Improving Your Margins Through Up Selling Is Important With Online Ecommerce

In our everyday life we are exposed to up-selling all the time. Every time we go through the drive through we are asked if we would like to super-size this or that for 40 cents extra, or if we would like fries with that. At restaurants they offer to upgrade our drinks to premium spirits for a small extra fee. Online it plays out differently but the process is much the same.

Up-selling is just getting customers who are already committed to purchasing a product and are already engaged in the buying process to add more products to the shopping cart. The most effective way to do this is to encourage your customers to buy items that may be of higher interest to them based on what they are already viewing or buying on your website. You can also push higher end models of whatever they are buying if it would indeed suit their needs better.


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– image credit, businessinsider.com

If you do up-selling and cross-selling correctly you can increase you online sales, potentially turn a one time customer into a repeat customer for life and maximize the ROI per lead. You work very hard for each and every single lead to get to the buying process so you should take every opportunity to capitalize on a customer already engaged in the buying process. That is where the art of the up-sell comes into play.

You can learn a lot from Amazon. They up-sell all the time. They pretty much invented the “if you like this item, you may also like…” technique. Every purchase on Amazon shows related products, upgraded models or accessories to what you are already buying. They do it because it works, it is proven to work or they would not be doing it. It is a simple matter of web code for your programmer to add a section which recommends products that you sell to a customer based off of what is already in their carts or even based off of which products they viewed the most on your website. Sure it will cost you to implement this in terms of hiring the labor to do it, but the ROI is well worth it.

You can learn a lot from Amazon. Ever wonder why they offer free shipping on orders over a certain amount? The customers shipping prices have already put them over this amount anyway, so added items are not costing anything to ship unless they order a mammoth amount of products when offered that free shipping. How to capitalize on this is understand the average order value of your sales, and set the minimum spend just above this amount. By doing this you encourage customers to throw in 1 or 2 additional items into their shopping cart when reaching checkout just to obtain the free shipping, and if shipping prices are set right, the extra item or three will not boost your shipping costs to much if at all on one, two or three items or more.

You can see where the above ideas add to your ROI, but you can go many different routes to achieve the same effect or make use of multiple different methods, such as offering customers a bundle price for 3 or more items. Bundles work especially well with related items, just work out the math so that it makes sense to offer a discount yet you still enjoy the profit of an up-sell. You want to focus on the discount will receive and money they will save versus the overall purchase price of course.

These are tried and true methods to increase your sales with online marketing. For more tips come back often.