Music, mobile apps, e-books, video tutorials, downloadable software (Digital Distribution), streaming media, webinars, blog posts, cards, patterns, website themes, templates, etc. fall under the category of digital goods.
Things stated above show the huge change in the trend of the market and how the usage of them has increased in number. Hence, the traditional media has fallen aside as it’s not that convenient. Where after digital goods have taken over the market as they’ve become more convenient and easier to access.
Income Source for Merchants
Here comes the earning point of the merchant; the digital goods give away the best platform to earn by giving access to download the content, image, video, etc. and at the same reach a greater demographic. The payment processors are the biggest hurdles for the merchants since these businesses fall under the high-risk category.
Why Digital Goods Merchants Are Considered As High Risk?
Merchants are left to deal with chargebacks and engage with the customers to arrange the dislocated money back to the business. Meanwhile, this industry is considered a high-risk business because there are huge numbers of fraudsters to gulp out your profits. Usage of different IP addresses and choosing different numbers with the same address can lead to loss to the merchant.
It’s very difficult to pass the stages of difficulty and to figure out the fraudsters. Digital goods can get easily monetized and they are valuable for fraudsters. The fraudsters in a loop repeat these things and the merchant fails to encounter them.