Upselling and cross-selling can help you make more money with drop shipping. They help in these two primary ways:
And, let’s cut to the chase:
Getting new customers is tough.
It’s much easier and more cost-effective to increase the amount each customer spends with you.
In fact, it’s anywhere from 5-25 times more expensive to acquire a new customer than it is to retain an existing one.
Plus, a massive 40% of an ecommerce store’s revenue is created by only 8% of its customers.
That’s crazy, right?
Bottom-line?
If you don’t have strategies in place to increase your customer’s average order value, you’re leaving a lot of money on the table…
Okay but, how do you scoop up all that cash?
Enter upselling and cross-selling.
These proven, time-tested strategies can help you earn more money from your customers.
In fact, way back in 2006, Amazon reported that 35% of its revenues were a direct result of their cross-selling and upselling efforts.
Your current customers are already primed to buy.
All you have to do is give them a little nudge to increase the average order value — and, in this article, I’m going to show you how.
You’ll learn:
· What upselling and cross-selling are.
· The subtle, but crucial differences between the two.
· 3 vital tips to get the most out of your upsells and cross-sells.
· 4 ways to massively boost sales with upselling and cross-selling.
· And, I’ll recommend 6 tools that you can use to put these sales tactics into action.
Ready? Let’s get into it.
Upselling and cross-selling are often used interchangeably.
But, there are key differences.
Cross-selling is a sales tactic used to generate more sales by suggesting related or complementary products to those buyers already committed to making a purchase.
Or more simply, cross-selling can be summed up by the iconic McDonald’s phrase “Would you like fries with that?”
When cross-selling, avoid promoting products that don’t make sense or may confuse the customer.
The key is to keep it natural and relevant.
For example, if you sell hair-dryers, you could cross-sell products like hair brushes, pins, or claws. And, if you sell t-shirts, you could cross-sell baseball caps, tote bags, or hoodies.
Bottom-line?
Cross-selling should improve the customer’s buying experience. And, the products you cross-sell should help the customer get more value from their initial purchase.
Does cross-selling work?
You bet.
Product recommendations can drive between 10-30% of revenue.
Let’s take a look at how Dollar Shave Club does it.
When you add one of their products to your basket and head to the checkout, they present you with a page of related products:
It’s simple, sleek, and relevant — a customer who’s buying a razor is extremely likely to be interested in ‘Post Shave Cream.’
Okay, next up:
Upselling is a sales technique used to persuade customers to purchase a more expensive, premium, or upgraded version of the product they’re buying.
Or more simply, upselling can be summed up by the McDonald’s phrase, “Would you like to supersize your order?”
Remember, the aim is to deliver more value to your customers.
For example, if you sell sunglasses, you could upsell your customers to sunglasses that have polarized lenses or UV protection.
In this instance, your customer may not have considered protecting their eyes with polarized lenses, and be thankful for the reminder.
It’s helpful.
And, given the choice, most people would prefer a premium version of your products.
Let’s look at an example of upselling from Dollar Shave Club. Here, they present their products side-by-side so that customers can compare the benefits of each.
The message is clear:
“Sure, you could get the inexpensive razor — it’s great. But, you can get a better razor, that provides a better shave for just a few bucks more.”
And lastly, you have bundles.
Bundling products together is primarily a cross-selling technique, but many bundles include upsells. Here, Dollar Shave Club present bundles of their products:
Once again, the message is simple:
“If you’re buying a razor, you’re also going to need blades, shaving cream, and moisturizer. So, this convenient bundle not only makes your life easier, it also saves you money.”
Okay, now you know what upselling and cross-selling are…