Digital Products VS Physical Products

    More and more people are looking into starting a business in the entrepreneurship world. However, they often experience a dilemma of some sort. Should they make the sale for physical products or digital ones?

    It is important to understand each concept and the difference between them before moving on to choose one. Physical products are tangible, can be touched and felt whereas digital products are virtual, and can only be accessed digitally or virtually.

    One thing’s for sure, though. Both kinds of products can be sold over the internet and require an internet connection to make a sale. If one requires it, Xfinity internet is one of the best options around for starting a business of physical or digital products.

    Examples of Digital and Physical Products

    Examples of physical products are video games CDs, clothing, food, cosmetics, artifacts, home appliances, toys, etc. Examples of digital products are software, e-books, online music, online videos, informative PDFs, online tutorials, publication subscriptions, etc.

    Pros and Cons of Digital Products and Physical Products

    Digital Products

    Digital products can be stored, used, and delivered in electronic formats.

    • Pros:
    • Digital products do not need inventory.
    • Digital products present infinite sales opportunities just by copying and distributing duplicates.
    • There is no need for the shipping process because digital products are simply delivered to the customer’s email address. Or customers can also get an option to download the product from the website.
    • Digital products come with instant free delivery, which doesn’t take a lot of time.
    • Cons:
    • Delivering digital products requires more planning, explaining, and demonstrating.
    • Attracting customers for digital products is time and effort-consuming.
    • Digital products have lower perceived value since they aren’t tangible, hence not real.
    • Developing a digital product is time-consuming since there is a constant process of trial and error before it actually becomes a reliable one for the customer to use.
    • There is stiff competition since digital products do not require delivery and shipping costs.

    Physical Products

    Physical products are stored in inventory and can be sold and shipped to customers in physical format.

    • Pros:
      • Physical products are tangible and of physical nature which makes them easy to demonstrate to the customers.
      • These products have higher value because then the customers can resell them to others.
      • Physical products cannot be easily duplicated because creating a replica would require the same resources that were used to create the original products.
      • Physical products can be easily resold online and there is no need for follow-up or explanation if the user struggles to get started.
      • Cons:
      • Shipping management service is needed for selling physical products, which needs much more time and money to manage.
      • There are more overhead costs in managing physical products like inventory and handling staff.
      • Physical products are much harder to scale and they require time and money to scale up the business.
      • Physical products also take a lot of time to reach the customers since there are activities like inventory management, billing, and shipping before it actually reaches the customers.

    Ways to utilize mobile apps for physical and digital products

    Both the physical and digital products can reach their potential audiences by utilizing mobile apps and harvesting opportunities through them.

    • Generate real value. 63% of the shoppers prefer the convenience of shopping through mobile apps because of the speeds they offer, options for setting and customization, the benefits for collecting rewards, etc.
    • Mobile apps can be used to include features that have nothing to do with the product’s main functionality, but everything to do with the overall experience of using the product.
      For instance, a running shoe brand might offer a music player as a feature in their app, since both are often used together at times.
    • Product Insight. Apps also give brands valuable insights. Brands are provided with behavioral information, details like demographics, and location, with the help of which they can narrow down the target customers’ preferences.
    • Tying Multiple Channels. This mostly applies to physical products and services. Brands need to focus on responding to customers’ demands for integrated experience across multiple channels.
      For instance, Disney has introduced the Disneyland smartphone app which aims to make the experience more magical for its users.
      The app has several features like GPS-enabled maps, ride waiting times, booking reservations, locating favorite mascots, etc. All of these features allow customers to make the most of their experiences.

    In conclusion, the direction that each business goes for depends on the long-term vision, capacity, and opportunity. Lucky are those innovative businesses that are becoming increasingly aware of the profound impact that both kinds of products have on their business.


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    Amy Nicholson
    Amy Nicholson is a WordPress blogger and writer also a marketing expert for over 5 years. She is a top Author at Wibidata and analyzer. A fangirl who loves travel to other places and going out loves watching action and romantic movies.

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