When it comes to increasing your Shopify store revenue, more traffic isn't always the answer. Selling more to your existing customers is cheaper and more efficient.
So how should you increase your average order value for existing customers? Up-selling and cross-selling.
Between 10-30% of all e-commerce revenue is earned through up-selling and cross-selling, making it a go-to strategy for many top e-commerce brands. Just look at Amazon. Their product pages are set up so that there is always an upsell and cross-sell. The additional sale is presented on the product page as a better model or variation of the item you are already buying. Cross-selling is the section at the bottom of the product page and cart page titled "Frequently Bought Together."
These techniques force you to second guess and rethink your decision to buy a cheaper model or a stand-alone product without the suggested add-ons.
The difference between upselling and cross-selling is often unclear, so let's figure that out before we continue. We define an upsell as an upgrade to the exact product a customer plans to purchase. For example, Apple will sell its cheapest MacBook model with the next model, using its processor speed and retina display as selling points. A cross-sell would be Apple suggesting that you buy a mouse and keyboard with your MacBook.
With these definitions in mind, let's dive into how to create and implement successful upselling techniques on your Shopify store.
Categorize your products
Before you start creating upsells on your store, take a step back and think about your catalog, collections, and products. How does each product relate to each other and which ones will make sense to sell more?
You are likely to increase sales within your collections, so start by making notes of products that have a natural upsell. If you have multiple models of the same sunglasses, order them from lowest to highest price so you know which products will qualify for an upsell and which one will be the upsell product.
Make your upsells relevant
If you follow our first tip, this second tip will be easy for you. Once you've categorized your products, you'll know which ones qualify for upselling and which ones don't. You'll want to make sure that the product you're offering in your upsell solves the exact same problem as the original product.
You wouldn't sell a reading lamp with a bedside table anymore. That just doesn't make sense! (That's more in line with cross-selling.) The upsells need to be so closely related to the original product that the customer thinks, “Hey! This is pretty much a better version of the product I was going to buy for a little more money."
Experience different screens
Upsells can be displayed at various points in the checkout process. If your product is more of a once-in-10-year purchase, like a bicycle, for example, you'll want to sell more before paying. With apps like Ultimate Hot Deals, you can display your upsells as a popup on the product page or embed them on the cart page. This will ensure that your customers see the upsell before they pay.
If you sell products that are bought more like once a month, you can still use the strategy mentioned above or you can use email marketing. If you notice that some customers are buying the same product over and over again, consider sending a targeted email campaign that highlights the benefits of a better version of that product.
Do not force it
Nobody likes a pushy salesperson. Whether you're shopping IRL and that annoying associate keeps showing up behind every clothing rack or you're browsing an online store and pop-ups fly in your face faster than you can close them, these tactics will quickly deter any interest .
We suggest only offering an upsell once and making it easy for the customer to dismiss it. You want your customers to take action instead of you forcing them. Be seen, but don't be annoying.
Create urgency
As with any type of sale, urgency increases conversions. There are many ways to create urgency: limited-time offers and low-stock alerts are two of the most tried and tested methods.
Discounts on your additional sale
When you're hanging a carrot, it always helps if people feel like they're getting a good deal for that carrot. Discounting your upsell, even by as little as 5%, will further entice customers to convert with the offer. Also, lowering the price of the most expensive product will make that jump seem a bit more manageable to your customers.
Stay within your client's price
This is probably the most important takeaway when it comes to upselling. If your customer chooses the most basic and cheapest version of a product, it is unlikely that they will change their mind and decide to buy the most expensive one.
Keeping your upsells within your customers' price will lower the barrier to purchase and increase your conversions. For example, if you sell portable speakers, sell your most basic speaker with the slightly better model. There is a reason why your client chose the most basic (price, needs), so don't try to sell them at their most luxurious version.
This can be easily achieved by taking the time to categorize your products as we mentioned in the first tip. Doing this from the beginning will make creating your upsells a breeze.
Ready to start selling on Shopify?
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