Ultimate Ecommerce Upselling Guide: Best 10 Upselling Strategies To Follow
Nowadays, there are numerous ways and methods to use to boost your eCommerce sales and increase your revenue. Choosing the right ones for your business needs good research and a good understanding of your customers.
However, two of the most effective sales and marketing strategies for your eCommerce business are cross-selling and upselling.
In this article, you will learn how to boost your online sales, build better customer relationships, and obtain higher revenue and ROI by implementing upselling strategies and techniques.
Below you will find everything you need to know about upselling in eCommerce to get the best results out of your efforts.
Table of Content:
- What is Upselling in eCommerce?
- When Is The Best Time To Use Upselling in eCommerce?
- How To Use Upselling in eCommerce? Best 10 Upselling Strategies
- What Are The Benefits of Upselling in eCommerce?
What is Upselling in eCommerce?
Upselling is a sales and marketing technique aiming to increase the average sales value of a customer. It is mainly about influencing and persuading your online shoppers to purchase a more expensive, upgraded, or premium version of the product they already chose for the goal of achieving a larger scale.
In eCommerce, to get the best and maximum results in your sales, it is recommended to use both upselling and cross-selling strategies.
When Is The Best Time To Use Upselling in eCommerce?
Choosing the right time to approach your shoppers with the right tactic and strategy is everything. Timing is crucial and can make or break the deal!
Upselling can take place at any phase of your consumers’ buying journey according to multiple factors.
- It can happen before the purchase, a pre-sale upselling.
Once a shopper is on your website, you can show him the basic products and compare them to the premium ones so that he can start checking and making up his mind.
- It can take place during your shopper’s checkout.
Shopping cart or checkout pages can be a great way to use your upselling techniques. You can show your audience a better option with higher features or give them the option of choosing a bundle with a good offer. You can offer them more personalized options that might fit their needs.
- It can also happen after your customer has purchased your product. The probability of selling to existing customers is 60-70%, while the probability of selling to a new prospect is 5-20%. This can allow your shoppers to add more features to their purchased product, extend a premium service, or purchase a warranty. You can also try offering them better products with a discount.
How To Use Upselling in eCommerce? Best 10 Upselling Strategies
Here are some upselling strategies and tips to use in your eCommerce business and include in your marketing plan for the upcoming time:
- Offer product comparisons to persuade your shoppers and give them proof of the higher features they will get when they pay more.
Check out what Spotify did here in comparing their packages.
- Give your shoppers higher options that make sense. Offer products that are not extremely expensive than the ones they are choosing. This can backfire. Upgrade to alternatives that are slightly higher.
- Display the upgrades you are offering visually to attract your customers.
- Offer them other similar products during their checkout that are slightly higher in price and relevant to what they want.
- Show them the most popular options or items that other people purchase most of the time. People love to purchase popular stuff, they trust your products more when they know other people are buying them.
- Satisfy your customers’ needs. It is so important to use upselling techniques to build long-term relationships with new and existing customers. Hence, focus on adding value to their shopping experience.
- Don’t be too pushy or aggressive in your selling process.
- Be informative in your offerings. Inform and educate your customers by letting them know the detailed features of your products, the differences between multiple products, and the advantages of purchasing certain products. 50% of customers are looking for expert advice on what to buy while shopping.
- Create a sense of urgency. Let them know you are offering a discount for a limited time or on certain products to influence their purchasing decision.
- Choose your best products to upsell them to your customers.
What Are The Benefits of Upselling in eCommerce?
- Upselling can boost your sales and increase your revenue in an incredible way!
70-95% of revenue comes from upsells and renewals. Only 5-30% come from the initial sale.
- Create long-term relationships with your existing customers by giving them value.
- Upselling increases the customer’s lifetime value (CLV). Higher CLV indicates the revenue each customer generates for your business.
- Upselling increases the AOV (Average Order Value per consumer).
- It enhances the customers’ shopping experience by offering convenience and flexibility, which can create loyalty and repeat sales. This can increase customer satisfaction.
- Upselling increases customer retention. Research has shown that increasing customer retention by as little as 5% increases profits anywhere from 25% all the way up to 95%.
- Upselling can address emotional buying motives to your business advantage. A relevant upsell can result in an emotional connection between your brand and your consumers.
- Upselling retains your existing shoppers as well as engages and attracts new ones to purchase your products.
- It improves your brand’s good reputation and positions your eCommerce business at your customers’ top of mind.
Upselling is a great way to increase your revenue and boost your sales. However, it has to be done alongside many other marketing activities that you need to include in your plan to get the best results. Know what your audience needs and what your industry implies, and plan your marketing techniques and strategies accordingly.
Upselling vs. Cross-selling in eCommerce?
Some people might confuse the two terms. While they both are crucial for your eCommerce business, you need to know the difference and when is the right time to use each.
Upselling, as we said, is all about encouraging your customer to spend more money by purchasing a higher version of the product he is about to buy.
Whereas, cross-selling is all about convincing your customers to purchase relevant add-ons or complementary products alongside the product they are buying. The recommended products should be smaller in value than the actual product and must be relevant in a way.
The two strategies have nearly the same objective, which is to increase your ROI and revenue, however, they are done in different ways.
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All the way from ads automation to customizing personalized SMS and email campaigns, Convertedin can have your back in every single step. Converted.in has been a game changer for numerous eCommerce businesses, and now is your turn. Automate your upselling and cross-selling strategies on your website now.