Selling digital products should be simple: upload a file, set a price, share a link, get paid. But the platform you choose determines how much of that money you actually keep. Gumroad, Lemon Squeezy, and Payhip take different approaches to fees: and the difference adds up fast.

I’ve sold digital products on all three platforms and helped creators migrate between them. Here’s the real math on which one makes sense for your business.

Quick Comparison Table

Feature	Gumroad	Lemon Squeezy	Payhip	Sellfy	Stan Store
Transaction fee	10%	5% + 50¢	0–5% (plan-dependent)	0%	0%
Monthly cost	$0	$0	$0–$99/mo	$29–$99/mo	$29/mo
Products supported	Downloads, memberships, courses	Downloads, SaaS, subscriptions, licenses	Downloads, courses, memberships, coaching	Downloads, subscriptions, print-on-demand	Downloads, courses, bookings
Checkout customization	Limited	Good (embeddable)	Good	Good	Limited (link-in-bio style)
Email marketing	Basic (Workflows)	None (integrations)	Built-in	Built-in	Basic
Affiliate program	Yes	Yes	Yes	Yes	No
VAT/sales tax handling	Yes (included in fee)	Yes (Merchant of Record)	Manual or third-party	Manual	Yes

Gumroad: Simplest Setup, Highest Fee

Pricing: No monthly fee. 10% flat fee on every sale (plus payment processing).

Gumroad is the platform that started the “sell anything with a link” movement. The setup takes five minutes: upload your product, set a price, customize your page, and share the URL. It’s dead simple and that simplicity has kept it relevant despite the highest fees on this list.

The 10% cut hurts at scale. Sell $1,000/month and Gumroad takes $100. Sell $10,000/month and they take $1,000. There’s no way to reduce that fee: no volume discounts, no paid plan that lowers the percentage.

What you get for that 10%: Gumroad handles all sales tax and VAT globally. You don’t think about compliance, filing, or remittance. They also include basic email marketing (Workflows), an affiliate program, and a discovery page where buyers can find your products.

The product page builder is functional but dated. Gumroad’s design hasn’t evolved much, and checkout pages look recognizably “Gumroad.” That may or may not matter depending on your brand standards.

Gumroad works best for creators just starting out who want zero setup friction and don’t mind the fee. Once you’re making consistent revenue, the 10% becomes hard to justify.

Lemon Squeezy: Best for SaaS and Software Licenses

Pricing: No monthly fee. 5% + 50¢ per transaction (plus payment processing).

Lemon Squeezy positions itself as the modern alternative to Gumroad, but it has a secret superpower: it’s actually built for software. License key generation, subscription management, and usage-based billing make it the best platform for indie developers selling apps, plugins, or SaaS products.

The 5% + 50¢ fee structure is significantly cheaper than Gumroad for most price points. On a $50 product, Lemon Squeezy takes $3.00 vs Gumroad’s $5.00. On a $10 product, it’s $1.00 vs $1.00: nearly identical for low-price items because of that 50¢ fixed fee.

The killer feature is Merchant of Record status. Lemon Squeezy handles all global tax compliance: VAT, GST, sales tax: as the seller of record. You never register for tax in any jurisdiction. For international sellers, this alone can save thousands in accounting fees and compliance headaches.

The checkout experience is modern and embeddable. Drop a Lemon Squeezy checkout into your existing website as an overlay: no redirect to a third-party domain. It feels native to your brand.

Downsides: no built-in email marketing, limited discovery features, and a smaller ecosystem of integrations compared to Gumroad. You’ll need to pair it with a separate email platform.

Lemon Squeezy is ideal for software developers, SaaS creators, and anyone selling subscriptions or licenses who wants modern checkout and tax compliance handled automatically.

Payhip: Best Value at Volume

Pricing: Free plan (5% fee). Plus at $29/mo (2% fee). Pro at $99/mo (0% fee).

Payhip’s pricing model is unique: pay a monthly fee to reduce (or eliminate) transaction fees. At enough volume, this makes Payhip the cheapest platform by far.

On the free plan, the 5% fee matches Lemon Squeezy (without the 50¢ per transaction). At $29/month on Plus, the fee drops to 2%. At $99/month on Pro, there’s no transaction fee at all: just payment processing costs (Stripe/PayPal fees around 2.9% + 30¢).

The product range is broad: digital downloads, online courses, coaching sessions, memberships, and even physical products. Built-in email marketing, an affiliate program, and coupon codes come on all plans.

Payhip’s checkout is clean and customizable. You can embed it on your site or use their hosted storefront. The course builder is basic but functional: nothing compared to Teachable, but enough for simple courses.

The weakness is brand perception. Payhip isn’t as well-known as Gumroad or as modern-feeling as Lemon Squeezy. The platform works well but doesn’t have the same community or ecosystem around it.

Also Worth Mentioning

Sellfy ($29-$99/mo, 0% transaction fee): A full storefront builder with no transaction fees. Best if you want an actual online store rather than individual product links. Supports digital products, subscriptions, and print-on-demand. The monthly cost is the tradeoff for zero fees.

Stan Store ($29/mo, 0% transaction fee): A link-in-bio tool that doubles as a digital product platform. Best for creators who sell primarily through Instagram or TikTok and want a mobile-first checkout experience. Limited for larger product catalogs.

Break-Even Analysis: When Each Platform Is Cheapest

The math depends on your monthly revenue:

Under $500/month revenue: Gumroad or Lemon Squeezy (free plans, accept the percentage fee). At $500 revenue, Gumroad costs $50, Lemon Squeezy costs ~$27 (assuming $25 average product price).

$500–$1,500/month revenue: Lemon Squeezy wins. At $1,000 revenue with $25 average price, Lemon Squeezy costs ~$70, Gumroad costs $100, Payhip Free costs $50, Payhip Plus costs $49 (monthly fee + 2%).

$1,500–$5,000/month revenue: Payhip Plus ($29/mo + 2%) becomes cheapest. At $3,000 revenue: Payhip Plus = $89, Lemon Squeezy = ~$170, Gumroad = $300.

Over $5,000/month revenue: Payhip Pro ($99/mo + 0%) is the clear winner. At $10,000 revenue: Payhip Pro = $99, Payhip Plus = $229, Lemon Squeezy = ~$550, Gumroad = $1,000.

The simple rule: Start with Lemon Squeezy or Payhip Free. When you consistently exceed $1,500/month, switch to Payhip Plus. When you exceed $5,000/month, upgrade to Payhip Pro.

Which Platform Should You Choose?

“I’m just starting and want the easiest setup” → Gumroad. Five minutes to your first product page. Accept the 10% fee as the cost of simplicity.

“I sell software, plugins, or SaaS” → Lemon Squeezy. License keys, subscription billing, and Merchant of Record status are built for you.

“I make over $3,000/month in digital sales” → Payhip Plus or Pro. The monthly fee pays for itself through lower transaction costs.

“I want a full storefront with multiple products” → Sellfy. An actual online store rather than individual product links.

“I sell through social media (Instagram/TikTok)” → Stan Store. Mobile-first, link-in-bio native checkout.

For email marketing to pair with your product platform, check our email marketing guide for creators. If you’re building a newsletter alongside your products, our Beehiiv vs Substack vs Kit comparison covers which platform integrates best. And for managing freelance income from multiple platforms, see our invoicing software guide.

FAQ

Does Lemon Squeezy really handle all tax compliance? Yes. As a Merchant of Record, Lemon Squeezy is the legal seller of your product. They collect, report, and remit all VAT, GST, and sales tax globally. You receive a payout minus fees. No tax registration required in any country. Gumroad also handles this, but Payhip does not: you’re responsible for your own tax compliance on Payhip.

Can I migrate products between platforms? You can recreate products easily, but you can’t migrate existing customers or their purchase history. Subscribers and membership holders would need to re-subscribe on the new platform. Download customers keep their files (email them new links). Plan migrations during low-sales periods.

Which platform has the best affiliate program? Gumroad’s affiliate system (Gumroad Discover + custom affiliates) has the largest existing network of affiliates. Lemon Squeezy and Payhip both offer affiliate programs, but you’ll need to recruit your own affiliates. If organic affiliate discovery matters, Gumroad has the edge.

Do I need a separate website to sell digital products? No. All three platforms provide hosted product pages and checkout. Lemon Squeezy’s embeddable checkout works particularly well if you do have a website, but it’s not required. You can sell with just a link shared on social media or in your newsletter.

What about refunds and chargebacks? All three platforms handle refunds through their dashboard. For chargebacks (disputed payments), Gumroad and Lemon Squeezy handle disputes on your behalf as part of their fees. Payhip passes chargeback fees to you since they’re not the Merchant of Record. This is a hidden cost to consider if your products have higher dispute rates.