Lower fees, better control, and fewer problems
Curator’s Note: Many creators are reconsidering their choice between Payhip and Gumroad for selling digital products. While Gumroad’s composite fee structure can be confusing and burdensome, with a 10% fee on its free plan, Payhip offers a more creator-friendly option with a 5% fee on its forever-free plan and no monthly costs. Creators appreciate Payhip’s ease of use, full control over customer data, and transparent verification processes with trusted payment processors like Stripe and PayPal. This article discusses why creators are increasingly opting for Payhip, highlighting its advantages of lower fees, better support, and reduced risk for long-term growth. This article was penned by Saima Akther, a freelance writer and editor for ILLUMINATION publications.
Nowadays, I have seen that the Medium Platform is full of Gumroad posts and always shows up on my home feed.
But mostly don’t mention the issues of Gumroad properly in their post.
I also use Payhip for selling my digital products but it does not mean I’m just promoting the platform just because I’m using it.
It’s not like that.
I’m just telling you the pros and cons of both platforms which mainly creators are saying and facing now.
Selling digital products online should be easy, fair and stress-free. Creators want to focus on making content, not worrying about fees, rules or account problems.
Two popular platforms often compared are Payhip and Gumroad.
Gumroad was once the top choice but many creators now believe that Payhip is much better than Gumroad for long-term growth.
In this article, we will know why creators are leaving Gumroad and choosing Payhip to sell their products, so that anyone who is a beginner can easily decide which to choose.
What Creators Need From a Selling Platform
Creators usually look for the same basic things when choosing a platform:
- Low fees so they keep more money.
- Full control over products and customers.
- Easy setup with no technical stress.
- Clear and fair rules.
Pricing Rules That Hurt Creators
One of the biggest problems with Gumroad is its high and confusing fee structure.
- Gumroad takes a 10% fee from each sale on its free plan.
- Additional payment processing fees apply.
- Fees stay even as creators grow.
Payhip, on the other hand:
Offers a free plan with 5% fee.
Paid plans that reduce platform fees to 0%.
Only standard payment processor fees remain.
How Payhip Saves More Earnings
One big reason creators prefer Payhip over Gumroad is that Payhip helps creators keep more money even if they start with the free plan.
Payhip offers a forever-free plan which is very helpful for beginners who do not want to pay monthly fees.
On this free plan:
- Payhip charges only 5% per sale.
- There are no monthly costs.
- Creators can sell unlimited products.
- You still get access to important selling tools.
Better Control Over Products & Buyers
Payhip gives creators full control:
- You own customer emails.
- You can export buyer data anytime.
- You control refunds and access.
In contrast, Gumroad limits some customer data access and applies stricter content and account rules. Many creators report sudden restrictions or warnings.
Verification Process Issues
For many creators, payment verification and account safety are very important.
If money gets stuck or accounts get limited, it can hurt both trust and income
Before Payhip, I had used Gumroad but due to the issues with the verification process, I couldn’t continue it anymore.
Also, it is a common complaint about Gumroad that many creators face with account verification and sudden holds.
Many creators report issues such as:
- Sudden account reviews without warning.
- Payment holds for days or weeks.
- Requests for extra documents after sales already happen.
- Limited access to funds during verification.
Gumroad uses both Stripe and Paypal but you have to earn at least $100 to get connected with PayPal.
With Stripe, they first go through a verification process but even giving all the necessary information, many creators still can’t get connected to Stripe and which is why many creators are leaving Gumroad.
But Payhip does not control creator money directly. Instead, it connects sellers to Stripe and Paypal which are trusted global payment companies.
This means:
- Verification is done directly by Stripe or PayPal.
- Creators know exactly what documents are needed.
- Payment rules are clear and transparent.
- Funds go directly to the creator, not held by Payhip.
Why Many Creators Switch From Gumroad
Creators switch because they want:
- Lower fees
- Stable payouts
- Better support
- Long-term business safety
Conclusion
When comparing Payhip vs Gumroad, the difference is clear.
Payhip offers:
- Low and fair pricing
- More earnings over time
- Better control and ownership
- Fewer account risks
Choosing the right platform today can protect your income tomorrow.
About My Shop
I sell self-designed digital products, including digital planners (daily, weekly, monthly), phone wallpapers, desktop wallpapers, stickers, and more.
If anyone would like to visit my shop, here is the link below👇🏻
Ink & Layout Shop
https://payhip.com/InkandLayoutShop
My Shop’s Instagram Page
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