Last Updated on April 29, 2021 by LAUNCHTIP
In this post, we will outline how to best upsell on your Shopify store, what upselling used to be/what it is now considered to be and ways you can use upselling to add additional revenue to your Shopify store overnight.
Let’s get to it.
What is upselling?
Upselling is a practice used by Ecommerce merchants to offer a more valuable product to the customer than the current one they have. For example, offering a $120 stereo which has “better features” instead of the current $80 stereo they have in their basket. This is because you will most likely make more money from the expensive items.
However, over the passed few years in ecomemerce, the term “upsell” has become more generalized to simply meaning “Sell more” e.g “Up your sales”.
A successful upsell strategy can increase your store’s Average Order value and overall turnover considerably. Especially if you run multiple stores, you can not only upsell within these but you can also cross-pollinate your stores to your customers to sell even more.
How do I upsell on my store?
Upselling on your store is actually very simple. In terms of physically doing it, you will need an app like SellUp. In terms of the execution of a successful upsell strategy, it helps to know what your customers buy and which products you sell that compliment each other.
Here is an example of a bad upsell
If a customer is on a product page for a “Tennis racket” then an example of some bad Upsells would be:
- 6x pack of Coffee filters
The reason these Upsells are not good is because the person looking at the tennis racket isn’t likely to buy those products with it. Unless your purchaser is low on lipstick, in need of a calculator and requires a top-up of coffee filters, you are out of luck. The reality is you probably wont get any successful Upsells.
Here is an example of a good upsell
Taking the above example of the tennis racket, good Upsells could consist of:
- Tennis Balls
- Tennis Bag
- Tennis Grips
These Upsells compliment the lead product considerably. A tennis racket is ultimately useless without tennis balls right? Secondly, a tennis bag provides a great way to transport the tennis racket plus all the gear you are about to sell to them. Thirdly, they will most likely need some grips in the future if they play a lot of tennis.
Now, let’s add some values to these products:
Tennis Racket at $120 – Tennis Balls at $15 – Tennis Bag at $60 – Tennis Grips at $10
Without the Upsells in place, your maximum selling potential of the Tennis Racket product page = $60 (excluding if they needed more than one, unlikely)
Now, with the Upsells in place, if we hit a home run then the value would be = $205 (Lead product and all Upsells added)
It is safe to conclude that if you had a strategy implemented to upsell on your Shopify store with products that compliment each other, the returns across all customer orders each month would be a HUGE uplift in revenue in comparison to your current revenue.
Not every customer will select an upsell with their order but when you don’t offer it, you miss that opportunity completely.
“Can I get a Big Mac please” Sure that’s $3.95.
What was missing? Let’s try again.
“Can I get a Big Mac please” Sure. Do you want fries with that? “Yes, go on then.” Anything else? A Diet Coke please. That comes to $7.80…
Upsell, upsell, upsell.