If you have an ecommerce business, you know how important it is to sell products with higher profit margins. Even though low-priced products sell the most, the real revenue comes from the high-priced exclusive items. A simple way to achieve your sales revenue target is with ecommerce upselling.
The classic ecommerce upsell is a viable marketing technique,used to push exclusive products, with added value. Ecommerce upselling is an effective means to boost your company’s sales revenue.
While it may seem undulated, these exclusive products are actually of better quality and utility. Customers can buy a good quality product which is a one-time investment, or buy cheaper products repeatedly due to constant damage. Therefore, it serves well for the customer too. This improves customer satisfaction and brand loyalty over time.
Before we move onto how you can boost your sales with e-commerce upselling, let us understand what it really means to upsell to your customers.
What is eCommerce upselling?
Ecommerce upselling is a simple technique of highlighting and displaying specific product upgrades, value-added services, exclusive items, and packs of larger volume. It is intended to encourage customers to spend more than they originally intended.
When a customer is searching for a particular type of product on your website or app, they see the exclusive products also displayed on the list. These products provide additional value that actually benefits the customer. While the customer may be required to pay more than their budget, in the long run, it provides more utility.
For instance, let us assume you have an ecommerce business of electronics and home appliances. A customer might visit your website or log on to your app to look for Mixer Grinders. The customer may have a specific brand in mind, such as Philips.
Now, Philips offers mixer grinders of a wide price range. The customer may be interested in one that costs INR 2500 and comes with 2 jars and a 1-year warranty. However, there are better products offered by Philips that are a little more expensive and provide better profit margins for you.
This is where upselling comes into play. You can prompt a mixer grinder by Philips that offers a 3-year warranty and comes with an additional portable smoothie jar.But it costs INR 4000. In the process of doing so, you are increasing your sales by INR 1500.
Additionally, the customer also gets an added value of a longer warranty period. This is a good deal for them as it is unlikely that a Philips mixer grinder will breakdown within a year. But it could suffer small damages within 3 years, in which case they are still protected. This is an ethical ecommerce upselling.
How to upsell products on your eCommerce website or app?
Ecommerce upselling of products and services does not mean just displaying a product of higher value to entice the customer. You need to connect to the customer’s sensitivity to create a “want” for the product. That is why you should use one or more of these techniques to boost your sales with ecommerce upselling:
1.Share the comparison of details for their selected product alongside those of higher value. Add details about the price difference, added features, and the standard longevity of each product.
2. Upload charts depicting customer experience and ratings for the upselling products.
3. Add the benefits of the added features. For instance, the mixer grinder in our example carries a portable smoothie jar. This is great as the customer can conclude that they only have to pay an additional INR 1500 and get a smoothie jar along with the mixer. They also have an extended warranty in case of any mishaps with the product.
4. Target ecommerce upselling at customers who are surfing for various products and brands. These are people who are uncertain about what they want. Therefore, introducing them to better options at higher prices will help you boost your ecommerce sales.
5. Another target niche for ecommerce upselling is exclusive shoppers. These customers don’t mind paying the extra money if they can get the best product. They usually search for exclusive products or items in limited edition.
6. Use emotions to your advantage. A lot of the purchase experience relies heavily on emotions. Use words in the product description that speak to the customers at a personal level.
7. Use high-definition pictures illustrating satisfied customers. While this contributes to roughly only 7% of the decision-making process, it does create an impact at a subconscious level.
8. Program your website and app for automated ecommerce upselling. The system will identify potential customers who are likely to purchase higher-priced products. They buy the items simply because they are better than the options they had initially selected.
9. Implement ecommerce upselling on the pages of:
- Selected-product pages
- The checkout page.
Why Ecommerce upselling works to boost sales
Ecommerce upselling is a tried-and-proven method to boost ecommerce sales. The psychology behind this technique is actually quite elegant.
You see, when customers decide to purchase a product in this technologically-advanced era, they first do their research. They start by short-listing a bunch of products that serve their purpose.
Then they evaluate their utility based on price vs features. With a careful process of elimination, they arrive at your website, with 1 or 2 options in mind. They finally decide on one of their choices. But when they see the ecommerce upselling product that has better features, longer durability, and numerous positive reviews, they face uncertainty all over again.
Now they must choose between a product that they assumed was the best and one that is evidently better than their choice. This is when classic ecommerce upselling wins. Your product description, display, and review must be compelling enough to win the customer over. And that is how you boost your ecommerce sales with upselling.
Today’s customers are smart shoppers. They don’t just purchase an expensive product because it is available. In order to boost your sales with ecommerce upselling, you need to put in the effort to make the product desirable to customers.
You can develop a sophisticated program to analyze customer behavior using cloud-marketing technology. Then use the analytics to pose ecommerce upselling with subtlety but effectively. With ecommerce upselling, you can boost your sales by a significant margin and bring in much higher revenue for your business.