What is Gumroad?
Updated
The short answer
Gumroad is an online platform that lets creators sell digital files directly to buyers. Sahil Lavingia started it in 2011 in San Francisco. You do not pay a monthly fee to use it. Instead, Gumroad takes a fee on every sale you make. Buyers can purchase your products without making an account.
Gumroad also acts as a merchant of record. This means it calculates, collects, and pays sales tax and VAT on your sales so you do not have to handle those taxes yourself.
How Gumroad works
Setting up a product on Gumroad takes just a few steps. You add a product name, write a short description, and set your price. Next, you upload your digital file, like an ebook, music track, or software code. Gumroad gives you a link to share with your audience.
When someone clicks your link, they see your product page. The checkout process is simple. Buyers do not need to sign up for a Gumroad account to buy from you. Once they pay, Gumroad sends them a link to download the file right away.
How Gumroad handles taxes and payouts
Gumroad became a merchant of record on January 1, 2025. Because of this, Gumroad is the legal seller to your customers. It collects sales tax and VAT at checkout and pays those taxes directly to local governments. This takes the tax burden off your shoulders.
After your sales go through, Gumroad sends your earnings to your bank account or payout account. You do not need to set up your own sales tax registrations in every country where you have customers.
How Gumroad makes money
Gumroad does not charge a monthly subscription fee. Anyone can sign up and list products for free. Gumroad makes money only when you make a sale. It takes a cut on each direct sale, plus card processing fees; check their pricing page for current numbers.
Gumroad also has a marketplace called Gumroad Discover. People can browse and find your products there. If a buyer finds and buys your item through Discover, Gumroad takes a much bigger cut that already includes payment processing; check their pricing page for current numbers.
Gumroad and other ways to sell files
Gumroad is not the only way to sell digital downloads. Whop is another platform where creators sell files, software, courses, and communities with no monthly fee. On Whop, sellers only pay payment processing fees per sale and payout fees depending on the payout method; check their pricing page for current numbers.
If you want an even simpler setup on Whop, you can use MKKT. It is a Whop app where sellers upload a file, set a price or make it free, and get a store link buyers can use without a Whop account.