People's attachment to their phones and the internet have given rise to the popularity of e-commerce platforms and businesses. People often find purchasing products from e-commerce stores more convenient as they don't even need to leave their homes. However, one should not rely on the rising popularity of e-commerce alone. If you want your e-commerce business to succeed, you have to find different ways to improve it. And one such way is to use cross-selling to increase e-commerce AOV.
What Is AOV?
Let's begin with the definition of AOV. AOV is the Average Order Value, and it represents the average amount of money spent by a customer. The higher the AOV, the better the chances of your business success. Increasing your AOV will allow you to grow your business, boost sales, and increase profits.
What Is Cross-Selling?
Cross-selling is a sales technique that allows your customers to purchase additional products and services while they are already purchasing the first item. This technique is often used in the retail world and in the travel industry. If a customer buys a camera, a cross-selling strategy allows you to recommend accessories like a memory card or a bag.
Cross-selling is used in the e-commerce world, too. While a customer is purchasing a product from one store on an e-commerce website, another store can promote and recommend additional products to them.
Cross-Selling vs. Upselling
Before we proceed, let's make one thing clear. What is the difference between cross-selling and upselling? Cross-selling and upselling are very similar. In both cases, you give customers suggestions for additional items to buy. However, there is a difference. Consider the following example.
Upselling is a technique used by sellers to make more money from existing customers. For instance, if you own a camping equipment store, you may offer customers to upgrade their tents with a better model.
Meanwhile, cross-selling is a technique used by sellers to make more money from new customers. For instance, if you owned a camping equipment store, you may offer customers to buy an air mattress, which is a product they may not have considered buying on their own.
Cross-Selling Strategies
Now that you know what cross-selling is let's discuss how to use it to increase your e-commerce AOV.
1. Cross-Selling Products That Are Related
The most obvious way to use cross-selling is to recommend products that are related to the ones your customer is already buying. So, if a customer is buying a Macbook, then you can recommend related accessories like a mouse, power adapter, or memory stick.
2. Cross-Selling Bundles
Another way to use cross-selling is to sell bundled products. For instance, if a customer is buying a Macbook, then you can suggest a bundle that includes a memory stick, a mouse, and a power adapter. By buying a bundle, customers can save money. And they often like this offer.
3. Cross-Selling Special Offers
If you are running a flash sale, then you can promote it to your customer by offering them special deals and discounts. You can also recommend products that are discounted or products that are unique. This technique allows you to encourage customers to buy products from your store.
Final Thoughts
Cross-selling has helped many e-commerce businesses increase their AOV. You can use the techniques discussed above to achieve the same results. By using cross-selling, you will increase your e-commerce AOV, and your business will grow.
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