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eCommerce Strategy for Upselling and Cross-Selling

Upselling and cross-selling are commonly used sales terms that are interchangeable yet hold completely different purposes. This article talks about the two terms and uncovers why video commerce can help achieve missed opportunities.

What to expect

  • What is upselling
  • What is cross-selling
  • Why is upselling and cross-selling important for eCommerce?
  • Why is upselling and cross-selling difficult for eCommerce?
  • Video commerce as an upselling and cross-selling strategy

What is upselling? 

Upselling is a sales technique that persuades customers to upgrade or purchase a premium version of a product they are about to buy. 

A customer who is deciding on a new smartphone may consider several options with the first being a mid-range product.

After clicking on an earlier iPhone model there will be a recommendation to purchase the new iPhone, which has up-to-date technical features. After consideration, the customer purchases the new iPhone – resulting in an upsell. 

This is upselling at its simplest form – but the outcome is to enhance the customer purchase whilst adding more value.

What is crossselling? 

Cross-selling involves recommending items that accompany the primary product.

In this case, the customer is happy with the new iPhone, proceeds to the basket and views a bundle recommendation including a phone case and screen protector.

The customer adds them into the basket to complete the transaction. 

upsell and cross sell a mobile phhone

Why is upselling and cross selling important for eCommerce? 

These techniques are imperative to an online business. Back in 2006, Amazon said cross-selling equated to 35% of their revenue sales. 

And across the eCommerce landscape, Amazon reigns as champion of upselling and cross-selling strategies. 

eCommerce websites can be overwhelming, especially when customers are uninformed to make sound decisions.

Amazon’s customers who bought this item also bought helps navigate users across various touchpoints and if partnered up with trustworthy reviews, makes confident purchases.  

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Why is upselling and cross-selling difficult on eCommerce websites? 

Online stores rely on data capturing, effective remarketing campaigns and tailored customer UX to fulfil desired upselling and cross-selling metrics. 

However, without advance technology and expertise, it can present some obvious challenges. Here is why it’s so difficult to achieve: 

Not knowing your customers 

Without data to drive tailored messages, upselling and cross-selling will be a mile off. A common mistake is eCommerce websites assume the intent of their customers therefore recommending irrelevant products.

Wrong place at the wrong time 

The timing of your upselling or cross-selling messages is crucial. Appear too early and your message will lack impact and intent. Appear too late and the customer is already walking away.  

Lack of bundles 

Browsing online has transformed the way a customer journey looks. Many begin their search simply by searching through your product inventory without no solid intentions of purchasing. Without bundles or recommendations on what previous customers have bought can equal loss opportunities for higher average order values and conversions. 

Lack of human interaction 

Although we are living in a digital utopia we still strive for human interaction. eCommerce stores are integrating live chat functions as an alternative to the Sales Associate, nevertheless, it still lacks that human touch. 

Upselling and cross-selling require several key factors which are lost online. They are understanding needs, active listening and customer service. 

So how can a business replicate in-store experiences whilst customer’s browse online?

To effectively upsell and cross-sell without misjudging customer’s intent and delivering irrelevant messages is a mountainous hill to climb. However, one way to engage, inspire and reassure customers of their purchases is by utilising video commerce across your online store.  

How can video commerce serve as an upselling and cross-selling strategy? 

Virtual shared basket 

With a shared virtual basket, the sales assistant can seamlessly suggest recommendations and alternatives with the option to filter on cost and product type.  

Truly understand customer needs 

There is a lot of emphasis on data capturing and yes it is needed for segmenting audiences, delivering relevant marketing messages and improving UX.

However, leaving it all to ML and AI misses out on opportunities that can be identified only by physically communicating to the customer.

By integrating a live video shopping app it creates a meaningful digital dialogue to identify needs and deliver on the expectation. 

Educate and inspire 

Let’s go back to the mobile phone store. If you are persuading a customer to spend an additional £300 on a phone without little knowledge on tech specs and benefits, then it will take a lot of convincing.

Deploying your team at the forefront of a live video shopping app can enable transparency and an opportunity to educate and inspire on recommended products. 

They can purchase with confidence and decrease returns

One of the biggest costs of any retailer, online or offline is return rates. In fact, product returns cost UK retailers £60 billion.  

There are many reasons for this. Impulse purchases, variety of size try on, faulty products, poor value etc.  

And when they are missold on upselling and cross-selling products – they will easily return items, costing not only your business but customer loyalty. 

By introducing video commerce you can confidently recommend and cross-sell items that are relevant to the customer and enhance the customer’s desired outcome. 

Build on customer loyalty and trust

On the topic of customer loyalty, tailoring the customer experience and delivering a VIP service will help build on customer loyal

Customers are expecting a personalised and memorable experience online as they would instore so now is the time to reinvent your eCommerce store to engage with your customers. 

Let’s have a chat

At Confer With we aim to replicate in-store experiences online using live video shopping. Feel free to book a no-obligation appointment with our team to discuss future opportunities using video commerce.

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