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What Is Upselling? In What Way Does It Benefit Your Small Business?

Upselling - Benefit Your Small BusinessWe all want a better version. Why settle for something inferior when a superior and upgraded version is available? This is the basic thought process of humans and this is the basis of upselling. Making the visitor spend more money with every purchase and increasing the revenue without too much extra effort is the strategy involved with upselling. This is a great technique for small businesses and reseller businesses to gain traction. If you are hearing the term upselling for the first time, then read on to know more about it and how it can benefit your business.

So, What Exactly Is Upselling?

Upselling is the strategy of convincing the buyer to purchase a premium and more expensive version of the item they have chosen to buy. This will increase the order value and also the revenue of your business. Though upselling as a concept on the surface can invoke negative feelings for a buyer, when it is done properly, upselling can benefit both the seller and the buyer. 

If broken down to a simpler theme, you will find that this is a technique that often happens during most of our purchases. We often decide to buy a product but when we find a style that looks like a better version at a better price, then we go with the latter. Cross selling involves convincing the consumer to get a complimentary product along with the originally intended product.  

Read Also: Best Practices and Tips for Becoming a Reseller 

How Upselling Benefits a Business?

There are many advantages to upselling and we have listed some of the important ones from the seller’s perspective.

1. Lead Generation Is Not an Easy Job

The main reason why upselling is considered a vital skill for business owners is due to the fact that the probability of selling a product to an existing customer is 60-70% when compared to the 5-20% prospect of selling to a new customer. 

Finding a new customer is difficult and retaining them more so. Thus, it is easier to sell to an existing customer who already has a significant trust and bond with your brand.

2. Helps Buyer-Seller Relationship

Though upselling might look like it is purely meant for the benefit of the seller, it also leads to increased customer satisfaction. You are selling a better product which is appreciated by the buyer and the customer feels he has got his money’s worth. Thus, when you recommend quality upgrades and add-ons, you not only increase the revenue of your business but also work towards customer satisfaction.

3. Helps with Customer Retention

When your customers leave feeling satisfied, it means that they will come back for more. Make sure you don’t compromise with the products that you recommend and also offer good customer service. This will guarantee happy customers who later become long-time customers.

Along with customer retention, upselling can also generate new leads. Word of mouth is still a powerful medium for marketing your business since there is no gadget that can beat the human feeling. Happy customers will recommend your business to their friends and neighbours making it flourish. 

4. Increased CLV for Your Business

CLV stands for customer lifetime value and it is the net profit that a particular customer contributes to your business. With upselling, a customer generates more revenue for your business without you having to invest more every time. Thus, if you want to turn your would-be one-time customers into regular profitable ones, then upselling is your best choice.

Know When to Try Upselling

Now that you are clear with the concept of upselling, it is important to know when to implement it. There are different options and you should find one that works for you.

  • Try upselling at checkout, especially for e-commerce sites.
  • You can also try it at the sales pages or internal pages.
  • Upselling might work more easily with customized and personalized products.
  • You can also try upselling after the purchase by sending follow-up emails to the customers with the new upgraded products. 


Making your small business or reseller business known to potential customers is the first step towards making it successful. Listing your business in our directory can be the first step to becoming popular.

  • Aug 23, 2021

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LocalBizNetwork, LLC was formed in 1999 to help small business owners with Online Solutions. The company has grown into a global small business organization from its humble Silicon Valley roots. LocalBizNetwork, LLC has partnered with various small business organizations throughout the world to build a marketing platform that will help the business owner become more visible in the online world.

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