What is cross-selling?
Cross-selling generally suggests additional items to buyers who are already committed to making a purchase. It is a great selling strategy to help eCommerce store increase sales by increasing average order value.
For eg, adding a pen to a shopping cart may result in the suggestion that shoppers buy other supplies, such as ink and refill.
Cross-selling is a good way of increasing shoppers' trust, loyalty, and relationships which in turn can improve customer lifetime value and retention.
Konigle's flash sale tool helps across your online store within minutes. Flash sale is a reliable technique to drive traffic and improve sales and it helps to reduce dead stock and attract new customers.
Below are get some cross-selling techniques that help you to easily put in place in your own eCommerce store.
1. Complementary Items
A complimentary item is an additional thing that enhances the shopper's original purchase to complete a set (or get the complete outfit).
For eg, if a shopper has selected a T-shirt and added it to the cart then a complementary item suggestion could include that of a pant, a watch, a belt, or shoes.
2. Related products
This part of the inventory typically features similar items that are not necessarily complementary to the original or main item but still in the same relation
For eg, if the t-shirt is the main product then related products could include shirts, hoodies, or other clothes.
3. Combo or bundles
Combos are groups of items sold together, typically with a coupon code to encourage the customers to purchase all of them.
For eg, It’s fairly standard for cloth stores to bundle pants and belts with the purchase of a new shirt.
4. Previously checked items
Having a tracker on your website is the best way to cross-sell items to your shoppers. This tracker will take note of all the items looked at while a shopper was purchasing on your online store.
Having a recent or previous view section at the bottom of the product page may convert a shopper to go back and purchase that item too.
Benefits of Cross-Selling
1. Increased AOV: By offering complementary items or some add-ons to existing shoppers, a decent percentage will make additional buying that they probably wouldn’t make otherwise and you can expect to see a higher average order value.
2. Increased profits: By Increasing your store AOV, your long-term profits should automatically increase. According to Forbes reports, amazon's well-known eCommerce marketplace by cross-selling generates as much as 35% of its profits.
3. Improved customer experience: By offering add-on items to the shoppers, they may need to make their original item work effectively or by offering them products that would enhance that item's use. By this, your online store performs a valuable service to grow customer loyalty.
What is the difference between cross-selling and up-selling?
The cross-selling technic aims to encourage customers to add more items and services to their carts.
For eg, If your shopper is purchasing a T-shirt and you’re using a section on the product page or during checkout to encourage him to also buy a belt or bracelets, that’s cross-selling.
The up-selling aims to encourage customers to spend more, but to buy a more expensive version of the same product they’re considering, rather than adding extras to their existing order.
For eg, If your shopper is purchasing a T-shirt and you’re using a section on the product page or during checkout to entice him to also purchase a higher quality or more valuable t-shirt (upgraded version of the same t-shirt), that’s upselling.