How offering upsells can increase the amount of every sale that goes through your store
Monday, October 30, 2017Lauren Macdonald
Upselling is one of those sales tactics that every single online store can use to increase their average order value by 10, 20, even 30%.
Don’t believe me? In 2006, upsells and cross-sells accounted for 35% of Amazon’s annual revenue
. And in 2014, JetBlue’s “Even More Space” initiative, which allows passengers to upgrade to seats with more legroom, earned them $190 million in additional revenue
The best part is this isn’t some fancy technique that takes months of research or a bunch to time and money to set up. Keep reading and we’ll show you some awesome upselling techniques you can use on your store, what products to offer, and how you can get upsells up and running by the end of the day.
What is upselling anyway
Upselling is when you offer your clients a similar, more expensive item or upgrade to their purchase at the checkout, replacing the item they originally added to their cart.
If you’re selling dog food, this could mean upgrading your customer from a 3kg bag of food to a 15kg bag.
The best part about upselling is that it provides a benefit to both the buyer and the seller. The customer gets a better deal on an upgraded purchase, and you get a larger sale. In fact, the benefit is so great to a customer, that they don’t even realize that it’s a sales technique (“why yes, I would
like to upgrade to a large drink for only $0.50 more!”).
If that’s upselling, then what’s cross-selling?
These two terms are often used interchangeably, when they’re in fact, they’re totally different. With upselling, you’re replacing the original item with a new, often larger (or better) one.
With cross-selling, you’re adding additional items to the cart. So instead of upgrading to a large drink, think the classic line, “Would you like fries with that?”
Now that you’ve got the basics, there’s only one more thing we need to cover before you get started: make sure you’re using your newfound upselling powers for good!
Don’t overdo it and start upselling products that don’t offer any value to your customers. It’s not likely they’ll go from buying a $20 bracelet to a $250 necklace: try to keep your upsell item no more than a 25% price increase than the original item.
Don’t offer un-related products either. To make the upsell seamless and increase the likelihood the customer will purchase, it should be a product the customer is already familiar with, and not a completely new item.
Here are some ideas you can try:
Upsell into a subscription:
If you offer subscriptions on your store this is a no-brainer. Your customer is already interested in the product, so why not offer it to them for a cheaper price (while securing recurring revenue for yourself).
Offer free shipping:
This is a great way to encourage shoppers to add a bit more to their cart. Offer free shipping when they spend a certain dollar amount, based on their cart total.
Selling one range or products? Offer a cross-sell:
Suggest your customers add your most sold, most reviewed, or most relevant products to their cart on top of their existing items.
Follow the ‘rule of 3’: Vend
suggests giving the shopper 3 additional upsell options for their purchase, which is especially good advice if you’re selling apparel. Just like a clothing store, a customer wouldn’t normally try on just one item, but a selection of items that complement the original product as well. So go ahead and suggest that matching hat, shoes, and necklace to that sundress in your clients cart!
Offer a service? Promote an upgrade: Virgin Media
is the perfect example. They show their bundles side by side so you can see the deal you’re getting. Double the speed for only a few dollars more? Yes please!
Upgrade to premium customizations: Deloitte
found that one in three customers want personalized products… so give it to them! Offer engraving, upgraded fabrics, or let them completely design their product like Nike
How to set up Upsells on your Shopify store
We have to confess something… here at Bold, we have some of the most popular apps in the Shopify app store, but there’s one in particular that we think every single store can use, and that’s our Product Upsell
With one click you can set up upsells, cross-sells, or even both on your Shopify store. And because we truly think that offering upsells on your store will start making you more money, we’re offering the app FREE for two months for the month of October
. Just head to the app store
to download, and check out our blog post to find out how to setup your first upsell in minutes.
Melanie Fatouros-Richardson is a Content Marketer at Bold Commerce
, where she helps store owners grow their businesses. Follow along
to learn more about eCommerce and the best tips and tricks for selling online.