All that you need to know about upselling

Upsell or upselling is a sales technique when we persuade the buyer to buy a newer, more advanced, and more expensive version of the product they want to buy, or to buy more valuable or buy more products instead of the service they choose, at a higher price.

The main point of upselling

This sales technique is similar to persuasion that creates a win-win situation. With upselling, we often offer a package or product that is more beneficial to the customer, although more expensive, or additional products. The goal, in this case, is to increase the cart value, to achieve a higher profit.

For example, in the case of technical products, instead of a tool with only basic functions, but cheaper, we offer a product with a different category, but at a higher price. For example an ionic type instead of a traditional hairdryer that also has a cold grade. Instead of an own-brand or little-known brand product, a more expensive product from a popular brand.

The upsell technique can also be used to draw the customer’s attention with a cheaper, promotional product, and when it comes to selecting a product, we recommend the more expensive or even premium product. Another method is to offer a product in a higher price range for the buyer to consider. We can test how well this technique works for our target audience by offering another one for upselling as well, gradually raising the price range. When selling services, the upsell should be thought of as when a swimming pool, solarium, or gym offers its guests a discounted 3-month, semi-annual or annual pass instead of a one-time entry or the purchase of a one-month pass. 

We can also combine upsell with other techniques such as bundles, additional services (free shipping), and of course various discounts (coupon).

What is the goal of upselling?

Mainly to have high-quality service and a higher profit. In addition, increase the conversion rate and cart value, and increase revenue and average transaction value. Improving customer satisfaction, loyalty, commitment. Upsell can also help increase brand awareness and build brand loyalty.

How and where can we use upsells in the webshop?

The first option is to use the cart to show better/more expensive/branded/more functional options, when the buyer is putting the products in the cart. In this case, we can show better/more expensive products related to the ones that are already in the cart. 

But it is not the only place where we can use this sales technique. We can also place the offers on the main page. Another useful point is the product description page: in a webshop dealing with cosmetics and beauty products, for example, on the product page of the middle-class or standard eyelid palette, we can suggest a palette belonging to a higher category with a wider range of colors, even from the same brand.

When does the upselling work?

In order to achieve the desired effect and to make your webshop work, you must first have data about the market and your customers. For example, you need to know exactly how your competitors are behaving. PriceKit pricing software developed for online stores gives you transparent data so you can easily track and review the price movements of your competitors and the market; to get real-time, accurate information about the market, competitors, pricing, so you can decide what to do.

You need to know what’s happening on your site, what visitors are doing, on average, how much time they’re spending there, what they’re looking for, which of your products are running out the most, how your purchases are, what your average cart value is, what your returning customers have bought in the past, and more.

Based on the above, you need to create the right offers for your customers. The best is to get personalized offers - many customers also require to offer them products based on their previous purchases that they may be really interested in and that they are thus more likely to buy.