Best Platform to Sell Digital Products (2026): The Real Fee Math
Fastlancer Team · Updated: Oct 28, 2026
Every platform for digital products advertises a single percentage, but those numbers are not comparable: some include card processing and the tax filing, others leave both to you. This guide puts every fee in the same column, runs it through three real price points and shows which platform files the tax instead of you.
Short version
The seven platforms at a glance
The Tax column matters most, because it decides whether you get a payout or a filing obligation.
| Platform | Fee per sale | Base price | Tax | Best for |
|---|---|---|---|---|
 Gumroad | 10% + $0.50 (30% via Discover) | none | platform handles it | A first product, without choosing a plan |
 Lemon Squeezy | 5% + $0.50 | none | platform handles it | The default up to roughly $1,300/ |
 Polar | Starter 5% + $0.50 · Pro 3.8% + $0.40 | Starter none · Pro $20/ | platform handles it | Low price points above roughly $1,300/ |
 Paddle | 5% + $0.50 | none | platform handles it | Software, licences and subscriptions |
 Payhip | 5% · Plus 2% · Pro 0%, plus card processing 2.9% + $0.30 | Free none · Plus $29/ | EU/ | Courses and high price points |
 Podia | Mover 5% · Shaker 0%, plus card processing | Mover $42/ | yours | Courses and memberships |
 ThriveCart | card processing via your Stripe or PayPal | Standard $47/ | calculated at checkout, filing yours | Checkout, funnels and courses in one place |
Card processing shown is Stripe's US rate; PayPal charges more. Non-US cards add a surcharge at Polar, Stripe and, for some transactions, Lemon Squeezy.
Who owes the tax
Sales tax and VAT are passed on to the buyer, so they cost time rather than margin: registering and filing wherever a buyer lives. With a merchant of record the platform becomes the legal seller and files instead of you.
Gumroad, Lemon Squeezy, Paddle and Polar all work this way, which is why Gumroad's higher cut is not outrageous. Payhip covers the main markets for digital products, while with Podia and ThriveCart the filing stays with you.
| Where you sell | When tax becomes your job |
|---|---|
| Within the US | State by state once you cross a state's economic-nexus threshold, most often $100,000 of sales a year; some states also count transactions, and not every state taxes digital goods |
| Within the UK | VAT registration once taxable turnover passes £90,000 in any rolling twelve months |
| Into the EU, as a US or UK seller | From the first sale to an EU consumer, at that country's rate, filed through the non-Union One-Stop Shop |
The EU row is the expensive mistake: the EU's €10,000 threshold for cross-border digital sales applies only to sellers established inside the EU. A US or UK seller who reads about it and feels covered owes VAT from the first sale, unless a merchant of record is the seller instead.
Income tax does not depend on the platform. If the business structure is still open, LLC vs sole proprietor covers that choice. Rates and thresholds change, and this is not tax advice.
The fee math at three price points
Percentage models punish high prices and monthly plans punish low volume, which is why the ranking changes with your price point. All three scenarios assume US cards and Stripe processing where the platform does not include it.
Scenario 1: 50 templates at $29 — $1,450 in revenue
| Platform | Cost | Share | Tax handled |
|---|---|---|---|
| Polar Pro | $95.10 | 6.6% | yes |
| Lemon Squeezy | $97.50 | 6.7% | yes |
| Paddle | $97.50 | 6.7% | yes |
| Polar Starter | $97.50 | 6.7% | yes |
| Payhip Plus | $115.05 | 7.9% | main markets |
| Payhip Free | $129.55 | 8.9% | main markets |
| Podia Shaker | $141.05 | 9.7% | no |
| Gumroad | $170.00 | 11.7% | yes |
At this size the leading platforms sit within a few dollars of each other, so the tax column decides, not the price. Payhip Free lands above Lemon Squeezy despite the same advertised rate, because card processing comes on top.
Scenario 2: 100 course seats at $199 — $19,900 in revenue
| Platform | Cost | Share | Tax handled |
|---|---|---|---|
| Podia Shaker | $691.10 | 3.5% | no |
| Payhip Pro | $706.10 | 3.5% | main markets |
| Polar Pro | $816.20 | 4.1% | yes |
| Payhip Plus | $1,034.10 | 5.2% | main markets |
| Lemon Squeezy | $1,045.00 | 5.3% | yes |
| Paddle | $1,045.00 | 5.3% | yes |
| Payhip Free | $1,602.10 | 8.1% | main markets |
| Gumroad | $2,040.00 | 10.3% | yes |
The order flips almost completely, and Gumroad now costs nearly three times the cheapest option, so match the fee model to your price point rather than to the headline rate.
The switch to a monthly plan pays off earlier than most people expect:
| Switch | Pays off from |
|---|---|
| Lemon Squeezy or Polar Starter to Polar Pro | roughly $1,300 a month (at $29 a product) |
| Payhip Free to Payhip Plus | roughly $1,000 a month |
| Payhip Plus to Payhip Pro | roughly $3,500 a month |
Scenario 3: 20 consulting calls at $150 — $3,000 in revenue
| Route | Cost per month | Share |
|---|---|---|
 Stripe direct plus a scheduling tool | $93 plus the scheduling tool | 3.1% |
| Lemon Squeezy | $160 | 5.3% |
| Gumroad | $310 | 10.3% |
For services the direct route wins, because consulting sold to business clients abroad generally shifts the tax to the buyer, so you pay a platform for a job you do not have. Once the consulting becomes a recorded course or template sold to consumers, the tax question returns and so does the case for a platform.
Gumroad
- Good for
- Testing a first product without picking a plan
- Tax
- Merchant of record worldwide since January 2025
- Watch out for
- Highest cut here; 30% on sales through Discover
Gumroad is the fastest way from file to checkout link, and its higher cut also buys the tax filing. Once sales become steady, Lemon Squeezy or Polar do the same job for noticeably less.
Lemon Squeezy
- Good for
- Templates, e-books and licence keys at low volume
- Tax
- Merchant of record, files sales tax and VAT
- Watch out for
- Extra fees on some non-US transactions
Lemon Squeezy is the sensible default while revenue is modest, because there is no base fee and processing is included. Above the crossover in the switch table, Polar Pro does the same job for less.
Polar
- Good for
- Low price points with growing volume
- Free plan
- Starter, no monthly fee
- Watch out for
- Surcharge on non-US cards
Polar publishes every rate and lets you switch plans at any time, which makes it the cheapest merchant of record once low-priced products sell regularly.
Paddle
- Good for
- Software, licences and subscriptions
- Tax
- Merchant of record, all-inclusive pricing
- Watch out for
- Built for SaaS and apps rather than creators
Paddle costs the same per sale as Lemon Squeezy and fits software sold as subscriptions; for a single PDF or template, the creator platforms above are the lighter choice.
Payhip
- Good for
- Courses and other high-priced products
- Free plan
- Free forever, all features, unlimited products
- Tax
- EU/UK VAT on digital products and US/Canadian sales tax
- Watch out for
- Stripe or PayPal fees come on top
Payhip on a paid plan is the cheapest option in the course scenario that still files tax in its main markets. Sales to other countries, and physical products, remain your job.
Podia
- Good for
- Courses, memberships and community in one place
- Free plan
- None, 14-day trial
- Watch out for
- Tax filing and card processing stay yours
Podia is often still listed as free, but after the trial every plan is paid, so it fits sellers who want course hosting, email and community together and already handle the tax.
ThriveCart
- Good for
- Funnels, upsells and course hosting together
- Free plan
- None, 30-day trial
- Watch out for
- Calculates tax at checkout, but the filing is yours
Since July 2026 ThriveCart leads with a monthly subscription instead of its old one-off licence, and payments run through your own Stripe or PayPal. It pays off once the fees you hand another platform each month exceed the subscription.
Ten steps to your first sale
Set the price before you pick the platform, because the price decides which platform is cheapest for you.
- Audience: describe in one sentence who you help, with which problem and by what means.
- Test the idea: ask ten people from that audience whether they would buy it and what they would pay.
- Smallest useful version: one template or module, not the whole course.
- Business structure: sole proprietor, LLC or limited company changes liability and filings, not the platform. The comparison is here.
- Tax: check where you would owe it and decide whether you want to file or let a platform do it.
- Price: a single template and a course seat point to different platforms.
- Platform: answer two questions, who should owe the tax and how much you turn over. The overview is above.
- Sales page: one promise, three pieces of evidence, one button.
- Launch: message ten people from your network individually instead of sending a mailshot.
- Review: after twenty sales, check whether your plan still fits the revenue.
Selling physical goods?
Then you need a store builder rather than a digital platform: Shopify for anything that grows across sales channels, Ecwid for a store added to a site you already have, or WooCommerce if WordPress already runs. Selling on Amazon instead makes the research tools more important than the storefront, which Jungle Scout vs Helium 10 covers.
Which platform for templates, courses and consulting
For templates and other low-priced products, take a merchant of record: Lemon Squeezy or Polar Starter at first, Polar Pro once volume grows, and Gumroad only while you are still testing a single product. For courses and other high-priced products, Payhip Pro is the cheapest option that still files tax in its main markets, while Podia Shaker suits you if you handle the tax yourself.
For consulting, skip the platform and bill through Stripe with a scheduling tool. If you need a whole toolkit rather than a storefront, see the best tools for small businesses, and if courses are the product, put the course platforms side by side first.
Frequently Asked Questions
Do I need Shopify if I only sell digital products?
No. Shopify is built for inventory and shipping, while Lemon Squeezy or Gumroad bill per sale with no base fee and deliver the download for you.
What is a merchant of record?
The platform becomes the legal seller, so it owes and files the sales tax or VAT in the buyer's country and you receive a payout instead of a filing obligation. Gumroad, Lemon Squeezy, Paddle and Polar work this way worldwide.
What is the best Gumroad alternative?
For cheap products sold in volume, Polar handles the tax like Gumroad at a lower cut. For expensive products such as courses, Payhip on a paid plan is cheaper and still files EU/UK VAT and US/Canadian sales tax for you.
Is Payhip really 5%?
Only the platform's share is, because Stripe or PayPal bill card processing on top. Gumroad, Lemon Squeezy, Paddle and Polar include processing in their headline rate, so the same-looking percentage is not the same cost.
Can I sell courses and consulting through the same stack?
Technically yes, but course platforms like Teachable charge against the sale price, while calls run cheaper through Stripe plus a scheduling tool. Most people who sell both run the recording on the course platform and the calendar beside it.
Can I sell digital products without my own website?
Yes. Gumroad, Lemon Squeezy, Payhip and Polar host the product page, checkout and delivery, so a link in your newsletter or bio is enough for a first product.
