“Well, these trousers fit the jacket that you bought. You should take those just in case you need to wear them together” – Mom sincerely advised, pointing to the pair of trousers she found in the “Things you may want” section on Amazon.com. Cringing a little bit and having done what she told, the boy just got cross-selled.
The interface of upselling and cross-selling
Promotion to increasing the number of sales costs you fairly. Here is the cost building an online store. However, when it comes to marketing and commerce in general, upselling and cross-selling are the go-to strategies to generate more profit and save you money of unnecessary promotions at the same time.
Don’t Just Focus on Products, Websites, and Email Lists… Optimize your sales funnels and target your customers using:
Firstly, Let’s break it clearly, cross – selling & upselling are both selling something related to the product customer had already bought. They are relatives of, umm, selling. Nonetheless, it’s very important to use the combination of cross-selling and upselling complementarily.
Impact on annual revenue
Way back in 2006, cross-selling and upselling were reported to contribute as much as 35% of Amazon’s revenue. To be more precise, product recommendations are responsible for an average of 10-30% of eCommerce site revenues according to Forrester Research analyst Sucharita Mulpuru.
Conclusion, cross-selling and upselling are very productive thus there is no reason why they shouldn’t work for you.
For instance, buy a birthday cake and there will be a better offer with only 5 bucks more. The bigger cake is a upselling product or an upgrade version of the former product in general.
Buy one cake and I’ll throw in some candies for 15 bucks: The candy is a cross-sell.
Apply to commercial use
Upselling is a strategy to sell a better, more expensive, superior version of a product that the customer already owns or is buying. It’s may even the same product. However, a upselling product features better models with some add – on that raises the perceived value of the offering in the mind of customers.
This strategy is also the reason why we have a jumbo-sized SUV instead of the minivan we planned for;
the reason why we go for 7 days European instead of 3 days simply beach-sunbathing.
Cross-selling is to sell related products to the one a customer already owns or is buying. Such products often belong to different categories, but will be complementary in nature. Like a mouse and a mouse – pad.
Cross and up – selling actually are very common in real battle, especially in the fast food industry. A great example of upselling is fast-food giant McDonald’s asking the simple question, ‘Would you like to supersize your order?’. Referring to McDonald’s again, ‘Would you like fries with that?’ is cross- selling, as it’s an incentive to buy an additional product.
Up -selling and cross – Selling strategies are reasons why we buy the “just in case” product.
Additionally, there is one more popular selling technique known as bundling. Bundling is the offspring of cross-selling and upselling. You bundle together the main product and other auxiliary products for a higher price than what the single product is sold for.
Read more about products bundle.
Now you have a clear definition of up-selling and cross-selling. Next time I will give you more insights to how to use up-selling and cross-selling in eCommerce.