Increasing your eCommerce business revenue can be done through multiple ways. Launching new products, raising your prices, offering sales and promotions are some ways to maximize your revenue. However, how you sell your products to your potential and existing customers is one of the most important.
Cross-selling and upselling are one of many sales and marketing tactics that you can use in your business strategy while selling your products on your website.
In this article, you will learn how to get much higher revenue by implementing cross-selling techniques.
Here is everything you need to know about cross-selling in eCommerce to improve your sales and maximize your ROI.
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Cross-selling is a sales technique. It involves influencing and encouraging a customer to purchase other relevant products, in addition to the ones they are about to purchase. Most of the time, the products you are cross-selling during your customers’ checkout on your website complement the products or are relevant in some way to the products in their cart.
So what happens is, a customer is about to checkout with the chosen products in their cart on your eCommerce website. Here, you can implement a cross-sell by recommending complementary and related products or providing special offers if purchased together. In most cases, customers tend to make last-minute impulse purchases while checking out.
For example, if a customer is about to buy a smartwatch, there’s a much higher chance they’ll buy a watch strap or screen protector for the watch if the bundle is a good deal. Moreover, Amazon estimates up to 35% of its revenue comes from cross-selling techniques.
People often confuse upselling with cross-selling. While both are extremely important for boosting your sales, you need to know the difference and when each one of them is used.
Upselling is a marketing strategy that influences your existing and potential customers to purchase higher-value products or upgrade a product or a service. For example: offering a medium-sized bag instead of its smaller version or a premium product instead of the original.
Whereas cross-selling is, as we said before, a marketing strategy that persuades your customers to purchase ancillary products.
Timings play a very important role in sales and marketing. Choosing the right time for everything can end up in great results.
Cross-selling usually takes place towards the end of the sales cycle or the buying journey, when customers have already chosen a product and are about to checkout. However, cross-selling can still take place at any time in the buyer’s journey to show them relevant and complimentary products. The best time to cross-sell is when the sale makes sense and when it can achieve its main purpose - maximizing the revenue.
Cross-selling's main objective is to increase revenue and maximize profits, and when done right it should lead to more customer satisfaction. It can add a huge amount of additional revenue by suggesting relevant add-ons to your customer’s original purchase. Cross-selling is most efficient when the additional purchases are small compared to the original purchase.
Here are some strategies to perfectly master your cross-selling strategies and get the results you want.
Don’t push or force your customers while offering complimentary products. Simply suggest the right and relevant products, follow the best practices and let them decide.
You will need to always test what works best for eCommerce and your audience. Use your website backend to gain insights about your audience. Test the timings of your offers and what promotions work best for your customers to identify the most profitable cross-sell strategies for your eCommerce.
If increasing revenue is the primary objective for your eCommerce business, then cross-selling should be your go-to. Along with increasing revenue, cross-selling has multiple pros for your eCommerce.
Cross-selling can be extremely efficient and beneficial for your eCommerce business if done and used in the right way at the right time.
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