Understanding upselling: That's how the big shops do it

What does upselling mean?

Upselling means offering a customer a higher-quality version of a product or service. The aim is to better meet original requirements, with more performance, better functions or more convenience.

Examples of upselling

• Upselling example for retail: A customer chooses an entry-level smartphone. Instead, the seller recommends a model with a better camera and larger battery.
• Upselling example of services: When visiting the hairdresser, premium treatment with head massage and special care is offered instead of the standard package.
• Upselling example of a car repair shop: During the inspection, it turns out that new tires are needed. Instead of the standard tires otherwise selected, a premium model with better grip and longer life is recommended.
• Upselling example from e-commerce: A customer is looking at a laptop with 256 GB of storage, and the shop also shows the variant with 512 GB and a faster processor.

Upselling examples from online retail

Apple offers an upsell version of virtually every product. The Plus version can also be selected on the iPhone product page; the MacBook Air can be configured in terms of its size (13 or 15 inches) and technical equipment. Even accessories such as AirPods headphones are available as upsell with active noise cancellation.

What makes for good upselling?

Good upselling is based on the customer's needs and does not simply try to impose more expensive products. It shows the customer a better solution to their original problem.

True upselling primarily occurs during a personal consultation. Online shops are therefore more likely to talk about passive upselling.

example: You are getting advice on a loudspeaker system and already have a model in mind. During the conversation, it turns out that this model, however, does not support audio streaming via Bluetooth, which would also be useful. The seller therefore recommends a slightly higher quality system that includes this function.

Good upselling is characterized by:

• Relevance: The more expensive product really needs to be better suited to the customer's needs and/or prepare for upcoming requirements.
• added value: The benefits for the customer must be clearly visible, such as longer durability, more comfort, better results.
• Clear benefits: The difference to the basic product must be openly communicated.
• Unobtrusiveness: The customer advisor should recommend, not harass.
• Timing: Upselling works particularly well in the consulting phase.

Upselling should show customers ways that they have not considered before. A higher-quality product can also save the buyer a second purchase later on, as the first, better upsell product already covers all features.

What are the benefits of upselling?

Upselling brings benefits to providers and customers when done right:

• Higher turnover per customer: Customers opt for a premium version instead of a cheaper version.
• Better product experience: Customers get the product that is better suited to their current and future requirements.
• Higher customer satisfaction: The solution meets actual requirements better than the basic product.
• Fewer returns or complaints: Premium products are often more powerful or more durable.
• Stronger brand loyalty: Customers who feel they are well advised come back.

What are the criticisms of upselling?

Upselling has clear economic benefits for providers and often also for customers. Nevertheless, the method is sometimes criticized because it is from Sales-driven influence can be noticed. Especially when that The offer does not meet the actual needs of the customer is oriented, creates the impression of sales pressure or manipulation.

Common criticisms of upselling:

• Not customer-oriented: When customers are systematically pushed towards more expensive products even though the basic version would be sufficient. If you give your customers fair advice, you can easily avoid this accusation.
• Hidden price increases: When additional costs only become visible late in the ordering process.
• Pre-selected more expensive variants (Dark Patterns): Customers must actively switch back to choose cheaper options. This has a manipulative and not appreciative effect.

Your upselling is really successful when you perceive it as a service and advice.

Upselling, on the other hand, should never undermine the purchase decision, but should help the customer make the better decision for them.

• Honest recommendation instead of sales pressure
• Fair presentation of differences with the basic product
• Voluntary decision by the customer

How do upselling and cross-selling differ?

Cross-selling and upselling both aim to increase shopping cart value, but in different ways. Cross-selling offers customers additional products to the main product (e.g. a bag or mouse for a laptop). Upselling is about suggesting a better, more powerful, or higher quality version of the original product to the customer.

Upselling in e-commerce

In online retail, upselling is implemented via product comparisons or upgrade options. The customer must therefore come across the upsell himself and be able to select it, as there is no direct advice. Common places for placing upsell variants are:

• Comparative tables (Basic vs. Pro)
• Information such as “Popular with customers: premium version”
• Crossed-out prices (“Now only CHF... for the top version”)
• Variant selection with recommendation of an upsell version

Upselling can be part of Conversion rate optimization because the customer is more attracted to a purchase because:

• the upsell product exceeds the original product requirements.
• The customer already feels emotionally connected to “their” product because they have put together the upsell options themselves.

At Axisbits, we know from the experience of numerous e-commerce and shop projects that placing upsell opportunities and conversion rate optimization can be very detailed and time-consuming, but just as lucrative.

When the Your shop's performance consistently below your expectations If you stay and you are sure that more needs to be done there, a neutral view from outside may help. Get in touch with us and we'll show you how we approach optimizing your site's conversion rate.

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