An overview of cross-selling and up-selling strategies for e-commerce stores

Alexandra Vezirova
3 min
An overview of cross-selling and up-selling strategies for e-commerce stores

Cross-selling and upselling are two of the most common strategies used by e-commerce stores to boost overall product sales. These strategies are also crucial for building a successful business, as they increase the number of customers coming back to make additional purchases. This section will provide a brief overview of cross-selling and upselling in e-commerce, as well as best practices for implementing these strategies in your business. 

How do cross-selling and upselling work?

Cross-selling, also known as product bundling in e-commerce, is the act of offering additional products or services to a customer when they first purchase a product. When a new customer buys a product, the goal of cross-selling is to get them to buy additional products or services. 

The goal of upselling is to convince the customer to purchase a more expensive option when the initial one they have chosen is sufficient. The upsell can take many forms, such as providing a free upgrade to a more expensive version of the product to the customer. 

For example, if a customer buys an exercise bike, they may be offered a free upgrade to a higher-end model that allows them to exercise more effectively. They could also be offered a free online personal training session to help them improve their cycling technique and make the most of their training time. This type of upselling has two advantages: it increases the number of purchases and it establishes a relationship with the customer. If the customer has a good experience, they are more likely to come back to buy a subscription, or to do business with you in the future. 

Another method of upselling is to make an offer to the customer so that they will buy something more in exchange for a discount or a gift. 

Imagine a shopper has a basket with a value of $60. In this case you can remind them that some discount/offer is only available if they increase the value of their basket to $75 or $100. The gift could be a free product sample or free delivery.

How can you use upselling and cross-selling in your online store?

Bundling - Related items

Product bundling is a marketing strategy in which several individual products are sold together as a package at a lower price than if they were sold separately. The customer may then purchase additional products in the package, either to get the benefit of the lower price or because they want the additional products. Product bundling is especially effective when the products in the bundle are related to one another, such that the bundle is more valuable to the customer than the individual products. 

Considering this, it would be a good idea to suggest an iPhone case and AirPods to someone who's buying an iPhone and tell him that if he buys the products together, he'll spend less money than if he buys them separately.

Offering add-ons and services

This is one of the most efficient methods of increasing sales. Providing premium add-ons and services can be an excellent method to boost sales. These add-ons could be purchased in addition to the main product of the purchase or they can be added on top of the standard product and services. The goal is to provide valuable add-ons to your clients. This raises the perceived worth of your goods and makes buyers more willing to purchase it. 

Some of the most common add-ons are longer product warranties, free installation, or free implementation, if the product is software.

Post-purchase emails

Cross-selling and up-selling are still feasible after a customer has made a purchase. In sequence emails, you can recommend products connected to a customer's purchase. Encouraging customers to return to your online store can help it grow. You may cultivate your consumer relationships by creating appealing and personalized post-purchase communications. As a result, your brand may become a vital part of the consumer journey, converting them into loyal customers. These emails can greatly enhance client engagement, increase income, and lower marketing costs.