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eCommerce Upselling: 7 Best Practices to Increase Your Sales Without an Investment (w/EXAMPLES)

eCommerce Upselling: 7 Best Practices to Increase Your Sales Without an Investment (w/EXAMPLES)

Who wouldn't want to increase revenue and that too without investing an amount in your up and running eCommerce business? Each one of us, right? And this is exactly what we are going to talk about here today. With the online competition in the eCommerce sphere getting cut throat day by day, increasing revenues has become one of the major goals of every eCommerce platform. But every eCommerce business owner is looking for an avenue that requires little to no investment to increase their online revenues. 

This may seem too difficult to achieve but it is happening in the world and it's easier than it may seem. Increasing revenue by increasing customer base requires not only fiscal injections but also marketing and promotional efforts. 

This is where upselling steps in. Upselling is one of the most lethal tools in a digital marketer's arsenal and today you're going to learn how to leverage it using the best practices to make the most revenue. 

What is Upselling?

It is the sales technique of using different measures to have a current customer purchase a higher value than what they were already doing. For example, your customer was on your platform and was placing an order for an 8-ounce energy drink costing $2. Right there you place an ad for a 15-ounce bottle of the same energy drink priced at $3. Your customer will abandon the $2 purchase and will move to the $3 option due to the extra value that it is offering. 

This is known as upselling where not only have you increased the value of your average order but have also provided your customer an increase in value and satisfaction. 

Advantages of Upselling for an Online Store

Upselling is a win-win strategy not only for you as an eCommerce business owner but especially for your customer as well. An added value addition or an increased order size are just two of the main benefits of this technique. Let us now look at some more advantages of upselling, how we can further leverage it to make more revenue and make our eCommerce platform stand out.

1. Increased customer retention and loyalty

2. Positive impact on brand reputation

3. Improved customer relationship building

4. Increase in ROI

5. Customer Lifetime Value is increased

6. Offers a personalized experience for customers

7. Increased revenue per order

8. A better value proposition for customer needs

9. Offer convenience to the customer

10. Decreases customer churn rate

7 Best Upselling Practices in Ecommerce to Increase Revenue with Examples

Let us now look at seven of the best upselling practices in the eCommerce industry along with their relevant examples that will not only help you in increasing revenue, but it will also help you in building your brand, customer loyalty, and market share in the long run as well. 

1. Focus on Returning Customers

2. Bundled Product/Service Offers

3. Maximum Price Margin

4. Make it personalized and easy

5. Product Tiers and Categorization

6. Add product recommendation popups 

7. Use tools made for eCommerce upselling

1. Focus on Returning Customers

Research suggests that it is easier and even more effective to sell to old customers rather than new ones. The psychology behind this is simple, a first-time customer will not trust you with his or her money right away whereas an old returning customer knows the value of your products and services and hence is ready to spend more.

Therefore, when focusing on your upselling marketing activities,  try to target your loyal customers rather than going after new or as we say young customers who have just joined your platform. You can approach them using emails or SMS marketing to let them know of new offers that are available on the site that might interest them, given their past shopping patterns with you. 

Look at this example of Estee Lauder, how they are sending out emails to their customers based on new products relevant to the season that the customer might be interested in keeping in view their shopping pattern.

returning customers



2. Bundled Products/Service Offers

Bundle similar products that are bought together and make them visible to your customer. Not only will the customer buy the product in a bundle, increasing your average order size but it will also deliver value to the customer because the products that you will bundle need to be complementary that are frequently bought together. 

For an example of a bundle offer, there is a coffee machine and a milk frothing device that are bundled together in an offer. They not only shows the difference in prices if the products are bought separately but as the products are complementary it makes sense to the customer to buy them together in a bundle. 

bundled products


Source: amazon.com


3. Maximum Price Margin

When upselling, do not be tempted to increase the price margin to nearly double like for a $10 purchase that the customer was making the add on or upsell should not go up to $20 otherwise it will not make a value proposition to the customer. Try to keep the price margins maximum yet in a range that is psychologically still attractive to the customer, delivers the promised value and increases your revenue. 

Look at this example of ProtonVPN where for just an extra 1.99 Euros per month you can receive nearly double the value-added services of what you were receiving in the basic package, priced at 4 Euros per month.

maximum price margin

Source: protonvpn.com


4. Make it personalized and easy

When upselling, ensure that you make it easy for your customer to choose the option that ensures upselling when making an online purchase and that it gives them a sense of personalization and comfort. 

Look at this example of upselling by hp.com. The addons to the HP elite notebook are accessible in an easy manner just at the behest of a single click. It also has the add-to-cart option available right there on the main interface. 


personalized and easy

Source: hp.com


5. Product Tiers and Categorization

Grouping your products into tiers is one of the given essentials when it comes to upselling. A higher categorization of the product of course comes with a higher price tag but you have to convince your customer with intelligent categorization that just with a little increase in the price range, the value they will be getting is a lot more. 

Look how wonderfully Khaadi uses product tiers and categorization to enable customers in making a more expensive purchase and of course receiving a higher value as well.

product tiers

Source: pk.khaadi.com

6. Add product recommendation popups 

Add a product recommendation feature on your eCommerce platform. When the customer is browsing a website and shopping for certain products or services, if they can see product recommendations in the form of pop-ups or listings on their screens, they are most likely not only to pay attention to the suggestion but also make the purchase if the purchase seems relevant to what they are already looking for. 

Amazon.com has championed the art of product recommendations. Look at this example where the customer when buying a set of makeup brushes was offered these recommendations, a set of products that is a good match to be used with these brushes when doing makeup. 

product recommendation popups

Source: amazon.com


7. Use tools made for eCommerce upselling

We recommend the use of software and online tools that are made specially to aid eCommerce platforms in upselling. These tools have championed the art of personalized recommendations, complimentary bundles, and delivering customer value propositions with multiple suggestions. Depending on your needs, you can choose from the following suggestions.

1. Shopify Product Upsell – Only available for stores powered by Shopify.

2. Magento’s Mass Product Relater – An extension that generates product recommendations

3. BigCommerce’s Easy Upsell – Helps in coming up with personalized upsells when the customer searches for a particular product 

Conclusion

Upselling is not only a wonderful technique when it comes to increasing revenue for your eCommerce platform with little to no investment, but also for learning more about your customer lifetime value and increasing customer retention. 

We have presented here the top seven upselling techniques that we know from industry experience, to deliver results and help you in increasing revenues. But it comes down to you, to select and work on those techniques and tools that are most suitable for your business and the product and services that you are offering. 


Rayed Chaudhry

Rayed is passionate about marketing and interested in learning new ways to hack (legally) marketing platforms to help businesses achieve growth using unconventional methods. Prior to starting Orion, Rayed has worked in various marketing positions and spent millions of dollars across different ad platforms.