Learn how to upsell and cross-sell products in fashion retail

May 20, 2023
Team Streamoid

In a study by Forrester’s Sucharita Kodali, it was found that product recommendations account for an average of 10-30% of eCommerce businesses’ revenues. Upselling and cross-selling are both incredibly effective strategies for increasing sales in the fashion retail industry.

What is Upselling?

Upselling involves encouraging customers to purchase a higher-priced, higher quality of the product they are currently considering. For example, a clothing store might offer a customer a more expensive, designer version of a dress they are looking at. Phrases such as “Best Sellers”, "You May Also Like”, “New Arrivals”, are some popular examples of upselling.

What is Cross-selling?

Cross-selling, on the other hand, involves suggesting complementary or related products to a customer. For example, a clothing store might suggest a belt or jewellery to go with a dress a customer is buying. Other examples of cross-selling include "Buy the Look", "Others also bought", and "Frequently bought together". It is estimated that 35% of Amazon’s revenue is generated by cross-sells.

Tips To Increase Product Sale In Ecommerce Platform

Majority of brands today utilize advanced technology to create a holistic customer experience that engages audiences at every touchpoint. A lot of effort is being made to increase the relevance of offers and help the shopper make smart choices. Some of the more popular strategies are:

  • Offering customers a discount or other incentive to upgrade to a higher-priced item
  • Using suggestive selling techniques in the fashion industry, such as displaying complementary items near products customers are viewing
  • Using data and analytics to recommend products based on a customer's past purchases or browsing history. It was found that 91% of consumers are more likely to purchase from brands that remember them and provide offers related to past purchases.
  • Offering package deals for related items, such as a matching handbag and shoes

It's important to keep in mind that the key is to make relevant, useful and valuable suggestions to the customer. As long as the customer feels like they are getting a good deal, they are more likely to make additional purchases.

Pricing Technique for Product Upselling

The rule of three is a pricing technique brands use to upsell products. It involves displaying three products: -

  • The primary/baseline product: This is the product the customer intends to purchase
  • A pricier alternative: A more expensive version of the product.
  • An ideal/dream version of the product that's likely to be out of their price range.

This is based on the psychology of everything being relative. Compared to the pricier alternative the middle one is cheaper, even if in absolute terms it is expensive.

Examples of Upselling and Cross-selling in Fashion Retail

1) Buy The Look

Buy the look is a stellar example of cross-selling products. Nordstrom masters this with “Style Ideas for this Item”. It provides an ideal pairing for items to complete different looks. Displaying the products versatility while inspiring the shopper to add the whole look to cart.

Cross sell and Upsell example

2) Similar Items

The main purpose of recommending similar products is to nudge the shopper to make a decision, as they might have seen the entire assortment. It prevents the customers from missing out on the collections and variety of products you have to offer.

Similar Items Display
Example: Net-A-Porter

3)New Arrivals

New arrivals are a smart way to upsell your products. Shoppers tend to gravitate to what’s new in-store. This gives them a chance to wear the latest, on-trend clothing. Moda Oprandi does amazingly well with displaying their new arrivals. They even segregate products based on designers, color, and accessories, making it easier for shoppers to navigate.

New arrival Items Display

4) Selected Favorites/Best Sellers

Boosting your best sellers is an effective way to upsell your products. Having social validation makes the decision-making process seamless for your customers.  

Cross sell example
Example: H&M

5) Shop the Gram

The key component here is social proof. Customers trust their peers and people they admire. Because of this, brands have the power to impact their purchase decisions. With Social Shopper, you can inspire your customers to ‘Shop the Gram’ and upsell your products seamlessly.

Shop the Gram
Example: Forever 21

6) Style for Me

This tool enables easy jumping points to products that complement to the baseline product. It can even be personalized by tracking your customer’s buying behavior and purchase history.

Style me product display

You need to be smart about how and where you use these strategies. Even the best offers can fail if served at the wrong time and place. So, it is important to map your customer journey and make different offers at different touchpoints.  

Enhance your customer’s online shopping journey with product recommendations for eCommerce success. Contact us to book a free demo.

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