Guides · April 24, 2023
Upselling And Tips To Improve Revenues For Shopify Store
What upselling is, when to do it (pre- vs post-purchase), and four practical tips — personalization, sensible value, data, and email — to lift revenue.
By Polo Themes
The Definition of Upselling
Upselling occurs when you persuade customers to purchase a more costly or premium version of their intended item. For instance, if a customer wants a small coffee but you convince them to buy a medium instead, that’s successful upselling.
The strategy proves more effective with existing customers — you get a 60–70% probability to sell to existing customers, while new customers represent only a 5–20% opportunity. Upselling also gets easier over time: first-time visitors have a 27% return rate, but this jumps to 54% after a second purchase.
Pre-Purchase vs. Post-Purchase Upsells
Upselling can happen before, during, or after purchase. Pre-purchase upsells appear when customers select an item and head toward checkout. Post-purchase upsells occur after transaction completion, showing offers on the thank-you page to help customers maximize their recent purchase value.
Tips for Upselling
- Personalization — success depends on relevance. Suggest products aligned with previous purchases to increase loyalty and repeat visits.
- Appropriate value — avoid overwhelming customers with expensive upsells; suggest ones that only account for about 25% of the overall order (for a $100 purchase, limit upsells to $25 maximum).
- Necessary data — analyze historical sales data and customer behavior patterns, monitor campaign effectiveness, and adjust recommendations based on results.
- Email marketing — email remains cost-effective for engagement; send regular discounts and personalized newsletters to encourage repeat purchases.