In our reviews of Payhip and Gumroad, we saw that both these platforms are powerful online store builders. You cannot go wrong with either of these. Both Payhip and Gumroad let you launch your online shop for free and start selling your products in a matter of minutes.
But, remember that eCommerce platforms are never a one size fits all software.
These store builders have certain unique features and abilities that differentiate them. So, it is useful to compare Payhip and Gumroad to find out which will be a better fit for you.
In this comparison between Gumroad and Payhip, we are going to compare the important features of Payhip with those of Gumroad in detail.
Payhip or Gumroad
- What can you sell
- Customization of Storefront
- Payout processing
- Promoting your store
- Pricing and fees
- Selling products
- Extra features
- Key differences
First of all, a brief introduction to these online store builders.
On its website, Gumroad says that it is a super-simple e-commerce platform 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 validate these claims. But, we can definitely compare the features of Payhip and Gumroad to find which will be the better fit for you.
Creating accounts is simple and fast with both Payhip and Gumroad. Here, we will see how you can create an account on these two 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.
- Create a free Gumroad account with an email and password.
- If you prefer to use social logins, you can even create a Gumroad account with your existing Facebook or Twitter credentials.
Verdict: Creating an account in Gumroad or Payhip needs almost the same amount of time and effort. But, in case you prefer to login with an existing social account – Gumroad wins. But if you ask me, I like to keep things separate and will mark it as a tie between Payhip and Gumroad.
What can you sell?
With a Gumroad account, free or paid, you can sell digital products (eBooks, videos, software, etc.). Gumroad also 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 though.
Verdict: Even if all things are the same, the ability to sell pre-orders with Gumroad gives it a definite edge over Payhip. Want to sell pre-orders? Gumroad is the way to go.
Both Payhip and Gumroad are examples of hosted store builders. This means you do not host the eCommerce software yourself. Instead, your storefront resides in the servers of Payhip and Gumroad.
If you want to customize your hosted storefront, you have limited options in both Payhip and Gumroad.
Both these platforms allow tweaking your storefront only to a limited extent. For example, you cannot use any custom theme on any of these two platforms. And any advanced customization of your online shop will need skills in CSS. Moreover, you can not use any custom plugin or app with Payhip or 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.
Unfortunately, the support of a custom domain is missing in Payhip. Payhip does not let you connect a custom domain even in its premium plan.
Verdict: If Payhip allowed its users to connect a custom domain to the online store, I would say it is a tie between the two platforms. But unfortunately, Payhip does not. So, between Payhip and Gumroad, Gumroad wins for me.
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 from Gumroad. Not only that, Gumroad releases all payments only on Fridays. So, even if your balance reaches the threshold on Monday, you will have to wait till Friday to get the money.
Moreover, 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 your payments via PayPal. In simple words, if you cannot use Paypal, you cannot use Gumroad.
In comparison, you can use either Paypal or Stripe to run your online shop on Payhip. In addition, 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.
Verdict: I am not fond of eCommerce platforms having thresholds for payments. Moreover, instant payment with Payhip is particularly impressive. And did I mention that Payhip supports both Paypal and Stripe? For me, Payhip is the clear winner here.
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.
But with Payhip, you can promote your online business further.
Payhip enables you to 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.
Verdict: Most of the tools and features are similar in both Payhip and Gumroad. But, the feature of social boost with Payhip is really impressive. For me, Payhip is the winner again.
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.
In its free plan, Gumroad charges you a transaction fee of 5% for each transaction. But, if you upgrade to the paid Creator plan, Gumroad stops charging you per transaction. You pay a monthly fee to Gumroad based on the number of distinct customers you have within a year.
The Gumroad creator 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 distinct customers within a year!
In both these plans, you will have to pay the payment gateway charges of 3.5% + $0.30 for each transaction.
In comparison, Payhip has a simpler and flat monthly pricing. Moreover, none of the Payhip plans has any limitation of features.
Payhip has three pricing tiers starting with the perpetual free plan. Interestingly, you get exactly the same features in all three Payhip plans. The only difference lies in the transaction fee that you pay to Payhip.
In the basic free Payhip plan, the platform will charge you a 5% transaction fee. In the intermediate plus plan, you 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. In this plan, Payhip is not going to charge you any transaction fee.
Note that in all three plans, just like Gumroad, you need to pay the PayPal or Stripe charges of 3.5% + $0.30 per transaction.
Verdict: Both Payhip and Gumroad let you start and run your online shop for free. But, the differences lie in their paid plans and features. In my opinion, Payhip has a more transparent pricing plan with no restrictions on features. But, do your own math and figure out which works better for you.
Both Gumroad and Payhip host your shops on their servers. They offer you a hosted storefront to start selling your products for free.
You can even sell products from your existing website or via social media.
Both these platforms let you 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.
Verdict: Both Payhip and Gumroad has similar options to sell your products. Again, it is a tie between Payhip and Gumroad.
This Gumroad vs Payhip comparison is incomplete if we do not talk about a nifty Gumroad feature. Yes, I am talking about Gumroad Discover.
If you opt for the Gumroad discover, Gumroad will recommend your products to people browsing the Gumroad Discover portal.
Of course, this is a paid service.
Gumroad charges you an extra fee of 10% for any customer that it refers to using the Gumroad Discover platform. You may consider this as another marketing tool for your product.
Unfortunately, Payhip does not have any comparable feature as of writing this article.
Verdict: While you can have several different marketing strategies for your online business, you cannot refuse another. Gumroad Discover is an impressive feature available to all Gumroad shop owners. Since Payhip has nothing comparable, the points go to Gumroad here.
Let us summarize the difference between Payhip and Gumroad for a ready reference.
|Sell Digital Products||Yes||Yes|
|Sell Physical Goods||Yes||Yes|
|Sell Pre Orders||No||Yes|
|Custom Domain||No||Yes (Premium)|
|Payout Processing||Instant||Fridays Only|
|Visit Payhip||Visit Gumroad|
You can choose Gumroad if:
- You need a custom domain for your store.
- You need to sell pre-orders.
- You are ok with the $10 payout threshold and weekly payout.
- You are comfortable with PayPal only.
You can choose Payhip if:
- You prefer an instant payout with a zero threshold.
- You are looking for a cost-effective online store builder having transparent premium plans.
- You have an existing social follower base which you plan to harness.
- You prefer to have both Stripe and Paypal.
In this comparison between Payhip and Gumroad, we discussed their differentiating features to choose the right store builder for you.
Both these platforms let you start selling online for free with a hosted storefront. Yet, there are several ways in which they differ.
So, which is the right choice for you?
In my opinion, if you think that a custom domain is an absolute necessity for your shop, go for the Gumroad Creator plan. But remember that the Gumroad creator plan can become really expensive as your customers increase.
For all other shop owners looking for a simple hosted storefront, I simply recommend Payhip.