eCommerce Lifestyle
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new money machines 3

New Money Machines | Part 3 of 5: Upsell Machines

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In this special episode of the eCommerce Lifestyle podcast, Anton ​shares ​the third New Money Machine to use in your eCommerce store.


In this ​five episode series, you'll learn the new techniques to earning MORE profits before, during, and even *after* the sale.


Listen in to hear ​Anton's ​strategy for the ​third money ​machine: ​​Upsell Machines.


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Transcript

Hello, everybody. Anton Kraly here from eCommercelifestyle.com and welcome to another episode of the podcast. If you've been following along in real time, I've been publishing a series here on the podcast that I'm calling New Money Machines. These are all different things you can plug into your business on to your eCommerce store to make more money before, during and after the sale is made. We've done two episodes so far. This is episode three of five in the series. If you haven't heard episodes one and two yet, definitely go back through the podcast feed, listen to those and follow in order.

Also, if you're new here or you're not already running an eCommerce store, you're not going to want to do anything I'm talking about until you go through my Drop Ship Lifestyle Program, and until you build up your core profit center, which of course is what I teach inside of Drop Ship Lifestyle. If you haven't done that already, go to dropshipwebinar.com. You can get my free training again about the core business model, hHow to build a highly profitable semi-automated store. Get enrolled in my programs. Build that out. After you've done so, that's when you're going to start plugging in all of these money machines to really just grow your business, make more money, make your business more profitable and more sellable if you ever want to sell it.

Today's topic of discussion is upsell machines. The upsell machines are designed to increase your AOV. That stands for average order value, meaning how much the average person spends when they're buying from you. If one order was originally worth $500, let's just say you want to take that and make it now $600 or $700 or even $1,000, and one way we do that again is with these upsell machines.

Upselling is really confused, especially online with cross-selling. Last episode was about cross-selling so you know what that is. Upselling, what it really is, is recommending comparable higher end items or things that enhance the product itself. With upselling, you're not talking about, oh, if you buy, like in the last episode, if you buy this backpack, you should also buy these straps and you should also buy this rain cover. That's not what we're doing with upselling. With upselling, if somebody was buying backpack A, you might say to them, hey, backpack A is great, but you should get backpack B because backpack B is excellent. Upselling again is taking them to a higher category you could say of product or a better product, something that typically is more expensive but something that's just better. You're upselling them to a better product.

An example that can tie this into the real world is something that everybody is familiar with. Let's just say you were flipping through a Sunday newspaper or a website and you see an ad that says, hey, come to this Toyota dealership and lease a brand new Toyota Camry. It's $250 a month. You see that ad, and you think, oh, awesome. I need a new car. Toyota's are good. $250 a month lease sounds great. Then you drive down to the Toyota dealership. You go in. You say, hey, I saw this ad for this Toyota. It's $250 a month. The dealer says, yeah, it is, but you really want to check out this one right here. This is actually the updated version. It has a bigger engine, so it has faster acceleration when you're getting on the highway. It also has Apple car play so you can just get in and stream all your music and listen to eCommerce lifestyle with Anton as you're driving to wherever it is you're going, and it has floor mats, and it has whatever else it has. It has leather seats. It has a wood trim.

That is what upselling is. You're taking a customer that's going to buy something and you're recommending something better to replace that thing. That's the best definition I can give you for upselling.

How do we do this on our stores? How can you do this on your own current store or future store if you haven't built it yet? Well, what you want to do, first of all, the first tip I'll give you is create comparison charts on your product pages. Let's say you were selling Keurig coffee machines. This is just for an example. If you're part of Drop Ship Lifestyle, my coaching program, you know we wouldn't sell that, but let's just say you are. You're selling Keurig coffee machines. Somebody goes to your website and they're looking at a base model. Maybe the base model makes eight cups of coffee and maybe it holds eight cups of water in it. They're looking at that. Okay, great.

What you want to do with these comparison charts is put it somewhere in the middle of the product page where you show them the one they're looking at and then to the right of it, show them the other versions. Maybe again the base model they're looking at makes eight cups, and then maybe the gold version, I don't know how they name their products, but maybe the gold version makes 12 cups and holds more water so it's less refilling and less work. Maybe the platinum version makes 15 cups of coffee and it's perfect for an office or somewhere that it's getting more use.

By doing this, you're showing your customer what they came in for. Let's say they Googled Keurig based model machine. Now they're on your website, they're on your product page. You're showing them that. They can buy it if they want, but you're doing what that car salesman would do in person. You're saying, hey, what you're looking at is great. This is what it is, but you should seriously consider this better version because of X, Y and Z.

You've probably seen this on Amazon. They do a great job of it with these comparison charts, but basically what you're showing on the left column are different features, then you're showing in the proceeding columns all the different versions and showing what is included with each version. Obviously as the price goes up, the product should have more functions or it should be more premium and it should get better, which of course will lead the people that want an upgrade to upgrade. It'll make you more money per order because it's going to increase your average order value. That's the first tip with upsell machines.

Second tip is offer the shoppers an option to replace the item that's in their cart. Here's how that works. This might be hard to for you to visualize as I just talk about it. This is all in the Drop Ship Blueprint in Version 8, which is launching soon. By the way, I haven't talked a lot about that yet. If you're not part of my coaching program yet, Drop Ship Lifestyle, definitely go to dropshipwebinar.com right now. Watch the free training and get enrolled because we're about to roll out a huge update. When we do, the price will go up, but if you enroll now, you'll be locked in. You'll get all these updates. I'm going to show you again screenshot by screenshot, slide by slide, video by video, how to do this all.

With this one, again, what we're doing is offering shoppers the option to replace the item in their cart. Let's say you're selling, I don't know, leather reclining chairs. The base model of the brown leather reclining chair that you sell is fake leather. It's synthetic leather. If the customer is on that product page, when they click add to cart, what we do and what you should do is have a popup box come up that says, do you want to upgrade your order to premium Italian leather or whatever that next level up is? Then they have an option when they see that to replace the item, and it'll show them the price difference. Maybe it's plus $100. If they click replace item, then the synthetic leather chair will not be added to their cart. The premium leather chair will be added to their cart instead, and it will be whatever price it is, maybe $100 more, $200 or more, whatever it is.

When they see this popup box, they can say replace item, but they can also say no thanks if they don't want to and they can just continue to buy the base version. Again, so far we have two things; comparison charts and offering shoppers the option to replace the item in their cart. Be careful with this one, the replace option because you only want to do it where it just makes perfect sense. Again, do you want to upgrade the leather you have? Do you want a coffee machine that makes eight cups instead of six? What you don't want to do is have a popup come up where somebody is trying to order a brown leather chair and say, hey, do you want this brown leather love seat or sofa instead? Make sure it makes sense. Make sure it's something that a salesperson would actually do if you were in a store buying whatever it is you're selling online.

Third upsell machine. This one is a little bit different because it's not giving the customer an option to upgrade the product, but it is giving them an option to upgrade their order. This is allowing them to purchase extended warranties, again, which it makes the average order value go up and it also makes their order better because now they have this extended warranty should they want to choose it. With this, we do another popup window asking them if they want to add it on. This one, we do after they're already in their cart. Once they go from their cart to their checkout, that's when they see this option, the ability to purchase extended warranty.

The fourth one is offering shoppers the option to upgrade shipping. This takes five minutes to do and there's no reason why everybody that has a store that's listening shouldn't do this. With this, all we do is go into the Shopify settings, because we use Shopify to build our stores, and we have our free shipping option. We call it free domestic shipping. We have in brackets how long it takes. Let's just say, it depends on the store obviously, but let's just say free domestic shipping, five to seven business days. What we do is add an upgraded shipping option called priority domestic shipping. They can have free. Free is selected by default, but when they're going through the checkout process, they can click priority domestic shipping and instead of five to seven business days, this might be two to three business days.

If they select it, it'll add whatever you choose, but let's just say $100. They add that, continue to payment. They buy. Now they paid more. Their average order value is up. They're having a better experience because they're getting their item faster. Now you just know to work with your supplier to make sure that this order is prioritized and gets out right away as fast as possible to your customer. Easy, easy, easy to do, and just extra money.

One more thing I will add here is something that definitely is worth doing. You should have all of what I just talked about built into your website so that's all automated. You set it up once. It runs in the background. It makes you money until you've decided you want to sell your store and then it makes somebody else money. This one is manual, but it's worth it, and this is calling customers after a sale is made and taking them through that process that I just explained on your website but doing it over the phone.

Everybody is not going to do this. Everybody doesn't want to call people. I know I'm not a salesperson, and I know I don't spend my time doing this. Maybe you are a salesperson. Maybe you enjoy it. Maybe you want to be the one that speaks to everybody. If that's the case, you can make these calls yourself. If not, you can easily outsource this, but what we're doing here is calling customers after the orders come in saying, hey, customer, thank you for ordering on our store.com. I just wanted to let you know your order is confirmed and it's scheduled to ship in X days, whatever it is.

Then, you can say we noticed when you ordered your coffee machine, you chose the eight-cup version. I want to make sure you're aware that there are other versions available. There's a 12-cup and a 15-cup. Do you have any interest in upgrading? I could do it right now for you on the phone. We'll get it out sooner. They say yes. They say no, whatever it is. You can say, okay, great. Did you know we also have an extended warranty, and we can ship it to you faster if you need it, if you're in a rush. They say yes. They say no or whatever it is. If they want it, you add it to their order and you make more money. Just an easy win. It's valuable to the customer, so don't think like you're hard selling anybody or calling them and having to mess up the relationship on the phone. It's actually there to benefit them.

Again, if somebody went to a store and they said, hey, I want to buy this brown leather chair, the sales person would say, okay, we have this version right here that is synthetic leather. If you want this premium Italian leather, it's an option, a little bit more money but it's here if you want it. You're just making your customer aware.

A couple of things that are important to know with these upsell machines. The first thing you want to think of is what products do you offer that are high quality with high margins, so you don't want to be obviously doing this on every product page on your site. Think about what you're already selling. Think about what products your customers are most happy with. Think about where you have the best profit margins. Those are the ones that you want to guide people to.

Something else you want to think about is what are some non-tangible products and/or services that would benefit your customers. The best way to figure this out is just look at your offline competitors, see what they're offering. Maybe it's an installation service. Maybe it's a design consultation. Maybe they have buyers' clubs or extended warranties like I mentioned before, but look at what the best offline stores are doing and find a way to bring that online to your business.

Finally, I would say look at again everybody that's offline and just try to automate things as much as possible. Again, this is the third money machine I'm sharing with you. The goal of all of this is to take these offline ideas, again, these successful offline ideas, bring them online, but automate every step of the way because the goal is to have these things running in the background. If there are things that you want to test that are manual like those phone calls, it's okay, it's fine. Again, first focus on the easy wins, the automations, the stuff that you could set up in an hour that'll make you money again for years on autopilot.

If you want to know again exactly how we set this up, the technical way, the tools we use, where to click on what, that's all covered in Drop Ship Lifestyle, especially in the newest update, version eight we have coming out. If you want to be a part of that, again, get the step by step instructions, go to dropshipwebinar.com right now. Again, dropshipwebinar.com. Get enrolled, and I will see you inside the program.

Again, if you're getting value from this podcast and you're not subscribed yet, click the subscribe button because we have two more of these money machine episodes coming out over the next two days. Be sure to subscribe. Be sure to leave a review if you're loving it. If you're not part of the program yet, again, dropshipwebinar.com. Thank you, everybody. Appreciate you, and I will talk to you tomorrow.

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