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Shopify & eCommerce

Downloads, Licences and Delivery Without a Parcel

Selling digital products online: near-zero marginal cost, location-based tax, reliable delivery, licence management and a fair, robust refund policy.

Updated 2 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

No shipping, near-zero marginal cost, and a different set of problems: tax by customer location, delivery reliability, licence management and a refund policy that is both fair and not abusable.

The economics are different

Marginal cost is close to zero, which means margin is high and the business is really about acquisition rather than fulfilment. That changes what you can afford to spend attracting customers.

It also means discounting is tempting and can devalue the product quickly. High margin is not a reason to price low.

Tax is location-based and mandatory

Digital products are frequently taxed based on where the customer is, not where you are. That obligation applies from the first sale in many jurisdictions, with no threshold.

Get this right before launching rather than discovering it later. It affects your checkout, your invoicing and your registrations.

Delivery still fails

  • Download links that expire before the customer opens the email
  • Emails landing in spam, so the customer thinks nothing arrived
  • Large files timing out on poor connections
  • No route to redownload after a device change
  • Licence keys sent but not recorded anywhere retrievable

Most digital product support contacts are about delivery, and nearly all are preventable.

Refunds need a considered policy

The customer keeps the file whatever you decide, so refunds are pure loss. A restrictive policy generates disputes; a generous one can be abused.

A common workable position is a clear refund window with an honest description of the product beforehand, so expectations are set and refunds are rare.

Piracy is a pricing question

Aggressive protection annoys legitimate customers and rarely stops determined copying. Most successful digital sellers focus on making buying easy and adding value that a copied file does not carry.

Updates, support and community are what a pirated copy lacks, and they are what keeps paying customers paying.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

Still have a question?

Ask us directly — a senior engineer will get back to you.

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How do we handle tax on digital goods?

Based on customer location in many jurisdictions, often with no threshold. Take advice for the markets you sell into before launching.

Should download links expire?

Give a generous window and an account-based redownload route. Short expiry produces support contacts and nothing else.

What about refunds?

A clear window, honestly described products, and accept a small abuse rate. Fighting every refund costs more than it saves.

How do we prevent sharing?

Reasonable measures and accept it will happen. Value that cannot be copied — updates, support — is the effective answer.

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