How to Set Up a Payhip Direct Store

Payhip is the most accessible entry point into direct ebook sales. It handles payment processing, file delivery, EU VAT collection and remittance, and affiliate tracking with a 5% transaction fee on the free plan and no monthly subscription. A Payhip store can be operational in under two hours.

Step 1: Create Your Account and Select a Plan

Go to payhip.com and click Get Started. Create your account with your email address.

Start on the Free plan. At $4.99/ebook on the Free plan, your net after Payhip's 5% and Stripe/PayPal's ~2.9% + $0.30 is approximately $4.38 per sale — versus ~$3.49 at 70% royalty on Kobo or Apple Books. The direct sales advantage is real even at the free tier.

Connect your PayPal and/or Stripe accounts from Account Settings. Having both gives buyers more checkout options and reduces friction.

Step 2: Configure EU VAT — Do This First

EU regulations require digital product sellers to collect and remit VAT at the buyer's country rate. Payhip handles this automatically. Navigate to Account Settings > Taxes and verify that EU VAT auto-handling is enabled for digital products. When active, Payhip collects the correct VAT from EU buyers, remits it to the appropriate authority, and provides VAT-inclusive records for your accounting. You do not need VAT registrations in any EU country.

⚠ If you skip EU VAT configuration and sell digital products to EU customers, you may be inadvertently non-compliant with EU digital tax rules. Verify this setting is active before you start selling.

Step 3: Create Your Reader Magnet (Free Product)

Start here — it tests your full Payhip workflow at zero financial risk.

• Click Add New Product > Digital Download

• Title: your reader magnet's name

• Description: brief — what readers receive and why they want it

• Cover image: same cover you use elsewhere for the reader magnet

• Price: $0.00

• File upload: your ePub and/or PDF

• Email capture: enabled by default for free products — readers enter their email to download

• Save — Payhip generates a shareable product URL

This URL goes in your back matter, your email list, and your social media bio. Readers who click it enter their email and immediately receive the download link.

Step 4: Create Paid Ebook Products

• Add New Product > Digital Download

• Title: your book title

• Description: retail-quality marketing copy — same standard as Kobo and Amazon

• Cover image: your book cover

• Price: set your retail price

• File upload: ePub and/or PDF — offering both formats reduces reader friction

• Save

Pricing Strategy

Step 5: Set Up the Affiliate Program

Payhip's built-in affiliate program lets other authors, bloggers, and BookTokers earn a commission on sales they refer.

• Go to Affiliates > Settings

• Set your commission rate (10–30% typical for ebook affiliates)

• Enable the program

• Share the public affiliate sign-up link with potential affiliates

Affiliates receive unique tracked links per product. Commissions are paid through PayPal. A mutual promotion with a same-genre author — each promoting the other's Payhip products to their respective email lists — creates aligned incentives and can generate meaningful incremental direct income for both parties.

Step 6: Create Discount Codes

• Go to Marketing > Discount Codes > Create New Discount Code

• Set the code text, discount type (percentage or fixed amount), discount amount

• Optional: expiry date or usage limit

• Apply to specific products or all products

A 20% discount code for email subscribers is a compelling reason to try buying directly. The reduced margin per sale is offset by higher conversion from readers who would otherwise default to their retail platform.

Step 7: Embed Your Store on Your Author Website

From Dashboard > Store > Embed Store, Payhip generates a JavaScript snippet. Paste it into any HTML page on your website. The Payhip storefront appears inline — readers browse and buy without leaving your site, while Payhip handles checkout and delivery behind the scenes.

Step 8: Connect to Your Email List

Every Payhip purchase gives you the buyer's email address. Connect Payhip to your email platform to add buyers automatically:

• MailerLite: Dashboard > Integrations > MailerLite — enter your API key, select the group to add buyers to

• ConvertKit/Kit: Dashboard > Integrations > ConvertKit — same process

• Other platforms: use Zapier — Payhip has a Zapier integration that connects to virtually any email tool

After setup, every Payhip purchase automatically adds the buyer to your email list — no manual management required.

Payhip direct sales income connects to ScribeCount as part of your direct revenue tracking. Seeing your Payhip earnings — reader magnet downloads, paid ebook sales, membership revenue — alongside your Kobo, Apple Books, and Amazon royalties in one ScribeCount dashboard shows you exactly how your direct channel is growing relative to retail.

Step 9: Promote Your Store

• Back matter: add your Payhip product link to every ebook you sell on retail platforms — a reader who just finished your book is your warmest potential direct buyer

• Email newsletter: announce your store and periodically remind subscribers that direct purchase is an option

• Social media bio links: Payhip store or individual product links

• Author website: embed the store widget or link from your Books page

⚠ Amazon KDP prohibits linking to competing ebook retailers in KDP ebooks. Link to your Payhip store (your own store) or universal links (Books2Read), not to Kobo or Apple Books directly. Payhip links are permissible as they go to your own store rather than an Amazon competitor.

Common Payhip Mistakes

• Not enabling EU VAT auto-handling before selling — inadvertent non-compliance with EU digital tax rules

• Not adding Payhip links to back matter — the highest-converting placement for direct sales

• Not creating the reader magnet first — it tests the full flow and builds your list simultaneously

• Not connecting Payhip to your email list — missing customer data that's as valuable as the sale itself

• Not connecting Payhip to ScribeCount — leaving direct sales income invisible in your analytics

Payhip is the simplest thing you can do today to start earning more per book sale. Set up takes an afternoon, EU VAT is automatic, and every reader who buys directly gives you their email and earns you significantly more than the same sale through any retail platform. Start with your reader magnet at $0, add your first paid book, email your list, and see what your readers do when you give them the chance to buy from you directly.




-Randall Wood