Dropship Tips: Cross Sell or Upsell - What’s the Difference?
If you are in ecommerce, you have probably at least heard the terms “cross sell” and “up sell.”
But, many entrepreneurs are unsure of what makes the difference between these two marketing tactics.
In a nutshell---when you are cross selling, you are offering a go-with, an item that correlates or goes with another item the customer is buying.
Upselling, on the other hand, means upgrading to a higher priced but similar item.
For example, if you have a website selling camping equipment, and someone places a tent in their shopping cart, this is a great opportunity for cross selling.
You can recommend other items frequently used on camping trips where tents are used. There are several ways to go about this. You might present your recommendations in any of these labels:
“You might also like”
“Frequently bought together”
“Customers who bought the dome tent also bought X”
“More items you may need”
“More items from this category”
And so on.
You get the idea.
Cross selling simply means that you have a chance to increase the size of the customer’s order by offering them other items that correspond with something they are already buying.
A similar tactic, although not offering any particular product, is to say:
“Spend X more dollars and receive free shipping.”
“Add X amount to your order to qualify for free shipping!”
While this isn’t exactly cross selling in the truest sense of the word, it is encouraging the shopper to increase the dollar amount of his or her order.
Upselling involves trying to get a shopper to spend more by buying a higher priced product.
Let’s say that a shopper was viewing a 17” computer monitor for $99. Here are a few examples of upselling:
“Take a look at this 21” flat screen monitor for only $139!”
This is an up sell because you are attempting to entice the buyer with a pricier version of the product being searched for or viewed on your site.
Cross sell. Upsell. Either one is good business for you, because each will add to your profit!
A good way to cross sell and upsell is to add some dropship products
to your existing product mix. This is especially smart when you pick dropship products that compliment or go with what you already offer. For example, if you sell computer printers and stock them yourself, it might make sense to also sell printer ink, paper, printer cables and other accessories to your customer base but have the dropshipper stock them and ship them directly to your customers. This works well because it would be too costly and capital intensive for you to stock all that inventory yourself.
Another example would be if you sell fragrances and with your resources you are able to stock a handful of high margin fragrances as your core product line. Well, your audience / customer base will naturally want to purchase additional fragrances from you. But you don't have the resources to stock the 10,000+ fragrances out there - so you let your dropship
company do that. You make the sales and they manage the inventory and ship directly to your customers.
Get a free copy of the DropShipping EBook
to learn more about dropshipping and how to use it when cross selling and upselling.