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Powering the online creative economy
• 74K+ creators have earned over $390M
• In 2020, Gumroad platform sales rose to $143.8M from $73.1M in 2019
• Gumroad takes 3.5% – 8.5% of sales
• Premium SaaS offering starting at $10 per month
• $9.2 million net revenue in 2020 (+87% from 2019)
• $1.08 million net profit in 2020 (+286% from 2019)
Gumroad’s business model is similar to Amazon and Shopify. Gumroad is a platform that makes it simple to sell things online. Since launching in 2011, creators on Gumroad have sold more than $411 million of products. In 2020, Gumroad processed $143.8M of sales through its ecomm platform.
Mission: Gumroad makes it simple for creators to build product and checkout pages. It handles payment processing, and enables its creators to build email lists and market products to their customers. Gumroad also provides free real-time analytics and customer management.
74K+ creators have earned over $390M
Gumroad GMV (gross marketplace volume) 2012-2020
Business model and traction: Gumroad takes a percentage of gross sales ranging from 3.5% to 8.5%. They also offer a premium SaaS product that lets sellers better customize their pages, and get lower transaction fees. Last year Gumroad generated $9.2 million in net revenue, and a $1.08 million net profit.
What’s next: For most of Gumroad’s history, it has focused on digital products such as software and apps, animation, e-books, music, comedy, and more. Now for the first time it is expanding to physical products and membership products such as newsletters.
Gumroad is raising a larger round of funding on Republic than was previously possible, thanks to new SEC regulations which went into effect today! View the full details of this funding round on Gumroad’s deal page.
P.S. Here’s a screenshot from Gumroad’s Discovery platform, where you can browse products offered through the platform. Take a look if you want to get an idea of how it all works.