Learn how to upsell and cross-sell fashion retail

February 3, 2022
Krishita Rajpal

In a recent study by Forrester’s Sucharita Kodali, it was found that product recommendations account for an average of 10-30% of eCommerce businesses’ revenues.

When it comes to eCommerce and online sales, two incredibly effective techniques are upselling and cross-selling. They increase your marketing efficiency and thereby increase revenues. Tracking customer browsing behavior and purchase history, allows you to identify relevant and optimal offers. 91% of consumers are more likely to purchase from brands that remember them and provide offers related to past purchases.  

The two tactics are a winning combination as they entail maximizing revenues and providing customer satisfaction. Their most prominent feature? They are budget-friendly and are easy to execute. If you're looking for ways to upscale your sales, this short read is the right place to start.  

What is cross-selling?
Cross-selling entails recommending a product that is complementary to the primary product the buyer is purchasing.
It is estimated that 35% of Amazon’s revenue is generated by cross-sells. In addition, Amazon is the industry leader when it comes to cross-selling in eCommerce and mastering product recommendations.
Examples of cross-selling include "Buy the Look", "Others also bought", and "Frequently bought together".

What is Upselling?
Upselling refers to offering a product or service that is usually higher in quality or status than the one initially intended for purchase.
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.

Phrases such as “Best Sellers”, "You May Also Like”, “New Arrivals”, are some popular examples of upselling.  

The rules of three
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.

Here are some well executed examples of Upselling and Cross-selling in Fashion

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.

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.

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.

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.  

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.

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.

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. Contact us to book a free demo.

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