Payhip vs Gumroad
In our earlier reviews of Payhip and Gumroad, we told you that both are powerful platforms to run an online shop. We also showed you their limitations.
You can indeed start your online shop with either of these free online store builders. But, before you begin, it is beneficial to compare Payhip and Gumroad to find out which is more suitable for you.
Please understand that we are not going to review Payhip and Gumroad here. Instead, we will only focus on Payhip vs Gumroad. We will compare the features of Payhip with those of Gumroad. We will look at their pricing. We will analyze their fee structures.
This Payhip vs Gumroad comparison will help you find a better eCommerce platform. Of course, from a long term perspective.
Please note that some of the links on this article are our affiliate links. If you follow these links to buy anything on our partner websites, we will receive a small commission. This helps us to cover the running cost of this website.
In this Payhip vs Gumroad comparison, we will cover:
- Account creation
- What can you sell?
- Payout Processing
- Promoting your online store
- Pricing and Fees
- Selling Products
- Extra Features
Payhip vs Gumroad – Comparison of Features, Pricing and Fees
As we saw in our reviews, both Payhip and Gumroad are solid eCommerce platforms. Both these online store builders let you start selling for free.
On its website, Gumroad says that it is the super-simple e-commerce for creators. It has helped them to earn over $272M selling. Payhip, on the other hand, informs you that over 130,000 sellers from across the world trust its platform.
Like any business, these are sales pitches to motivate prospective customers like you. And I do not have any source to check these claims. But, we can definitely compare Payhip and Gumroad to find which is a better fit for you.
In this Payhip vs Gumroad article, let us look at the key features of these platforms. Let us compare to judge the winner. This will, in turn, help you to decide the right platform between Payhip and Gumroad.
Creating an Account
Creating accounts is easy with 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 want, you can even create a Gumroad account with your social profiles. You can use existing Facebook or Twitter credentials to log in to Gumroad.
Creating an account in Gumroad or Payhip needs almost the same amount of time and effort. But, in case you prefer to create your shop with an existing social account – Gumroad wins.
If you ask me, I like to keep things separate.
Payhip vs Gumroad: It is a tie.
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.
Payhip vs Gumroad: Want to book preorders? Gumroad is the way to go.
Both Payhip and Gumroad are examples 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.
If you opt for the Gumroad free plan, you can access your store as a subdomain of Gumroad. Example – gumroad.com/user-name. But, with a paid Gumroad subscription, you can connect a custom domain to your storefront.
Support of custom domain is missing in Payhip. Payhip does not let you connect a custom domain even in its premium plan. Are you thinking to brand your online shop with a custom domain? Forget Payhip!
If you want to customize your storefront, you have limited options in both Payhip and Gumroad.
Both these store builders allow tweaking your storefront only to a limited extent. For example, you cannot use any 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, Payhip does not.
Payhip vs Gumroad: Gumroad wins.
This is an interesting difference between Payhip and Gumroad.
Gumroad has a payment threshold of $10. Unless your payable balance reaches this threshold, you will not receive 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 get the money.
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, if you cannot use Paypal, you cannot use Gumroad.
In comparison, Payhip has no threshold for payouts. The payments are instantaneous. So, with Payhip, you need not wait for a specific day of the week or month to receive your money. You get your sales proceeds in your connected Paypal or Stripe account right away.
This also means you can run an online shop on Payhip if you can use either Paypal or Stripe.
Payhip vs Gumroad: Payhip wins.
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. You can collect emails for followers and subscribers for email marketing. Both Payhip and Gumroad integrates with email marketing tools like Mailchimp, CampaignMonitor, etc.
With Payhip, you can use the power of social media to promote your products. You can offer your customers extra discounts if they tweet or like your products. If you have an existing follower base, this can be a very fruitful tool to boost your sales. For this feature alone, I am giving an edge to Payhip.
Payhip vs Gumroad: Payhip wins.
Pricing And Fees
Gumroad has two plans for its customers. The perpetual free plan is always free. But, 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% for each transaction. But, if you upgrade to the paid Creator plan, Gumroad stops charging you per transaction. And you pay a monthly fee based on the number of distinct customers you have within a year.
The paid plan starts at $10 per month for less than 1000 customers. In the highest tier, you will pay $250 per month if you have more than 50000 customers.
In both plans, you will have to pay the payment gateway charges of 3.5% + $0.30 for each transaction.
Payhip has a simpler pricing structure.
Payhip has three pricing tiers starting with the perpetual free plan. An interesting thing to note is, none of the Payhip plans has limitations of features. In other words, you get the same features in all three plans. The difference lies in the transaction fee that you owe to Payhip.
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.
Note that in all three plans, you need to pay the PayPal or Stripe charges which are 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. 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 cheaper. And if you manage to get more than 10000 customers in a year, there are better platforms!
Payhip vs Gumroad: With its friendly pricing tiers and features, Payhip wins here.
As we said, both Gumroad and Payhip host your shops on their servers. This means you can start selling your products from a hosted storefront.
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 lets your customers have a seamless checkout experience right on your website.
Payhip vs Gumroad: It is a tie!
This Payhip vs Gumroad article is incomplete if I do not tell you a nifty Gumroad feature. Gumroad Discover.
With this, Gumroad will recommend your products to people browsing Gumroad Discover. Of course, this is a paid service. Gumroad charges you an extra fee of 10% for any customer that it refers to 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: Gumroad Discover gives a definite edge to Gumroad. Hands down, Gumroad wins here.
Payhip vs Gumroad – Summary
|Free Tier Available||Yes||Yes|
|Can sell digital products and subscriptions||Yes||Yes|
|Can sell physical goods||Yes||Yes|
|Can sell pre-orders||No||Yes|
|Can add custom domain||No||Yes (Paid)|
|Instant Payout||Yes||On Fridays|
Choose Gumroad if you:
- Need a custom domain.
- Need to book pre-orders.
Choose Payhip if you:
- Need a feature rich yet cost-effective store builder.
- Need instant payout with zero threshold.
Payhip vs Gumroad – Final Thoughts
In this Payhip and Gumroad comparison, we saw the key features to choose the right shop builder 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. Which is the better online store builder for you?
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 the creator plan becomes expensive as your customers increase. And you can get more flexibility at a lower price with different eCommerce platforms.
For all other small scale shop owners, Payhip is better. It has a clearer and simpler pricing structure.
Are you using Payhip or Gumroad for your online business? Let us know about your experience.
Did this Payhip vs Gumroad comparison help you to find the right option for you? Share it among your tribe!
Related to Payhip vs Gumroad
Download our eCommerce Setup Checklist for FREE.