supplier for constant inventory. This becomes expensive over time, as you often need to sell a certain number of orders per day.
  • AI Automation Opportunities: Many areas of a digital dropshipping business can be automated with AI. As shown, there are AI tools that create your digital product, website, and videos for advertising. This makes the scaling process a lot easier, where traditional dropshipping incorporates cannot be automated as smoothly.

In the grand scheme of things, digital dropshipping has a lot less moving parts compared to physical dropshipping. Due to the fact that it is all digital, it makes perfect sense that AI is strong enough to automate the business model. The final section will list some of the best digital products to sell right now.

Best Digital Products to Sell

  • E-books: The most popular choice for digital dropshipping. E-books cover a vast range of topics, from self-help and education, to fiction and cookbooks. As a skill, writing and designing e-books can be very profitable, especially if you have expertise in a certain field.
  • Software and Apps: Online software and mobile apps can be highly lucrative. More often than not, these products enhance productivity or solve specific problems. The detailed nature of their backend makes them extremely valuable to customers.
  • Online Courses: Learning materials are high in demand. Even more so when they are online and easily accessible. Online courses should be tailored to a topic that you are familiar with. Some examples involve programming, marketing, design, personal growth, etc.
  • Digital Art and Graphics: Illustrations, photography, and graphic design elements are all forms of digital art. These products are popular among business searching for unique visual assets. creatives and businesses looking for unique visual assets.
  • Templates and Themes: These are designed for for websites, e-books, image graphics, presentations, and many more. They allow individuals and business to create professional-looking content without much skill in design.

Frequently Asked Questions about Digital Dropshipping

Q: Does Glitching actually work?

Yes, the AI system is backed by years of validated code.

Q: How do I create an e-book to sell?

Glitching will create it for you! Just choose a niche that sparks your interests.

Q: Is Glitching free to use?

If you sign up today, you receive 1 free e-book credit to get started.

Q: Can I start a digital dropshipping business with no money?

Yes, you don’t need to pay suppliers and you can get free traffic by posting on social media.

Q: Is digital dropshipping saturated?

No, this business model is newer than physical dropshipping, which is quite saturated.

Q: How do I create ads for my digital product?

Glitching will generate the ads for you. All you need to do is post them on TikTok, Instagram, etc.

Q: Is digital dropshipping too hard to start?

No, with the help of AI, it’s one of the easiest business models available.

Q: Do I need to pay for ads?

You can use paid ads or get organic traffic on various platforms. The choice is ultimately yours.

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