Increasing revenues with cross-selling and upselling
There are numerous ways to increase your average sales, and encourage your customers to spend more money each time they visit your e-commerce site. Two of the most effective techniques are cross-selling and upselling. In fact, ecommerce giant Amazon attributes 35% of theirs sales to cross-selling and upselling, according to Amazon CEO Jebb Bezos in 2006.
By “suggesting” a related product or service to a customer you are helping your clients make the most out of the product or service they are purchasing while increasing your chances of selling more with one visit.
What is cross-selling?
Cross-selling is the practice of offering additional products or services to a customer. A few such examples are:
- Displaying complementary products or services from other categories on a product page. (e.g. A product page for a rubber duck featuring an MP3 player featuring headsets and speakers as related items)
- Displaying what other buyers have purchased along with the item featured on a product page. (e.g. A product page showing what other buyers have purchased along with an MP3 player, such as headsets or speakers).
- Offering a “bundled” package, including the item being purchased by a client, and a complementary product or service for a discounted price. (e.g. offering a special on an MP3 Player set featuring an MP3 Player, a wall charger and matching speakers).
What’s the difference between Cross-selling and Upselling?
While both terms are often used interchangeably, cross-selling and upselling are actually two different things.
Cross-selling involves offering products or services from a different product category, which may complement the item being purchased.
Upselling, on the other hand, involves offering a similar product or service for a much higher price. This could either be:
- Selling an upgraded version of the product sold (e.g. Offering an 8 GB MP3 Player to a client who has purchased, or is purchasing a 1 GB MP3 Player)
- Selling more units of the same product at a “discounted” price. (e.g. Two MP3 players priced at $10.00 each for $15.00)
What are the benefits of cross-selling and upselling?
Both clients and merchants can benefit from cross-selling and upselling in the following ways:
- Have a pleasant shopping experience by saving time and effort on looking for products and services they can use with the item they are purchasing.
- Be informed of the operational requirements of an item they are purchasing.
- Increase the chances of getting more sales
- Increase customer satisfaction
- Provide a better shopping experience
How to set up cross-sells and upsells on your website
NOTE: The only upselling option available for Zest is “Bulk Pricing”.
Setting up cross-selling and upselling on a Shopify website is only possible through a Shopify Plugin. Contact our support team if you would like to have a cross-sell and upsell feature added to your website.