Cross-sell and Up-sell - what is the difference and how to raise the amount of the order?
There are two popular approaches to increasing online store profits: Cross-sell and Up-sell (cross-selling and raising the amount of the sale).
Often in the literature, both approaches are not translated or not explained in sufficient detail. Therefore, we will try to show how they differ and how to use them!
Up — sell or raise the sale amount — this is the motivation of the buyer to spend more money in your store, for example, to buy a more expensive model of the same product, to add options or services to the product being purchased.
Cross-sell or cross-selling is also a buyer's motivation to spend more money, but already through the sale of goods from other categories than the one originally chosen by the user, i.e. primarily the sale of related products
Both terms are often used interchangeably, because in both cases one problem is solved - increasing profits from one order. However, understanding their differences allows us to better organize both ways and more effectively raise profits from an order.
Consider an example
Let the buyer view the product page 4GB iPod Nano.
In the sidebar are displayed:
- 8 GB iPod Nano
- 8 GB iPod Touch
- 16 GP iPod Touch
Under the button to buy the proposed accessories:
- Apple In-Ear Headphones with Microphone
- Skull Candy Headphones
- ITunes card
- 8 GB Microsoft Zune
Below is a panel with popular products:
- MP3 Player 4 GB Creative Zen
- Portable dvd player
- Griffin FM Transmitter for Auto
In the above example, the side column is used to raise the sale amount (Upsell), since it offers more expensive models with a larger memory size or a more advanced screen. The buyer may be tempted by these models, deciding that at a slightly higher cost, the advantages are worth it.
Accessories under the buy button in the example carry out both cross-sell and up-sell. The iTunes card expands the product's capabilities, and therefore performs up-sell, the headphones are a complementary product and carry out cross-sell.
The panel with popular products can be called the third way to motivate the buyer to increase the amount of the order. After seeing a popular portable DVD-player, the buyer can add it to the basket, remembering that he had long wanted to buy something like that.
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There are no universal words under which it is necessary to show the recommended goods to the buyer. Choose the right ones for your product range and keep track of which words work best. Here are a few options:
- “You might also like:”
- “With this product often buy:”
- “Those who watched this product then bought:”
- “Often they buy together:”
- “Product of the week:”
- “Other brand X products:”
- “Looks good with:”
The direct recommendation “recommended products” works the worst. You should choose the words that would best recommend products, explaining why they are recommended.
Recommendations can be implemented on the InSales platform through related products (through cross-sell and up-sell), as well as through the creation of additional hidden categories displayed in the sidebar of the online store (you can place the goods of the week or special offers in it).
Total, we sorted out what ways to increase the amount of the order there. What is the difference between them, what words to accompany them and how to start in the back office of the store.
Try, experiment and see how it affects your sales.