Cross-selling , or cross-selling in Spanish, is a term that's gaining popularity through word of mouth and is experiencing exponential growth online for a very good reason: more and more companies and brands are using it to increase the average order value in their online stores. But how?
Even if it doesn't sound familiar, you've already seen it and maybe even used it. Think about all the times you were only going to buy one item and ended up buying at least one more. The store itself offered it to you before you paid, or while you were choosing from the catalog, it displayed a related list. Remember that now? Now, let's go step by step to understand how it works and why you should consider it for your e-commerce business , especially if you're going to build it with Shopify .
What does cross-selling mean?
Cross- selling is a powerful tactic that involves offering customers additional products or services related to their initial search or purchase.
As a brand, cross-selling is a key element when creating an e-commerce site. You'll not only increase sales, but also improve customer satisfaction by offering a more personalized and comprehensive shopping experience. Keep this in mind if you're creating your store on Shopify, which gives you the option to implement cross-selling and choose from different types of cross-selling.
Cross-selling and upselling: Differences
As we mentioned earlier, cross-selling suggests complementary products to a customer who is considering making a purchase or who has already made one. For example, if you're about to buy a computer, the website might also offer you a keyboard and a carrying case. Essentially, it's about considering the customer's needs beyond the product itself . That is, additional items that enhance the functionality or usefulness of the main product. This is called cross-selling.
Upselling , on the other hand, aims to motivate users to invest in a higher-end version of a product. Its focus is on providing assistance to the user. Perhaps you need a better product than the one you're considering buying.
What is Downselling ?
Downselling, however, works in the opposite way to upselling . In this case, the store offers a lower-priced alternative to a potential customer who might hesitate to buy a product because of the price. This way, you retain the customer and ensure they make a purchase, even if it's at a lower price.
What are the goals and advantages of cross-selling?
1. Increase the average order value (AOV)
When you implement cross-selling in your store, you encourage customers to add more items to their cart. Therefore, cross-selling directly increases the average order value—that is, the amount spent on each purchase.
2. Improve the shopping experience
The shopping experience is everything! Remember that it's one of the most important pillars when creating an e-commerce site. Linking more relevant products can improve the experience, making customers feel understood and valued.
3. Strengthen customer relationships
When you have a brand, it's important to generate new customers but also to retain those who have already bought from you. In other words, to get them to come back. Effective cross-selling can build loyalty and encourage repeat purchases.
4. Increase catalog and sales
Cross-selling can help you expand your product catalog. For each main product, you can create a list of related items that enhance the customer experience.
5. Improve our competitive position
Companies that effectively cross-sell can differentiate themselves from the competition by offering a broad catalog not only of products but also of solutions. This value proposition strengthens customer relationships.
6. Leverage data and information to sell more
By having a cross-selling strategy based on customer data and purchase history, you can make more targeted and effective offers. It's similar to using emotional intelligence to motivate the customer and create sales opportunities.
This data-driven approach can improve conversion rates and increase the success of cross-selling.
What is cross-selling?: Examples of cross-selling
Let's start from the beginning: imagine you need to create your store and you've already chosen Shopify for it. Without going into too much detail, you should know that the process—from uploading product photos to delivery to the customer's door—requires time , a lot of work, and some challenges along the way. Fortunately, there are tools that can help you. In the case of online sales, there's Rebuy .
However, it's an effective ally that uses artificial intelligence and an algorithm to offer products in your e-commerce store. There are several types of cross-selling; with Shopify and Rebuy, we recommend these features:
Frequently bought together
If you were to buy body wash from an online store, before you check out you'd see an eye-catching section titled "frequently bought together." It would most likely suggest the same soap but with different ingredients, or something that complements that product, like a hand wash and moisturizer.
In this case, the brand took the opportunity to show you more products you might not have known were part of their catalog (and offered a promotion to lower the cost compared to buying them separately). This approach on their website is very effective at increasing the average order value for two reasons: if you buy them together, sales increase. If you don't buy them together, you're likely to come back later to buy them. Either way, it's useful.
How does it work?
This is all done by analyzing customer data, identifying the products they typically add to their cart together. The programmed algorithm then provides recommendations with different combinations, depending on the user's profile.
As a result, you will gain relevance and solidify your relationship with customers, offering a personalized shopping experience .
A very similar variation of this functionality is "complete the look" or "complete the outfit." This is common in online stores focused on fashion. As you can see in this example, the algorithm suggests more complementary items to the one the customer is already considering buying. If it's a robe, it would make sense for the same store to offer the pajamas that go underneath.
Related products
This feature is native to Shopify, but it's currently a random selection within the same category. Here, the algorithm is programmed to offer similar or, as the name suggests, related products, including those from other categories. If you came to La Castellana looking for red wine, this section below will show you options within the same category, or even from different categories—like white wine or a spirit—to complement your purchase.
Just as you can set rules by category, you can also implement algorithmic rules by price. If you're going to buy a red wine that costs over two thousand pesos, it would be a good strategy to offer other, less expensive wines that pair naturally with it.
How does it work?
This approach aims to increase the overall value of the sale, improve customer satisfaction, and boost revenue. It achieves this by analyzing data to understand customer behavior, preferences, and purchase history. It also involves segmenting users based on purchasing patterns and demographic preferences.
Smart-cart
Known as a "smart cart," this strategy is ideal for increasing sales, as in the previous cases, but through additional products offered based on those already being purchased. For example, if you were to buy a facial device, the smart cart could offer you a moisturizing gel and a skincare kit. Likewise, when you add a second and a third product, promotions such as free shipping and a free gift are unlocked. The more you buy, the more benefits you'll receive as a customer.
How does it work?Smart-cart It uses artificial intelligence, machine learning and
real-time data analysis on the items a customer added to
your shopping cart.
They can also offer real-time, location-based promotions. As the customer browses the store, the system can send them notifications that include offers on other products.
Checkout Extensions
Exclusive to Shopify Plus , this tool is ideal for cross-selling at checkout . As you proceed to payment and fill out the shipping form, the page will display a complementary section below the selected items. These are related or complementary products.
How does it work?
To ensure the success of checkout extensions , purchase history, browsing behavior, and customer preferences are used to make personalized recommendations.
Here, too, artificial intelligence is used to predict which products the user might be interested in, based on other customers' profiles and also on their behavior.
Conclusion
Understanding and implementing effective cross-selling tactics can significantly increase revenue and help build customer loyalty. By strategically offering additional products or services, online stores can achieve multiple objectives that contribute to long-term growth and stability.
Create your online store with Shopify and the help of Getmore, an e-commerce development agency and Shopify experts, by contacting us.
