Сan I Sell Products From Other Brands in My Online Store?

Сan I Sell Products From Other Brands in My Online Store?

What you need to know about cross-selling. Two steps of organizing cross-selling. Advantages and disadvantages of this method of boosting sales. Examples of cross-selling strategies. When to use this technique. How to find partners for cross-selling

​​In this article, we’ll explain how to improve ecommerce sales by offering products by other brands in your online store. This technique is known as cross-selling. It enables entrepreneurs to increase their revenues with minimum investment.

What is cross-selling?

If you want to get more sales online, you can motivate customers to spend more money in your store. In offline shops, assistants would come up and recommend products to you depending on what you’re looking at and which items you have in your hands or basket. Your task is to transfer this experience to your online store and grow business by turning consumers’ attention to goods they might be interested in.

This technique can be used within your own store. However, to expand business, it would be wise to collaborate with another brand from your niche and begin to sell each other’s products.

Let’s imagine that you produce and sell organic cosmetics. You team up with a shop from your area that sells beauty gadgets, and your partnership looks like this:

  • You sell their gadgets through your website.
  • You market your partner’s goods in the same ways as your own.
  • The partner brand gets access to your statistics and insights without contributing to your marketing efforts.
  • Each brand takes care of its own logistics and inventory.
  • You share the profit from gadget sales with your partner.
  • The other brand does the same in relation to your cosmetics.

Q. Why is it better to cross-sell with another brand?
A. If the audience of your partner brand has identical characteristics to yours, then it’s your chance to expand your client base, strengthen your brand awareness, and boost your sales without large investments and excessive risks.

How to use cross-selling?

The guide on how to grow your sales business with cross-selling techniques consists of only two steps: analyze the behavior of your audience and offer the right products to them.

Study the behavior of your customers

To analyze your clients’ behavior, you should install a CRM. This software will automatically collect useful information about each of your customers:

  • How often they visit your online store
  • How much time they spend there
  • Which pages they check
  • Which products they buy
  • How frequently they make purchases
  • How often they contact the support team and why
  • Which marketing tools they appreciate the most
  • Which promotional offers and discounts they love to use

What data you can gather depends on how powerful your CRM is and how you fine-tune its settings. The software can also generate reports using built-in templates. Alternatively, you can create new templates from scratch. AI-powered solutions even go as far as recommend measures to facilitate your business growth.

You are 60–70% more likely to cross-sell a product to an already existing client than a new one. Over 90% of people will be eager to make a purchase if you provide them with personalized recommendations.

Q. What is behavioral segmentation in relation to cross-selling?
A. The term “behavioral segmentation” means that you analyze the behavior of your audience and group people into several clusters. For instance, there can be separate clusters for consumers from a certain geographical area, for clients who spend large sums of money in your store, and for those who only buy discounted products. When you design marketing campaigns, you should personalize them for each cluster — for example, by cross-selling discounted items to those who look for discounts.

The items that you try to cross-sell together with the main product should be much cheaper and supplemental to it, not essential. For instance, if a person buys a TV, it makes sense to recommend any of these items:

  • Sound system
  • HDMI cables
  • Wall mount

It would be unreasonable to sell a TV without a remote control because it’s an integral part of the system. Cross-sold items should be add-ons, not must-haves to the main product.

Q. How to make more sales online by offering more expensive products?
A. There is another technique called upselling. You may offer your customer a product that is costlier than the item in their cart. It can be a more advanced version of the initial product or an alternative with similar but more powerful functionality. Such an approach works well if the consumer was not aware of the existence of these alternatives. Your task is to explain the benefits of premium products. Plus, make sure the person’s budget allows this purchase.

Product bundles include two items, such as a bag and a purse, or a monthly supply of dog food and a toy for the pet. The total cost of both products needs to be lower than the sum of their prices if they are bought separately. Bundles are indispensable for collaborating with other brands from your niche.

When teaming up with other brands, it makes sense to only let them sell your most popular goods. First, that should guarantee a decent amount of sales. Second, people will be motivated to visit your website to discover your full product range.

Advantages of cross-selling

Now that we’ve answered the question “How to increase sales of an ecommerce website via cross-selling?”, let’s have a look at the benefits that this technique can bring.

Improve the quality of customer service

By recommending products to consumers, you save their time. They will appreciate it even more if you researched their tastes and hand-picked the items they would like. When you launch a sale, consumers think that you need to make more money or hurry to empty your stock, whereas personalized product recommendations are perceived as an act of genuine care.

Reduce marketing costs

Each month, medium-sized businesses spend on average $10,000 on PPC ads. Many of them invest in other marketing techniques as well. By giving your products to another store, you don’t need to promote them because it will be your partner’s duty. At the same time, you’ll be required to promote your partner’s goods — but you won’t have to explore new channels and capitalize on existing traffic instead.

Get more sales through other brands

Cross-selling will increase your average order value. When people are already in the buying mindset, motivating them to buy more is easier for you than attracting new customers. Individuals who click on product recommendations are 4.5 times more likely to add featured products to their carts. Some brands increase their conversion rates by as much as 800% thanks to cross-selling.

Q. How many marketers resort to cross-selling?
A. 37% of marketers don’t use this technique because they don’t understand how to cross-sell efficiently. If you master it, it can give you a significant competitive edge.

Disadvantages of cross-selling

Cross-selling doesn’t always increase your online sales revenue.

  • Customers might perceive the products that you cross-sell as unnecessary and annoying. This can happen if you fail to research your clients’ behavioral patterns. Imagine that your online store recommends fresh pork to a person who only buys vegan products. Another popular mistake is to approach a consumer through a communication channel that they don’t like — for instance, making a phone call to an individual who is used to emails.
  • People who are prone to making spontaneous decisions might buy the items that you upsell. Then, they would return these products because they don’t need them, creating extra stress and workload for your staff.
  • Clients with a limited budget might buy the products that you upsell. But then, they will lack funds for other purchases in your store. Since you’ll share your profit from the upsold goods with your partnering supplier, you’ll get less income than when you sell your own items.

If you are thinking about how to get more website sales, mind that some consumers shouldn’t be involved in cross-selling at all. Analyze their behavior patterns, detect people who are not responsive to this marketing technique, and leave them in peace.

Examples of cross-selling strategies

These three strategies will give you more food for thought on how to generate more sales online.

Map out your customer journeys

Imagine that you sell bathroom fixtures. A customer who is refurbishing their apartment bought a kitchen sink and two bathroom sinks from you. If they don’t come back to your online store after the purchase, it makes sense to reach out to them offering faucets for these sinks. If they keep visiting your website over and over, find out what they’re looking for. Are they interested in bathtubs? Then, try to recommend bathtubs to them. This type of product is more expensive than sinks, so it will be upselling, not cross-selling. But it might work because you understand the client’s intentions.

Be careful with the AI recommendations

Your CRM will help you identify products to cross-sell. But sometimes, people order goods that are not related. For instance, it can be a hoodie and a bag of coffee grains, or sunglasses and a pillow.

Overall, some items don’t match but can be frequently bought together nonetheless. Such combinations contradict common sense and throw off the accuracy of your research. So don’t forget to double-check what your AI recommends to your clients and avoid blindly relying on CRM.

Set order thresholds

It’s not cross-selling at its purest but it’s worth mentioning nevertheless. Instead of directly recommending products to customers, you’ll tell them that they should add more items to their cart to qualify for free shipping, a discount, or some other perks. Let these perks only be available for orders that cost higher than a certain limit. It’s a great tool for increasing your AOV, and consumers will be glad to get a bargain. Order thresholds can be combined with traditional cross-selling.

Add high-quality visuals

This type of selling strategy delivers the most impressive results when you cross-sell lifestyle and fashion products. Consumers should see how gorgeous each item looks.

When cross-selling complex products, it would be great to make videos to show customers how these items work. Add the label “trending” to the photos of recommended products.

Demonstrate value

When you encourage a person to spend more money in your store than they initially intended, it’s vital to explain why they should do so.

If you sell drugs or food supplements, provide people with links to research that prove the value of your products. If you specialize in consumer goods, share case studies, customer reviews, and ratings of the items that you try to cross-sell.

Avoid being pushy. Make consumers believe that they make an independent purchase decision and get outstanding value at a sensible price.

Perfect timing for cross-selling

To grow ecommerce sales, it would be smart to offer extra products at three stages of customer journey: before the checkout, during the checkout, and after the checkout.

On product pages

If a consumer opens a page of a certain product, it means they’re interested in buying it. The price of each additional item that you suggest should fall within the range of 10–50% of the initial product’s price. The list of recommended goods should only contain a handful of items — to find out the perfect number, carry out A/B testing. If you try to cross-sell 10+ products, the client will get confused.

During the checkout

To boost web sales at this stage, think about the checkout zone at an offline supermarket. You’ll see chocolates there, chewing gum, small bottles of water, and other cheap items. When cross-selling products in your online store, let the same logic guide you. Offer small and simple items to people. They should be ready to add these goods to their carts without researching their properties. For instance, it might be a charging cable or a battery for the gadget that the person is about to order.

On the ‘Thank You’ page

This option is spot-on for digital products. Let’s imagine that a person has just bought a ticket to a webinar on your website. As they finalize the order, you’ll redirect them to the page that says, “Thank you for signing up for the webinar! We’ll see you soon. Be sure to put it on your calendar”. Below, add a copy that says, “Would you be interested in learning more about such-and-such online courses? If yes, type in your email address here.” The theme of the course should be related to the webinar and relevant to the client’s proficiency level.

Retargeting ads

Show retargeting ads to clients who bought something in your online store as well as to those who left without completing the purchase. As a person opens a third-party website, they will see ads with visually appealing photos of your products. They will be tempted to come back and order more. The efficiency of retargeting campaigns is almost 10 times higher than that of regular display ads.

How to find a partner for cross-selling

The most challenging part of cross selling marketing is to detect reliable partner brands from your niche. Instead of searching for candidates manually, feel free to rely on the Collabica Store! This platform enables brands to connect with each other and set up profitable cross-selling partnerships. It operates worldwide, can boast an incredibly user-friendly interface, and suits retailers and suppliers equally.

You’ll be able to check the products that your partners have selected for cross-selling. Also, users can track sales statistics and approve sales requests. Over 500 companies have already used this service, and their orders increased by 15% on average. Collabica Store mainly works with ecommerce businesses whose monthly sales revenues have reached $2,500.

Final thoughts

If you’re thinking of how to increase Internet sales, consider cross-selling. This marketing method suggests that you recommend additional products to clients who are ready to purchase something on your website. Feel free to do so on the product page, the checkout page, and the ‘Thank You’ page. As consumers leave your online store, let them see your retargeting ads on third-party websites.

The items that you try to cross-sell should be cheaper than those the customer was originally interested in. Besides, your CRM will help you detect the products that consumers often purchase together. Offer these items to your clients too, emphasizing that they are “frequently bought together” — by doing so, you’ll leverage social proof.

Study your customers’ behavior to provide them with personalized offers. Bundle products to crank up the order’s value. Create compelling photos and copy for the items that you cross-sell. Demonstrate their value to people. Map out consumer journeys to identify the best cross-selling patterns.

To make the most of cross-selling, team up with other brands from your niche. Let them sell your most popular products, and you’ll be selling theirs. You’ll share revenues and marketing insights with each other. That is an easy, affordable, and highly efficient way of expanding your client base, strengthening brand awareness, and boosting ROI.

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