Upselling, or the art of suggesting a higher purchase, can help you increase your average order value with relatively little marketing effort. It’s like compelling your customer to buy a Double Big Mac instead of a Big Mac Burger (who would say no to that?)

The customers you are targeting are already interested in your brand and your products. Your goal is to offer them superior alternatives to the product they have chosen at the right time and in the right place. Well thought out, upselling can strengthen your relationships with your customers and increase your turnover.In this article, you will discover why the practice of upselling is so important and how to go about providing a qualitative purchasing experience to your customers.

Firstly, what is upselling?

Upselling is a technique aimed at convincing customers to purchase a more expensive, better-quality, or premium version of a previously purchased product or other products to make a larger sale. Rather than finding a brand-new consumer base from scratch, this strategy involves selling to an existing customer base. Selling to an existing customer is more likely than selling to a new one, and current clients are easier to approach.

small cart to big cart, upselling products

By implementing a strategic upselling approach, retailers may raise the average order value. Probably the greatest advantage of upselling is this. It is true that recommending more expensive products at certain points in the consumer journey can raise the total quantity of shopping baskets and, consequently, the conversion rate of e-commerce. But upselling is not one-way, and it also improves the customer experience. By implementing a good upselling and cross-selling strategy, you can ensure that your customer chooses the product that suits them and has everything they need to use it. 88% of surveyed salespeople try to upsell their customers. 49% of that group say that understanding customers’ needs and goals is a key strategy.

What is the difference between upselling and cross-selling?

Upselling and cross-selling are often confused, but there is a difference between these two techniques. While upselling consists of increasing the final order amount by encouraging people to purchase a more expensive product, cross-selling consists of suggesting a product that would be added to the initial product. We could say that upselling offers an upgrade, while cross-selling offers a completely new purchase.

Let's imagine that a customer wants to buy a Big Mac.

upselling products

After selecting a Big Mac, the customer is immediately offered several options, including a Double Big Mac and extra cheese. In this case, the merchant is trying to get the customer to buy a better (and more expensive) burger. Concretely, the merchant wants to convince the customer to spend more for the same product or type of product that they are looking for.

cross selling

Then, this customer selects the Double Big Mac, goes to the next screen, and sees an offer to add fries to their order. Offering fries as an addition is consistent, given that there is a link to the product initially sought by the customer. In this case, we can talk about cross-selling. It is seen that cross-selling can increase up to 39% of a retailer’s revenue.

Tip: One of the ways to incite customers to get an additional product upon their purchase at a discounted price is by adding a kind of scarcity, a great example from Scrowp Shopify Theme, where merchants can enable a countdown timer to the upsell/cross-sell modal.

example of upselling

Advantages of upselling after the purchase

Upselling after purchase offers a number of advantages.

  • There is no effect on the initial purchase. Post-purchase upsells offer buyers the opportunity to add an item to their order without the risk of canceling their original order. The initial purchase funnel that led to the first sale is therefore not disrupted.

  • Increase in average order value. Upselling after purchase maximizes the average order value. This technique is more effective than other upselling techniques because it suggests a spontaneous purchase.

  • Increase in conversion rate. One-click post-purchase upselling increases your conversion rate because customers don’t need to re-enter their banking information.

happy customers

Upselling after the purchase: in practice

The significance of selecting the appropriate technique for your upselling strategy has been highlighted several times. What exactly does this mean, though? How can you upsell in a way that benefits both you and your customers?

  • Offer discounts. Offer discount coupons that your customers can use on their next purchase. Then show them the products their discount applies to.
  • Offer products. If a customer buys the product you suggest, add a gift to their order. This is an additional incentive because customers will get even more for their money.
  • Offer samples. Handing out small samples of a product can lead to larger orders later. Offer free samples with every upsell to drive conversions and give visibility to other products in your catalogue.

Role of ReturnX in Boosting Upsells

Nobody likes the pushy salesperson who throws guilt trips around like confetti. We want subtle whispers of, "Hey, wouldn't this be even cooler?" not full-blown pressure. Following are some methods that ReturnX uses to create an amazing post-purchase experience with upsells.

  1. Know Your Audience:

Upselling isn't one-size-fits-all. Just like not everyone wants their burger extra cheesy and big, not all customers will be receptive to every upgrade. Research plays an important role here. With detailed analytics that help you understand your customer base, their buying habits, and what might entice them to go for the bigger (and better) option, ReturnX can aid in upselling with ease.

exchange vs returns dashboard

  1. Sweeten the Deal:

Who doesn't love a little incentive? Discounts or special benefits increase the likelihood of an upsell. It's like adding extra sauce to your burger—a subtle touch that elevates the whole experience. When customers want a refund, you can provide them with better options like exchanges, discounts, and gift cards that will not only incite them to buy something more expensive but also retain them. ReturnX offers your brand a wide array of profitable options to encourage upselling.

shopify returns

  1. Make it Easy-Peasy:

Streamline the upselling process. Integrate ReturnX into your Shopify store and let it handle the heavy lifting. Our self-serve return portal with suggested upsells can guide customers smoothly towards a richer, cheesier (metaphorically speaking, of course) experience. ReturnX can not only help your brand in upselling, but it can also convert your returns into exchanges, yielding more profit.

increasing profits

Upsell today!

Remember, upselling is all about offering value and enhancing the customer journey. It's like adding extra fillings in your burger—making it more delicious, more satisfying, and ultimately more memorable.

Did we mention ReturnX also makes returns a breeze? So if your customers do end up wanting just the plain Big Mac (hey, no judgment!), the process will be smooth and painless. Now that's a win-win for everyone, cheesy or not.

Take your upselling game to the next level, head over to ReturnX and let's make your Shopify store the tastiest (and most profitable) burger joint in town!

(Disclaimer: actual burger not included, but your profits might be the size of a large one.)