What is “Up-Selling” meaning?

Up-selling is a sales technique where businesses encourage customers to purchase a higher-end version or additional features of a product or service they are already considering. This approach increases the overall transaction value and is commonly used in both physical and digital marketplaces.

Example

"The sales representative successfully used up-selling by suggesting a premium package for the customer, which included extra features and longer support."

How is “Up-Selling” used in business?

Up-selling is primarily used in retail, service industries, and e-commerce to increase average order value. By offering customers upgraded products, businesses can enhance profitability while still meeting customer needs for quality and functionality.

Pro Tip

To be successful at up-selling, ensure the upgraded options genuinely provide added value to the customer and focus on their needs, not just maximizing profit.

Related Terms

Cross-Selling, Average Order Value (AOV), Customer Lifetime Value (CLV), Add-ons