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Definition: Upselling

Upselling is a sales strategy in which a seller influences the customer to buy the more expensive versions of the product, or to buy upgrades and add-ons with the product. Upselling is used in order to make a larger sale and to earn greater profits. The seller often suggests customers with other additional options to the current purchase which customer may or may not consider. It is common practice in many industries. The sales person often tries to sell different versions of the product, starting from the base model, but with each version the quality and features of the product change.

Upselling is often confused with cross-selling. Although there is a shared motive of having the increased profits and a larger sale, cross-selling is often done when the seller has more than one product to offer to the customers. In cross-selling, the seller may start with offering some basic product, but based on the understanding of the customer’s needs or requirements, he may offer some other product which will be beneficial to the customer. Such strategies are often used in the banking or an investment firm, where the customer is signed up with some basic investment for the beginning and then later on the company offers more relevant and specific investments to the customers.

For Example:

In a restaurant, a customer is often asked by the attendant if he/she wants something on side with the main dish or they are suggested to try their special menu.


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