We did a detailed Payhip review earlier. We have also shared Gumroad review with you. What we found is that both Payhip and Gumroad are solid hosted eCommerce platforms. Both are equally suitable for a certain type of online store. At the same time, we also saw that both Gumroad and Payhip has its limitations.
Here I am not going to elaborate on that again. You can read the individual reviews instead. In this article, we will only focus on Payhip vs Gumroad. We will compare the features side by side. We will relate Gumroad fees with Payhip fees. We will analyze their pricing plans.
In simple words, we will find out Payhip or Gumroad, which is the better eCommerce platform for you. That means we will check how these two eCommerce platforms stack against each other.
After reading this Payhip and Gumroad comparison, you will have a clear idea of which platform is the most suitable for you.
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Payhip vs Gumroad
In our reviews, we saw that both Payhip and Gumroad are solid eCommerce platforms that let you start selling for free.
On its website, Gumroad says that it is the super-simple e-commerce for creators and has helped them earn over $272M selling. On the other hand, Payhip announces that it is trusted by over 130,000 sellers from across the world.
These statistics can motivate prospective customers. These sales pitches can even encourage the customer to create an account on the respective platforms. But, how do they stack against each other?
In this Gumroad and Payhip comparison, we will look at the key features of these platforms. We will compare them and find out which one wins. This will, in turn, help us to decide which platform will suit your needs.
Now, let us look into the details.
Payhip or Gumroad – Ease of Creating an Account
Creating an account is equally easy in Payhip or Gumroad. Let me explain in brief how you can create an account in these eCommerce platforms.
Creating an account in Payhip
- Navigate to payhip.
- Click on the button get started free.
- Create an account with your email account and a password.
Creating an account in Gumroad
- Head over to Gumroad.
- Click on the button Start Selling
- You can create a free Gumroad account with an existing email and any chosen password.
- If you prefer, you can even create a Gumroad account with your existing Facebook or Twitter credentials.
Effort wise, both are similar. Creating an account in Gumroad or Payhip needs almost the same amount of time.
But, in case you prefer to create your shop with an existing social account – Gumroad wins.
For me, however, I like to keep things separate.
Payhip Vs Gumroad – What can you sell?
With a Gumroad account, free or paid, you can sell digital products (eBooks, videos, software, etc.). Also, Gumroad lets you sell physical products, subscriptions, and pre-orders.
With a Payhip account, you can sell digital products, physical goods, and memberships. Keep in mind that you cannot sell pre-orders with Payhip.
All things the same, this single feature gives Gumroad an edge over Payhip.
Result: Gumroad wins.
Payhip vs Gumroad – Customization
Both Payhip and Gumroad belong to the category of hosted eCommerce platforms. This means you do not host the eCommerce software yourself. Instead, your storefront resides in the servers of Payhip and Gumroad.
In the free plan, the store is accessible as part of the platform’s URL. Example, gumroad.com/user-name.
What makes them apart is the availability of a custom domain in Gumroad paid plans. If you opt for the creator plan for a monthly subscription fee, you can connect your custom domain to your storefront.
This feature is missing in Payhip. Payhip does not allow you to connect a custom domain even in its premium plan. Are you thinking to brand your online shop with a custom domain? Gumroad is the winner.
Now let us check how to customize your storefront in Gumroad or Payhip. Both Payhip and Gumroad allow tweaking your storefront to a limited extent. But you cannot use a custom theme in any of these two platforms. And any advanced customization of your online shop will need skills in CSS.
If Payhip allowed its users to connect a custom domain to the online store, I would say it is a tie. But unfortunately, it does not.
Result: Gumroad wins.
Payhip vs Gumroad – Payout Processing
This is interesting. Being the shop owner, you must be interested in knowing how Payhip and Gumroad process your payouts.
Gumroad has a threshold of a minimum payable balance of $10. Unless your account balance reaches this minimum threshold, Gumroad will not release your payment. Moreover, Gumroad releases payments only on Friday. So, even if your balance reaches the threshold on Monday, you will have to wait till Friday to receive the payment.
Also, if you live in the USA, UK, Australia, or Canada, you must receive payments in your bank account. If you live elsewhere, you can only receive payment via PayPal. In simple words, what you need to understand is if you cannot use Paypal, you cannot use Gumroad.
In comparison, Payhip has no minimum threshold for payouts. The payments are instantaneous. And that means you need not wait for a specific day of the week or month. You will receive all your sales proceeds in your connected Paypal or Stripe account instantaneously.
This also means you can run an online shop on Payhip if you can use either Paypal or Stripe.
Result: Payhip wins.
Payhip Vs Gumroad – Promoting your store
When it comes to promoting your store, both Payhip and Gumroad offer you a few solid tools.
For example, both Payhip and Gumroad let you create discount coupons. You can build your affiliate programs in both these eCommerce platforms. Both these platforms allow you to collect emails for followers and subscribers. You can use these emails later for email marketing.
Both Payhip and Gumroad integrates well with email marketing tools like Mailchimp, CampaignMonitor, etc.
One feature that I liked in Payhip was its ability to utilize the power of social media to promote your products. You can offer your customers extra discounts if they tweet or like your products. On a case basis, this can be a really useful tool to boost your sales. Just for this feature, I am giving an edge to Payhip.
Result: Payhip wins.
Payhip vs Gumroad – Pricing Plan
Gumroad has two plans for its customers. The perpetual free plan is always free. However, it has limitations of features.
- you cannot remove the gumroad branding.
- you cannot have HD streaming as well.
Also, Gumroad will charge you a transaction fee of 5%.
If you upgrade to the paid Creator plan, Gumroad stops charging you per transaction. But you will have to pay a monthly fee based on the number of distinct customers you have within a year.
This starts at $10 per month for less than 1000 customers. In the highest pricing tier, for stores having more than 50000 customers, Gumroad will charge you $250 per month. In both plans, you will have to pay the payment gateway charges of 3.5% + $0.30 for each transaction.
On the other hand, Payhip has a simpler pricing structure. Payhip has three pricing tiers starting with the perpetual free plan. An interesting thing to note is, Payhip does not limit you by features. In other words, you get the same features in all three plans. The difference lies in the transaction fee.
In the basic free Payhip plan, the platform will charge you a 5% transaction fee. In the intermediate plus plan, you have to pay $29 per month to Payhip. But, your transaction fee will lower down to 2% per transaction.
If you opt for the highest tier, Payhip Pro plan, you will pay a monthly subscription fee of $99. But, Payhip is not going to charge you any transaction fee. But, keep in mind that in all three plans, like Gumroad, you will have to bear the PayPal or stripe charges which are typically 3.5% + $0.30 per transaction.
In both Payhip and Gumroad, you start with the free plan but can upgrade anytime.
Now, Gumroad or Payhip, who has a better pricing plan? It depends. Seriously! Do your maths and figure out which works better for you.
In my opinion, Payhip has a simpler and straight pricing plan. And, if your total number of distinct customers in a year is more than 10000, Payhip is simply cheaper.
Result: Payhip wins.
Payhip vs Gumroad – Selling Products
As we said, both these platforms are hosted solutions and host your shops on their servers. This means you can start selling your products from the storefronts hosted on these platforms.
But, what if you have an existing website where you want to sell these products? Or, if you want to sell your products on social media?
Both Payhip and Gumroad has options to share the link to your products. You can even embed the product page or a buy button on your website or blog. This enables your customers to have a seamless checkout experience right on your website.
Payhip vs Gumroad – Additional Features
There is a solid Gumroad feature that you need to know. Gumroad Discover.
With this, Gumroad will recommend your products to people browsing Gumroad Discover. Of course, this can increase your conversions. Gumroad will charge you an additional fee of 10% for any customer that it refers using Gumroad Discover. You may consider this as an extra marketing tool for your product.
Unfortunately, Payhip does not have any comparable features as of writing this article.
Payhip vs Gumroad – Final Thoughts
In this Payhip and Gumroad comparison, we have looked at the important features that can help you decide the best eCommerce platform for you.
Both these platforms indeed let you start selling online for free. But, as we saw, there are several ways in which they differ. In some cases, Payhip is the clear winner. In other scenarios, Gumroad wins.
But, the question remains unanswered. Payhip Vs Gumroad. Who is the overall winner?
The answer is – it depends on your requirements.
In my opinion, if you think that custom domain is an absolute necessity, go for the Gumroad Creator plan. But again, as we saw in our Gumroad review, the creator plan becomes expensive as your number of distinct customers increases. Moreover, many other eCommerce platforms give you the same flexibility at a lower price.
For all other small scale shop owners, Payhip has the edge. It has a clearer and simpler pricing structure. But keep in mind, even Payhip is not the best eCommerce platform for you if you want to build a full-fledged online business. You need to check other platforms like Shopify and WooCommerce.
Do you differ with our evaluation? Let us know your comments. And, if this Gumroad vs Payhip face-off helped you, please share it among your tribe!
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