Tuesday, January 12, 2010

Tuesday Tips Upselling

Upselling is offering your customer an incentive or opportunity to puchase more than they intended.  The hardest part of selling online can be getting the customer to your site but once you get them you need to show them why they need to buy more than they originally wanted.

  1. Offer reduced shipping rates for multiples.  For example, I offer flat rate shipping or free combined shipping on die cuts.  They are light so most of the time it doesn't affect the shipping price.  Yes I do lose a little bit when someone orders 10 sets of die cuts, but I sold more than I originally would have (I think so anyway) so I'm willing to lose a few cents on shipping.  If you can't do free combined shipping, try reducing your shipping charges on every widget after the first. 
  2. Free shipping over $X.  Online buyers hate paying shipping.  Even with no sales tax paying shipping costs can still cut into your budget.  By offering free shipping for orders over $25 (or whatever) your buyer might spend a few more dollars than they would have. 
  3. BOGO sales.  Again, buyers are a sucker for BOGO even BOGO50% off.  If I only want one I'm not going to let a sale pass by me and I'll buy 2.  For the seller, BOGO50% off is really only 25% off of each one and a lot easier to swallow than thinking of selling 1 widget for 50% off.
  4. Spend $10, get 10% off, spend $20, get 20% off.  These will also help you upsell.  Customer has $15 in their cart.  Why not spend another $5 to get the 20% off?  But they end up putting an extra $8 in their cart so you've made more money.
  5. Tell your customers what else they might like.  This can be hard on Etsy or Artfire, but in the listings you can say this necklace matches these earrings or something similar.  For my die cuts I mention they coordinate with a certain paper pack to try to upsell.
  6. People who bought this also bought...  This doesn't work on Etsy or Artfire, but if you have your own website and your shopping cart has this feature use it!  
  7. Discounts for repeat customers.  You got the customer once, now getting them back will be easier.  Give them a coupon code for their next order and they will be more likely to remember your store.  I give a coupon in every order and I get a lot of repeat customers.  Only one time has the coupon been redeemed.  Maybe it gives them a warm fuzzy and they remember me?  Maybe they make a positive connection with my shop name?  I don't know. 
Please leave comments with more tips for upselling, especially for Etsy and Artfire since we don't have control of our shopping carts.