Upselling in eCommerce: How to do it right (with real examples)

Imagine this scenario. You’re at the cinema, about to watch a nail-biting thriller, standing in line to get some popcorn. When you step up to the counter and ask for a small popcorn, you’re told that for just one more dollar, you can get a medium-sized popcorn. Would you consider it? If so, that is successful upselling.

Upselling is a sales strategy meant to encourage the customer to spend more money, thus increasing the value of each sale. This technique has been used for centuries, and many eCommerce store owners are implementing it on their websites.

Eager to learn how? Let’s dive in.

What is eCommerce upselling?

eCommerce upselling is a method of boosting online sales by inspiring your customer to spend more. This can be done by offering them a more expensive, high-end version of the product they’re looking for, or offering additional features or upgrades they can add to that product.

This method is ultimately meant to provide more value to the customer, and when it’s done properly, it is truly a win-win situation for both sides. The customer gets a better product, or one that is more tailored to their needs, and you make a more profitable sale.

How does upselling in eCommerce work?

According to some reports, upselling can increase sales and account for approximately 10-30% of the revenues, but how does it actually work?

When a customer chooses a product to buy on your website and reaches the checkout page, they’ve usually:

• Taken the time to research what they want
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• Browse your website and decide it’s an acceptable place to buy it
• Familiarize themself with that specific product, including its advantages and disadvantages

At this point, many shoppers probably wouldn’t mind spending a little more money, as long as they get better value. This might include upgrades and add-ons, or a different version of that product that’s more high-end.

When the customer is handed an easy option that seems better, and doesn’t require them to do more research, they might opt to make an upgrade with the click of a button.

Upselling vs. cross-selling: What’s the difference?

Upselling and cross-selling are both strategies for boosting sales and getting more value out of each customer. However, they are not the same.

Upselling is offering your customer a better version of the product they’ve picked. Cross-selling is offering them complementary items that go together well with that product. 

For example, if someone adds shampoo to their shopping cart, it’s safe to assume that they need conditioner as well. If someone is looking to buy a new phone, you can offer them a screen protector, a case, or maybe some new earbuds.

However, if you suggest a more expensive brand of shampoo that eliminates frizz, or a phone with better RAM, that’s upselling.

What are the benefits of eCommerce upselling?

• Better average order value (AOV): Upselling for eCommerce websites will increase the amount of money spent by each customer, thus boosting your business’ bottom line.
• Improved customer lifetime value (CLV): When you offer relevant options, your customers will more likely spend more over time.
• Customer retention: Good upselling that truly benefits the customer increases customer satisfaction. A better, more convenient shopping experience will keep them coming back for more in the future.
• Upselling data is useful data: Upselling allows you to analyze customer’s behavior on your eCommerce website, so you can personalize recommendations and understand your customers better.

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Upselling examples in eCommerce

There are several types of upselling in eCommerce websites:

Offering products with increased performance

When a customer is in the product page, you can display other options that are more high-end or have better performance. For example, Best Buy showcases a comparison table comparing different model cordless vacuums and their features.

Best Buy also shows what customers ended up buying when looking for this product.

Offering value size

If a customer is shopping for moisturizer, you can offer them a bigger sized moisturizer that costs more, but saves them money when considering how much they pay per oz. This technique also works for food items that come in value packs.

Suggesting added features or upgrades

eCommerce websites can suggest adding upgrades, like a bouquet of flowers with more types of flowers. They can also offer a bouquet and vase bundle.

Sites that offer software services, for instance, may present a side-by-side comparison of the add-ons you can get with each plan, like Squarespace does.

Warranty and protection plans

If you’re selling appliances, you might offer your customers to pay extra for warranty or protection plans that will give them peace of mind. Another example of this technique is airlines offering to ensure your baggage for extra pay.

Subscriptions

You can offer customers to subscribe to getting a particular product on a monthly basis, for example, and pay less for it when they opt for this option. This is a great way of getting them to spend more over time. You can see Sephora using this method, by offering an “auto-replenish” option, in the screenshot below.

Where to upsell

• Prior to the initial sale: This might include displaying featured premium products on your home page to get customers’ attention, or offering better alternatives and upgrades on the product page itself. You might also create a comparison chart to communicate the benefits they would get by paying more for other products.
• At checkout: Once the shopper has chosen the product they want, you can still offer them a chance to upgrade it to something better, or add features they might be interested in before checkout. This is also a good place for cross-selling, or adding things like gift-wrapping and expedited shipping for extra pay.
• After the purchase: You can also upsell post-sale, by offering your customers to make upgrades on their purchase. For example, adding more services to software they’ve purchased, or upgrading a plane ticket from economy to first class.

Best practices for eCommerce upselling to grow Your revenue

Before you start upselling, check out these do’s and don’ts:

Give them real value

A good rule of thumb is to always assume your shoppers are smart, but they don’t always know what they want. Upselling works better if you offer your customers real value for their money, and not something that’s simply more expensive. Most importantly, be informative about what makes the choice you’re offering better.

Create limited-time offers

Sales and offers are everywhere, so customers may not be impressed by an item on sale. But creating a sense of urgency, like a one-time deal that has an expiration date, might make them afraid to miss out on something good.

Don’t be too aggressive

Have you ever been followed around by a salesman at a store, who keeps offering you products instead of letting you browse on your own? Yes, we’ve left that store, too.

Let’s face it; nobody likes a pushy salesman. If you push other products too much, your potential customers might get annoyed or feel like someone is trying to squeeze more money out of their wallets.

Be realistic about the products you offer

If someone is looking to buy a vegetable chopper, it’s okay to offer them an electric chopper instead. But offering them a $200 food processor may be an overkill. Try to offer items that are within a similar price range.

Don’t confuse your shoppers

There’s such a thing as offering too many choices. Having too many options may send your customers into a choice overload, feel overwhelmed, and make them avoid making the choice altogether. Offering a couple of well-targeted options is better than offering an array of products that will only confuse them.

Promote best-sellers and new arrivals

It can be hard, not to mention time-consuming, to figure out which products to offer. Using products that are already popular with your shoppers, or displaying products other customers have viewed, is a safe way to go.

A/B test or use AI to get better results

Relying on your instinct is fine, but it won’t get you the best possible results. It’s a good idea to A/B test several different products or options and see which one works best.

AI-driven product recommendations can also be a game-changer for both upselling and cross-selling. It provides your customers with a more personalized experience, something that’s becoming an increasingly crucial element in customers’ satisfaction.

Use free shipping thresholds

Using free shipping thresholds is a wonderful technique for upselling and cross-selling. Displaying the amount required for free shipping on your home page, as well as the amount left to spend on the shopping cart, will make shoppers want to spend more to avoid shipping costs.

The bottom line

Upselling is a great way to increase revenues on your eCommerce site, while also providing value to your customers. With the right techniques and practices, it can increase your profit margin and help your business grow, so it’s definitely worth implementing on your site.

Have article ideas, requests, or collaboration proposals? Reach out to us at editor@8fig.co – we’d love to hear from you.

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