How to grow your Shopify business? There are three ways as below.
Upsell, cross-sell and down-sell are these three sales ways, they can save the time and energy spent on advertising, and easily help you get more revenue with the least cost.
There is no need to find new customers. It will cost a lot to cultivate new customers start from scratch. As long as the increased sales method provides additional sales opportunities to existing customers, it can effectively increase the average order value and increase sales revenue.
1.Definition
What are Upsell, Cross-sell, and Downsell?
1） For upselling, when a customer intends to purchase a certain product, a new supplementary advertisement is used to promote more expensive products or upgraded versions of products to achieve additional sales and increase the value of the order.
Because when customers are already interested in buying a product, it will be easier to promote the upgraded version of the product.
The use of this psychology in sales is upselling. If you are selling sunglasses, you can use anti-ultraviolet or polarized lenses to make upsell.
Provide customers with an upgraded version of the product. Customers will think that this is a good reminder for them because if they don’t know some of the advanced features of sunglasses, they will be interested in this additional information.
2） For cross-selling, cross-sell is to achieve more sales by promoting related products or supplementing products to customers.
For customers, cross-sell must be able to improve the buying experience and help customers obtain more value on the basis of the initial purchase.
If a customer has made up his mind to buy a certain product, introducing some auxiliary products to him at the right time will have a good effect on increasing sales.
For example, if a customer wants to buy a badminton racket, then he may also need a badminton racket. At this time, he can use the badminton racket for cross-selling. Cross-selling is to provide users with more.
The above are upsell and cross-sell. They are simple and common. They are generally set to automatically pop up windows, and some will also appear on the product page.
Both are to increase the average order value by reminding customers to pay attention to other products and product changes. If the effect is good, it can also extend the life cycle of customers, allowing them to buy back multiple times.
3) For downsell, this is a sales method opposite to upsell. It is not to recommend more expensive products to customers, but to increase profits by providing customers with lower-priced products.
When a customer is ready to withdraw from the purchase, you can adjust the quotation according to the customer’s budget, recommend cheaper and more affordable products to the customer, and increase their chances of buying.
The most common example is 3C products that are quickly updated. If a customer cannot afford the latest version of an Apple phone, you can recommend a lower-priced Apple phone that is the model of last year. This way customers have the opportunity to buy.
Downsell allows you to sell high-quality products even when customers can’t afford them. It also helps to build brand loyalty by comparing customers’ choices at different prices.
In Shopify’s store, there is also some software that can be used for upselling and cross-sell, such as OneClickUpsell, CartHook, Sweet Upsell, Product Upsell, etc.
2.Application note
To make good use of these three sales strategies, you need to remember below 6 things:
1) Customer first
Although up-sell and cross-sell are strategies to increase sales, if you do well, you can also increase customer loyalty and increase re-order rates.
So, you should understand the needs of customers, realize this value by providing other products or functions, and improve the customer experience.
Your increase in sales has helped customers, making them feel that the choices you provide have brought them great convenience.
But if customers think that your means of increasing sales have nothing to do with their needs and goals, and the choice you provide is not an upgrade of the product or is not useful, this will arouse customer disgust.
Customers first mean that your sales are not simple sales, but sales that provide customers with directions and choices.
2) Don’t over promotion
If the increase in sales can bring convenience to customers, they are very happy to accept it, but if the promotion is excessive, it will make customers disgusted, and no one likes to over promotion.
Overpromotion can also damage the brand, so we must focus on improving the customer experience. Don’t provide customers with too many choices. Too many choices will cause their “difficult choices”.
It is recommended that you focus on promoting the most relevant and attractive products that are relevant to the products your customers have purchased. Three or four are enough.
3) Don’t be too expensive
Customers may choose a product with higher value, but if it is too expensive than the product they originally intended to buy, they will easily give up.
Under normal circumstances, the value of the upsell product should not exceed 1.25 times the original product.
If the original product is US$100, the additional product should be less than US$125. Upsell value is less than 25%, then have the opportunity to increase the average order value without scaring away customers.
4) Demonstrate the value of the merchandise
The increased sales of goods are simply listed, which is not very convincing. It is also necessary to convince customers of the value of these products. It is recommended to add recommendations or customer reviews on additional pages or send emails to list the value of the products, so as to strengthen their shopping enthusiasm.
5) Use the product life cycle to promote sales
You can promote the customer again according to the life cycle of the product. For example, if you sell daily necessities and you are used up in 3 months, then you can send an email to the customer to increase sales after 3 months to give the customer a reminder, So that customers can easily recall your brand and products, thus increasing the chance of repurchase.
6) Incentives
If the goal is to increase the value of a single purchase, then the more products customers add to the shopping cart, the better.
There are some incentives that can also serve the purpose of increasing sales:
✔ Set a consumption amount and you can get free shipping as much as you reach;
✔ Free gift cards can be given for purchases over a certain limit, or discounted or free shipping;
✔ You can enjoy discounts when you purchase a few items.
Sourcing Product Easy company established in 2008, based in Shenzhen city. As a professional China sourcing agent, we buy good products for customers. Over the past 10 years, we have visited more than 1000 factories throughout China. We have huge factories resources and logistic networks. We are good at consumer electronics, shapewear, hardware, etc. . We can provide customized products or print on demand also. We own a fulfillment center in China, provide a one-stop Shopify dropshipping solution.
