PengDrop vs LemonSqueezy: Which Is Better For You In 2026?
Similar fees, different strengths. Choose what matters most.
PengDrop: Lower long-term costs • LemonSqueezy: Tax handling included
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All-in-one platform
Everything you need to sell digital products online.
Digital Downloads
Sell any type of digital download such as ebooks, software, design assets, templates, video, music and more.
Beautiful Storefronts
Create stunning, fully-customizable stores with your own branding and colors.
Advanced Analytics
Track sales, views, conversion rates, and customer behavior.
Secure & Reliable
Built with automatic backups, SSL encryption, and 99.9% uptime.
Instant Delivery
Automatic digital product delivery immediately after purchase.
Sell Worldwide
Accept payments globally with multiple currencies.
PengDrop vs LemonSqueezy Feature Comparison
| Feature | PengDrop | LemonSqueezy |
|---|---|---|
| Pricing | ||
| Monthly Fee | $0 | $0 |
| Base Transaction Fee | 5% Free plan | 5% + $0.50 |
| International Fee | None | +1.5% On top of base fee |
| Zero-Fee Option | $89/year 0% transaction fee | No Always 5% + $0.50 |
| Affiliate Recovery Fee | N/A | +3% Per affiliate order |
| Cart Recovery Fee | N/A | +5% Abandoned cart emails |
| Products You Can Sell | ||
| Digital Downloads | ||
| Subscriptions | Weekly, monthly, yearly | |
| Software Licenses | ||
| Storefront | ||
| Fully-hosted Storefront | ||
| Customizable Store Builder | ||
| Custom Domain | Coming Soon | |
| Payments & Tax | ||
| Merchant of Record | Handles all tax globally | |
| Global Tax Handling | You handle tax | Automatic collection & remittance |
| Instant Payouts | Direct to Stripe | |
| Payment Methods | Stripe payment methods | 16+ methods Including PayPal |
| Multiple Currencies | 95+ currencies | |
| Marketing Tools | ||
| Abandoned Cart Recovery | +5% fee on recovered sales | |
| Affiliate System | +3% fee per order | |
| Coupon Codes | ||
| Upsells | ||
Fee comparison calculator
See how fees compare at different revenue levels
At $1,000 in sales:
PengDrop Free
$50
5% fee
LemonSqueezy
$55
5% + $0.50 per transaction (assumes 10 sales)
At $5,000 in sales:
PengDrop Free
$250
5% fee
PengDrop Annual
$89
Fixed yearly fee
LemonSqueezy
$275
5% + $0.50 per transaction (assumes 50 sales)
At $20,000 in sales:
PengDrop Free
$1,000
5% fee
PengDrop Annual
$89
Fixed yearly fee - Save $911!
LemonSqueezy
$1,100
5% + $0.50 per transaction (assumes 200 sales)
* Excludes payment processing fees (Stripe ~2.9% + 30¢). LemonSqueezy adds +1.5% for international transactions.
Which platform is right for you?
Choose PengDrop if:
- You want the lowest long-term costs ($89/year for 0% fees)
- You're comfortable handling tax yourself
- You sell digital downloads only
- You want instant payouts to your Stripe account
- You primarily sell domestically
Choose LemonSqueezy if:
- You want automatic global tax handling
- You need a merchant of record
- You sell subscriptions or software licenses
- You need PayPal and 16+ payment methods
- You want affiliate system and cart recovery built-in
Lower Long-Term Costs
While both platforms start at 5% base fees, PengDrop's Annual plan at $89/year with 0% transaction fees becomes significantly cheaper as your sales grow. At $5,000+ in annual sales, you save hundreds to thousands per year.
Tax Complexity Trade-off
LemonSqueezy's biggest advantage is being a merchant of record—they handle all global tax collection and remittance automatically. This is invaluable if you sell internationally and don't want to deal with VAT, sales tax, and compliance. With PengDrop, you handle tax yourself, but you pay less in platform fees.
Watch Out for Extra Fees
LemonSqueezy adds +1.5% for international transactions, +5% for cart recovery, and +3% for affiliate orders. These can add up quickly. PengDrop has no hidden fees—just the 5% on free plan or 0% on Annual plan.
Frequently asked questions
What is better PengDrop or LemonSqueezy?
PengDrop is better for lower long-term costs with the $89/year plan offering 0% fees. LemonSqueezy is better if you need automatic global tax handling as a merchant of record, subscriptions, or multiple payment methods including PayPal. Both have similar 5% base fees to start.
Is LemonSqueezy cheaper than PengDrop?
At low sales volumes (under $1,780/year), they're similar. Once you exceed that, PengDrop's Annual plan at $89/year with 0% fees becomes significantly cheaper. LemonSqueezy also adds +1.5% for international sales and additional fees for cart recovery and affiliates.
Does PengDrop handle tax like LemonSqueezy?
No, LemonSqueezy acts as merchant of record and handles all global tax collection and remittance. With PengDrop, you're responsible for handling tax yourself. If automatic tax handling is critical, LemonSqueezy is the better choice.
Can I sell subscriptions on PengDrop?
Not currently. PengDrop focuses on one-time digital product sales. LemonSqueezy supports subscriptions with weekly, monthly, or yearly billing, plus usage-based pricing.
Which has better payment options?
LemonSqueezy offers 16+ payment methods including PayPal out of the box. PengDrop uses Stripe, which supports credit cards and various payment methods depending on your Stripe configuration.
What are LemonSqueezy's hidden fees?
Beyond the base 5% + $0.50 fee, LemonSqueezy charges +1.5% for international transactions, +5% for sales recovered via abandoned cart emails, and +3% for affiliate-referred orders. These can add up quickly.
Can I migrate from LemonSqueezy to PengDrop?
Yes! Export your products from LemonSqueezy and import them to PengDrop. However, note that subscriptions and software licenses won't transfer as PengDrop doesn't support those product types yet.