You have a great chance to give value to a new customer once they decide to buy from you. They’ve already found your company, thought about what you offer, and chose you over the others.
Why not try to sell them other things they might like while they’re talking to you? To do this, you’ll cross-sell or up-sell to these customers. Yes, you may have heard of these terms. But do you know the difference between an offer and a cross-sell?
Upselling and cross-selling are both ways to get customers to buy something they weren’t planning to to raise the average order value (AOV). Cross-selling tries to sell goods that go well with the one being sold while upselling promotes a more expensive version of the same product.
We’ll look at the ways Amazon uses upsells to get people to buy from them again and again. Find out what the difference is between an upsell and a cross-sell.
Upsell Vs. Cross-Sell
As you can see, cross-selling and upselling are related strategies that work well together. They both try to make the original buy better so that the customer gets more value and the business makes more money.
Cross-selling and upselling can help you make more money without getting more people by raising your average order value (AOV). Getting new customers is much more expensive than selling to people who already buy from you, so these strategies can greatly increase your return on investment (ROI).
For a bigger return on investment, an offer is different from a cross-sell because it adds something extra to the person who is already planning to buy.
The same Amazon FBA business can use both strategies, and both are good for the business in the same ways. Based on the needs of the customer and how you run your business, decide when to use each.
Examples include:
- To give you an example, if a customer is thinking of buying a laptop, the seller might try to upsell by showing them the benefits of a more expensive model.
- However, let’s say the customer has already spent a lot of time looking at the supplier’s computers and picking one. It might be smarter to sell extra items like a laptop stand or wireless mouse.
How Do Amazon’s Cross-Selling And Upselling Work?
Amazon FBA uses recommender systems to sell more than one thing to its customers at the same time. To show them on their website, they do the following:
Homepage Recommendations
A person visits Amazon to buy the things they want, but surprisingly, they may stay longer than planned. Customers can’t help but look at and, most of the time, buy something from Amazon’s site, which is full of smart, personalized product suggestions.
The site of Amazon has different kinds of widgets that suggest products:
- Brand new items and sets
- Other items that were inspired by your browsing past
- Related products
Read More: E-Commerce in 2024: Maximizing Sales with an Amazon Storefron
Product Page Recommendations
People who visit a product page do so because they want to learn more about it. Most of the time, they buy it. If you don’t give them any suggestions, they’ll just buy the product and leave.
Recommendations for related products are added to the product page to get people to look at more items and finally buy more. On the page for this item, Amazon FBA has put these suggestion widgets:
- Viewers bought this item.
- This item was purchased alongside
- Bestsellers
- History browsing
Checkout Page Recommendations
Customers who are ready to place their order are told to add more things on the checkout page. When used correctly, suggestions on the checkout page can greatly raise the average order value.
Personalized product suggestions, not just suggestions, are more often found on the checkout page. When you check out, Amazon uses these suggestions:
- Inspired by your browsing
- Related products
- Frequently Bought Together
Thank You Page Recommendations
The user sees the “thank you” page after making the purchase. In other words, the customer still thinks about the store. Customers are more likely to buy from you again if you show cross-sell suggestions on the thank you page.
This comes from the idea that getting new customers is harder than selling things to people who already buy them. There is a 60–70% greater chance of success when selling to a current customer than when selling to a new one. So, cross-selling suggestions are shown on this page to bring in more sales.
Lessons You Can Learn
If you go to Amazon and search for the product, Amazon will show you other things that are “frequently bought together,” like the flash memory card and compact camera case featured above. You’re cross-selling! It’s just human nature to want to save money.
Deliver Relevant Messages
Sending people useful information is the best way to get their attention. Take a look at how Amazon FBA handles things.
At the moment, if you search for something on Amazon, the site will show you other things that go well with it, even if they’re not from the same label, which increases the chances of getting both of them.
Knowing what your audience wants is what content marketing means and what you have to say is relevant. Meaningful marketing depends on knowing what makes your audience act. Messages that are useful and don’t try to change people’s minds won’t get read.
Create Scarcity
People will be more likely to buy if there is an appropriate upsell with a sense of scarcity. That’s a very good case. People don’t mind that the online shop is selling the item because it is useful to them. People will want your goods more and be more likely to act quickly if they think it is in short supply.
In the copy for your ads, make it clear how many are left of the product. Let people know that there are only 50 spots left for a service like personal training or one-on-one teaching. This will make it look like there aren’t many spots left.
Increase Perceived Value
Putting things together in a bundle is another sneaky way to sell more. Researchers found that bundling gaming goods made some people buy earlier, but only when they weren’t forced to buy the bundle. Bundles also work because of how people think… That’s all it comes down to.
It can raise both the average order value (AOV) and the perceived value of a product when two or more things are sold together as a single transaction.
It works with a lot of things. This works for online stores because people naturally look for value, whether it’s real or imagined.
When you buy a book, you might be able to add on a Skype call or email course. People will be more likely to buy if the deal is both useful and important (there’s that word again). People may think that the things are worth more because they cost less to ship when bought together.
Read More: Boost Your Amazon Ranking with 5 Insane Seller Hacks
Use Color Psychology
One way Amazon upsells is by using color. The price is deep red (maroon), and the image description is light blue (linked).
People automatically click on blue links more, according to behavioral economists. The colors you use in your blog and writing are very important. Color is responsible for 90% of how people judge a product. Choosing the right color will help people click “buy now.”
When it comes to leaving, the wrong color can be confusing. Your color scheme should work with the way people naturally act.
For example, just because blue links are common doesn’t mean you should use it. Creating a unique link is what counts. When you move your mouse over an item on Amazon, this happens a highlight.
Match Searchers’ Intent
As you looked at Amazon for portable speakers, they might try to sell you a car stereo as well. There is almost no chance that you will buy the offer. That’s why, as an online store, you should make sure your upsells are based on what people want.
If you want this approach to work, don’t make any assumptions. Assumptions can do a lot of damage to your business. To get rid of stereotypes and give searchers what they want with your upsell, remember the following steps:
- This person is probably tired of losing weight after trying a few pills and not seeing results. Although she has read a few reviews online, she still doesn’t know what to do or which product is best for her.
- Therefore, she added “that work” at the end of her search result. If this is your sector, you might be able to provide an upsell. Marketers’ job is to make sure that your product meets the wants of their customers. What steps can you take to do that? Simply take the next step.
- After getting a few answers, you can move on to the next step. Write your information now. After showing proof that the product works, write material that gives your visitors what they want. People trust the world’s gurus, so even online stores need to be businesses that provide services.
Get To Know The People You Want To Reach
What do you think goes with trust? Engagement means that you are getting to know your community better. Based on behavioral economics, this is a very important part of persuasion marketing.
- For example, you can get to know them better by inviting them to join your club. Amazon’s Prime membership scheme does the same thing. It’s been a big success, even more than what other stores have tried.
- Members of Prime get discounts and other benefits (again, over-delivering). Being should be your goal if it’s not already.
- People who use Amazon Prime are more likely to buy something else because the brand already knows them and trusts them.
- What good does that do for your brands? People must want to hear what you have to say to respect you. You need to hear what they have to say first. Discover their problems by asking them questions, and then offer your solution to those problems.
- Answers don’t always have to be products or services. It could be happy with just advice. To get people to interact with you and your business, email marketing is another great option.
Be Consistent
Just because your income is up for one month doesn’t indicate that your business is thriving. Being consistent is key. Being consistent is important for more than just making money. Brand consistency is critical for persuasive marketing to be effective.
A brand’s visual identity extends well beyond its logo, colors, and iconography. Consider the impression you give to your intended audience. If your message is in line with what your customers need, they will trust you more. You can increase sales by doing this as well.
The reliability of Amazon is a major selling point. It is well-known that Amazon FBA offers a wide variety of products, along with free shipping, promotions, and reviews.
Read More: What Are the Big 4 For Your Product Launch?
Make An Unbeatable Offer
This is simple, as we can see. People are more likely to join your list or purchase your items if you offer them something they cannot reject. Marketers and salespeople who study consumer behavior do just that, and they profit from it.
If an upsell offers your users anything useful, you shouldn’t pass it up. The way Amazon does things. Did you intend to acquire a new Blackmagic camera, receive free shipping, and cut costs? Can you say “no” when asked to buy something more?
Listing their landing page designs in Leadpages’ marketplace would allow industry professionals and sellers to earn 100% of the purchases.
Key Metrics to Measure
Average Order Value (AOV)
AOV measures the average amount spent by customers during a single transaction. To calculate AOV, divide total revenue by the number of orders.
If your total sales for a month are $10,000 and you had 200 orders, your AOV would be $50. If your AOV increases to $60 after implementing upselling, that’s a clear indicator of success.
Conversion Rate of Upsell Offers
This metric tracks the percentage of customers who accept upsell offers. It’s calculated by dividing the number of successful upsells by the total number of offers presented.
If you present 100 upsell offers and 20 customers accept, your conversion rate is 20%. Monitoring this metric helps identify effective upselling tactics.
Customer Lifetime Value (CLV)
CLV estimates the total revenue a customer will generate during their relationship with your brand. Upselling can significantly enhance CLV by encouraging repeat purchases.
If a customer initially spends $100 but, through upselling, continues to purchase additional items worth $200 over a year, their CLV increases from $100 to $300.
Track Customer Interactions
Utilize analytics tools to track customer interactions with upsell offers. This includes clicks, conversions, and overall engagement.
If customers frequently engage with a particular upsell suggestion, this may indicate a strong market demand for that product, prompting further investment in similar offerings.
Bottom Line
Amazon uses the above ways to persuade because they work. Its success helped Amazon reach $232 billion in global net sales. That’s not bad. They also help thousands of other businesses make money. Now we ask, “Why aren’t you that company?”
