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Cross-Selling and Upselling

Increase Revenue and Improve Customer Experience With Upselling and Cross-Selling


There is a lot of buzz about upselling and cross-selling in the eCommerce world. It is a common strategy employed by most brick and mortar stores, which is taking top priority in the eCommerce market. In simple words, it is the art and science of introducing your customers to similar, complementary, or better products in addition to what they are interested in.

This strategy offers manifold advantages for the customer as well as the merchant. While the customer gets to choose from a range of products at a bargain price, the merchant is able to increase sales. According to a Forrester research analyst, 10-30% of eCommerce revenue comes from upselling and cross-selling.


What is The Difference between Upselling and Cross-selling?



The merchant is interested in selling a higher-end version of a product the client is looking for. This helps the merchant generate additional revenue. For example, a customer has shortlisted a laptop, and the merchant will immediately present them with a range of options to upgrade the processor. In a way the seller is trying to convince the customer to spend “more” on the product they are currently looking at by giving them multiple options in better, higher-end products.


The focus of the merchant is on selling additional products along with the one the customer is interested in. For example, if a customer is interested in buying a computer, the seller will try to cross-sell other computer peripherals, such as printers or scanners, and offer a discounted price on the package deal.


Are Upselling and Cross-Selling Really That Important ?

Of course, a well-executed cross-sell and upsell technique is a smart marketing strategy to promote your products. This strategy can help you convince the customer to buy more, thus boosting your sales and revenue. This is something that directly affects your sales!

By effectively using this technique, you can help the customer choose the right product for them while making sure they have everything needed to use the product.


Which is Better?

According to a Predictive Intent research study, upselling drives more than 4% in online sales and performs as much as 20 times better than cross-selling, compared to just 0.2% of sales from a cross-selling strategy. However, cross-selling is more effective than upselling on the checkout page compared to product pages.

Focusing on selling more isn’t always the right marketing strategy. Rather, the focus should be on the customer experience instead of increasing average customer cart size. It is important to also consider on the following factors when you are trying to upsell and cross-sell:

Value: Avoid suggesting items that will raise the total order size or price by over 25% when trying to upsell and cross sell products.
Familiarity: Do not confuse site visitors and customers by introducing them to unfamiliar products. The more the customer’s familiarity with the add-on item, the higher the chances of convincing them to buy.
Don’t Exaggerate: It will help to be tactful about what you want to cross-sell and upsell. Don’t overdo it, as it could damage the customer’s perception of your brand. Eventually overwhelming them with such tactics might hurt your overall conversion rate.


There are multiple ways to use upselling and cross-selling tactics to enhance customer experience while raising your average order size.


Here are a few apps or plugins you can use on your eCommerce platform to achieve great results for upselling and cross-selling:
• The use of powerful algorithms makes Nosto a highly valuable app to automatically recommend relevant products for each customer. The app comes complete with a recommendation setup, which includes browsing history recommendations, to facilitate cross-selling and upselling.
Reccomendify is an app for Shopify that uses an algorithm to offer a range of options for merchants to cross-sell and upsell, automatically providing cart page recommendations while also allowing manual selection options for each product.
Sellout automatically sends weekly emails with cross-sell product recommendations, depending on the purchase history of customers.
Receiptful facilities customization of email receipts to introduce customers to new products and increase customer lifetime value to your organization.


Bottom Line

Make sure your prime focus is on adding to customer experience and value while indulging in upselling and cross-selling. Don’t just go after more sales and a bigger checkout dollar amount. A happy customer will always come back for more!


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