The pricing of digital products often differs from physical goods in that digital products typically have lower marginal costs and higher scalability. Once developed, digital products such as software or e-books can be replicated and distributed at minimal cost compared to the manufacturing and shipping of physical goods. This allows companies to leverage dynamic pricing strategies and offer various pricing tiers based on customer needs. Additionally, digital products can be easily updated or enhanced, fostering ongoing value and customer retention, while physical goods often require more fixed pricing based on production costs.