Having a business usually means that you will have to sell your products. However, don’t stop once you sell your product, you still have plenty of chances to sell more. When a consumer decides to buy one of your products, they may be interested in buying more things or even upgrading their purchase. The reason why they might buy more is that they did not know they needed something. By showing consumers what they did not know they wanted, you are giving more value to the consumers. This way everyone can benefit, however, there are issues that can happen when you upsell in the wrong way. Today we will discuss the various things to consider when upselling.
What is Upselling?
Upselling is a sales method where a seller pushes customers to buy more expensive items, upgrades, or other products to generate more revenue. This is very common in businesses and stores. Upselling gives you more revenue but you don’t have to use as many resources. This is because you are using the resources that you used for the original sales to generate more sales from upselling. If done right, upselling can be a great thing for both the consumers and sellers. Consumers feel happier and satisfied knowing they purchased the best products you can offer. Meanwhile, you gain more revenue.
Upselling VS. Cross-selling
You may also hear about cross-selling in addition to upselling. These two concepts are very similar but they have clear differences. Upselling is adding more purchases and value while cross-selling is adding a completely new purchase. However, they can be done in similar ways. A good example is the purchase of a smartphone. Upselling means that you will try and get customers to buy the higher-end model as well as other additional products that add to the smartphone. Cross-selling means you will persuade the customer to buy a tablet in addition to the smartphone.
When to Upsell in the Consumer Experience
There are good times that you can upsell to the consumer. The first is before the purchase and the second is after the purchase. You can also upsell during the purchase, but this is typically seen in physical sales methods like in a retail store. There are advantages to the times to upsell and it depends on the type of product.
Upselling before the purchase is called pre-purchase upselling. This means that when the consumers are trying to pick the product, you can also show them the upselling options. They can then decide to include the upgrades and add-ons to their purchase and complete the transaction. This works best for smaller purchases because it is seen as okay to not have all the information about the product.
Post-purchase upselling is upselling after the transaction is completed. This means that you are attempting to upsell to the consumers after the purchase is made. This can be done to products that have a higher price and more commitment. What you need to do is to show them what they can buy to enhance the experience with their purchased product. For example, after a consumer buys a smartphone you can convince them to buy an external memory card so that they can store more data. This has the benefit of not impacting the previous sale and increases conversion rates because it’s more impulsive.
5 strategies For Upselling
We have discussed what upselling is and when you can do upselling. Now let’s discuss how you can do upselling. These are the 5 main strategies for upselling in your business.
1. Choose products that match or fit the original purchase
When upselling to consumers, be sure to choose products that match or fit with the original purchase. You can’t try and upsell a laptop accessory to a customer who bought a smartphone. Consumers will not see the value of upgrading their purchase if they don’t see a good reason for it. So be sure to pick products that match very well together.
2. Use competitive pricing on the add-ons
The products or add-ons that you are upselling should not be sold at the same price when bought on their own. The upsell has to be for a lower price or a discount. Consumers won’t really be attracted to upgrade their purchases without a financial benefit. So it is a good strategy to lower the price of products you are upselling.
3. Offer gifts for the purchase
You can also offer gifts like free products or a discount code for accepting the upsell. This gives a lot more value to the consumers and makes them feel happier with their purchases. Gifts like screen guards, cases, shirts, or even dolls are a great choice. Just make sure that these gifts are cheap and they won’t affect your profits.
4. Offer bundles that upsell
Rather than offering individual products or add-ons, you can offer them using bundles. You can mention that we have a bundle that gives you more products. For example, you can mention that you have a bundle where you get a smartphone and an external memory card for cheaper than if you bought them separately. This way consumers can understand the added value better.
5. Highlight the value that upselling can give
Lastly, you can always highlight the value that the upgrades and add-ons can bring to the consumers. Sometimes consumers may not understand the actual value and benefits of an upgrade. It may be because they don’t care or they don’t understand. Making them realize that an upgrade is good for them will benefit your business greatly. Because now they already have enough reasons to upgrade and you don’t need to use other strategies.
Upselling will do wonders for your business when done right. And now you know how to do them more effectively. However, upselling means that you will need to source more products. This can be hard and complicate your business. This is where AsiaCommerce can help you out. We have an extensive network that can minimize the costs of your logistics and product sourcing. Our services range from export imports, procurement and sourcing, logistics, and forwarding. We can help with reselling, sourcing, and dropshipping. Join AsiaCommerce’s membership today to get many benefits for your business!