What is an Upsell?
An upsell is an offer or a sales technique that is aimed at getting customers to purchase an additional product that is more expensive than the initial offer sold.
If you've read our existing article on downsells, then this would be the perfect companion since they both work together as part of the overall sales process.
The more upsells you can realistically offer in your sales funnel, the more profits you will make and the more successful your business will be.
Here are a few real-world examples:
- Being offered to upgrade your burger with fries or to go large in a fast-food restaurant.
- A shop owner offering a more expensive item with better features but at a limited discount.
- Being offered upgraded seats during an airline booking.
In case you're having reservations about whether an upsell could work in your business, consider these statistics:
According to Amazon, it's reported that upselling and cross-selling make up as much as 35% of their business.
That's almost 50% of their entire revenue!
In another statistic, 32% of customers order again from the same company within a year of being a customer.
So it's clear that if you're not upselling or offering an additional or a more expensive version of a product to your customers, then you're leaving a lot of money on the table.