July 1, 2014 at 14:32Up-selling (upselling): increase the average sales receipt
In the third article of the “ Profitable Online Store ” series, we reveal the topic of increasing the average check using up-selling. Up-selling (upselling) is a marketing technique aimed at increasing the average check by selling a more expensive version of the product.
Up-selling involves improving the initial customer choice. There may be several options for improvement:
The psychology of up-selling is based on the fears of the client to make an unsuccessful purchase. Offering an improved, and therefore more expensive version of the product, we remove this fear of the client with benefit for ourselves.
The choice of content and location of the upsell widget is based on information about customer needs. These data are contained in the visited product cards, in products added to favorites or in the basket. Hence, the most suitable places for the up-sell widget are:
The up sell block is best represented in the format of expert recommendations or social proof:
Up-selling on the product card.
Most often, the up-sell widget is used on product cards.
A good example from the online store Fridge. Product card contains 2 widgets upselling. The first is in the form of a link to a more expensive product. The second in the block "With this product they buy." Both widgets lead to products with better features.
Sotmarket uses the wording “Related Products”, but also relies on the product’s card as the location of the widget. Among the recommended products are well-known brands.
Using the example of Sotmarket, you can familiarize yourself with another aspect of the use of upselling. Next to the recommendations of more expensive products, products with lower cost are placed. This technique is called down selling. It creates a favorable illusion of choice and removes the negative effect of imposing a more expensive thing.
Upselling in the Lamoda online store is presented in the format of a recommendation. Given the priority of emotional motives when buying clothes, buyers do not have to offer improved versions of their original choices. Just like it. This clearly illustrates the fact that the content of the up sell widget depends on the specifics of the product.
The up-selling benchmark is the Amazon website. On the product card you can find several variations of the use of this tool. For example, a spectacular comparison of the selected product with others in terms of characteristics.
Up-selling in the basket
Using the upselling widget in the basket requires caution: giving the user a choice, we make him doubt, and risk breaking the sale. However, if the user chooses between an already selected product and the same product, but with an additional guarantee, the chances of increasing the average bill will increase significantly without the risk of losing a customer.
Example with Amazone.
Which is better: selling additional products or selling more expensive versions of the product? The answer to this question should be sought in the analysis of the assortment line of the online store and comparing the marginal profit from the sale of various goods.
There is no universal methodology for combining cross-selling and up-selling. The only true advice: to test, test and once again test various sales models.
You can try to place the up sell widget in the product card, and the cross sell widget in the basket. You can try placing both widgets on the same page. However, it is rather difficult to predict the resulting changes in conversion rates for the main user scenarios and for the up sell and cross sell scenarios, since the purchase of various goods is carried out differently.
Implement, test, and who knows, perhaps with the help of upselling you can achieve an increase in profits of the online store.
Up-selling involves improving the initial customer choice. There may be several options for improvement:
- products with the best characteristics;
- extended warranty;
- more modern model;
- more famous brand and so on.
The psychology of up-selling is based on the fears of the client to make an unsuccessful purchase. Offering an improved, and therefore more expensive version of the product, we remove this fear of the client with benefit for ourselves.
Ways to implement up-selling
The choice of content and location of the upsell widget is based on information about customer needs. These data are contained in the visited product cards, in products added to favorites or in the basket. Hence, the most suitable places for the up-sell widget are:
- Card Product;
- wish list;
- basket.
The up sell block is best represented in the format of expert recommendations or social proof:
- buy with this product;
- browsing with this product;
- experts recommend;
- similar products;
- customer choice and so on.
Up-selling on the product card.
Most often, the up-sell widget is used on product cards.
A good example from the online store Fridge. Product card contains 2 widgets upselling. The first is in the form of a link to a more expensive product. The second in the block "With this product they buy." Both widgets lead to products with better features.
Sotmarket uses the wording “Related Products”, but also relies on the product’s card as the location of the widget. Among the recommended products are well-known brands.
Using the example of Sotmarket, you can familiarize yourself with another aspect of the use of upselling. Next to the recommendations of more expensive products, products with lower cost are placed. This technique is called down selling. It creates a favorable illusion of choice and removes the negative effect of imposing a more expensive thing.
Upselling in the Lamoda online store is presented in the format of a recommendation. Given the priority of emotional motives when buying clothes, buyers do not have to offer improved versions of their original choices. Just like it. This clearly illustrates the fact that the content of the up sell widget depends on the specifics of the product.
The up-selling benchmark is the Amazon website. On the product card you can find several variations of the use of this tool. For example, a spectacular comparison of the selected product with others in terms of characteristics.
Up-selling in the basket
Using the upselling widget in the basket requires caution: giving the user a choice, we make him doubt, and risk breaking the sale. However, if the user chooses between an already selected product and the same product, but with an additional guarantee, the chances of increasing the average bill will increase significantly without the risk of losing a customer.
Example with Amazone.
Up-selling and cross-selling. How to combine?
Which is better: selling additional products or selling more expensive versions of the product? The answer to this question should be sought in the analysis of the assortment line of the online store and comparing the marginal profit from the sale of various goods.
There is no universal methodology for combining cross-selling and up-selling. The only true advice: to test, test and once again test various sales models.
You can try to place the up sell widget in the product card, and the cross sell widget in the basket. You can try placing both widgets on the same page. However, it is rather difficult to predict the resulting changes in conversion rates for the main user scenarios and for the up sell and cross sell scenarios, since the purchase of various goods is carried out differently.
Implement, test, and who knows, perhaps with the help of upselling you can achieve an increase in profits of the online store.