Oct 28, 2024
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5
min read
Increasing Average Order Value (AOV) is one of the most cost-effective ways to boost eCommerce revenue. Instead of constantly trying to acquire new customers, you maximize the value of each transaction by implementing upselling and cross-selling strategies. This guide will walk you through how to master both techniques to improve your sales and enhance the customer experience.
Understanding the Difference Between Upselling & Cross-Selling
What is Upselling?
Upselling is the practice of encouraging customers to purchase a higher-end version of a product they're considering. For example, if a customer is looking at a basic phone, upselling would involve recommending a premium version with more features.
What is Cross-Selling?
Cross-selling involves recommending complementary or related products that go well with the item being purchased. For instance, suggesting a phone case or screen protector when someone buys a smartphone.
Why AOV Matters in eCommerce
Key Benefits of Increasing AOV:
Higher revenue per customer
Lower customer acquisition cost (CAC)
More efficient marketing ROI
Better inventory management
Learn more about AOV and customer lifetime value.
Best Practices for Upselling
1. Offer Upgrades at the Right Time
Timing is everything. Recommend upgrades during product selection or in the cart before checkout.
2. Highlight the Value Difference
Make it clear why the upsell is better. Show side-by-side comparisons, added benefits, or user reviews.
3. Keep Price Jumps Reasonable
Avoid overwhelming your customer with a massive price increase. Keep upsells within a 20-40% range of the original product.
4. Use Bundled Upsells
Offer a better version bundled with an accessory at a small discount to increase perceived value.
Examples of great upselling tactics
Best Practices for Cross-Selling
1. Use Behavioral Triggers
Cross-sell based on customer behavior and product interest. For example, "Customers who bought this also bought..."
2. Display Recommendations Smartly
Show cross-sells on product pages, in the cart, or via post-purchase emails.
3. Make It Relevant
Only recommend items that logically go with the original purchase.
4. Offer Discounts on Bundled Cross-Sells
Encourage larger baskets by offering bundle discounts when customers add suggested products.
Read this cross-selling strategy breakdown by BigCommerce
Tools & Apps to Implement Upselling and Cross-Selling
1. Shopify Apps
Frequently Bought Together
Honeycomb Upsell Funnels
Bold Upsell
2. WooCommerce Plugins
WooCommerce Boost Sales
Product Recommendations by WooCommerce
3. AI-Driven Tools
ReConvert
LimeSpot Personalizer
Explore best upsell apps for Shopify
Where to Place Upsells & Cross-Sells
Product Page
Show upgrades or alternatives next to the selected product.
Cart Page
Remind shoppers of value-adding upgrades or complementary products.
Checkout Page
Make final suggestions before the purchase is complete.
Post-Purchase Emails
Offer discounts on related products to encourage repeat orders.
How to use email upselling effectively
Testing and Optimizing Your Strategy
1. A/B Test Everything
Try different placements, messages, images, and pricing strategies.
2. Monitor Analytics
Use tools like Google Analytics, Hotjar, or your eCommerce platform's built-in analytics to track performance.
3. Iterate Based on Data
Make changes based on what’s actually driving more AOV.
How to track and optimize eCommerce metrics
Common Mistakes to Avoid
1. Being Too Aggressive
Pushing too many upsells can hurt trust.
2. Irrelevant Suggestions
Don’t just offer random products. They must be truly relevant.
3. Poor Timing
Don’t interrupt checkout with disruptive offers. Use clean design and clear value.
Why upselling fails and how to fix it
🤖 The Role of AI and Automation in Smart Upselling & Cross-Selling
Modern eCommerce platforms are leveraging artificial intelligence (AI) to personalize the customer journey and increase Average Order Value (AOV). AI-driven upselling and cross-selling can improve both the shopping experience and your bottom line.
How AI Enhances AOV Strategies:
Predictive Product Suggestions
AI tools like LimeSpot and Nosto analyze customer behavior to display highly relevant upsells and cross-sells based on browsing history, past purchases, and cart content.Real-Time Personalization
With real-time personalization, platforms like Rebuy dynamically adjust product recommendations, offers, and pop-ups to suit individual shoppers’ needs—boosting conversions and engagement.Smart Bundling and Dynamic Pricing
Tools such as Bold Upsell and Honeycomb Upsell Funnels help you create dynamic pricing bundles and time-sensitive offers that feel personalized and compelling.
🔗 Explore more: Top AI Tools for eCommerce Personalization (BigCommerce)
🧾 Real-World Examples: Brands That Nail Upselling & Cross-Selling
Learning from eCommerce giants and DTC brands can spark inspiration and show you how upselling and cross-selling are done right.
1. Amazon
Amazon is a master of cross-selling, with its iconic “Frequently Bought Together” and “Customers Who Bought This Also Bought” recommendations. These techniques reportedly contribute to 35% of Amazon’s total sales (source).
2. Apple
When purchasing an iPhone, Apple smoothly upsells you to models with more storage and suggests AppleCare+ and accessories like AirPods—subtle yet effective.
3. Glossier
Glossier promotes product bundles like skincare routines or limited-edition kits, increasing AOV while maintaining a sleek, brand-consistent presentation.
🔗 Read more: 7 Upsell Examples That Drive Revenue (Shopify Blog)
🧠 Psychology That Drives Upselling & Cross-Selling Success
Integrating behavioral psychology into your strategies helps make upsells irresistible—not pushy.
1. Anchoring
Show the most expensive option first. This makes mid-tier options look more appealing. For example, present a $199 product before a $129 one.
2. Social Proof
Include phrases like “Most Popular” or display customer reviews to reinforce that others are purchasing the same item.
🔗 Explore: How Social Proof Improves Conversions (Neil Patel)
3. Loss Aversion
Frame upsells around what the customer loses by not upgrading:
“Upgrade now to unlock free next-day shipping and a 2-year warranty!”
4. Urgency & Scarcity
Scarcity-based language—like “Only 3 left!” or “Offer expires in 2 hours”—can increase conversion rates significantly.
🔗 More on this: The Psychology of Urgency in eCommerce (Baymard Institute)
📩 Post-Purchase Upsells: A Hidden Goldmine
The thank-you page and post-purchase emails offer a unique opportunity to upsell while customer attention is still high.
Best Tactics:
Thank-You Page Offers
Show a limited-time deal for a premium item or bundle. Apps like ReConvert specialize in this.Post-Purchase Emails
Send an email 24–48 hours after the purchase suggesting a refill, related product, or membership offer. For example, if someone buys a camera, suggest memory cards or tripods.Loyalty or Subscription Upsells
Convert one-time buyers into subscribers. Tools like Recharge or Bold Subscriptions make it easy.
🔗 Guide: How to Upsell With Post-Purchase Emails (Klaviyo)
📦 Smart Bundling: Double the Power
Bundling combines upselling and cross-selling into one powerful AOV-boosting tactic.
Bundle Types That Work:
Value Bundles – Combine popular items with accessories at a small discount (e.g., camera + SD card + case).
Tiered Product Bundles – Offer basic, premium, and deluxe kits so customers feel in control of how much to spend.
Buy More, Save More Offers – Encourage higher quantity purchases with scaling discounts (e.g., buy 2, save 10%; buy 3, save 20%).
🔗 How to Bundle Products in Shopify: Shopify Bundle Guide
📊 Measuring the Success of Your Upsell & Cross-Sell Strategy
Without tracking, you’re flying blind. Here's how to ensure your tactics are working.
Use These Metrics:
Average Order Value (AOV)
Total revenue / Number of ordersMonitor this using Google Analytics 4 or your eCommerce dashboard.
Upsell Conversion Rate
How often customers accept your upsell offers.Post-Purchase Engagement
Email open/click rates and follow-up purchases.
Tools to Help:
Hotjar – See where users click or drop off.
Google Optimize – Run A/B tests for product recommendations.
Shopify Analytics – Track bundle and upsell performance over time.
🔗 Learn more: How to Optimize eCommerce KPIs (BigCommerce)
🧨 Common Mistakes to Avoid
Many stores fail at upselling due to overuse or irrelevant offers.
Being Pushy:
Don’t show more than 1–2 upsell prompts per page.Poor Timing:
Avoid interrupting the checkout flow. Use subtle sidebar offers or post-purchase pop-ups.Random Products:
Use logic and relevance—recommend products that actually match the customer’s intent.
🔗 Guide: Why Upselling Fails—and How to Fix It (Sleeknote)
🧠 Final Thoughts
When done right, upselling and cross-selling are not just sales tactics—they’re about enhancing the customer experience. Use AI tools to personalize suggestions, test and optimize your strategies regularly, and always keep your offers relevant and helpful.
Start small: Add one upsell widget to your product pages or test a thank-you page offer with ReConvert. From there, track what’s working and scale up.
With consistency and customer-first thinking, increasing your AOV becomes an ongoing growth engine for your eCommerce brand.
📚 Bonus Resources:
