You can increase your average order value with little marketing work by upselling or suggesting upgrades. These customers are already interested in what you sell, so you should show them other products that are similar or related.
If you do it right, upselling can help you make more money and get closer to your current customers. But if you do it wrong, upselling can make you look pushy and sales-driven.
What is an upsell?
Upselling is the act of trying to get customers to buy more expensive or better versions of a product. Cross-selling and upselling are two ways that many online businesses try to boost sales. In the ecommerce business, these techniques are often used together because they work so well together.
Upselling is different from cross-selling, which is selling a product that is similar to the one being bought. With upselling, you suggest that they buy a better or more expensive version of the item they are already buying. The goal of cross-selling is to increase sales.
Say, for example, that you have an online shoe store. If a customer wants to buy a pair of sneakers, you can suggest an upgrade, like a better brand or a more expensive option. In cross-selling techniques, on the other hand, you suggest a similar product. For example, if a customer buys a pair of sneakers, you can suggest a shoe care product or other accessories.
Advantages of selling more
Both the customer and the seller can gain from upselling. Here are some advantages upselling can provide:
It’s easier to sell more to customers you already have than to find new ones.
Since it costs more to get leads than to boost sales, eCommerce businesses should focus on selling to customers who already trust the brand or are about to buy.
Several studies show that the chance of making a sale to an existing customer is 60–70%, while the chance of making a sale to a new lead is much lower, at 5%–20%. Optimizing sales is a simple way for any eCommerce business that wants to grow and make money to win. Customers who already know and trust the brand are more likely to buy more services or products, which can lead to more money in the bank.
Customers are more loyal.
When done right, upselling can help you build a stronger relationship with your customers by showing that you care about their needs and wants. Customers like that they don’t have to spend all of their time researching products or trying to find the best deal. Upselling also lets customers have more personalized experiences, since they can easily add on to what they’ve already bought. Loyalty from customers is important for any business, and upselling can help to build it.
raised the average order price
Upselling makes it easier for customers to buy more expensive items and extras, which raises the average order value. This is good for businesses because it increases sales without adding to their marketing costs.
When the average order value goes up, customers may also feel like they are getting more for their money, which can make them happier. Businesses can also fill orders with a higher average order value for less money because the shipping and handling costs will be spread out over a bigger purchase.
It is a great way to make more money.
Businesses can raise their average order value by upselling without doing more marketing or spending more money. It also helps to bring in more money and give customers better service at the same time. When used with other sales techniques, like cross-selling or discounts, upselling can be especially helpful. This way, businesses can make more money without raising prices on products they already sell.
Customers who buy from you often are more likely to place an order.
Customers are more likely to come back and buy more if they had a good experience with upselling. This means that you can make more money by selling more expensive items and building a strong customer base that sticks with your business. Companies should remember that it’s cheaper to keep customers they already have than to get new ones.
When is the best time to sell more?
Upselling should be done in a smart way, based on what each customer needs and wants. Here are some things to think about when deciding whether or not to upsell:
What kind of product is being sold
There are some products that are easier to sell more of than others. For example, if you sell tech products like laptops or phones, you can sell extras like cases, external hard drives, and chargers. On the other hand, if you’re selling clothes, upselling could mean adding more coats or jackets that go with a certain style.
The customer’s tastes and finances
When upselling, you have to think about the customer’s budget and what they like. Questions like, “What kind of product would be best for the customer?”” and “Is it likely that the customer will want this upgrade?” should always be taken into account when deciding what products to sell more of.
When the purchase was made
Before the first purchase: Upselling is a great way to get customers to upgrade their orders and raise their average order value. Customers are more likely to spend more on extra products or services before they buy.
During the buying process: Upselling at checkout can be very effective because customers have probably already decided what they want and are more likely to think about an upgrade or extra features.
After the purchase: Upselling is a great way to build customer loyalty and make people want to come back. Post-purchase upselling also lets customers change or add to what they bought.
How to Make More Sales in a Dropshipping Store
Upselling is a great way for dropshipping stores to increase the average order value without having to spend a lot more money on marketing. Here are some tips on how to upsell successfully on your dropshipping store:
Offer products that go well with what was bought.
Often, you can upsell by recommending items that go well with what the customer has already bought. Because it is relevant, it is more likely that they will want to buy it instead of a product that is less relevant.
If you keep giving your customers what they want and need, they won’t be interested for long. The key to successful upselling is making good suggestions, and the only way to do that is to look at what you know about your customers.
Say, for instance, that you are selling a laptop. If the customer says they need more storage space or more memory capacity, you can sell them extras like an external hard drive or more RAM.
Try to figure out what the customer wants and needs.
Before you try to sell more, you should find out what the customer wants and needs. If you know what your customers want, you can make your upsell offers in a way that makes them more likely to be accepted. Before suggesting upgrades or extra products, you should also think about the customer’s budget. Customers need to feel like what they’re buying is worth the money. If you offer an upgrade that costs too much, they might not want it and drop the purchase.
Show the advantages of upgrading
When trying to sell a more expensive option, it’s important to point out all the benefits that come with it. Tell them why they should upgrade, such as better features or quality, to make their purchase more valuable. By doing this, they will be able to better understand why they should pay more for a certain product, which will make them more likely to upgrade.
Tell the customer, for example, that an upgraded laptop works better, has a longer battery life, and has more features.
Give out deals or discounts
Customers are more likely to buy more expensive items if you offer them discounts or special deals. By giving a discount on the upgraded version of a product, you can get customers to buy it who weren’t planning to.
Deals that only last for a short time: Offering a discount for a limited time can help create a sense of urgency and encourage customers to upgrade.
Promotions like “buy one, get one free” or “buy two, get one free” or “buy three, get one free” can also help you sell more.
Add-ons: Giving away free extras or add-ons, like a carrying case for a laptop, can also be a good way to sell more.
Make a way to subscribe.
Adding a subscription option is a great way to sell more to your customers. When a customer signs up for a subscription, they get special deals, discounts, and other perks that make the product more appealing. If they want better features or more things, they can also choose to upgrade their subscription. This is a great way to get people to come back and buy more.
Don’t charge for shipping
Free shipping can be a great way to upsell and raise the average order value. If customers know they don’t have to pay extra for shipping, they are more likely to buy more items. Also, if returns are free, customers are more likely to buy from you because they don’t have to worry about the cost of possible returns.
Free shipping and returns are great ways to help customers and keep them happy and coming back for more.
The Decoy Effect makes expensive products look like a good deal.
The decoy effect is a way to sell something by making the more expensive option look like a deal compared to the cheaper one. By putting two products next to each other and pointing out their features and benefits, you can make the more expensive product seem like it’s worth the extra money.
For example, you could show customers a laptop with twice as much storage for only $50 more. This can be a great way to get people to upgrade and buy the more expensive item.
Don’t leave them with nothing; show them alternatives to sold-out items.
If an item is sold out, give the customer your full attention. Make suggestions for similar products that could be used instead of the original. This will keep people from leaving your website and make them more likely to buy something else.
When a product is no longer available, you should always offer alternatives that are at least as good as or better than the original. Customers will be happy and sales will go up if you do this.
Check in with customers after they’ve bought something.
A great way to get more sales and upsells is to keep in touch with customers after they’ve bought something. Send customers a thank-you email with a link to an upgrade or other items they might be interested in. You can also check in with the customer after they have used the product and see if they want to buy anything else. This will help your customers trust you, which will lead to more sales.
Use visuals
Using pictures is a great way to sell more. Showing customers how a product looked before and after a change can make them more likely to buy an upgrade. You can also use videos, infographics, or other visual tools to make the product more appealing and show off its features and benefits.
Visuals are a great way to get people’s attention and get them to upgrade.
Reward people who are loyal.
Rewarding loyal customers is a great way to get them to buy more. You can give them discounts and loyalty points for buying from you again and again, or you can let them know about special deals that are only available to members. This will show them that you appreciate their business and make them more likely to come back for more.
A rewards program is a great way to show your customers how much you appreciate their loyalty and get them to buy more.
Don’t Overdo It
Let’s be honest: No one likes being sold something in your face. Try to be honest about your upsells and focus more on giving customers what they want. Don’t overwhelm your customers with too many options; instead, give them the one or two that will help them the most.
Always give more than one option.
When upselling, always give customers more than one option. This will make them feel like they have a say in what they buy and make it easier for them to find the best product for their needs. Feel free to suggest products with different prices or extra features. This way, customers can make a decision that is right for them.
Use what people say.
When it comes to upselling, social proof is a powerful tool. Customers are more likely to buy something if they can see what other people are buying or read good reviews from other customers. You can also show potential customers why they should upgrade by using customer testimonials and case studies.
Make buying easy.
If you want your customers to buy more, you should make it as simple as possible for them to do so. Make sure that customers can easily find the products they want and that your checkout process is easy to use.
You should also offer more than one way to pay so that customers can choose the one they like best. This will make it easier for them to buy, which will increase the chances of you making a sale.
Always be clear about how prices are broken down.
Whenever you offer an upgrade, be clear about how the prices are broken down. Customers should always know what they’re paying for and how much more the upgrade will cost.
Being clear and honest about what they’re getting will help them trust you and make them more likely to buy.
How to Find Opportunities to Sell More?
To find opportunities to sell more, you need to know your customers and what they want. By looking at what customers have bought in the past, surveys, and reviews, you can figure out which products or services will help them the most.
You can also find potential upsells by looking at what your competitors are selling and how the industry is changing. Once you’ve found possible upsells, you need to make sure they are useful, relevant, and good for the customer. Here are a few ways to find chances to sell more:
- Look at what customers have bought in the past to find possible upgrades and add-ons.
- Ask customers what they think about what they bought, and use their answers to make your products better.
- Look at what your competitors are selling to see what they have that you don’t.
- Look into industry trends and use what you learn to shape your products and services.
- Ask yourself if your upsells are useful, relevant, and good for your customers.
- Make sure the add-ons you’re selling are easy for customers to understand.
- Use customer reviews and case studies to show how upgrading can help.
With the above upselling techniques, can you sell anything?
You can do a certain amount of upselling. The product you offer as an upgrade must be similar to the original in how it solves the customer’s problem, and the price should be reasonable if the improvement isn’t huge.
Let’s look at a specific case. If a customer wants a smartphone, you can offer to upgrade them to the most recent flagship phone. But if they want a cheap phone, you wouldn’t try to sell them an expensive top-of-the-line phone as an upsell because it would confuse the customer and might make them decide not to buy.
Upselling and cross-selling should be done in a way that gives the customer more value and doesn’t bother them too much. Also, be clear with your customers about how much the upgrade will cost and what other benefits they may get. This information will help them make a good choice.
Questions People Usually Ask
How much do sales go up when you sell more?
Upselling can bring in an extra 10–25% in sales. But the exact amount depends on many things, like the product being sold and how well it is shown.
What does it mean to “upsell”?
Offering customers an upgraded version of a product they want to buy is an example of upselling. For example, if a customer is looking at a basic smartphone, you could offer them a higher-end model with more features.
What is “selling down”?
Down-selling is a way to sell where the seller doesn’t give up on a possible sale but instead offers a cheaper product or service that still meets the customer’s needs. This is especially helpful when customers say they are worried about money or don’t want to buy anything at all.
What are the most important parts of selling more?
The most important parts of upselling are knowing what the customer wants, giving them value, and making sure the products or services are relevant to them. Also, it’s important to make sure the upsells are easy enough for customers to understand so they can make a smart decision about whether or not to buy.
It’s important to remember that upselling isn’t something that only happens once. Making sure customers are getting the best value for their money should be an ongoing process, and it’s important to always look at your upselling strategies to see what’s working and what isn’t.
What are some other ways a dropshipping business can increase sales?
A dropshipping business model can also increase sales in other ways. Some of these are optimizing the website for search engines, offering discounts and promotions, using influencer and email marketing, making loyalty programs, running retargeting campaigns, giving great customer service and support, and using social media. Also, it’s important to keep up with industry trends and use what you learn to shape your marketing strategies.
Focusing on how happy customers are can also be good for dropshipping businesses. This means responding quickly to customer questions, giving helpful information about products and services, and taking care of problems before they happen. Getting customer feedback and using it to make your products better can also help boost sales.
Conclusion
Upselling is a good way to make more sales and money. You can make more money without using aggressive marketing techniques if you know what your customers want and offer relevant product upgrades.
The key is to make sure that the things you offer as upsells are valuable and good for the customer. With the right techniques and strategies for upselling, you can increase your sales and income by giving customers what they want or need.
