Cross-selling vs upselling

Upselling and cross-selling are two distinct, but complementary sales tactics, that both allow sellers to increase their revenue and improve customer satisfaction.

Upselling is all about encouraging customers to choose a better or upgraded version of a product they’re considering. On the flip side, cross-selling suggests additional products that go well with the original purchase, helping customers get more out of their buying experience. While upselling boosts the value of a single item, cross-selling would increase the overall number of items in the cart.

Both techniques aim to meet customer needs while boosting sales. So what are the key differences? And how to implement both strategies to maximize your upselling and cross-selling efforts? Let's explore it below!

What is upselling?

We've all been there — ready to make a purchase but then, at the last moment, a suggestion made on an e-commerce site makes us think, "Wait, is this a better option?"

Upselling is a sales technique sellers use to encourage customers to purchase an upgraded version of their original choice or search target. It's about maximizing the value of every transaction by highlighting the benefits of a higher-end product or service. A customer may or may not be interested but simply making the offer by displaying it creates an opportunity for an upsell.

It isn't about tricking customers into spending more or simply pushing a more expensive product. It's about showing them  how a more premium option can better meet their needs or provide additional value. It's often the case that the customer didn't even know about the upgraded option before it was displayed and is immediately interested because of the brand, product features, price point or some other factor.

What is cross-selling?

Cross-selling involves suggesting complementary products related to the main purchase. It's a strategy aimed at increasing the value of a sale by presenting product recommendations that enhance or supplement the customer's original choice.

With cross-selling, the idea is to make some sales easier by drawing attention to the fact that certain items naturally go together and that a primary purchase often needs or is improved by accessories, add-ons, etc. that a new customer of a particular product might not be aware of. Cross-selling isn't just an attempt to get customers to buy random extra items, but a focused effort to improve the buying experience by making customers aware of their options.

Successful cross-selling provides customers with a feeling that the seller is trying to help them with reminders of products that meet certain needs. When done well, cross-selling is a great way strengthen customer relationships by demonstrating that the business understands and caters to their needs.

The Difference Between Upselling and Cross-Selling

Both upselling and cross-selling result in increasing sellers revenue, but differences between the two lies in their goal. An upsell makes the customer increase their checkout value by upgrading the product, while the cross-sell is about purchasing separate, related items.

Upselling products means suggesting something a little more upscale or feature-rich whereas cross-selling focuses on products that support or enhance the main purchase. It involves encouraging customers to consider spending a little more than they planned to, cross-sellling is about reminding customers about additional items and related products that they may want to order now to get the most out of their main purchase. Upselling may result in a customer selecting something they weren't aware of before, cross-selling involves offering additional products that would likely be necessary later, so why not get them now?

Cross-selling and upselling are two sides of the same coin and the effectiveness of these strategies will do a lot to determine how successful a seller is.

When to use each strategy: upselling vs cross-selling

When to use upselling?

Upselling techniques increase transaction values and usually result in purchases of higher-margin items, so the benefits to sellers are clear but there's another side to this. It is also a great way to help your customers find what they want or make a purchase they feel better about.

Why else would they accept your upselling suggestion and upgrade to another product if they didn't feel like they were somehow benefitting from it?

Be sure to take this approach when planning your upselling efforts — you will only be successful as a seller if you first consider the needs of customers and how you can offer them a broader selection of option than they were previously aware of. Upselling strategies have to be framed in terms of how you are helping customers make choices that better align with their needs, not yours.

When to use cross-selling?

The benefits of the cross-selling approach fall on both sides of the transaction. It gives retailers more opportunities for larger transaction values but, more importantly, it creates a better buying experience because it helps customers find what they need. On top of that, cross-selling to customers is not an intrusion at all and is now a standard part of e-commerce.

Cross-selling requires the same careful strategy as upselling when it comes to selecting the goods that are suggested. They have to be somehow relevant to the main product and anything else will be seen as unwanted salesy distraction. Keep it focused and limit cross-selling to items that can be logically grouped together.

Again, it's all about what the customer needs and making things easy by informing or reminding them that there might be something else they want to buy now to make their main purchase more useful, valuable or enjoyable. Make cross-selling a well-integrated part of your sales process and you'll be surprised at how often customers do want fries with that!

Key benefits of both strategies: cross-selling vs upselling

Benefits of cross-selling

• Increased Revenue: Cross-selling directly boosts sales by increasing the average order value.
• Improved Customer Lifetime Value: By offering relevant products, retailers can promote customer loyalty and encourage repeat purchases.
• Enhanced Customer Relationships: Cross-selling demonstrates that the business understands the customer's needs and provides valuable solutions.
• Efficient Sales: It's often easier to sell to existing customers than to acquire new ones.
• Convenience: Cross-selling can save customers time and effort by providing them with all the necessary items in one place.
• Enhanced Experience for Your Customers: Complementary products can enhance the customer's overall satisfaction with their purchase.
• Discovering New Products: Cross-selling can introduce customers to products they might not have otherwise considered.
• Value: Sometimes retailers will give discounts when items are bought together, which gives a value to the customer.

Benefits of upselling

• Increased Revenue: It directly boosts average order value and overall sales.
• Higher Profit Margins: Premium products often have higher profit margins.
• Improved Customer Lifetime Value: Customers who are satisfied with upgraded purchases are more likely to become loyal.
• Enhanced Experience: Upgraded products or services can provide a better user experience and greater satisfaction.
• Access to More Features: Customers can gain access to features or benefits they might not have otherwise considered.
• Better Value in the Long Run: In some cases, a higher-end option can offer better long-term value by being more durable or efficient.

Implementation strategies for both strategies

Successful cross-selling techniques

The key to an effective cross-selling strategy is to avoid distracting customers from their primary purchase by recommending complementary products. That’s why it’s crucial to display cross-selling opportunities at the right stage of the checkout process.

What’s the difference? According to a study by Baymard, 66% of users who had initiated a checkout and had to go through a separate step displaying a cross-sell at Amazon exhibited extreme frustration. So if you show additional products or services as soon as someone clicks “Purchase,” it can interrupt their buying flow and even cause them to abandon the checkout. They might get sidetracked and leave your site to explore those additional options.

In contrast, if you wait until after the purchase is finalized to suggest complementary products or services, especially with a time-limited discount, there’s a much higher chance they will decide to buy.

You’ll want to pinpoint which products genuinely enhance the initial order and understand the customer’s original intent. For instance, if someone is looking to buy a food organizer for $19, chances are they aren’t ready to splurge on a $1,000 fridge. It’s all about finding that perfect match that feels right for their budget and needs.

Key things to consider when implementing cross-selling:

• Relevance: The cross-sold products must be genuinely relevant to the customer's initial purchase.
• Timing: The timing of the cross-sell is crucial. It should occur at a point where the customer is receptive to additional offers.
• Personalization: Tailoring cross-selling offers to individual customer preferences can significantly increase their effectiveness.
• Don't Be Pushy: It is important to offer cross sell products without being to pushy. Customers should never feel pressured so don't create a sense of urgency as you might in other sales circumstances.

Implementing upselling

Effective upselling requires understanding the customer's preferences and offering relevant, personalized products that complement their initial purchase intent. There's nothing random about upselling recommendations, only relevant and interesting suggestions have a chance — everything else is an unwelcome distraction.

Think of it this way: your goal is to help customers see the benefits of upgrading to something they view as a better value. The key is to clearly communicate that value.

For instance, showcasing upgraded products at a discounted price can be a game-changer. Imagine highlighting an annual subscription that offers two months free compared to a monthly plan or presenting a product bundle that unlocks additional services at a reduced rate. The clearer you make the value proposition, the more excited they’ll be to embrace the higher cost.

Key things to consider when implementing upselling:

• Relevance: Upselling should always be relevant to the customer's needs and preferences.
• Value Proposition: Clearly communicate the added value of the upgraded option.
• Timing: The timing of the upsell is crucial. It should feel helpful, not pushy — don't interfere in the main flow of the transaction.
• Customer Relationship: Maintaining a good customer relationship is key. Upselling should improve the customer experience, not damage it.
• Take it Slow!: You can't expect to upsell someone who is searching for a fairly basic version of something to the most expensive, top-of-the-line version you have. Be sure your upselling suggestions are a step or two up the ladder from the starting point.

Real-life examples of cross-selling and upselling

Cross-selling and upselling opportunities really hinge on the type of product being offered. For instance, if a customer is purchasing a laptop, they might be presented with an upgraded model that features more memory as an upsell, or they could be shown a dedicated laptop case designed specifically for that model as a cross-sell.

You get the idea? Now, let’s dive into more examples from the digital world to see how these strategies play out in action.

Upsell examples

Software Subscription: Annual Plans with Discounts
Many SaaS companies, like Adobe Creative Cloud and Shutterstock, offer annual subscriptions with 2 months free compared to monthly plans, incentivizing longer commitments.

Online Course: Lifetime Access
Platforms like Udemy and Thinkific allow users to upgrade to lifetime access for courses, ensuring they can revisit the content indefinitely.

Cloud Storage: Additional Space or Seats
Tools like Dropbox and Google Workspace offer more storage or additional team seats at discounted rates for higher-tier plans.

Digital Marketing Platforms: Advanced Analytics
HubSpot and similar platforms upsell users to higher tiers that unlock advanced analytics tools and reporting capabilities.

Video Editing Software: Pro Features
Adobe Premiere Pro offers a pro version with advanced features like AI auto-tagging, unlimited multicam angles, and collaborative tools for professionals.

Web Hosting Services: Performance Upgrades
Hosting providers like HostGator offer enhanced security features, faster servers, and specialized hosting for platforms like WordPress.

Ebook Creation Tools: Advanced Formatting Plans
Tools like Scrivener upsell premium plans offering better formatting options, collaboration tools, and distribution services for eBooks.

Online Membership Sites: Exclusive Content Access
Platforms like Patreon allow creators to present exclusive content tiers, such as behind-the-scenes videos or private Q&A sessions.

Cross-sell examples

Online Community: Access to Archived Content
Buzzsprout cross-sells access to past live events or premium podcast archives as an add-on for members.

Ebook + Community Access
Digital creators often bundle eBooks with access to niche communities (e.g., AI graphics enthusiasts) for a richer experience.

Online Course Bundles
Platforms like Udemy cross-sell related courses (e.g., pairing SEO with content marketing) as discounted bundles during checkout.

Podcast Hosting + Audio Tools
Buzzsprout cross-sells its "Magic Mastering" feature as an add-on to improve podcast audio quality.

Social Media Management Tools + Templates
Planable offers social media post templates as a complementary product to its management platform subscription.

Photography Courses + Editing Presets
Online photography courses often cross-sell Lightroom presets or editing tools to enhance learning outcomes.

Content Management Systems + Plugins
WordPress cross-sells SEO optimization plugins or eCommerce extensions to enhance site functionality.

Webinar Platforms + Promotional Tools
WebinarJam cross-sells tools for creating promotional materials (e.g., landing pages) for upcoming webinars.

How Easytools helps creators and businesses with smart upselling and cross-selling strategies

Easytools offers both upselling and cross-selling mechanisms that anyone can easily implement, regardless of their tech skills or eCommerce experience. For upselling, simply create product variants, such as monthly and annual subscriptions, and bundle them with just one click. We highly recommend adding a custom description that highlights the features and benefits of the upgraded option. This upselling happens right on the same checkout page, allowing customers to make an informed decision before finalizing their purchase.

When it comes to cross-selling, we present complementary products to customers immediately after they complete their primary purchase. These additional items are showcased on the thank-you page. You can enhance this experience by offering a small incentive, like a discounted price that’s available for just 60 minutes, and we’ll notify them via email about this exclusive offer. The best part? If they decide to take advantage of the upsell, they can do so directly from the thank-you page with just a single click.

Key Takeways on Key Differences Between Cross-selling and Upselling

For retailers today, especially in e-commerce, the decision is not whether to upsell or cross-sell, but how best to do it. Both are absolute must-have sales strategies for getting customers to upgrade their choice to a higher price point or place an additional product in their carts or both. It's not a matter of "cross-selling vs upselling" but deploying both to different ends.

Whether you're upselling or cross-selling, it has to be done in a way that benefits customers first. Upselling can help them discover choices they didn't know they had, including options that they prefer over their original search target. Cross-selling is offering complementary products or services to the main purchase that customer are very likely to buy at some point anyway (think of a protective case for a phone) or often don't know they need (think of some kind of adapter to connect to a computer or a battery of an unusual size).

Either way, cross-selling and upselling would help customers make more informed decisions. And that means that customers are more satisfied with their purchases, bringing them back and making them more open to similar suggestions in the future.

As with so many other aspects of sales, putting customers and their needs first makes everything else easier!