When customers are buying lower-priced items, offering them a better, more relevant product with a discount can really make a difference in boosting your sales. This is called upselling, and it’s one of the most effective strategies for increasing revenue in your store.
Keep reading, and I’ll walk you through how to set up upselling discounts on Shopify to make the most of this opportunity!
What Is Upselling Discount in Shopify?
Ever been shopping online and had this thought: “Hmm, maybe I should go for the better version?” That’s the magic of upselling discounts, and as a business owner, you can totally use this strategy in your Shopify store (or any online shop). It’s all about offering customers a sweet deal to upgrade their purchase or add something extra right when they’re ready to buy.
Here’s how it works: You offer a discount on a higher-priced item, an upgraded version, or even a bundle deal during the checkout process or while your customers are buying lower-priced products. Let me give you an example so it’s crystal clear.
Let’s say one of your customers is shopping for a laptop priced at $800. As they’re about to check out, an offer pops up:
“Upgrade to the Pro model for just $200 more and get 10% off the total price.”
Here’s what happens next: the Pro model, which usually costs $1,200, now comes to $1,080 with the discount. For just $200 more, your customer gets a way better laptop and saves $120 in the process. Sounds like a deal they wouldn’t want to miss, right?
What Is the Difference Between Upselling and Cross-selling?
If you’re looking into upselling discounts on Shopify, you’ve probably come across terms like cross-selling, too. They sound kinda similar, right? But they’re not exactly the same. Let me break it down for you.
We’ve covered cross-sell discounts in another article, but here’s a quick recap:
with cross-selling, you’re suggesting related products to your customers while they’re already shopping. Think about it: someone’s buying a smartphone, and you nudge them to grab a phone case or a screen protector. It’s that little “Hey, don’t forget this!” moment that pops up on their screen or appears somewhere in their cart.
Upselling, on the other hand, takes a different approach. Instead of focusing on related items, it’s all about offering a higher-priced version or upgrade of what they’re already considering.
Curious to know more about how upselling and cross-selling compare? Check out our article which is about upselling vs. cross-selling, where we dive deeper into the differences and how to make the most of each strategy.
Psychologist Facts Behind Upselling Discounts on Shopify
Ever wondered why upselling discounts work so well on Shopify? One big reason is the anchoring effect. But hold on! What exactly is the anchoring effect, and why does it play such a huge role in upselling?
The anchoring effect happens when people rely on the first piece of information they come across to make decisions. In the context of upselling, that “anchor” is the price of the base product. When customers see a slightly higher price for an upgraded version, especially if there’s a discount, it suddenly feels like a way better deal in comparison.
Here’s why it works: the discounted price makes the more expensive option feel like a steal compared to the original price. Customers think they’re saving a ton, even if the difference isn’t massive. And who doesn’t love feeling like they got a bargain?
If you’re curious about the psychology that makes people click that “Add to Cart” button and actually follow through with their purchase, check out our article on psychological pricing strategies.
Real Examples of Upselling In Retail
Let’s take a look at how upselling discounts work for other brands as well as Shopify stores. These examples are from brands you probably already know (and maybe love):
- Apple: Ever bought an iPhone and noticed they nudge you to go for the model with more storage? Instead of the basic 64GB, they offer 128GB, 256GB, or even 512GB for a higher price, of course.
Why does this work so well? Simple. Most of us worry about running out of storage (you know, all those photos and apps!), so paying a little extra for the "just in case" storage feels like a smart move.
- McDonald’s: You’ve definitely heard this one: "Would you like to make it a large?" It’s the classic upsell for meal upgrades. For just a bit more, you can get larger fries and a bigger drink.
Why does it sound so tempting? Because the extra cost feels tiny compared to the value of more food. And who doesn’t want more fries?
- Amazon: Amazon’s "Frequently Bought Together" feature is genius. Let’s say you’re buying a Kindle, they’ll suggest things like an upgraded case or an e-book subscription, all bundled together for convenience.
Why does it work? The recommendations feel super relevant, and almost essential. Plus, bundling makes it easy to say, "Yeah, I’ll take that too."
Marketing Strategies for Upselling Discounts in Shopify
Want to make the most of upselling discounts on Shopify and see your profits take off? Here are some tips to fine-tune your strategy and make those offers irresistible! Let’s dive in.
Segment Your Customers
When it comes to upselling, knowing your audience is key. Focus on those high-value customers; you know, the ones who trade or spend more than average. Offering them higher-value products can really pay off.
Create Scarcity and Urgency
FOMO (fear of missing out) is real, and it works like magic. When you create a sense of urgency, people are more likely to jump on your upselling offers. How? Try this:
- Countdown Timers: A simple “Offer expires in 24 hours” on discounted products can work wonders.
- Flash Sales: Offer exclusive discounts for a short time. You can even use apps to make it easy.
Use Tiered Discounts
Encourage your customers with tiered pricing to buy more by giving them better deals for bulk purchases. For example:
- Buy 1 item: 10% off
- Buy 2 items: 15% off
- Buy 3+ items: 20% off
It’s a win-win: they save, and you sell more!
Highlight the Value of the Upsell
Here’s the thing: People need to see why the upgrade or higher-priced products and services are worth it. Show off your upselling product’s features compared to the lower-priced option. Use visuals, customer reviews, or even detailed descriptions to drive the point home.
And don’t forget to highlight the savings. Let them know how much they’re getting for less.
Stay on Top of Inventory
Nothing kills a sale like a “Sorry, we’re out of stock” message. Make sure your upselling products are always available and ready to ship. If a product’s in high demand, plan ahead so you don’t run out. Your customers (and your profits) will thank you.
Use Discount Apps to Level Up
Shopify’s built-in discount tools are great, but they’ve got limits, like not being able to run multiple discounts at the same time. That’s where third-party discount apps come in handy. They can automate and customize your discounts to make the whole process smooth and efficient.
Discounty; a Must-Have App for Upselling Discounts in Shopify
If you’re serious about getting the most out of upselling discount on Shopify, one of the biggest game-changers is using a discount app. And if you're looking for something user-friendly that makes offering upselling discounts on Shopify a breeze, let me introduce you to Discounty: the app that checks all the boxes.
So, what makes Discounty.ai stand out? It’s packed with features designed to help you run effective upselling campaigns. Here’s what you’ll get:
- Multiple Discount Tiers: Want to encourage bigger purchases? Set up discounts like “Buy 2, Get 10% Off” or “Buy 3, Get 20% Off.” It’s a classic strategy because it works.
- Campaign Combinations: Ever thought of stacking promotions? With Discounty, you can run offers like “Buy 3, Get 30% Off” while also offering a “25% Off” deal on specific products.
- Advanced Pricing Options: You decide how discounts are calculated, whether it’s off the original price or the compare-at price.
- Product Inclusion and Exclusion: Easily pick and choose which products to include in your campaigns. No stress, no confusion.
- Auto-Update Campaigns: Added new products to a category? No problem! Discounty automatically applies the relevant discounts.
- Customization Galore: Match your store’s vibe with personalized sales badges, widgets, and tier tables.
- Scheduled Campaigns: Set it and forget it! You can schedule campaigns to start and stop exactly when you need.
What about pricing? There’s something for everyone:
- Free Plan: Great for starters! You get 50 discounted variants, 3 campaigns, product selection filters, and scheduling tools, all for free.
- Discounty Plan ($39.9/month): Perfect for growing stores. Get 10,000 discounted variants, 100 campaigns, multiple discount tiers, full customization options, auto-updates, and chat/tech support.
- Ultimate Plan ($75/month): The VIP experience with unlimited discounted variants and campaigns, advanced tier setups, campaign combinations, and priority support.
So, if you’re ready to make upselling a whole lot easier (and more profitable), Discounty has your back.
Is Upselling Good for Your Shopify Store?
Wondering if offering an upselling discount is the right move for your store? It’s not a one-size-fits-all kind of deal, so let’s break it down together. Here are some key things to think about before you jump in:
Know Your Products Inside and Out
Do you sell items that naturally pair well together or have variations that make upgrading worth it? For example, if you sell coffee makers, can you upsell with a premium model or add-on accessories like reusable filters? If your products already complement each other, upselling could feel like a win-win for your customers.
Peek Into Customer Habits
What are your customers buying? Take a good look at their purchase history and behavior. Are there opportunities where they might genuinely benefit from an upgrade or add-on? If you can spot patterns, upselling will feel natural and not pushy.
Keep an Eye on Competitors
What are others in your niche doing? If your competitors are offering upselling discounts and it’s working for them, it might be worth a try. But remember, their strategy doesn’t have to be yours, you can tweak it to fit your style.
Don’t Forget About Profits
Here’s the deal: discounts are great, but only if they still leave you with a solid profit. Run the numbers. Does the upselling discount still work when you factor in your costs for both the base and premium products? If yes, you’re golden. If not, rethink the offer or adjust the discount.
Key Things to Keep in Mind After Offering Upselling Discounts
So, you’ve set up an upselling strategy for your business, great move! But how do you know if it’s actually doing its job and helping you reach your goals? Here are a few things to keep an eye on to make sure your efforts are paying off
Keep an Eye on Performance
Let’s be real: tracking how well your upselling is working is non-negotiable. Take a good look at your numbers: Are conversion rates climbing? Is your average order value going up? Are your customers happy? These metrics will tell you if you’re on the right track or if you need to tweak things a bit.
Watch How Customers Respond
Upselling isn’t just about squeezing out more revenue; it should also boost customer happiness and loyalty. Pay attention to whether the people who take you up on your upsell offers are coming back for more or recommending your business to others. If they are, you’re doing something right!
Fine-Tune Your Offers
Notice some upsell offers performing better than others? That’s your cue to lean into what works. Maybe try offering similar products or services, switch up your discount structure, or find ways to add extra value.
On the flip side, if an upsell isn’t landing well, think about when you’re presenting it. Timing can make or break an offer. Maybe it’s better during checkout or on a confirmation page rather than earlier in the process. Test it out and see what sticks!
Key Mistakes to Avoid When Offering Upselling Discount on Shopify
Alright, we’ve covered the basics, but let’s talk about what not to do when offering upselling discounts on your Shopify store. These are the little traps that can mess up your strategy if you’re not careful.
First off, don’t overwhelm your customers with too many upsell offers. Imagine walking into a store and getting bombarded with suggestions at every corner! Annoying, right? Keep it simple and strategic.
Also, relevancy is everything! Avoid throwing upsell offers at random products. Use your customer data and purchase history to make smart, tailored recommendations. It’s about offering something they actually want, not just what you want to sell.
Another thing to watch out for? Heavy discounts on upsell offers. Sure, discounts can grab attention, but going overboard can eat into your profit margins and even make your products feel less valuable. Balance is key here: offer enough to entice, but not so much that you regret it later.
Final Thoughts on Offering Upselling Discounts on Shopify
And that’s the gist of it! When it comes to upselling discounts, it’s all about understanding your business goals and crafting a strategy that works for you. Stick to the tips we’ve covered, and make sure to avoid the common mistakes we just discussed.
Remember, a great upselling strategy should do two things: enhance the customer experience and boost your revenue without hurting your customer’s trust. Keep it smart, relevant, and simple, and you’ll be good to go!
