How to Choose Which Products to Upsell on Your eCommerce Store
Looking to increase sales and revenue on your eCommerce store? Discover the top factors to consider when choosing which products to upsell.
Published April 18, 2023.
Choosing which products to upsell on your eCommerce store is crucial to boosting revenue and average order value. Because 11-30% of your revenue can come from upselling, we've compiled the top factors you should consider when you choose which products to upsell.
Upselling encourages your customers to buy extra products or a higher-priced version of the same product they initially intended to buy.
3 Factors to Consider When Choosing Which Products to Upsell
1. Pick Products You Can Upgrade
Offering upgraded or customized versions of products provides added value to your customer and increases the overall sale for your business. The products should also be relevant to the site search queries or the customer's previous purchases.
For example, on the 401 Games site, when searching for Pokémon products, two similar bundles come up. One offers an extra pack, making the bundle cost more. The use of bundling and added value can help entice customers to purchase the more expensive bundle.
Tip: When bundling, you can use A/B testing to see which bundles get the most traffic and result in more sales and profits. This technique can also be used for price testing.
2. Consider the Price Range
Choosing a more expensive product can help increase your profit, but make sure that the price difference is still reasonable and that your customers feel they "won" by purchasing your product. By experimenting with different price points, you can find the sweet spot that leads to more conversions.
For instance, Steve Madden uses smart collections to highlight differently priced products that are still related. This paints a fuller image of what the customer could attain and wear together. Since the prices are close in range, it can imply more value that fits the customer's budget.
3. Personalize Your Product Recommendations
By analyzing data about what your customers have purchased in the past and their browsing preferences, you can offer complementary products or updated versions of previously purchased items. Personalization can lead to more revenue since customers may be more likely to purchase because they feel understood and valued.
Take IMA for example. They offer a "personalized just for you" section while browsing that lightly suggests custom bundling the customer can try, which can lead to higher revenue per order.
» Learn more about the benefits of upsell and cross-sell personalization
Fast Upselling Solutions
Customers are more likely to accept upsell recommendations if the products are logically chosen. Using the right strategies based on your product types, prices, and customer preferences can be beneficial. You can gain higher conversions and revenue, optimized customer experiences, and better inventory management. So, why not take a look at your product options and find which strategies work for you?
» Ready to cross-sell next? Implement cross-selling at the right stage in your conversion funnel
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