Top online stores usually get a conversion rate of between 5% and 15%. You might be wondering how they can achieve this especially when your conversion rate is just a fraction of this percentage. Two popular merchandizing techniques are cross-selling and up-selling.
Cross selling is basically just offering an item that is similar, an alternative, or an add-on for the product that the consumer is looking for. Cross selling will enable the consumer to find just exactly what they had been looking for; this will increase the rate of completion. Cross selling can also lead to additional sales from the original selection because consumers found add-ons for their original item.
Aside from related items, merchants also use cross-selling techniques to showcase the best-sellers as well as high margin products from their store. There is always the possibility that consumers will be interested in these items so that can translate to a higher conversion rate.
Up selling is basically offering the consumer more expensive and better quality products from their original selection. If the visitors goes to a page and puts the item in the shopping cart, it is almost certain that he will purchase that product. But how can you utilize up selling in this case?
Well, a popular online approach to up selling is bundling; that is, the merchant can offer two or more products together at a discount. The merchant can also offer discounts on a particular product or service when the consumer purchases from the store. This will encourage the consumer to buy more products from your store.
Displaying the Options
It is interesting to note that there is a high rate of abandonment in shopping carts as consumers still decide whether they will really purchase the items they selected or not. In line with this, displaying both cross selling and up selling option in the product page as well as the shopping cart is recommended.
Our popular online store software Nextwave Commerce allows for this. Talk to us today about utilising this feature on your online store