If you’re new to eCommerce, nothing compares to that first sale. It’s the combination of turning a profit and succeeding at what can be a very challenging practice. That being said, it probably won’t be long before each sale starts meaning less and less. In fact, eventually, you’ll hit the point where you wish each sale were two or even three. Fortunately, if you know how to upsell, this can be a reality.
Upselling is the practice of getting more from a customer. Chances are you’ve dealt with this in real life. “Save room for dessert?” is probably the most famous example. Your waiter or waitress is trying to add to that bill for a greater profit.
You can do the same on your eCommerce website too. Actually, you need to. Otherwise, you could convert more customers than your competition, but wind up with less money.
Many of you may need to increase your inventory to pull this off. Notice the waiter or waitress never says, “Save room for the exact same thing?” There are exceptions to this rule, but you get the point. If you sell nothing but hammers, for example, it might be time to add nails or screwdrivers to your product line.
Next, your upsell option has to be relevant. Again, the wait staff doesn’t say, “And can I offer you a treadmill?” That makes no sense in the context of the transaction. Offering someone nails with their hammer does.
Sometimes upselling means increasing your profit margin, but only making one sale. This is called offering a spec up. Say your customer orders a certain cell phone. Before you finish the transaction, offer them the next spec up from the one they want. Give yourself a better chance of pulling this off by showing the customer what they’ll get for the extra cost.
Your success with any of these upselling techniques will depend largely on your market. Sometimes, it makes sense to wait until the checkout. If they accept your upsell, it may add to the cost enough that they qualify for free shipping or a discount. Other times, adding any extra steps to the checkout process will lose you customers.
One thing almost everyone agrees on is knowing when to stop. Some sites make it practically impossible to leave with just one item because they keep offering upsell options. Instead of making two sales, these sites generally make none.
If you’re making sales, but would like to add to your revenue, upselling is a surefire tactic. The above techniques make it easy to do too.
Sources:
http://www.mycustomer.com/feature/technology/tips-helpful-ecommerce-upselling/166421