Gumroad vs. Payhip (+ dealbreakers) – decide in 7 minutes

If you're looking for a simple way to sell digital products online, you need to make a difficult choice — pick one among hundreds of eCommerce solutions like Payhip and Gumroad.

The truth is, both Gumroad and Payhip are pretty similar (in a way), so we’re not going to waste your time by comparing all of the features one by one. Instead, we’ll try to show the key differences and main dealbreakers that will help you shape your final decision.

So, which platform is right for you? Let’s decide together.

Quick breakdown: Gumroad vs. Payhip

Both Gumroad and Payhip are platforms for selling digital downloads (mostly), but there are still some critical differences between them.

For one, Payhip offers a wider range of built-in features including a course builder, product variants, marketing tools, an affiliate program, and more advanced customization. Gumroad, on the other hand, is a bit easier to use since it's mainly a solution that allows creators to accept payments online. Both now include built-in email marketing, so that is no longer a reason to pick one over the other.

Where they clearly differ is fees. On its free plan, Payhip takes a 5% transaction fee, and its paid plans lower that to 2% or 0%. Gumroad takes 10% + $0.50 on every direct sale and has no paid plan to bring that down. Both charge card or PayPal processing on top.

Going on, we’ll take a closer look at Gumroad and Payhip, covering only the potentially deal-breaking similarities and differences of each platform. We’re also going to include a third platform for comparison — Sellfy. Just so you can clearly see how Gumroad and Payhip not only compare to each other, but to other options in the market.

Gumroad and Payhip are similar (in a way)

Both Payhip and Gumroad were built with beginners in mind. It means that simplicity and ease of use are their main focus.

Yes, they both offer a couple of essential eCommerce tools like coupon codes, freebies, and product variants. However, the bottom line is, that both platforms allow you to build a basic checkout page for your digital products or embed one into an existing website.

Now, you might think:

So if both platforms are so similar, I can just choose either one.

Not so fast! While both platforms serve a similar purpose, there are still some things worth considering.

Why would you choose Gumroad over Payhip?

Sure, we love Gumroad for its nearly non-existent learning curve and ease of use.

But, we’ve compiled some real reasons for you to consider choosing Gumroad over Payhip.

1. Email automation is built in

Even though social media is considered to be a driving force of the creator’s economy, email marketing is still one of the crucial sales and marketing tools for creators and online entrepreneurs.

Gumroad has a free built-in email tool that lets you create an email list or import an existing one. Payhip now has email marketing too, but Gumroad's Workflows make it easy to set up automated sequences triggered by a purchase or a new follower. While Gumroad’s email tool has fairly limited functionality, its main purpose is to help you get more sales by:

• Offering freebies
• Announcing product launches
• Sending out newsletters
• Sharing coupon codes
• Creating automated email sequences You don't have to sell anything to use Gumroad’s email feature as it’s free to use.

2. It virtually takes minutes to set up a store

Sure, both Payhip and Gumroad are simple enough that almost anyone could figure them out.

However, if we compare both solutions side by side, the clear winner would be Gumroad. Its interface is built to be as simple and understandable as possible.

So, if you’re looking for a way to sell subscriptions or digital downloads right this second — Gumroad is your guy. But, be ready that such simplicity comes at a cost. And by cost, I mean not only extreme transaction fees but also a lack of features and limited integration possibilities.

3. Gumroad can recommend your products to potential customers

Of course, we can’t compare Payhip to Gumroad without mentioning one of Gumroad’s coolest features — Gumroad Discover.

Simply speaking, Gumroad Discover will recommend your products to people browsing the Gumroad Discover marketplace. You may consider this as another marketing tool for your product.

Not for free, of course.

They’ll charge a flat 30% on each sale that comes through the Gumroad Discover marketplace (processing included), which replaces the standard fee rather than adding to it. But still, Payhip doesn’t offer anything like that at all.

The main disadvantage of Gumroad

I know, Gumroad seems like a great tool for selling digital products, but there are some things you should know before you sign up.

Let’s talk about some of them in more detail.

1. Extreme transaction fees

Gumroad doesn’t have a subscription fee, but it doesn’t mean that you can use it for free.

Let me explain:

Gumroad takes a 10% commission plus a $0.50 fee on each direct sale, and card processing of 2.9% + $0.30 is charged on top of that. The rate only drops to 5% + $0.50 for the rest of a calendar month once that month's sales pass $20,000. On a $100 product, Gumroad's own cut is $10.50 and processing is another $3.20, so $13.70 leaves every sale. Make five sales a month and you can say goodbye to $68.50. Run your own numbers through the Gumroad fee calculator to see what Gumroad takes per sale at your prices.

Knowing that, can we say that Gumroad is free to use? We’ll leave it for you to decide.

2. You can’t really customize your store

To be honest, it’s not that there’s a lack of customization possibilities — you can hardly customize anything.

There are no store themes to choose from, which means that your page won’t be different from hundreds of other checkout pages powered by Gumroad. You can add some custom fields to the checkout form, customize the virtual receipt, add a custom domain, create product categories, and change some colors — that’s about it.

Any advanced customization of your Gumroad store will require CSS skills.

3. There are (almost) no built-in marketing features

Gumroad lets you build an email list, issue discount codes, bundle products, add upsells, and run an affiliate program. That covers the basics.

Payhip's promotional toolkit is still broader, with built-in abandoned-cart recovery, referral rewards, and upgrade discounts on every plan, including the free one.

4. Slow, conditional payouts

Gumroad doesn't pay you as soon as a sale happens. Every sale sits in your balance for at least 7 days, payouts run weekly once you pass a $100 minimum (higher in some countries), and bank transfers then take another 2 to 7 business days.

Getting paid faster costs extra: instant payouts carry a 3% fee and are only open to eligible US creators. Payouts go to a bank account, or to PayPal with a 2% fee where bank payouts aren't available. Gumroad dropped PayPal payouts entirely in late 2024, which is a reminder of how much your cash flow depends on its payout rules.

5. Customer support is not that supportive

The Gumroad team claims that they’re there to provide you with all kinds of support. If you have questions, their Help Center can address the majority of issues. But, in case you need to contact the support team, they will get back to you within 24 hours.

However, the reviews online say otherwise…

There are some reviews online stating that it usually takes quite some time to get an answer from Gumroad’s support team. Plus, the responses can be unhelpful or in some cases even rude.

Why would you choose Payhip over Gumroad?

Even though Payhip is far from being the only alternative to Gumroad, it’s an option worth considering.

And here’s why:

1. More tools to help you promote your products

When compared to Gumroad, Payhip does a better job of helping sellers to promote their products. Apart from offering discounts and an affiliate program, Payhip also has built-in tools like upselling, referrals, and upgrade discounts.

Again, all tools are built with beginners in mind, but they still look slightly more advanced than the ones offered by Gumroad.

2. Lower transaction fee

Gumroad has no paid plan, so its 10% + $0.50 cut applies to almost every sale, however much you make.

Payhip has three pricing options, all billed monthly. Each of them gives you access to the same features; the only differences are the monthly price and the transaction fee:

1. Free plan with a 5% transaction fee.
2. The Plus plan costs $29 a month and has a 2% transaction fee.
3. The Pro plan costs $99 a month and has no transaction fee.

3. More ways to customize your store

The truth is that if you want to be able to customize your online store, neither Payhip nor Gumroad is a perfect fit. But between Payhip and Gumroad, Payhip still offers more customization possibilities.

For example, you can add as many sections to your store pages as you need including text blocks, slideshow, and even videos. Apart from that, you can add custom pages, change fonts and colors as well as customize navigation links.

Don’t get me wrong, Payhip’s store customization options are still pretty basic when compared to platforms like Sellfy. But it still beats Gumroad on almost all accounts.

4. You get instant access to your earnings

This one is pretty self-explanatory:

Payhip pays sales straight into your PayPal or Stripe account as soon as the transaction completes, with no holding period or payout threshold. Compared with Gumroad's 7-day hold and $100 minimum, that gives you much more flexibility and lets you reinvest your money sooner.

The main disadvantage of Payhip

Even though Payhip looks like a slightly better alternative to Gumroad, it’s still far from being the best eCommerce solution in the market.

Here are some proofs:

1. No annual discount, and processing comes on top

Payhip's paid plans are billed monthly only. There is no yearly option, so a year on Plus costs $348 and a year on Pro costs $1,188, with no annual rate to bring either number down.

On every plan, PayPal or Stripe also charge their standard processing fees on top of Payhip's own fee, so the 5%, 2%, or 0% is never the full cost of a sale.

2. Transaction fees even on the paid plan

We’ve just talked about how Payhip’s paid plan structure makes more sense.

What doesn’t really make sense is that you still have to pay a 2% transaction fee on top of a $29 monthly fee.

So, in case you're selling a $100 product, Payhip will still keep $2 from each sale. So, if you make five sales a month, your monthly fee will sum up to $39.

3. Customer support can be hit-and-miss

According to some user reviews online, Payhip’s customer support doesn’t learn from Gumroad’s mistakes.

Some people have reported it's been quite difficult to get any response from them. Plus, there seems to be a lack of communication in general, even if it's just an update on what's going on behind the scenes.

The question isn’t Gumroad vs. Payhip — It’s Why Not Sellfy?

By now, you should have a clear understanding of what both platforms are really capable of. If you're looking for a more all-in-one solution but almost no built-in features, Gumroad is worth considering. However, if you are in for a slightly more advanced eCommerce toolkit, Payhip could be the better option.

But before you make your final choice, I’d like to make one final case for choosing Sellfy over Gumroad or Payhip:

You get everything you need to promote your products

Let’s face it, both Gumroad and Payhip offer a fairly basic set of built-in features. Especially when it comes to marketing tools. Sellfy, on the other hand, has everything you need to launch and grow your online business, including email marketing, discounts & coupon codes, upselling, cart abandonment, and even pay-what-you-want pricing.

You can actually customize your store

Even though Sellfy is incredibly easy to use, it offers a much more advanced store customizer when compare to both Payhip and Gumroad. With Sellfy, you can choose one of the pre-designed store themes or design a completely new store from scratch — no coding, just drag and drop

More features but the same effortless setup

With Sellfy, setting up an online store is really a matter of minutes. The best part is that you don’t need any previous experience whatsoever. All you have to do is upload your product, add some description, and name a price.

There are no transaction fees on any plans

With Sellfy, you get to sell unlimited products, built-in marketing features, advanced store customization, and even built-in print-on-demand service without transaction fees on all plans.

Fantastic customer support

There’s nothing more important than good customer support when it comes to launching your online store. Sellfy’s customer support team is available 24/7, and it’s really helpful too.

Make sure to check out more Gumroad comparison articles:

Gumroad vs Shopify

Gumroad vs Stan Store

Gumroad vs Podia