Gumroad vs Lemon Squeezy: Which Platform is Best for Selling Digital Products?

Choosing a platform is a big decision when you sell digital products. The right tool can save you money and headaches; the wrong one can eat into your profits or slow your growth. Gumroad and Lemon Squeezy are two popular choices in 2025, and both let creators sell downloads, subscriptions and even memberships without having to code a custom store. Gumroad was one of the earliest “creator‑friendly” platforms, while Lemon Squeezy came along later with a focus on SaaS sellers and subscriptions. This article breaks down how they differ so you can pick the best one for your needs.

Platform Overviews

What is Gumroad?

Gumroad is an online marketplace that lets creators sell digital products with simple links. It was founded in 2011 by Sahil Lavingia and grew out of his frustration with how hard it was to sell a single icon. Today Gumroad caters to artists, writers, designers and indie developers who want to sell directly to their audience. The platform is free to join; instead of a monthly subscription it takes a cut of each sale. As of January 1 2025 Gumroad acts as a merchant of record, meaning it handles global sales tax collection and remittance for sellers. Gumroad’s pricing is straightforward: it charges 10 % + $0.50 per transaction on sales made through your own profile or links and 30 % when buyers find you through its Discover marketplace.

What is Lemon Squeezy?

Lemon Squeezy is a newer platform launched in 2021 by a team of designers and developers who wanted to “make selling digital products easy‑peasy.” It markets itself to SaaS companies and software creators. In July 2024 Stripe acquired Lemon Squeezy and kept it running independently. Lemon Squeezy also operates as a merchant of record: it processes payments, manages refunds and chargebacks, and collects and remits VAT/GST in over 100 countries. The company emphasises simplicity and charges a single fee: 5 % + $0.50 per sale, plus small surcharges for international or PayPal payments (roughly 1.5 % extra) according to independent comparisons.

Key Feature Comparison

Ease of Use

Gumroad shines when you want to start selling quickly. The interface is minimal and the sign‑up process asks only for your email. The Ruul comparison notes that registering with Gumroad is “really simple” and the platform gives clear steps to get started. You can add a product, set a price and start selling within minutes. However, Gumroad’s design options are basic; it’s essentially a checkout overlay that you embed on your site or share as a link. You can upload a banner image and colour‑accent but you can’t fully customise the storefront.

Lemon Squeezy takes a bit more work up front but gives you a more polished store. After signing up you must provide authentication and payment information; the Ruul article notes that the dashboard greets you with charts and data about your sales, and you can customise your store by adding a logo and editing sections. Many creators feel Lemon Squeezy looks more professional and has a built‑in storefront builder, though some reviewers mention a small learning curve.

Payment Options and Payouts

Both platforms accept credit and debit cards globally, and both support PayPal payments. Gumroad pays creators via bank transfer or PayPal once they have accumulated at least US $10. Payouts are made on Fridays and sales become available after seven days. Bank transfers are limited to about 50 countries and PayPal withdrawals incur a 2 % fee.

Lemon Squeezy pays out when your balance reaches US $50 and offers bank transfers in over 130 countries and PayPal withdrawals in more than 200. However, the payout timeline is longer: it takes thirteen days for funds to become available and an additional one to five days for the transfer. The platform charges small extra fees for international payouts, PayPal withdrawals and recurring subscriptions. If fast payouts and low thresholds matter, Gumroad may be more appealing. If you need broader coverage for bank transfers, Lemon Squeezy has the edge.

Design and Customisation

Gumroad’s storefront is intentionally simple. You can upload cover images, change colours and add a short description, but you cannot fully brand the checkout or build a custom landing page. This simplicity appeals to creators who just want to embed a “Buy” button on their existing website or social media posts.

Lemon Squeezy offers a more robust website builder. You can create a store with multiple sections, customise fonts and colours, add a logo and even use your own domain. The DealInDigital comparison (2024) notes that Lemon Squeezy’s website builder includes templates and allows you to customise the look and feel, while Gumroad provides only basic design choices. For brands that care about polished storefronts, Lemon Squeezy offers more control.

Fees and Pricing

This is perhaps the most important factor. Gumroad’s fee is easy to calculate: 10 % + $0.50 on each sale plus standard payment processing fees. If buyers find your product through Gumroad’s marketplace, the fee rises to 30 %. Because Gumroad collects taxes as a merchant of record, you do not need to pay extra for VAT or sales tax compliance.

Lemon Squeezy charges a lower base fee of 5 % + $0.50 per transaction. Independent comparisons explain that there are extra charges: roughly 1.5 % for international payments, 1.5 % for PayPal and 0.5 % for subscription payments. Even with these surcharges, high‑volume sellers often pay less overall than on Gumroad. A quick example: the Ruul article calculates that 100 sales producing $1,000 would cost about $100 in fees on Lemon Squeezy versus $150 on Gumroad. Lemon Squeezy also occasionally runs promotions; as of mid‑2025 it offered 0 % fees for thirty days to new migrants from Gumroad.

Taxes and Compliance

Both platforms act as merchants of record, which means they handle sales tax, VAT and GST on behalf of sellers. Gumroad became an MoR on January 1 2025 and now collects and remits global taxes automatically. This removes the need to configure state or country‑specific tax rates.

Lemon Squeezy has been an MoR from the start. The Nucamp article explains that the platform processes payments, manages refunds and chargebacks, and ensures PCI DSS compliance. It collects and remits VAT/GST in more than 100 countries and supports local currencies in 130+ countries. This global approach helps SaaS companies enter markets without worrying about local tax laws. Both platforms relieve creators of the burden of calculating and filing indirect taxes, but Lemon Squeezy’s coverage of local currencies may offer smoother checkout experiences for international customers.

Fraud Protection and Refunds

Digital products are vulnerable to abuse and chargebacks. Ruul’s comparison notes that Lemon Squeezy uses AI software to spot abnormal registrations and refund requests and blocks potential scams. Gumroad also checks for fraudulent activity but does not appear to use AI; the article suggests its system may be less sophisticated. When it comes to refunds, both platforms let sellers set their own policy. Gumroad even offers a partial‑refund option, giving you more control over customer service. Lemon Squeezy can represent you in a refund dispute, but it charges $15 per dispute, which could eat into profits on lower‑priced products.

Integrations and Marketing Tools

Gumroad includes basic email marketing, coupon codes and upsell options. It integrates with third‑party tools via Zapier and offers an API for custom workflows. Creators can limit product quantities, display public sales counts, and show customer ratings.

Lemon Squeezy has built‑in email marketing and affiliate tools, plus features like “usage‑based billing” and “discount codes.” It integrates with Stripe’s payment stack (thanks to the 2024 acquisition) and offers native connections to ConvertKit and Mailchimp. According to the Toolfolio comparison, Lemon Squeezy’s marketing tools include automated abandoned‑cart emails and a small email‑list manager (up to 500 subscribers), whereas Gumroad requires external services for advanced campaigns. However, Lemon Squeezy lacks a marketplace, so discoverability depends on your own audience.

Community and Creator Vibe

Gumroad has built a strong creator community and a marketplace (Discover) that can bring new eyeballs. Sellers can publicly display ratings and comments, which help build trust. Because Gumroad has been around longer, there are countless tutorials, communities and success stories from artists and writers. The trade‑off is that you compete with many other products in the marketplace, and the 30 % fee applies when customers find you through Discover.

Lemon Squeezy’s community is newer and tends to attract SaaS founders and template makers. The company showcases case studies on its site. One marketing page highlights that a client who switched from Gumroad to Lemon Squeezy saw their conversion rate rise from 2.8 % to 9.6 %—evidence that a cleaner checkout can boost sales. Lemon Squeezy encourages migrations by offering free transfers and temporary 0 % fees. Because there is no marketplace, your success depends on your own marketing but you won’t pay extra fees for discovery.

Use Cases

When to Choose Gumroad

Gumroad is ideal for:

Creators selling digital downloads and memberships:

Artists, writers, musicians, and template makers who want to sell e‑books, courses, icons or memberships without setting up a full store.

Quick launches:

If you need to start selling today, Gumroad’s sign‑up and product setup are extremely fast.

Small portfolios with modest sales volumes:

The simple fee structure of 10 % + 50¢ makes it easy to predict costs. For low‑priced items, the difference between 10 % and 5 % may not matter.

Marketplace visibility:

If you hope to be discovered by new customers, Gumroad’s Discover marketplace can provide additional traffic, though the fee rises to 30 %.

When to choose Lemon Squeezy

Lemon Squeezy is a better fit for:

SaaS products and subscriptions:

The platform supports usage‑based billing, customer portals and subscription management, making it ideal for software businesses. It emphasises compliance and handles complex billing scenarios.

International sellers:

Lemon Squeezy supports bank payouts in 130+ countries and PayPal in 200+, and collects and remits VAT/GST in more than 100 countries. It also displays prices in local currencies, which can improve conversion rates.

Design‑focused brands:

If you want a fully branded storefront with a custom domain and multiple sections, Lemon Squeezy’s store builder gives you more control.

High‑volume sellers:

Because the base fee is 5 % + 50¢ and even with surcharges often remains lower than Gumroad’s 10 %, sellers with large revenues can save money. Lemon Squeezy’s marketing page notes that one client tripled their conversion rate after switching.

Creators who prioritise fraud protection:

Lemon Squeezy uses AI to spot fraudulent transactions.

Creator Examples

Easlo (Notion template creator): According to Lemon Squeezy’s marketing, a client migrated from Gumroad and saw conversion rates jump from 2.8 % to 9.6 %. Easlo initially used Gumroad to sell templates but later moved to Lemon Squeezy for better checkout design and lower fees.

TypingMind (AI writing software): A case study mentioned by Nucamp states that after migrating to Lemon Squeezy, TypingMind’s monthly recurring revenue (MRR) grew by 1,300 % and the team earned $200,000 in four months. The MoR model allowed the founders to focus on development rather than tax compliance.

Pros and Cons

Platform	Pros	Cons
Gumroad	- Simple sign-up and fast product setup - Discover marketplace for exposure - Global tax handling (MoR) - Partial refunds supported	- 10% + $0.50 fee per sale - 30% fee if discovered via marketplace - Limited storefront design - Fewer payout countries - Basic fraud detection
Lemon Squeezy	- Lower base fee (5% + $0.50) - Custom storefront builder - Handles global compliance (MoR) - AI fraud protection - Subscription & SaaS billing	- $50 payout threshold - Payout delays (13+ days) - Extra fees for PayPal & international transactions - No marketplace - $15 fee for disputes

Final Verdict

Both Gumroad and Lemon Squeezy are excellent platforms in 2025. The best choice depends on what you sell and how you work.

Solo creators and hobbyists will appreciate Gumroad’s simplicity, quick payouts and Discover marketplace. If you sell a few inexpensive e‑books or templates and need to get up and running fast, the 10 % fee may be worth the convenience. Gumroad’s transition to a merchant of record means you no longer need to manage sales tax..

SaaS founders and high‑volume sellers will likely benefit from Lemon Squeezy’s lower fees, subscription tools and international support. The ability to accept payments in local currencies and handle VAT/GST in over 100 countries makes it ideal for global software businesses. A more polished storefront can also boost conversions; some users have reported tripling their conversion rate after migrating.

Design‑focused brands and creators who care about branding should lean toward Lemon Squeezy for its customisable storefront and marketing tools. Gumroad’s limited design options may feel restrictive.

Creators who rely on marketplace discovery might prefer Gumroad because Lemon Squeezy doesn’t have a marketplace. However, remember that the 30 % fee applies when customers discover you through Gumroad’s Discover.

If you’re unsure, try both platforms on a small product. Gumroad’s zero‑upfront cost and Lemon Squeezy’s 0 % introductory offer mean you can experiment without large expenses. Each has its strengths. With a clear understanding of their fees, features and vibe, you can confidently choose the platform that helps you build a thriving digital product business.

Looking for a broader list of tools beyond just Gumroad and Lemon Squeezy?
Check our guide: Best Platforms to Sell Digital Products. It covers a wider range of options for creators at every stage.