Cross Selling: Definitions, Examples & Strategies

In the competitive world of ecommerce, increasing sales is crucial for business success. There are many levers that you can pull and one of it is through cross-selling.

According to Hubspot, 74% of salespeople who engage in cross-selling claim that it has the potential to increase their revenue by up to 30%.

But before we dive into the topic, it’s important to first understand the terminology of it.

What is cross-selling and how does it work?

Cross-selling refers to the practice of encouraging the purchase of additional products in conjunction with the primary product. For example, if a customer buys a new camera, a cross-sell offer could be a camera bag or memory card.

The goal of cross-selling is to increase the overall value or average order value (AOV) of the customer’s purchase and improve customer satisfaction.

Cross-selling examples

Cross-selling is a common practice that occurs on a daily basis, often without customers even realising it. Other than the camera selling example cited above, here are a few more examples.

Example 1: Telecom Shop

The selections of an online mobile phone shop includes not only mobile phone devices but also mobile phone accessories such as phone cases, wireless headphones and screen protectors, which will be offered to the customer as part of the cross-selling journey.

Example 2: Fast Food Restaurant

When ordering a burger online, there will be add-ons such as fries and drinks to complete the meal. This is considered cross-selling too that can help your customers to enjoy a more satisfying meal and experience.

Example 3: Electronics Retailer

When you are suggesting your buyers to opt in for an insurance plan in addition to their laptop purchase.

Example of cross-selling strategies

Now that you understand how cross-selling works, you need to also know how to integrate it into your ecommerce selling strategy. There are several ways to cross-sell products on your ecommerce website.

Related Products

Show customers related products that complement the item they are viewing. For example, if a customer is looking at a shirt, you could show them pants or shoes that match to complete the outfit.

Accessories

Offer customers accessories that complement the product they are interested in. For example, if a customer is interested in buying a new phone, you could offer them a phone case or screen protector.

Bundles

Create bundles of products that work well together and offer them at a discounted price. For example, you could offer a camera and lens bundle at a lower price than buying them separately.

Cross-selling vs. Up-selling: What’s the difference?

Cross-selling is often confused with up-selling, but they are different strategies. Up-selling involves offering customers a more expensive and upgraded version of the product they are interested in. 

In contrast, cross-selling involves offering additional products that complement the customer’s original purchase.

Referring back to the aforementioned cross-selling examples. The selling products would be different if we were to up-sell instead.

Example 1: Telecom Shop

Offers a better version of the mobile device. For example, offering iPhone 14 Pro Max instead of an iPhone 14 Pro.

Example 2: Fast Food Restaurant

Take up-selling here is to enhance the burger. Instead of adding fries and drinks to complement the burger, upselling will involve adding cheese or extra patty to the burger.

Example 3: Electronics Retailer

Apart from selling a better laptop model, upgrading the specs such as increasing RAM memory can be considered part of the up-sell.

Why is cross-selling important?

If you’re looking to increase your online business’s revenue, cross-selling is a highly effective strategy to consider. For example, recommending a $5 add-on product for every $10 item added to a cart could increase monthly revenue by $1,750 if the campaign achieves a 35% success rate.

By contrast, focusing on expensive optimisation campaigns for new customer acquisition can be time-consuming and costly. In the same scenario, after a lengthy optimisation campaign, you might only see a 10% lift in overall sales, or an extra $1000 per month.

While cross-selling can be highly effective, it’s not as simple as merely offering more products to your customers. It requires a thoughtful strategy and implementation to achieve success.

What are the benefits of cross-selling

Cross-selling can provide several benefits for your ecommerce business.

Increased Revenue: Increase the total value of a customer’s purchase, leading to increased revenue for your business.

Improved Customer Satisfaction: By offering additional products that enhance the customer’s original purchase, you can improve their overall satisfaction with their shopping experience.

Better Inventory Management: Cross-selling allows you to move inventory that might otherwise be difficult to sell on its own.

How to implement cross-selling in your ecommerce business

To successfully implement cross-selling on your ecommerce website, you should take the following steps.

Analyse Your Data: Look at your sales data to identify products that are frequently purchased together. This can help you identify which products to cross-sell and which customers to target.

Segment Your Customers: Segment your customers based on their buying habits, preferences, and demographics. This will help you offer personalised cross-sell recommendations that are relevant to their interests.

Offer Relevant Products: Only offer cross-sell products that are relevant to the customer’s original purchase. If the products are not related, the customer may feel overwhelmed and be less likely to make an additional purchase.

Optimise Your Website: Optimise your website to make cross-selling recommendations more visible and attractive to customers. Use eye-catching images and descriptions to highlight the benefits of each product.

Conclusion

Cross-selling is an effective strategy for increasing revenue and improving customer satisfaction in the competitive world of ecommerce. By offering additional products that complement the customer’s original purchase, businesses can increase the total value of a customer’s purchase and move inventory that might be difficult to sell on its own. 

Implementing cross-selling requires a thoughtful strategy, including analysing sales data, segmenting customers, offering relevant products, and optimising the website. So, if you’re looking to boost your ecommerce sales, consider implementing cross-selling as a part of your selling strategy.

For online restaurant owners, maximise your orders with Shopboxo’s cross-selling feature. To learn how to implement cross-selling groups into your online restaurant and boost your revenue, visit our support page for more information.