If you’ve purchased a digital product in the last decade, you’ve almost certainly used PayPal to process your transaction. While this is one of the only brand names most customers see, aside from that of the merchant from whom they’re purchasing, it’s only part of the puzzle. There’s more to online sales than just PayPal; instant download businesses rely on a host of services this payment processing giant simply doesn’t offer.

Understanding the Role of PayPal: Digital Goods Business Models Explained

PayPal, along with similar services like Google Wallet, are trusted by online buyers around the world for their ability to process payments to millions of merchants safely and securely. Because most merchant pages redirect to PayPal’s site for the final steps of processing a transaction, it’s also not uncommon for the average buyer to believe content is hosted and distributed by the same service. Since most beginning online merchants start out as customers themselves, this can create a bit of confusion when they start trying to set up their own online marketplaces.

Ultimately, payments are processed by PayPal; downloads’ hosting, distribution and marketing are the responsibility of the merchant selling them. Some handle these tasks by approaching them individually, which means manually processing transactions and monitoring sales alerts to send out download links, but this can create a delay for buyers while negatively affecting customer service ratings and is also enormously time consuming. The best option by far, for both beginners and veteran merchants, is to work with a dedicated ecommerce platform like PayLoadz.com. High-quality ecommerce platforms provide more than just content hosting and integrated payment processing through services like PayPal; instant download capability is automated and top-notch services will also include access to affiliate networks, among other marketing tools.

The Key to Business Growth

For online merchants, there are several factors which collectively contribute to sales success. Balancing these factors can be a challenge without the right tools and support, which is why it’s so important for newcomers to explore the many options available to them before launching a marketplace. Myths and misconceptions about starting an instant download business are rampant, and taking them as truth can make success elusive. Substantial start-up costs incurred as a result of building a full-service, self-contained website are not only unnecessary, but actually delay profitability and can ultimately be counterproductive. At the same time, relying solely on systems like PayPal, which work best when paired with complementary services, can be damaging.

The key to success for the beginning online merchant is a comprehensive ecommerce solution and thorough business plan. Take the time to research necessary tools and services before launch, and you can take a shorter, more successful path to profitability.

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