The biggest challenge eCommerce owners face is consistently increasing their store's revenue and getting their customers to spend more than they had initially planned on their orders.
Increasing the average value of orders can be quite complicated. If you choose to offer crazy-good deals, your profit margin will drop. On the other hand, only offering full-price products does not provide incentives for the visitor to purchase multiple items at once.
That's why every online store should consider using two extremely powerful features: Upsells and Order Bumps. These features are very effective at increasing revenue and providing an incentive for your customer to pick up an extra product.
Let’s take a look at what each of these features is and how you can apply them in your online store to maximize your profits.
What are Upsells?
Have you ever noticed how you start to see extremely delicious items right as you’re approaching the cashier counter at the grocery store? That's the supermarkets' way of trying to squeeze some extra dollars out of your pocket. We call this an upsell.
In eCommerce, an upsell is an additional offer for a product that is usually related to the initial product that the customer adds to their shopping cart. For example, if your customer has purchased a new charger for their cell phone, you can upsell a cell phone case.
Usually, upsell products are priced similarly to the original item. Because of that, you need to be more careful when working on your copywriting and/or making this offer attractive to the customer.
But to ensure that this offer is attractive enough you must offer a significant discount, sometimes more than you usually would. This means you’ll give up some of your profit margins and try to win over this customer.
Similar to upsells, there are also downsell opportunities, which are basically upselling offers at a lower price. This downsell offer is shown to the customer after they decline the original upsell offer.
Done right, upsells are one of the most powerful tools to increase your store's revenue. You'll essentially get the customer to purchase products they didn't even know fit their budget in the first place.
How to Create a Great Upsell Offer
A good upsell strategy combines multiple offers to create a complete sales funnel. Therefore, your customer will go through several offers to finally complete their order.
This tip is even more important if you are working with post-purchase upsells, which some eCommerce platforms offer because in this case the customer's original order has already been confirmed and nothing can change that. Making this the perfect opportunity for you to try and get the most out of this buyer.
But be careful not to overdo it. If you create a funnel of seven upsells and seven downsells your customer will get tired and will probably never want to buy in your store again, as the shopping experience will be frustrating and negative.
Upsells can also be a great opportunity for you to get rid of items that have been stuck in stock for a long time. Lower their price and pair them with items that are currently hot and you can see significant results.
What are Order Bumps?
If upsells are your chance to make your customer spend a lot of money at once, then Order Bumps are the opposite.
Here you only want to slightly increase the initial order value with a slight bump on the order - an Order Bump, if you will. This is because the Order Bump usually appears within the checkout when the customer has not yet completed their order. And we don't want to generate any kind of resistance or friction.
The key to success here is to create an attractive offer at a very low cost. It can be the same product with an incredible discount or even a service, such as express delivery or extended warranty.
Just remember to never offer something more expensive than the product initially chosen by your customer. At this point, the order is not confirmed yet, so scaring the visitor is not a good idea.
Why You Should Use Upsells and Order Bumps Features in Your Store
Upsells and order bumps are the easiest way to increase your revenue in your online store. Simply put, you won't have to put in a lot of effort and will reap a lot of profit. Once you set up the offers you’re good to go, they’ll work their magic automatically.
Unlike the main products that you need to choose and advertise constantly, Order Bump and Upsell offers will always be ready and on time to help your store sell even more.
In fact, using a post-purchase upsell along with a one-click bump order like you have at CartX, you can increase your store's revenue by up to 57%. Of course, your mileage may vary here. But one thing is certain: your average order value will increase once you start taking advantage of these features.
In other words, not using these features means leaving money on the table. And if you don't take that money, someone else will.
Are you ready to reduce cart abandonment, increase your average order value, and grow your revenue with a high-performance checkout experience? CartX can help — click here to learn more!
Related Posts:
