Which is Better: Upselling or Cross-Selling?

Upselling and cross-selling are obviously very similar.

They both focus on providing more value to customers by prompting them to consider additional products and variations.

And, in both cases, the business objective is to increase the average order value (often referred to as AOV).

So, should you do both? Absolutely.

You should definitely use a combination of upselling and cross-selling techniques on your dropshipping store to maximize revenue.

But, it’s best to focus on upselling first.

Why?

Because according to data from Predictive Intent’s clients, upselling performs 20 times better than cross-selling when it comes to product pages.

The graph below shows that upselling accounts for over 4% of sales, whereas cross-selling accounts for 0.2% of sales.

That said, cross-selling was shown to be more effective when presented on the checkout page — in this case, data showed that cross-selling can drive sales by 3%.

Bottom-line?

Start upselling first, and then add cross-selling tactics afterward.

Okay, with me so far?

3 Vital Tips to Get The Most Out of Upselling and Cross-Selling

Now, before we dig into how you can implement upselling and cross-selling tactics to boost your sales, it’s important to understand 3 key points:

1. Put The Customer First

Upselling and cross-selling are not dirty, sleazy sales tactics. At least, they aren’t if you do them right.

Let me break it down for a sec: Your business isn’t about you.

Ever.

It’s about providing value, and fulfilling your customers’ needs and desires — and, the most successful business people live by this.

Take Jeff Bezos.

He started Amazon from nothing and is now the richest man in the world.

How did he do it?

Bezos said, “We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. Be Patient.”

Put the customer first.

Hey, if it worked for Jeff, right?

So, the key to success in upselling and cross-selling is to first understand what your customers value. And, then provide that value through additional products or features, and improved customer experience.

In short: Help your customers.

When you use upselling and cross-selling correctly, customers will be genuinely grateful they were given the options, and feel like they got a better deal.

Okay, tip number 2:

2. Don’t Overdo It

Let’s be frank: No one likes to be blatantly sold to.

So, overwhelming your customers with upselling and cross-sell offers is likely to damage their perception of your brand.

You must be tactful.

So, find ways to offer upsells and cross-sells in ways that truly improve the customer experience.

Also, it can be counter-productive to provide customers with too many options anyway.

Why?

Because the paradox of choice states that the more options customers have, the more difficult it becomes to make a decision.

Customers can get ‘analysis paralysis,’ and end up making no decision at all…

So, don’t offer too many upsells or cross-sells.

Instead, try to focus on just the most relevant, and appealing offers.

And lastly:

3. Don’t Upsell More Than 25 Percent

The ‘rule of 25’ is just a general rule of thumb — but it’s handy when choosing your offers.

Here’s how it works:

When choosing upsell offers, avoid suggesting products that will increase the overall order by more than 25 percent.

For example, if the product the customer is looking at costs $100, avoid trying to upsell them to a version that costs more than $125.

It’s simple but effective.

Keeping the upsell below 25 percent will improve the chances of increasing your average order value.

Okay, now you’ve got the foundations under your belt, it’s time to dig into how you can use upselling and cross-selling to boost your dropshipping sales.