Gumroad vs Payhip Fees Comparison

Detailed Fee Structure of Payhip

Continuing our Gumroad vs Payhip fees comparison, we now turn to Payhip’s pricing model, which is more flexible than Gumroad’s flat 10% fee. Payhip offers three different pricing plans, allowing sellers to choose the model that best suits their sales volume and business growth stage.

Payhip’s Pricing Tiers

Payhip gives users the choice between paying higher fees with no monthly cost or paying a flat monthly fee for lower or even zero transaction fees. This structure makes Payhip more scalable for serious sellers.

1. Free Plan

• Platform Fee: 5% per sale

• Monthly Cost: $0

• Best For: New sellers and those testing product ideas

• Payment Processor Fee: Stripe/PayPal ~2.9% + 30¢

2. Plus Plan

• Platform Fee: 2% per sale

• Monthly Cost: $29

• Best For: Intermediate sellers earning $500–$1000/month

• Payment Processor Fee: Stripe/PayPal ~2.9% + 30¢

3. Pro Plan

• Platform Fee: 0%

• Monthly Cost: $99

• Best For: High-volume sellers

• Payment Processor Fee: Stripe/PayPal ~2.9% + 30¢

Real-World Examples

Let’s use the same $100 product example across all Payhip plans:

Free Plan

• Payhip Fee: 5% of $100 = $5

• Stripe Fee: $2.90 + $0.30 = $3.20

• Total Fees: $8.20

• Your Profit: $91.80

Plus Plan

• Payhip Fee: 2% of $100 = $2

• Stripe Fee: $3.20

• Monthly Cost: $29

• Effective Cost (assuming 10 sales):

  • Total Payhip Fees: $20

  • Monthly Fee: $29

  • Combined = $49 / 10 sales = $4.90 per sale

  • Your Net Profit per Sale: ~$95.10

Pro Plan

• Payhip Fee: $0

• Stripe Fee: $3.20

• Monthly Cost: $99

• Effective Cost (assuming 20 sales):

  • Monthly Fee: $99

  • Stripe Total: $3.20 × 20 = $64

  • Total: $163 / 20 = ~$8.15 per sale

  • Your Net Profit per Sale: ~$91.85

Payhip Pros

• Flexible Pricing: Choose a plan that aligns with your sales volume

• Lower Fees at Higher Volumes: Save more with the Pro plan

• VAT Handled Automatically: Payhip automatically calculates and collects VAT for EU/UK sellers

• Built-in Affiliate Marketing: Attract partners to help you sell

• Custom Domain Support: Use your brand’s website domain

• Built-in Checkout Embedding: Can be embedded into your website or blog

Payhip Cons

• Monthly Fee Can Be Costly: If your sales are low, the Plus or Pro plan may eat into profits

• Interface Slightly Less Polished: Compared to Gumroad’s sleek design

• Fewer Marketplace Features: Gumroad has more discoverability via its platform

Who is Payhip Best For?

Payhip is ideal for:

• Creators looking for long-term scalability

• Sellers with consistent monthly sales

• Businesses that need affiliate tools or VAT compliance

• Users who want full checkout customization

If you’re planning to scale your business, run affiliate promotions, or want to retain more revenue as your sales grow, Payhip offers a clear financial advantage over Gumroad.

Side-by-Side Comparison and Which Is Better

After exploring the individual pricing models of each platform, it’s time to directly compare Gumroad and Payhip in terms of fees and overall value. In this part of our in-depth Gumroad vs Payhip fees comparison, we’ll lay out the differences in a clear table and help you determine which one is right for your business depending on your goals, growth stage, and product type.

Comparison Table: Gumroad vs Payhip Pricing Tiers

Fee Breakdown on $100 Sale

Let’s compare what you’ll take home after selling a $100 product on each plan:

• Gumroad:

  • 10% Gumroad Fee = $10

  • Stripe Fee ≈ $3.20

  • Net Profit = $86.80

• Payhip Free:

  • 5% Payhip Fee = $5

  • Stripe Fee ≈ $3.20

  • Net Profit = $91.80

• Payhip Plus (with 10 sales/month):

  • 2% Payhip Fee = $2

  • Stripe Fee ≈ $3.20

  • Monthly Cost = $29 / 10 = $2.90 per sale

  • Net Profit = $91.90

• Payhip Pro (with 20 sales/month):

  • 0% Payhip Fee

  • Stripe Fee ≈ $3.20

  • Monthly Cost = $99 / 20 = $4.95 per sale

  • Net Profit = $91.85

Platform Strengths Recap

✅ Gumroad Pros:

• Simple and predictable flat 10% fee

• No monthly subscription

• Great for low-volume creators

• Sleek interface with minimal setup

❌ Gumroad Cons:

• Higher fees over time

• No VAT support

• Limited custom branding

• No built-in affiliate tools

✅ Payhip Pros:

• Scalable fee structure

• More profit potential with Plus or Pro plans

• Built-in affiliate tools

• VAT and tax handling (ideal for global sellers)

• Custom domain support

• Checkout embed for branded experience

❌ Payhip Cons:

• Interface slightly less intuitive than Gumroad

• Monthly fee can hurt new or inconsistent sellers

• Fewer marketing tools than Gumroad’s built-in options

Which Platform Is Better?

The answer depends on your goals:

• 👩‍🎨 For hobbyists or side hustlers selling occasionally:
  Payhip Free beats Gumroad in most scenarios due to lower transaction fees.

• 📈 For small businesses or consistent earners:
  Payhip Plus offers greater profitability if you’re doing at least $500/month in sales.

• 🏆 For high-volume creators scaling past $2000/month:
  Payhip Pro provides the best return on earnings, as you pay no platform fees at all.

• ⚡ For creators who value a fast, easy setup with no monthly fee:
  Gumroad is still a solid option, especially if the platform interface and simplicity matter more than profit margins.

Final Verdict on Gumroad vs Payhip Fees Comparison

After evaluating all aspects of the Gumroad vs Payhip fees comparison, one thing becomes crystal clear: the best platform for you depends entirely on your specific business needs, income level, and future goals.

Let’s quickly recap what we’ve learned:

🔁 Quick Summary of Each Platform

Gumroad

• Best For: Beginners, hobbyists, and those who prefer a simple, no-subscription model.

• Key Strength: Easy-to-use interface with a flat 10% fee—ideal for those who want a fast launch without worrying about monthly payments.

• Drawback: Can be expensive for sellers with high monthly income, and lacks advanced features like VAT management or affiliate systems.

Payhip

• Best For: Sellers focused on growth, profitability, and scalability.

• Key Strength: Offers three pricing tiers, including 0% fees for those on the Pro plan, and more flexibility with custom domains, VAT support, and affiliate tools.

• Drawback: Monthly fees on higher tiers can cut into profits if your sales aren’t consistent.

💡 Who Should Choose What?

📊 Final Thoughts

If you prioritize simplicity, want to avoid recurring charges, and aren’t worried about fees cutting into high-volume revenue, Gumroad is a reliable, plug-and-play platform.

But if you’re thinking long-term, want to grow sustainably, reduce fees as your sales increase, and enjoy additional features like affiliate marketing, custom checkout experiences, and VAT handling, then Payhip is the smarter financial choice.

You don’t necessarily need to commit permanently either—many creators start with Gumroad and later switch to Payhip once their sales grow. Some even run both in parallel for different types of products.

In conclusion, this Gumroad vs Payhip fees comparison has laid out all the facts to help you make a well-informed decision. Choose the platform that best fits your business today, and keep reviewing your needs as you grow. The right choice now could mean significantly more profit and peace of mind down the road.

Frequently Asked Questions (FAQs)

1. Which platform has lower fees: Gumroad or Payhip?
Payhip generally offers lower fees than Gumroad, especially for higher-volume sellers. Gumroad charges a flat 10% platform fee, while Payhip’s fee can be as low as 0% if you’re on their Pro plan. Even the Free plan (5% fee) beats Gumroad’s 10% for most sellers.

2. Does Payhip charge extra for VAT handling?
No, Payhip includes VAT calculation and collection as a built-in feature for EU and UK customers. This can be a significant advantage for international sellers. Gumroad does not automatically handle VAT, which may require manual management or third-party tools.

3. Can I use my own domain with Gumroad or Payhip?
You can use a custom domain with Payhip on any of their paid plans (Plus or Pro). Gumroad does not currently support custom domains directly; you must use their hosted subdomain (e.g., gumroad.com/yourname).

4. Which platform supports affiliate marketing?
Payhip has a built-in affiliate marketing system that allows you to set commission rates, invite affiliates, and track referrals. Gumroad does not offer a built-in affiliate system, so you would need third-party tools or manual methods to track affiliate sales.

5. Do both platforms support physical product sales?
Yes, both Gumroad and Payhip support physical product sales, but Payhip offers more tools for managing inventory, shipping, and taxes, making it a better choice for eCommerce sellers.

6. Is there a limit to how many products I can sell?
Both platforms allow unlimited products on all plans. However, the features and fee structures around those products vary depending on your chosen pricing tier.

7. Can I switch from Gumroad to Payhip (or vice versa) later?
Yes, you can migrate your products from one platform to another at any time. Just keep in mind you’ll need to reconfigure product listings, payment settings, and links. Some users start with Gumroad and switch to Payhip once their revenue increases.

8. How do payouts work on both platforms?

• Gumroad offers weekly payouts (Fridays) via PayPal or direct deposit (depending on your location).

• Payhip processes payments instantly to your connected Stripe or PayPal account after each sale.

9. Which is better for beginners: Gumroad or Payhip?
Gumroad is often easier for beginners due to its simplified dashboard and quick setup. However, Payhip’s Free plan offers more value with lower fees and more advanced tools, even for beginners.

10. Is it possible to embed the checkout into my own website?
Yes, Payhip offers embeddable checkout options and product buttons for your website or blog. Gumroad also allows checkout embeds, but with more limited customization options.