Definition of upselling

Upselling is the practice of encouraging customers to buy a more expensive item or upgrade their purchase, with the goal of increasing the average transaction value.

Explanation of upselling

By suggesting higher-tier or complementary products during the buying process, businesses aim to enhance customer satisfaction and maximize revenue.

Example of upselling

A fast-food restaurant offering customers the option to upgrade their meal to a larger size for a small additional cost.

Strategies of upselling

Identify suitable upsell opportunities, emphasize the value of the higher-priced item, and offer incentives such as discounts or bundled deals.

Related terms

• Cross-selling
• Average transaction value
• Product bundling