- eCommerce

Why Upselling is Important in eCommerce

Tips to Make Upselling Effective & Profitable for your eCommerce Business

Walk into any coffee shop, and you are bound to hear “would you to try a new variety of doughnuts or, do you want a sandwich to go with it?”

How many times have they tried to lure you with another product to go with what you are having? In eCommerce language, that is called upselling. In other words, they try to sell you something else with what you are planning to buy.

Go to Amazon, and add a particular product to the cart, and you will receive the message “people also bought” along with some items that go with your product.

The primary purpose of this technique is to increase sales and make the entire purchase more profitable for the brand.

Now, let us dive a bit deeper into upselling and how it can help your business.

Upselling & Its Impact On The Businesses

As discussed above, upselling is all about persuading your customers to purchase more items than they originally intended to, thus encouraging sales and profits. The idea is to sell something more expensive or from a premium category to the customer.

Why is upselling important to the eCommerce domain?

When you are an eCommerce store, it is important that you engage your customers, and strive to build a relationship with them. with upselling, you are not only directing your customers towards products that may complete their needs but also focusing on their happiness in general

As they say, retaining existing customers is a lot easier than trying to acquire new ones. For one, the acquisition cost is higher. Secondly, you will see that acquiring requires a lot of your efforts. Upselling can help you retain your customers while trying to sell them more products. You also get more profits from selling two different products to the same person, with negligible investment

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The customer lifetime value is a measure of how profitable the customer is to the organization. If you get a higher CLV from a particular customer, it simply means that they are very beneficial for your organization. With upselling, you can get a better CLV from the same customer, as they intend to spend more than what you would get from a newly acquired customer

When you upsell, there is more engagement and loyalty increases as a result. You will see more of your customer at your store with good upselling practices.

Upselling Tips for eCommerce Stores

  • When you upsell, it is important that you choose the right type of upselling, one that works for your users. For instance, if you are offering a particular product, then a version upgrade is a type of upselling that you can provide to the users. Like instead of choosing a burger, the user can go for a happy meal. The product protection, service guarantee, etc. are some kinds of upselling that you can try for your brand
  • It is essential that you show the upsell as many times as possible, whenever the customer is on your page. This way, you will be able to convert better. Show them once a particular product is added to the cart. You can show them on the product pages. Here, you will need to tell them the type of products that can be bought along with the one they are planning.
  • Don’t push the upsell too much that the customer gets annoyed, and decides not to purchase the product they were once considering. Your main aim to ensure that the upsell is seen by the customer. If your upsell is in the form of a popup that appears as soon as the user enters your website, chances are that even before they get an opportunity to engage with your website, they would decide to move out. There are some display rules that you need to understand before you decide to place your upsell on the website
  • Upsell should always be personalized to meet the user’s requirements. If they are not relevant to the user, you might lose your only chance at converting the user. Browse their order history, check what they have been considering all this while, and upsell by sending them a mail using their first name.
  • When you send them an email or a message to convert, you need to use reliable and powerful words that have the will to convert. The idea is to make them believe that your upsell is truly beneficial to them, and they will be in a win-win situation if they buy the product. When you send a note to them, make sure there is a certain urgency in your tone that attracts them to the upsell
  • When you are upselling, make sure the price of the product that you are upselling is not more than 40% of the product that the user was already planning to buy. This way, the upsell would work. If the upsell price is higher than that, then you may not be able to will the conversion.
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Upsell Best Practices

  • Excellent customer service is vital for a good upsell. It is only when your customer service recognizes the customer’s needs and answers all their questions correctly that you manage to complete the upsell
  • If you want to complete a successful upsell, you must have a credible range of products. Always choose products that have been rated well on your website. That way you have higher chances of completing the sale
  • Too much upsell is not good for your brand. Always make sure you sell limited products at restricted pricing when you decide to upsell
  • If you are upselling a particular product, make sure you let the customer know what they are purchasing. Include all the details in the upsell for better results. Once the customer knows what they are going to buy or how the product will be useful to them, they are more likely to complete the purchase
  • You should simplify the upsell by making it easy for the users to navigate between the cart and the upsell products that you have defined for the customer

Make sure you offer good discounts that make them want to complete the purchase.

Summing up

Upselling is a great idea if you want to engage the customer, and make them profitable for your website. However, when done the wrong way, upselling can become a liability for your eCommerce store. Always ensure that you have strategized a simple upsell for your customers that are personalized to their needs. You will be able to maximize your conversions only when you have something enticing to offer, which the users are unable to resist.

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Author Bio: Atman Rathod is the Co-founder at CMARIX TechnoLabs Pvt. Ltd., a leading Magento development company with 13+ years of experience. He loves to write about technology, startups, entrepreneurship, and business. His creative abilities, academic track record and leadership skills made him one of the key industry influencers as well.

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Why Upselling is Important in eCommerce

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