How To Master Upselling and Cross-Selling On Shopify

We’re sure that there are many Shopify merchants out there who want to take their stores to the next level and generate some extra revenue. “How do I do this” we hear you ask? Let us break it down for you.

Upselling and cross-selling products is a common sales and marketing strategy used to drive more purchases. It’s a great way to increase your average order value and increase the revenue per order.

However, some merchants might be hesitant to use these strategies, worried that it might come across as sleazy, pushy or aggressive. But here’s the truth: when done correctly, upselling and cross-selling can be a very effective technique that enhances the customer experience. So much so that research from Forrester Research found that upselling and cross-selling strategies are responsible for around 10-30% of ecommerce revenues. Customers are able to discover products that suit their needs and complement their interests whilst businesses are able to increase their revenue. It’s a win-win situation for everyone involved.

So, let’s dive into the art of upselling and cross-selling and explore how to implement these strategies effectively.

What is cross-selling?

Upselling is a powerful sales and marketing strategy that involves offering customers an upgraded or more expensive version of the product they are purchasing. The purpose of upselling is to increase the average order value and generate more income in the long-term. 

One of the most popular examples of upselling is when an online tool, such as Canva, offers a basic version for free but to unlock more advanced features, you need to pay a monthly/yearly fee.

Cross-selling vs upselling

We understand that it’s easy to confuse cross-selling and upselling with each other. They do have similar purposes after all and both encourage customers to spend more on your store.

The difference however is that cross-selling involves offering a customer an additional, complementary product with their purchase whereas upselling involves persuading a customer to upgrade to a better version of their purchase.

How to improve cross-selling and upselling on Shopify

So now you understand the difference between cross-selling and upselling, but how can you effectively use both tactics on Shopify to increase sales?

What Offers Can I Provide To Increase Sales?

To be successful in both cross-selling and upselling, your offers need to provide value to a customer and make sense in relation to their purchase. Consider suggesting items that solve a problem or enhance the use of the original product. 

For example, if someone is purchasing a new camera you may upsell them a better, more advanced lens or cross-sell additional products to them such as a tripod, camera bag or SD cards.

Where Should I Promote These Offers?

You don’t want to overload the customer with cross-sell and upsell promotions. No one wants to be overwhelmed with multiple pop-ups or click through loads of pages of promotions to reach checkout. Remember, the more steps a customer has to take to reach checkout, the less likely they are to convert. The best locations to feature these offers include on the product page, in a mini-cart or on the checkout page itself.  

Can I Upsell To Customers After They’ve Made A Purchase?

Upsells and cross-sell promotions don’t just have to be for pre-purchase. Post-purchase upsells are a great way to generate more income. By offering relevant products to customers as soon as they’ve made a purchase, you can leverage their engagement and satisfaction with your store.

Can Offering Subscriptions Improve Upselling?

A great way to increase customer loyalty and your monthly income is by upselling subscriptions on relevant products.

Estrid is a fantastic example of a B2C business who have successfully done this. When buying one of their razor starter kits, customers are presented with the opportunity to sign up for a subscription to receive new razors to their door for £9.95 a month. This upsell technique not only secures repeat business but also builds a loyal customer base that values the brand’s commitment to quality and convenience.

How Can Shopify Apps Be Used To Automate Cross-Sells?

One of the most effective ways to enhance your cross-selling strategy is by using Shopify apps to automate the process based on previous customer data and what other customers have been buying. These apps use data analytics to provide personalised product recommendations throughout the customer journey, encouraging increased purchases. 

What Can I Do To Better Understand My Customers?

Last, but certainly not least, understanding your customers is key to implementing successful upsell strategies. Knowing your audience helps you determine when is best to present upsell offers and how to tailor them to meet customers’ specific needs and preferences. Achieve this through analysing purchase data, browsing behaviours and customer feedback.

What Will Effective Upselling and Cross-Selling Do For My Shopify Store? 

By leveraging upselling and cross-selling strategies effectively, you can effectively increase your average order value, boost your monthly income, and build strong relationships with your customers. From automating cross-sells with Shopify apps to understanding your customers’ preferences and needs, each of these strategies can play a vital role in elevating your Shopify store’s performance.

However, implementing these strategies effectively can be complex and time-consuming. This is where a dedicated Shopify development agency can help. With expertise in Shopify’s platform and an understanding of ecommerce, an agency can help you optimise your upsell and cross-sell strategies for optimal impact.

If you’re ready to take your Shopify store to the next level, then we’re here to help. Our team of experts are well-equipped to guide you through every step of the process and help you to unlock new revenue opportunities. Drop us a message today to get started!