Selling digital products can be a great way to earn passive income, as there are no product costs or shipping fees. Once created, they can be sold infinitely, making money while you sleep. This is a popular category on marketplaces like Etsy.

Creating digital products requires investing time, energy, and money before getting the freedom. For example, if you want to sell digital download wall art, you have to make the art or hire someone to do it for you. Then, you can package the files and put them in your shop. This seems like a daunting task for non-creatives who don't have any creative skills.

However, the emergence of A.I. technology has impacted all industries since late 2022. LLM (Large Language Models)—based A.I. like ChatGPT or Gemini has inevitably become a part of our workflow and daily lives. Also, generative A.I. engines like Mid-journey or Dall-E have forever re-painted the picture of the graphic industry.

Why We Should Start Selling Digital Products on Etsy? We don't even have any creative skills.

In the past, selling digital download products on Etsy was like heaven for artists and crafters who wanted to earn passive income. Etsy is the easiest place to start an online business. This marketplace has a high volume of buyer traffic every day. If you have done SEO correctly, you can easily make sales and become a successful seller without making your own website. Etsy takes care of technical issues for you.


But now, creatives face a big challenge on the platform because A.I. can introduce new sellers to the market even if they are not creatives.
Simply write simple, readable sentences called "PROMPT" (not coding). Everyone can get beautiful graphics like a professional artist trained for years in just a second.

But the question is

Can We Use A.I. To Create Graphics And Sell Them As A Digital Product On Etsy?

Absolutely YES! Midjourney and Dall-E clearly state terms and agreements on their website that you can make A.I. images and sell them commercially as long as you are a PAID subscriber.

I've been selling on Etsy since 2018. I've seen many changes every year, but this year is the most welcome for everyone. I've listed the 10 best digital products you can make and sell on Etsy with A.I. These niches have market demand. It's not that easy, but everyone can do it.

1.Stickers

You can also create and sell stickers as physical products. And you can sell them as digital products as well. Digital stickers like Goodnote or Notability are widely used by digital planner users.

2.Clipart

This small graphic can be made simply with A.I. By removing the white background, you will get the ready-to-sell digital clipart that customers want.

3.Busy Book

Printing busy books for toddlers is in demand on Etsy and TPT. These simple graphics are easy to make with A.I. But you need to use your imagination to package them into printable sheets.

4.Coloring Pages

You can create coloring pages for kids and adults. And you can sell them on Amazon KDP as well.

5.Education Worksheet for Kids

The growing of Montessori and home school education make printable kids activities have a high search volume every year. You can also let ChatGPT generate those activities.

6.Invitation Card

The invitation card is in demand all year long. It is a seasonal product that you can create for every occasion.

7.Tumbler Wrap

Tumblers have been another big niche on this platform for many years, and they are still in demand because new tumbler sellers start their businesses every day. A seamless pattern is easy to do with a single prompt. This is the most low-barrier niche, in my opinion, but it is easy to make. Why not?

8.Wall Art

The hottest niche in Etsy and this is the Red Ocean I could say. But if you can make the difference you can make money. This niche has high demand every year. Now, you can create high-quality wall art with A.I. (P.S. Remember to upscale the image quality for printing.)

9.Animated Virtual Background

This is popular for streamers on Twitch. They need to replace their virtual background by following seasonal and trends. You can make this with A.I. and animate with Adobe After Effects.

10.Mock-Up

With the power of A.I., you can create realistic photo renderings that can be used as product mockups.

Selling digital products can make you money and lead your future customers to your website. It is a perfect formula for bringing traffic.

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