Upselling is a valuable technique to learn for companies who are interested in increasing revenue. This method of marketing placements persuades customers to spend more money on products or services that pair with the original products the customer was interested in. Upselling has been shown to increase revenue by 10-30% on average and it has been shown that a majority of sales for a company usually comes from upsells. Upselling uses the knowledge of fundamental behavioral economics to understand how human behavior plats into generating additional revenue.

Amazon is an example of one company that has successfully implemented upselling tactics. This e-commerce giant effectively uses different methods of upselling to promote the purchase of a variety of products and convince their customers to spend more. They have mastered these marketing tactics by targeting the customers’ needs and there is a lot that sellers can learn from Amazon to bolster their own upselling techniques.

Reasons Why Upselling Works

Upselling is not trying to convince customers to buy products they do not need. Instead it is persuading customers to make purchases that add value to their original product. For example, a screen protector or case for their new phone purchase, a warranty plan for their expensive appliance, or even things as simple as a new set of sheets or pillows to go with a comforter or mattress purchase. 

Including a “Also Bought This Section”

Amazon’s Seller Central  is well known for the variety and number of third party merchants and marketplaces. Product pages on Amazon’s platform always contain a “customers who bought this item, also bought these” section which is basically used to introduce customers to additional, relevant items that others have purchased. Having these sections pique a customer’s curiosity because it presents them with a related product that others have acted on without making it seem like an obvious sale attempt. 

Deliver Relevant Product Options

Relevance is all about meeting your customers at a midpoint of what you are trying to sell and what they want. Amazon is great about delivering relevant product options to their customers in a general search. For example, a search for a laptop will also show customers additional products that are deemed necessary for example a computer mouse, a laptop case, or headphones. This strategic placement of products recommended by Amazon makes the customer think they need to make additional purchases without even having to search for the specific item.

Create a Sense of Scarcity and Exclusivity

Including an element of scarcity and exclusivity can cause people to act quickly and follow through on their purchases faster than they normally would. When searching for items on Amazon, it is very obvious when there are only a few items left in stock or if it is a limited edition which has small available stock to begin with. Letting the customer know when there is only a certain number of items left creates a sense of urgency as well as demand for the product. This also guides the customer to that final order submission especially if it was an item relevant to them because there was already less buying resistance involved with the purchase and online retailer.

Build Trust

These days, customers need reviews to feel confident in their purchases. Amazon implements a rating system as well as allows for customer reviews to help persuade people on their original purchases and any additional upsells. Anyone that sees a product with 40,000 majority positive ratings is going to choose it over a product that has not been reviewed at all. This form of upselling lets your customers speak for you and can sway potential customers into making a purchase. 

Put Emphasis On What People Want

Many times, it is easy to attract customers but difficult to encourage them to make that final purchase click. Amazon understands this by adding value to purchases through bonuses such as percentage discounts at checkout or free shipping. Those with Amazon Prime membership can easily make purchases knowing there is no additional cost and others will be quick to search for additional desired products that will fulfill the minimum order amount to receive free shipping. 

Utilize the Add to Cart and Wishlist Options 

Making cart space and wish lists available to customers encourages them to revisit their desired products long after they’ve walked away initially. These spaces work as reminders to customers for future purchases and can also work to positively impact sales since they allow customers to save their products and review them all at once. This also ends up better reflecting shipping costs which can prepare them to spend more on products. 

Amazon has done extensive work to guarantee the products on their marketplace are getting the best exposure possible and positioned well for sales. When implementing these strategies, remember to keep the customer in mind and soon the profits will come rolling in.