Magento sell and sell cross “up-sell”, “cross-sell” and “related products” are three similar but different concepts in Magento to understand. Two of them usually appear on the product pages and the other one in the shopping cart. Using these three tools effectively will help you get the most out of Magento.
The best-selling products are the items you want your customers to like, not the products they are currently viewing. These are items that fall into the same category as the item you are currently seeing, but are more expensive, of better quality, etc.
Related products are also displayed when a particular product page is shown, but they are products that are intended to be purchased in addition to the product the user is currently viewing.
Cross-sell items can appear both on the product page and in the shopping cart, but they are more of an impulse purchase; think of them as the online equivalent of items near the checkout line at the grocery store.
Reasons for using up-sell, cross-sell and related products.
- Cross-selling and up-selling work very well with existing customers.
- According to Marketing Metrics, the probability of selling to an existing customer is 60-70%, while the probability of selling to a potential buyer is 5-20%.
- Increase your revenue
- Increase the average value of your orders per customer
Introduce customers to a wider range of merchandise types.
According to a 2009 survey by Internet Retailer, 35% of Amazon sales are generated through cross-selling.
Cross-selling and related products also benefit customers by allowing them to purchase all the additional products they need through one retailer.
Where cross-selling, top-selling or related products can be used
Before purchase: under the main product on the product or category page, or in the sidebar
At checkout: in the shopping cart, at checkout, and in the abandoned cart email
After purchase: in a follow-up email.
Top sales
As briefly explained earlier, an upsell aims to get a potential customer to spend more money on a more expensive/featured model in a product category they are already looking at, or by adding some extra premium components. An example of an upsell would be displaying several more expensive computer monitors on a product page for a cheap monitor.
Products you might be interested in
Related products are products that are intended to be purchased in addition to those already viewed by the customer. An example of a related product would be displaying a box of nails on a product page for a hammer, or offering a mouse and keyboard when purchasing a desktop computer. The easier it is for customers to buy items they need, the more likely they are to buy them.
Cross-sell
Cross-sells are items that typically appear on a shopping cart page after an item has already been added to the cart, although they may appear in other situations. The purpose of cross-sells is to alert customers to items they might not expect or would not purchase. An example would be to show a customer whose cart is full of clothing products such as batteries or dishwashing liquid. You can think of these cross-sell products as functioning similarly to the products you see near the checkout line at a grocery store. They have no specific relationship to the items the customer has already purchased, but they may catch your attention or be perceived as a purchase. A valuable addition.
Strategies
Here are some useful strategies to get the most out of your up-selling, cross-selling and related products.
Portfolio products
Product combinations offer the opportunity to attract customers with a complete set of complementary products. Very often these product combinations are offered at a reduced price, but they also allow you to sell items that might never have been purchased under different circumstances.
Do not offer expensive additional products
The cost of an additional purchase must be directly related to the original price of the item. The cost of these add-ons should not exceed 25% of the original product price.
The main benefit of an effective up-sell is to give the customer a reason to buy an upgrade/add-on now rather than later or not at all. The customer must have a significant benefit to be sufficiently motivated.
Show an option, but don’t overwhelm the customer
If there are too many options available, it can be confusing. For related products, it is better to choose fewer but more appropriate or more related products than to show tons of available options. If you decide to have a wide variety of products, use a carousel to display them.
Display products according to their importance
The more relevant the product suggestions are, the closer they should be displayed to the main product.