Cross-selling And Upselling Strategies For Shopify Merchants

When it’s all said and done, the bottom line is the main metric every business owner wants to know. “Are all our marketing efforts leading to an increase in revenue?” is the thought process. One way to achieve desired results is through cross-selling and upselling strategies. Simply put, cross-selling is the practice of selling additional […]

When it’s all said and done, the bottom line is the main metric every business owner wants to know. “Are all our marketing efforts leading to an increase in revenue?” is the thought process. One way to achieve desired results is through cross-selling and upselling strategies.

Simply put, cross-selling is the practice of selling additional relevant products to a customer. Similarly, upselling involves trying to get customers to upgrade their orders to higher-calibre options. While these concepts are simple in theory, it is not always the same case in reality. To give you a hand, we outline some effective cross-selling and upselling strategies for Shopify merchants.

1) Upsell And Cross-sell Relevant Products With Clear Benefits

The first of the upselling techniques is fairly straightforward. Suggest premium products or services that are both relevant and deliver clear advantages. For instance, if your market research reveals that environmentalism is important to your customers, suggest locally sourced and green products.

Additionally, make it clear exactly what qualities your premium products have that are improvements on the more basic models. Rather than just offering customers your “premium protein bar”, explicitly describe the benefits that it has over the standard one. This way the customer will have a clear understanding of the item’s value, increasing the chances of a successful upsell.

Importantly, this upsell strategy should be applied to your customers’ shipping options too. Ensure that you clearly highlight the benefits of your premium shipping service (e.g. faster or recorded delivery). This again increases the chances of success.

The same principle can also be used for cross-selling. When suggesting additional items for your customer, ensure that these are as relevant as possible to the product they’ve selected. When you buy Protein powder from Misfits Health, you get the option to add some protein bars for 10% off before completing checkout in addition to other “frequently bought together” items. Snacking on a protein bar helps to break up the monotony of drinking a shake all the time.

Misfits Health Cross-selling

By offering highly relevant, complementary items you create a more organic and beneficial shopping experience for the customer. This translates to improved sales performance.

2) Include Discounts In Your Upselling And Cross-Selling Strategies

Offering discounts may be an old method, but it remains an effective one. Indeed, you can effectively apply this practice to create upselling and cross-selling opportunities. Everyone loves a discount, even if they’re minor. Leverage this tactic to grab the attention of your customers and then swoop in with an offer that exudes value for money.

When upselling, dangle a premium version of the product or service your customer is interested in at a reduced cost. There’ll be a big temptation to take the plunge due to the intriguing deal. Similarly, you can cross-sell a selection of related products with a lower price if purchased together with the item in their basket. Even if the complementary product is not absolutely essential, it will have customers at least thinking twice before checkout. And a good deal is often just too difficult to surpass.

3) Create A Sense Of Urgency

Cross-selling And Upselling Strategies - Special Deal

A good way of encouraging customers to engage with your upselling and cross-selling opportunities is by introducing time-sensitive offers. This can produce the ‘fear of missing out’ in customers’ minds, which can be a powerful psychological imperative to act.

This strategy is most effective when used in conjunction with offers or discounts. That means offering customers the chance to upgrade to your premium product at a discounted price. Similarly, you would suggest additional relevant items at a lower price than normal as your Shopify cross-sell.

The key, however, is that customers can only capitalise on these offers if they make payment within a limited time. In doing this, you create both a sense of urgency as well as added value. This combination is a proven way of boosting sales.

4) Offer Free Deliveries On Orders Over A Certain Amount

By offering customers free delivery with orders over a certain amount you create an incentive for them to buy more. This is fertile ground for successful cross-selling and upselling, which helps to increase average order value.

Imagine your standard delivery costs are £5 but you offer free delivery on purchases over £50. As soon as a customer reaches a value of around £40 worth of items, then they have two options. They can either pay £5 for delivery or add about £10 worth of actual goods plus free shipping to get maximum value from their shopping.

The latter is the more logical choice for most shoppers. It is the perfect time to introduce upselling or cross-selling using products that fall in the range of the £10 price difference (for the example above). As previously outlined, the demonstrable value means that customers will be more receptive to adding an extra product or two to “win the prize”.

5) Provide Social Proof Of Value

A great way to instil confidence in the quality of the products or services you’re suggesting is by demonstrating social proof. Customers tend to find the opinions of other previous buyers of the items they’re interested in to be credible. Thus, a powerful method of upselling or cross-selling is to demonstrate other customers’ satisfaction with the products or services in question.

A convenient way of doing this is to display customer reviews on your Shopify store. There are a number of modules that you can easily add to your online shop to do just this. Known as review management applications, they can easily collate reviews from different channels and display them on your site. Some of the options for Shopify include Loox, Ali Reviews and Simply select the one that best meets your needs and integrate the solution with your Shopify website.

From there you just need to find strategic ways to display your exceptional reviews on the products you intend to upsell or cross-sell.

6) Offer Product Bundles

This strategy is specifically a cross-selling technique that involves offering thematically cohesive groups of products. For example, 47Skin sells a bundle of three products under their 3-step model.

47Skin - Cross-selling and Upselling Strategies

The first product cleanses the skin, the second repairs and protects, and the third treats it. The combination of the three products will be far more effective than just one. Throw in a good deal and you’ll have customers lining up for your product bundle. The best of all worlds at lower price than if the product were purchased individually is just too good to pass up for most shoppers.

Maximise Cross-selling And Upselling Strategies Online

These six techniques are a good foundation from which to build your end-to-end cross-selling and upselling strategies. Not only will they increase revenue for your business, your customers also benefit greatly from the extra value they receive. It’s a win-win all round.

If you’d like to learn more about implementing cross-selling and upselling strategies on your Shopify store, contact us today to speak to one of our experts.