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Almost no cost per sale, so everything depends on what a customer costs to win.
Digital products invert the normal retail problem. There is essentially no cost per unit, no stock and no postage, so gross margin is enormous. That sounds like it makes everything easy. It just moves the entire question to one place, which is what it costs you to get a customer.
When the product costs nothing to deliver, advertising becomes your cost of goods in everything but name. A business spending more to acquire a sale than the sale is worth will look like it has ninety percent margins right up until it runs out of money.
Refunds and chargebacks matter more than the amounts suggest. Because there is nothing to return, refund rates can run higher, and payment processors take a dim view of businesses with elevated chargebacks.
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