Sellers view
I've been using Gumroad as a primary e-commerce partner for my small business (digital downloads) for a few years now, and here's a summary of my experience with this platform.
Pros:
- Good kit of integrated services.
- Can be easily embedded into any existing website.
- Offers a hosting for your digital downloads.
- Secure product delivery via email.
- Allows generating discount codes.
- Offers some basic email marketing automation for no extra cost: email updates and post-sale followups (Gumroad workflows).
- EU VAT handling (acts as merchant of record).
- Handy realtime sale stats in the dashboard.
- Nice mobile app for merchants (sale stats in realtime).
- Support is reasonably responsive, typically answering within 1 working day.
Cons:
- The platform fees are the highest in the industry: 10% plus payment processing fees starting of Jan 31 2023, which effectively amounts to around 13% of pre-tax commission.
- Checkout experience is pretty horrible - it redirects your buyers to a third-party Gumroad-branded URL.
- No way to remove Gumroad branding from the checkout UI.
- Gumroad never wins fraudulent chargebacks on Stripe. Huge pain, cost us a lot every year.
- Widespread email delivery issues: Gumroad IPs are blacklisted by many free email providers, including online-de names-co-uk and others.
- In addition to the above, even where Gumroad is not blacklisted, its emails still end up in spam way too often, which generates lots of support requests. We ended up writing our own service to deal with it automatically and resend missing emails using our own IPs and AWS.
- Breaking Gumroad changes that affect your buyers or existing website integrations are poorly communicated, often not communicated at all.
- Sometimes Gumroad-hosted product URLs go offline without notice and need constant automated monitoring for that reason.
- Half-baked workflows. Highly requested features are not implemented for ages. For example, sending a followup only to customers who bought product A but not yet bought products B and C is not possible despite being requested for years.
- Support does not always do what you ask them.
- No way to expire or invalidate an order without refunding the buyer. Just ridiculous. You don't want to reward those who steal your products or breach the EULA.
Summary:
Gumroad was a kind-of-ok platform when commission was at around 3% and included payment processing fees (pre Feb'23). But, at 13%, considering all the cons above, it just makes no sense to start or stay on this platform.
There are plenty of alternative platforms around with similar or better functionality and much lower commission.
Personally I won't recommend using any highly-integrated all-in-one platform at all. Don't put all your eggs in one basket. Instead choose one service for payment processing, one for checkout, one for hosting&delivery, one for email marketing, etc.
With this approach you'll learn the basics of integration early and be able to easily replace or improve smaller parts of your third-party service stack when they are no longer aligned with the interest of your business.
That's just my opinion as a merchant though.
25 de dezembro de 2022
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