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Currently browsing posts related to: up-selling

Webinar Recap: Effective Merchandising: What Sells?

MerchandisingWe just wrapped up our webinar on merchandising (cross-selling and up-selling) with Mike Svatek of Baynote.

This was an incredible session and I’m sure you’ll get a lot out of catching the Webinar replay which will be posted within the next few days. The replay will walk you through all of the screenshots used in the presentation - I’ll only be using select screenshots for this recap.

Mike chose the king of cross-selling Amazon to illustrate the concepts in the webinar, sharing an impressive statistic:

35% of Amazon Sales come from cross-sells & recommendations
Venturebeat
(Dec 06)

How does Amazon do this?

Merchandising Based on Intent

First-Time Visitors - Pre-Intent

If Amazon has no information on you (your first visit, you are not logged in or your cache and cookies are cleared) you’ll see default merchandising (pre-intent) within a number of merchandising zones, what Mike refers to as a shotgun approach:

Amazon Merchandizing Zones

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Webinar Recap: Effective Merchandising: What Sells? »

Cross-Selling Tips for Online Retailers

Cross-SellingCross-selling (offering items related to the product like accessories and warranties) and up-selling (suggesting more expensive alternatives) are effective merchandising tools both online and offline. You could think of cross-selling as an etailer’s answer to “would you like fries with that?”

Cross-Selling and up-selling have a number of benefits, and can increase:

  • average order value

  • conversion rates by guiding customers to appropriate alternatives if a product they’re viewing isn’t right
  • exposure for high margin items
  • customer satisfaction by suggesting related items to enhance or augment the product and user experience
  • awareness about the depth of your product offering

There are many places on your website where you can cross-sell, the most common being the product page and on the view cart page - right before checkout. You can also cross-sell on the home page (if you logged a user’s last visit or they sign in) or in a post-purchase email. Today we’ll just focus on the product pages and view cart.

Not all retailers use cross-selling in both areas, some only cross-sell on the product pages to avoid confusion, indecision and cart abandonment upon checkout. It’s important to cross-sell wisely on view cart pages as this is a valid concern - let’s look at some dos and don’ts for both product pages and view cart pages, and then dig into some real life examples from top retailers.

Cross-Selling Dos

  • Show relevant items whether they are accessories or alternatives to the same product

  • Show larger sizes or other same-product up-sells when possible (Example: Tiger Direct)
  • Use personal words like “you” rather than “we” - “You Might Also Like” vs. “We Suggest”
  • Use emotional words like “need” and “want” (Examples: Palm.com “Need accessories?” and McDonald’s “Do you want fries with that?”)
  • Use words like “Special Offers,” “Special Offers for You” or “Great Deals” to communicate savings and value
  • Create urgency with “Limited Time Offer” or “Limited Quantities” (Example: Tiger Direct)
  • Do save your sale / low margin items for the view cart page. Show regular priced / high margin alternatives from the product pages.
  • Make it easy to return to the product page after you add a suggested item - even better to keep shopper on the product page but clearly let the shopper know an item was added to the cart
  • Offer a mix of price points when suggesting items on the view cart page
  • Show “no brainers” like gift cards, warranties, batteries et cetera that are easily understood by the customer, don’t require a click away from the page and are easy sellers
  • Offer discounts on one item when you buy another item on the “view cart/bag/basket” page (Examples: Blue Nile and Macy’s)
  • Provide enough detail on add-ons (thumbnail, price and description) so customer is less likely to click away from cart page
  • Let the customer check off add-ons from the view cart page rather than buttons for each product. Customers may think adding a product to the cart will take them away from the cart page and they’ll get lost (Example: Palm.com)
  • It’s a good idea to show “top rated” suggestions along with review content to build trust and catch interest. I haven’t found an example of this, please comment if you’ve seen one

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