To sell books direct to readers, you need three things: a shop that takes payment, a way to deliver the file or the printed book, and a plan for sales tax. Payhip gives you a ready-made shop with tax on digital sales largely handled for you; Shopify gives you the most control and the widest print-on-demand options but leaves tax filing to you; and BookFunnel is not a shop at all but the delivery service that sends ebooks and audiobooks to buyers on behalf of either.

This guide includes a few product links near the end. As an Amazon Associate, Freyja Publishing earns from qualifying purchases, at no extra cost to you.

This guide explains what each platform actually does, what it costs at the time of writing (October 2026), how ebook and print delivery work, how VAT, GST and sales tax differ between them, and how to choose a set-up that suits the size of your catalogue. Prices change, so always confirm current figures on each provider’s own pricing page before you commit.

At a glance

• Payhip is the simplest start: a free plan with a 5% transaction fee, and it collects and remits digital EU/UK VAT and US/Canadian sales tax for digital products.
• Shopify is a full e-commerce platform with monthly plans and apps for print-on-demand books, but you remain responsible for filing and paying tax unless you use a merchant-of-record service.
• BookFunnel handles delivery, not checkout. Its direct-sales delivery works with Shopify, WooCommerce and Payhip and needs the Mid-List Author plan or above.
• Most authors starting out pair a shop (Payhip or Shopify) with BookFunnel so readers get easy downloads to their device of choice.
• Selling direct does not replace retailers for most authors. It adds a channel where you keep more of each sale and own the customer relationship.

Why sell direct at all?

Retailers such as Amazon, Apple Books and Kobo bring readers to you, but they keep the customer details and set the rules. When a reader buys from your own shop, you receive their email address (with their consent for marketing), you set your own bundles and discounts, and you are paid by your payment processor rather than waiting for a retailer’s payment cycle.

The trade-off is that you must bring the traffic yourself. A direct shop works best for authors who already have an email list, a social following or a series that readers binge. If you are still building your readership, start with building your author platform and treat a direct store as a later step, or a small side channel.

A note for Kindle Unlimited authors: ebooks enrolled in KDP Select must be exclusive to Amazon in digital form while enrolled, so you cannot also sell those ebooks direct. Print books and audiobooks are not covered by that exclusivity. The trade-offs are covered in our Kindle Unlimited deep dive.

The three platforms side by side

The table below compares the points that matter most to authors. Figures are in US dollars as shown on each company’s pricing page at the time of writing (October 2026); local pricing may differ and prices change.

Feature	Payhip	Shopify	BookFunnel
What it is	Hosted shop for digital and physical products	Full e-commerce platform	Ebook and audiobook delivery service
Entry price	Free plan, 5% transaction fee	Basic plan from US$29 a month billed yearly (US$39 billed monthly)	From US$30 a year (First-Time Author, no direct-sales delivery)
Higher tiers	Plus US$29 a month (2% fee); Pro US$99 a month (no Payhip fee)	Grow, Advanced and Plus with lower card rates	Mid-List US$200 a year; Bestseller US$300 a year
Payment processing	PayPal and Stripe standard fees on top	Shopify Payments card rates; extra fee if you use a third-party gateway	Not applicable (does not take payment)
Digital VAT and sales tax	Collects and remits digital EU/UK VAT and US/Canadian sales tax	Calculates tax; you file and remit	Not applicable
Print books	Physical products supported; you arrange fulfilment	Print-on-demand apps such as Lulu Direct	No print fulfilment; offers print codes for downloads
Ebook delivery	Built-in file download, or BookFunnel	Apps, or BookFunnel	Sends each buyer a personal download link
Best for	Authors who want a fast, low-cost start	Larger catalogues, print sales, custom stores	Anyone selling ebooks or audiobooks direct

Payhip: the low-cost starting point

Payhip lets you set up a shop page, add ebooks, audiobooks, courses or physical items, and start selling without a monthly fee. According to Payhip’s pricing page, there are three plans with the same features: Free Forever (5% transaction fee), Plus (US$29 a month, 2% fee) and Pro (US$99 a month, no transaction fee). PayPal and Stripe charge their own standard processing fees on every plan.

A simple way to decide between plans is to work out your break-even point. On the Plus plan, you pay US$29 a month to save 3 percentage points on fees, so it only makes sense once you sell roughly US$970 or more a month through Payhip. Pro saves a further 2 points for an extra US$70, which needs roughly US$3,500 a month in sales to pay its way. Below those figures, the free plan costs less.

Tax on Payhip

Payhip’s tax page says it detects whether a buyer is in the EU or UK, applies the right VAT rate for digital products, and reports and remits it each quarter, describing itself as your reseller for those sales. It also says it acts as a marketplace facilitator in the US and a digital platform operator in Canada for sales tax. For other countries, you can set up custom taxes that Payhip collects, but you must report and pay those yourself. Payhip’s pages do not mention Australian GST, so Australian authors should check their own obligations with the Australian Taxation Office or an accountant.

Where Payhip is weaker

Payhip supports physical products, but its pricing page does not describe built-in print-on-demand. If you want paperbacks printed and posted automatically, you will need to handle fulfilment yourself or choose Shopify. Design options are also more limited than a full e-commerce platform.

Shopify: maximum control, more set-up

Shopify is a general e-commerce platform used by businesses of every kind, so it is not designed specifically for books. That is both its strength and its challenge: you can build almost any store you like, but you will be choosing themes and apps to make it work for ebooks and print.

According to Shopify’s US pricing page at the time of writing, the Basic plan is US$29 a month billed yearly or US$39 billed monthly, with higher Grow, Advanced and Plus tiers. Online card rates through Shopify Payments start at 2.9% plus 30 cents on Basic. If you use a payment gateway other than Shopify Payments, an additional third-party transaction fee applies (2% on Basic). Shopify was also advertising a short free trial followed by a reduced introductory rate. Prices and trials vary by country, so check the page for your region.

Print-on-demand through Shopify

This is where Shopify stands out for authors. Print providers offer Shopify apps that pass orders automatically to the printer. Lulu, for example, describes its Lulu Direct app as connecting your Lulu account to your Shopify store, printing and shipping each order under your branding, and letting you manage and pay for orders in its dashboard. Other book printers offer similar integrations. You pay the printer’s print and postage costs per order, so check each provider’s price calculator before setting your retail price. For the economics, see how much authors really earn from print-on-demand.

Tax on Shopify

Shopify’s help centre is clear that it can automate charging tax but does not file or remit tax for you. You are the seller, so registering for VAT, GST or sales tax where required, and lodging returns, is your responsibility. Shopify also offers Managed Markets, where Global-e acts as merchant of record for international orders and handles duties and tax remittance; at the time of writing it is available to businesses in the continental US and certain stores in Canada and the UK, carries its own transaction fee on international orders, and Shopify’s overview focuses on physical goods. Check whether it fits your situation before relying on it.

BookFunnel: the delivery layer

Readers buy ebooks from you in many formats and for many devices. BookFunnel exists to make that painless. When a sale happens in your shop, BookFunnel emails the buyer a personal download link and helps them load the book onto a Kindle, Kobo, phone or tablet, or read it in BookFunnel’s own app. It also provides reader support for download problems, which saves you answering those emails yourself.

BookFunnel’s help pages list Shopify, WooCommerce and Payhip as direct-sales platforms that work through its “delivery actions”; PayPal is no longer offered as a direct-sales integration. With Payhip, for example, Payhip sends BookFunnel a notification of each paid order, BookFunnel checks it using your Payhip API key, and the buyer receives their link.

Direct-sales delivery is only available on the Mid-List Author plan and above. At the time of writing, BookFunnel’s pricing page lists First-Time Author at US$30 a year (no direct-sales delivery), Mid-List Author at US$200 a year (or US$20 a month) and Bestseller at US$300 a year (or US$30 a month). Audiobook delivery is an optional add-on charged by hours of audio delivered.

BookFunnel does not print books. Its “print codes” are printable download codes, useful for giving an ebook with a paperback at an event, not for producing paperbacks.

Merchant of record: why it matters for tax

The merchant of record is the business legally responsible for the sale, including collecting and paying tax. Where a platform takes on that role, or acts as your reseller or a marketplace facilitator, it deals with the tax authorities for those sales. Where it does not, the responsibility stays with you.

Digital products are usually taxed where the buyer lives. The EU, the UK, Australia, Canada and many other places apply VAT, GST or sales tax to ebooks sold to their residents, sometimes from the first sale and sometimes above a threshold. Rules differ widely and change, so check with your local tax authority or an accountant. The practical difference is this:

• On Payhip, digital EU/UK VAT and US/Canadian sales tax are handled for you; other countries depend on your settings and your obligations.
• On Shopify, tax is calculated at checkout, but registration, filing and payment are yours unless a merchant-of-record service covers the order.

For more on the legal side of running a book business, see legal basics for self-publishers.

Who each option suits, and who it does not

Situation	Usually a good fit	Usually not ideal
First direct sales, few titles, small list	Payhip free plan plus a BookFunnel Mid-List plan if you want easy delivery	Shopify, whose monthly fee may outweigh early sales
Want to sell signed or print-on-demand paperbacks	Shopify with a print-on-demand app	Payhip alone, unless you post books yourself
Selling mainly to EU or UK readers	Payhip, which handles digital VAT	Shopify without tax advice or registration
Large backlist, bundles and a branded store	Shopify plus BookFunnel	Payhip free plan, where 5% fees add up
All ebooks in Kindle Unlimited	Direct sales of print or audio only	Selling those ebooks direct while enrolled

A step-by-step plan to launch a direct store

1. Choose what to sell first. Start with a series bundle or a book not enrolled in an exclusive programme.
2. Pick your shop. Payhip for speed and low cost; Shopify if print or custom design matters.
3. Decide how buyers get their files. Use the shop’s own download or connect BookFunnel’s delivery action.
4. Set up tax. Read your platform’s tax settings and confirm your own obligations with a tax professional.
5. Write clear product pages. Say which formats are included, how delivery works and how to get help.
6. Test a real purchase. BookFunnel’s Payhip guide recommends a live test purchase, temporarily at a reduced price, rather than a test mode.
7. Tell your readers. Announce the store to your email list first; see how authors build profitable email lists.
8. Review after 90 days. Compare revenue, fees and time spent, then decide whether to upgrade plans.

Common mistakes to avoid

• Selling Kindle Unlimited ebooks direct. This breaches KDP Select exclusivity while the book is enrolled.
• Assuming the platform handles every tax. Payhip’s coverage is specific to digital EU/UK VAT and US/Canadian sales tax; Shopify does not remit for you.
• Paying for the top plan too early. Do the break-even sums before upgrading.
• Forgetting processing fees. Card and PayPal fees apply on top of platform fees on every plan.
• Making delivery confusing. Readers who cannot open a file ask for refunds; a delivery service or clear instructions prevent this.
• Expecting traffic to appear. A store with no promotion sells little. Direct sales reward authors who already reach readers. Free marketing strategies can help you build that reach.

Questions to ask before you commit

• What will I pay in total each month at my likely sales level, including processing fees?
• Who is responsible for tax in each country I sell to?
• How will a reader on a Kindle, a Kobo or a phone actually get my book?
• Can I export my customer list if I move platforms later?
• Do I need print books, and who prints and posts them?

Sources this guide draws on: Payhip’s pricing page and its VAT and taxes feature page; Shopify’s pricing page and Shopify Help Center articles on EU tax and Managed Markets; BookFunnel’s pricing page and its author help articles on direct sales and Payhip set-up; Lulu’s page on selling through Shopify with Lulu Direct; and KDP’s help pages on KDP Select.

Frequently asked questions

Can I sell my ebook directly to readers without a website?

Yes. Payhip provides a hosted shop page you can share in emails and on social media, so you do not need your own website. You can link to it from an author site later if you build one.

Is BookFunnel a store?

No. BookFunnel delivers ebooks and audiobooks after a sale, but the payment happens in a shop such as Shopify, WooCommerce or Payhip. Its direct-sales delivery needs the Mid-List Author plan or above.

Is Payhip or Shopify better for authors?

Payhip is usually better for a low-cost, quick start with mostly digital sales and less tax paperwork. Shopify is usually better if you want print-on-demand, a fully branded store or a large catalogue. Many authors start on Payhip and move later.

Do I have to charge VAT or GST on ebooks I sell direct?

Often, yes, depending on where the buyer lives and the rules in that country. Payhip handles digital EU/UK VAT and US/Canadian sales tax for you; on Shopify you are responsible for filing. Check your obligations with your tax authority or an accountant.

Can I sell paperbacks direct with print-on-demand?

Yes, most easily through Shopify, where printers such as Lulu offer apps that print and ship each order automatically. You pay the printer’s costs per order, so build them into your price.

Can I sell Kindle Unlimited books on my own store?

Not the ebook edition while it is enrolled in KDP Select, because that programme requires digital exclusivity with Amazon. You can sell the paperback, hardback or audiobook direct.

Selling direct is less about choosing a perfect platform and more about matching tools to where your author business is today. Start small with the option that keeps costs and tax work low, test one real purchase from start to finish, and grow into a bigger set-up only when your sales justify it. If you are comparing other parts of your toolkit too, our guide to choosing author tools covers the wider picture.