Upselling techniques are good ways to help customers find products or services that better meet their needs. When done right, these methods create a win-win situation: Customers get more value from their purchase. And you increase your sales and give customers a better experience with your business. According to Opensend, upselling can increase revenue by 10-30% on average.
But if you don't do it right, upselling can backfire. Customers may feel like you are pushing them too hard. They might even refuse to buy anything at all. This reaction is called reactance, a psychological response where customers resist sales pressure. It happens when customers feel like someone is taking away their freedom of choice.
This article will provide everything you need to increase your revenue by upselling without annoying your customers. We will cover the definition, how to measure upselling success, easy-to-apply upselling techniques, common mistakes to avoid, and the best methods for upselling.
Let’s dive in.
Upselling techniques explained: what it is and how it benefits you
The definition of upselling techniques
Upselling techniques encourage customers to purchase a more expensive, upgraded version of their intended product. For example, when someone wants to buy an iPhone with 128GB of storage, you show them a better version with 256GB that costs more money compared to the basic model. That's upselling right there.
Good upselling techniques offer better versions of the original product. Think bigger sizes, higher quality, or more features. This is different from cross-selling. Based on our iPhone example, cross-selling would suggest extra items like iPhone cases or warranties. Later in this guide, we'll explore the difference between the two.
The benefits of successful upselling techniques
This strategy benefits both businesses and customers when done right. You make more money while customers get products that work better for them. The trick is to focus on providing real value to your customers. Here are some of the benefits of successful upselling tactics for your business:
Revenue per customer increases: The most obvious benefit is the increase in sales revenue from each customer. But here's what makes it work: you're not just selling them more expensive stuff. You're helping them find products that truly fit what they need. When customers see that extra value, they're happy to spend more. The practice ends up optimizing your sales revenue from each customer, bringing in more cash flow for your store.
Customer experience enhancement: When shopping, customers often have something on their minds. Yet, the products they want might not actually be what they need. Maybe they come in looking for a basic solution, but you show them something that saves them time and makes them happy. This kind of helpful guidance will create a long-lasting shopping experience that people remember and talk about.
Customer retention improvement: A successful upselling methods keep customers satisfied and loyal to the business. When you help customers find products that better meet their needs, they often appreciate the value-added suggestions. This creates a positive cycle that keeps them coming back and makes repeat purchases.
Return on investment optimization: Bringing in new customers is much more expensive than taking care of your current customers. By upselling, you're getting the most value out of the money you've already spent to attract each customer. According to Growave, gaining a new customer is five times more expensive than keeping an existing one.
There are many benefits for your business when you successfully upsell. But this is easier said than done, as merchants often make common mistakes that we will discuss shortly.
Upselling and Cross-selling: Discover the difference
While cross-selling and upselling techniques are both effective tactics to increase revenue, they differ mostly in their approach and benefits to customers. This table will provide you with a clear understanding of their difference:
| Cross-selling | Upselling |
|---|
Definition | The process of selling complementary, add-ons, or related products or services to customers in addition to their purchase. | The process of encouraging customers to purchase a more expensive, upgraded version of their intended product. |
Focus | Focus on selling additional products | Focus on upgrading a single product |
Benefits to customers | Enhance the original purchase through additional products | Get a better experience through improved quality, features, or larger quantities |
When to use | The additional product naturally complements the primary purchase | Premium versions or bulk purchases both align better with the customer's long-term needs |
Example | Upon the purchase of the basic version, you offer customers extra accessories such as cases or headphones to pair with their iPhone. | You suggest an iPhone that has more storage compared to the basic version that the customer wants. |
The psychology behind effective upselling
Effective upselling techniques take advantage of human purchasing behaviour. Most people follow similar patterns when they make buying choices: They want to feel good about their choice and make the most of their money. They also worry about missing out on something better. These natural feelings make certain marketing psychology triggers work well.
Here are some of the psychological tricks that you can use to increase revenue by upselling:
Fear of missing out: The anxiety that customers miss out on something valuable that others might get. This fear drives people to act quickly, even when they weren't originally planning to buy. One way you can take advantage of this is by creating a sense of urgency through limited-edition versions that cost more than the original.
Decoy effect: A psychological principle that pushes customers toward your premium upsell option by making it appear like the best value. An example is the three pricing tiers: Basic, Standard, and Premium. You set up Standard so that Premium offers way better value for just a little more money. This works because people love feeling smart about their purchases. Instead of choosing between your cheapest and most expensive options, they're now comparing Standard and Premium. And when they make this comparison, Premium will look like such a great value.
The principle of reciprocity: When customers receive something of value first, they are more likely to make a purchase or engage with a brand as a way to “return the favour”. Think about exclusive content, free samples, or birthday gifts. The key is to give something that feels valuable but doesn't cost you much. When customers feel good about what you've done for them, they will want to return the kindness by buying more.
Anchoring effect: People often rely heavily on the first piece of information they receive while making purchase decisions. Start with the most expensive product that has the best reviews and features upfront, then work down to lower-tier options based on their needs. This makes your upsell offers feel like a great deal rather than overspending.
Many merchants have come up with smart upselling techniques based on these psychological effects. Let's look at some real examples of how successful stores put these ideas into action.
12 best upselling techniques to boost your revenue
Whether you're new to e-commerce or have been doing it for years, these best upselling techniques will help you boost your sales. We’ll show you upselling methods that work, so you can see how they will fit into your business.
Some upselling techniques work better for certain types of products or services. Others work well no matter what you sell. The key is to start small and test what works for you. Without further ado, here are some upselling strategies to increase sales with real-life examples for your business.
1. Make your upselling offers relevant to the customers’ needs
You need to understand what your customers want to upsell the right solution that serves their needs. This is where many merchants make a mistake. Instead of pushing the most expensive products, focus on understanding the customer's pain points. Then, you can explain why the upgraded product is the best fit for their needs.
Take Apple, for example. They let customers compare different iPhone models side by side to find the one that fits their needs best. Customers can see the differences in screen size, camera quality, battery life, and other key features. This makes it easy to spot which version gives them the most value.
This upselling technique works so well because it puts customers in control of their choice. As a result, people will see why they want to spend more. When someone realizes the Pro model has a much better camera for just $200 more, they often talk themselves into the upgrade. Apple doesn’t need to push the sale, customers do the upselling part on their own.
2. Set the correct price point for effective upselling strategies
When you upsell, remember to keep the price within the range of the customer’s intended purchase. According to sales expert, upselling techniques should not increase the total price to the customer by more than around 25%. The reason behind this is that a 25% increase for better features or higher quality is still easy to sell. This increase is also small enough that customers don't need to rethink their budget.
A great example here is Amazon. For a product like this laptop, Amazon lets customers choose from 4 different versions. Each version is slightly more powerful than the one before it. But the better versions cost just around $100 more. That's less than 25% of the price increase from the version before it.
This smart setup makes it easy for customers to justify spending more. When customers see a $649.99 laptop next to a $755.99 laptop with a better chip, that extra $106 feels reasonable. Instead of being concerned about price, customers will start imagining how much faster their work will be or how much better their games will run for what seems like a small extra amount. This mental shift is exactly what an effective upselling technique creates: customers end up buying a more expensive option but still feel good about it.
But the higher the price margin, the lower the success rate of upselling. Focus on relevance. It is essential to balance additional value for the customer with a reasonable and attractive price.
3. Create a sense of urgency to upsell
This approach taps into a common part of human behavior: the fear of missing out. Most people don’t like the idea of losing a good deal or letting an opportunity slip by. That feeling can push them to make impulsive purchases without second-guessing themselves. Create limited-time premium offers that are hard to resist.
Tell your customers why acting fast in this particular period could be beneficial for them in the future. Remember to price them wisely and know which products will get customers excited.
Let’s look at this example of Uniqlo. Aside from regular product categories, Uniqlo often features categories like Special Collaborations, Online Exclusives, and Limited-Time Offers. These sections feel unique and won't stick around forever, motivating customers to choose the premium versions right away instead of settling for basic options.
4. Build trust to upsell through social proof
In the world of ecommerce, merchants and retailers rely heavily on reputation and reliability. If customers are satisfied with what you offer, they will leave a review, a testimonial, or a recommendation that helps others feel more confident when shopping with you.
This kind of trust doesn’t just make people feel good about their purchase, it also opens the door for upselling. When new customers see that others enjoyed upgrading to a better version or adding something useful, like an accessory or premium feature, they’re more likely to consider doing the same.
Native Deodorant is a great example of how to use customer feedback to support upselling. On each product page, they include a review section that highlights two things shoppers care about most: Quality of Product and Value of Product. By looking at these ratings, potential buyers will be more confident to move forward with their purchase.
When people see that others are happy with both the results and the value, they tend to explore other options, like getting a pack of three or trying out different scents. Here, upselling feels less like a sales push and more like a natural next step. If one product works well, why not stock up or branch out?
5. Allow natural upselling with customization
Nobody understands customers’ needs better than themselves. So why don’t you let them build their own perfect solution?
When you give customers the freedom to choose what works for them, they feel more in control. As shoppers go through the options, they might see the value in upgrading a part or choosing a version that fits their needs better. That way, you’ve made it easier for them to see why choosing more might make sense.
In this example, Deliveroo, a British online food delivery company, has allowed its customers to customize their order before checkout. They can add toppings, swap sizes, or choose larger portions, with a small price increase. And when people shape their own order, they’re more likely to say yes to a little extra.
6. Encourage upselling through rewards
There’s this universal truth: Everyone loves prizes and rewards.
In the world of e-commerce, customers appreciate it when they feel like they’re getting something extra, especially as a thank-you for shopping with your brand. That “extra” could be a discount for buying more, or a free gift with larger purchases. The key is to frame upselling as a benefit, not a push.
💡 A common reward that merchants often use is free shipping, but they don't always work for upselling. Here’s the problem: Customers will look for the cheapest way to hit that target, often by adding small items or add-ons. And that will become cross-selling instead. If you want to use shipping thresholds for real upselling, try this instead: "Upgrade to Premium and get free shipping automatically."
When you offer a clear incentive, customers have a reason to reach for it, so long as the incentive feels within reach. If you do it right, these little rewards can turn upselling into something people look forward to.
The Sweet Giftorium, a candy-gifting company from Australia, uses free gifts as a simple but effective way for upselling. With every big purchase, the brand includes small samples of other candy packages for customers to try.
Besides giving good feelings, these samples also spark curiosity. When people discover something new they enjoy, they’re more likely to come back for more, or even add that item to their next order. Over time, this simple gesture can lead customers to explore new flavors or buy larger bundles, turning a small gift into a future upsell.
7. Optimize the customer journey for upselling
Timing is everything when it comes to upselling. Think about customer journey optimization and find the perfect moments to present your upsells. Here are some of the places and channels you can use to leverage each stage of the buyer’s journey for upselling:
Product page: Show premium upgrades right where customers are browsing. For example, if they're looking at a basic laptop, display the upgraded version with better specs right under it.
Cart page: This is your last chance before checkout to upsell your cart. Use reward thresholds, such as additional discounts, to motivate customers to spend more.
Checkout page: Keep it simple here. Don't overwhelm customers when they're ready to buy. Focus on building your customers’ confidence by showing testimonials and trusted badges.
Follow-up email: Use emails to offer recommendations or even remind buyers of a premium product after they’ve left it in their cart. You can also use emails to let customers know about your new products or services that you think they will like.
8. Offer a premium version trial for a limited time
Customers might doubt your claims about how amazing your premium product is. After all, you only have good things to say about what you are selling. But when customers try it themselves, that changes everything.
This is why free trials, demos, and samples work so well for upselling. Instead of just telling customers why they should upgrade, let them experience the premium version and discover the benefits on their own.
This upselling technique is popular within the tech industry. For instance, Spotify lets users in for a 30-day free trial of Premium before they start charging them, with no strings attached. During the trial, users can cancel their payment anytime if they are not satisfied with the app. But once they have gotten used to the premium experience, most can't imagine going back to the basic version with ads and limits.
The results speak for themselves: According to Bloomberg, Spotify listeners are the least likely to cancel among the major video or audio streaming services in the US.
9. Use persuasive language to highlight benefits for upselling
The words you choose for promotion can make or break your upselling techniques. Use persuasive language for two things: describing benefits and making recommendations.
Most merchants love their products so much that they enjoy listing their products’ features. Still, customers only care about how they can benefit from using the products. That said, try painting a picture of how life gets better when customers use your products. Instead of "Premium has 50GB storage,” try "Never worry about running out of space again."
You can also use reviews and smart positioning. Try phrases like "Most customers choose Premium because..." or "Our top-rated option includes..." This makes upgrading feel like the obvious choice that smart people make.
Look at how Suniela Beach uses its wording. They don't bore customers with technical details like fabric composition. What they do instead is talk about what their products can benefit customers, such as sun protection, the stylish design, and the eco-friendly aspect of the canopies. To add a cherry on top, customers will get more discounts if they buy multiple replacement canopies, up to 25% off.
The result? Customers can clearly see how it improves their beach experience while getting a good deal, too. When customers feel this good about a purchase, they're happy to pay extra.
10. Upsell through bundle products
Bundling is a mix of cross-selling and upselling techniques. When customers add a product to their cart, you would want them to add a couple more things, like an add-on or a complementary product. That’s cross-selling.
With bundling as an upselling strategy, you want to achieve two goals. First, get your customers to buy more of the same products. Second, show them that upgrading to a premium bundle gives them much better value for their money.
The magic happens because customers see they're getting a great deal on everything together, rather than buying each piece separately. Customers get more value, and you get a bigger sale. It's a win-win situation.
In this example, Cymbiotika’s Create Your Bundle gives customers a bigger discount with each additional item they add to their bundle. This makes customers think, "If I add just one more item, I'll save even more money!" which turns a single purchase into a much larger order.
Customers end up spending much more than they planned, but they feel great about it because they think they're getting amazing deals.
11. Avoid overloading your customers with too many choices
When creating upsell options, be careful not to overwhelm your customers. Too many choices can hurt your sales. This happens because customers get confused and can't decide what to pick.
The numbers tell the story perfectly. A popular research study found something surprising: stores with just 6 options saw 30% of visitors make a purchase. But stores with 24 different options? Only 3% of visitors bought anything. That's a huge difference!
However, that doesn’t mean your store should also have 6 product options. You need to examine your product types and customers to find that sweet spot for your specific situation. And remember: keep your upsell options focused and easy to understand.
12. Never make customers feel tricked
Keep your upselling techniques ethical and honest. Yes, the goal is to increase revenue, but building trust with customers matters more in the long run.
Once you've set up your upselling offers across your website and given customers all the information they need, step back and let them decide. Don't be pushy or overwhelming. Good upselling feels helpful, not aggressive.
💡Don’t fall for the trap of the dark pattern in e-commerce, a term to describe manipulative online interface designs that trick users into making decisions that are not in their best interest. Think about bait-and-switch, confirm shaming, or hidden costs.
Share both the benefits and the limitations. Never oversell or make promises you can't keep. The damage caused by disappointed customers outweighs the benefit of any single upsell.
Metrics to measure and optimize your upselling techniques efforts
Tracking the right numbers helps you see which upselling techniques work and which ones need fixing. Here are the key metrics that will give you real insights into your upselling performance:
Average order value (AOV): This metric measures the average amount spent per transaction by a customer. If this number increases after you have set up your upselling campaigns, that means customers are choosing premium options or adding more to their carts.
Customer acquisition cost (CAC): CAC is the total expense a business incurs to gain a new customer. Upselling, which involves encouraging existing customers to purchase a higher-priced or more of the same products, is a powerful technique to lower this metric.
Customer Lifetime Value (CLV): The CLV calculates the total value a customer generates when they shop with you. When you successfully upsell, you should see this number increase.
Numbers are important, but don't forget that customers are real people with real feelings. Pay attention to their experience by creating the best possible shopping journey. When customers are happy and trust you, upselling techniques become much easier and more natural.
Common upselling mistakes to avoid
Despite the obvious benefits, upselling techniques can easily backfire if not done properly. When suggesting an upgraded version to the customer, make sure the customers indeed benefit from doing that. After all, the best practice of upselling techniques should not just be to increase revenue, but to enhance the customer’s experience by adding value to their purchase.
Let’s look at some of the mistakes that most merchants often make:
Being too aggressive or pushy: When you constantly push customers toward premium versions, they get suspicious. When customers become skeptical, they are unlikely to visit your store anymore. Even worse, they might tell their friends about the bad experience.
Offering irrelevant or overpriced upsells: This is a typical example of when you neglect what customers need. If someone wants to buy a laptop, there is no point in suggesting a phone.
Timing of upsell offers poorly: While you may feel tempted to put upselling pop-ups or reminders throughout your website, customers will find that annoying. From their perspective, what’s supposed to be a smooth browsing experience turns into a frustrating series of interruptions.
Failing to demonstrate value: Customers need to understand why they have to spend more money than they intended. When you can't clearly show the extra value from paying higher prices, customers will just compare prices. They'll treat your amazing product like any other basic option out there.
Overwhelming customers with options: The ultimate goal of offering upselling is to increase revenue. But too many upsell options can lead to the opposite. When customers face a wall of options, they get stuck. They will be frustrated about which one to pick, leading to customers abandoning their cart.
Neglecting the upselling follow-up: Most merchants often move on when they see customers not take the upsell offers. Even so, that doesn’t mean they won’t take it later. If you forget to nurture and follow up after the first attempt, you will miss out on the chances to build a long-term relationship with your customers.
The key takeaway here is that customer upselling methods will be much easier if you know what to avoid. Once you understand these common pitfalls, you can design a much smoother experience when upselling to your customers.
Customization and built-in apps: Which methods to choose for upselling techniques?
Now that you know all the basic things about upselling. Let's talk about how to put these ideas to work in your online store.
There are two ways to implement upselling strategies for your online stores: Custom development or using built-in upsell apps. Custom development can range from a few days for simple features to months for complex systems. The cost depends on what you're building and who's doing the work. While some store owners handle basic customizations themselves, professional development does get expensive quickly. Plus, you'll always need to maintain and update custom code as your platform changes.
On the other hand, built-in upsell apps are easier to set up. You just need to install, agree on the terms & conditions, and you are ready to explore. Within minutes, you can see exactly what the app offers and whether it's right for your store. The best part? These apps are built for regular store owners. The interfaces are designed to be intuitive, with clear buttons and simple menus. Most do include helpful guides, though you'll still need to spend time setting them up properly for your specific needs.
This is especially true if you are using Shopify. Built-in apps on Shopify is more straightforward compared to other platforms like WooCommerce or Magento, which often require more technical setup and configuration.
The best Shopify app for upselling techniques
The best thing about Shopify is that it makes running an online store feel simple with a variety of built-in apps on its Shopify App Store. You don't need to be a tech expert or spend hours learning complicated systems. With so many upselling apps available, the key is knowing what to look for so you can pick the one that works for your store.
When you're looking for the right upselling app, look for a quick and easy setup so you can focus on actually growing your sales. The app has to include popular features like free gifts, volume discounts, and product bundles, to name a few. You'll also want an app that lets you create smart campaigns around your products, with options to control when and where they show up on the website. Most importantly, make sure it gives you clear numbers on how your campaigns are doing. You need to see what's working and what's not, so you can improve your results.
Qikify Upsell BOGO & Free Gift checks all these boxes perfectly. Beyond just having great features, the app offers peace of mind with its exceptional customer support. No more worrying about your store breaking down during your busiest sales times. If you are still not convinced, the app also offers free option. With this free plan, you can create one campaign and try out all the different types of offers for your upselling techniques. Sounds interested?
Conclusion
Upselling techniques don’t have to be pushy or tricky, it’s about genuinely helping customers find better solutions that meet their needs. When you focus on real value instead of just higher prices, everyone wins. Your customers get products that work better for them, and your business grows sustainably.
Whether you're using social proof, creating urgency, or offering trials, remember the golden rule of upselling techniques: if you wouldn't recommend the upgrade to your best friend, don't recommend it to your customers.
FAQs
The four stages of upselling are: Identify the potential for an upgrade from customers, create compelling upgrade offers, communicate product benefits, and close the sale with a focus on added value.
Three skills that every merchant needs for upselling are Empathy, Value Proposition, and Storytelling.
F&B upselling, short for Food & Beverage upselling, is a sales strategy that involves suggesting higher value dishes or services than those initially chosen by the guests of your accommodation.
If you go to an Apple store to buy a 128GB iPhone, but the salesperson convinces you to buy the 256GB version, this is an example of upselling.
Harry Nguyen
Marketing Specialist at Qikify
Hi, I’m Harry, your friendly neighborhood marketer at Qikify. I am all about providing E-commerce merchants like you with the best insights and industry tips to help you grow your online stores and drive more sales.
Out of office, I like working out at a gym and learning about all things E-commerce and Marketing.
Feel free to reach out to me on LinkedIn. I’m always up for a coffee chat with other marketing folks and store owners to exchange ideas and explore potential collaborations.
