An upsell is an offer that invites a customer to buy a more expensive version of what they are already choosing, or an upgrade to it: the larger size, the higher specification, the longer warranty or faster delivery. The aim is a higher order value from the same customer, with a product that suits them better.
How an upsell works
Upsells appear at points where the customer has decided what they want, but not exactly which version. Common places online:
- On the product page A side-by-side comparison of standard and premium versions, or a nudge such as “the 1kg bag works out cheaper per cup”.
- In the basket An offer to upgrade an item, or to add next-day delivery.
- After checkout A one-click offer on the confirmation page to upgrade the order before it ships, without entering payment details again.
- Later, by email An upgrade offered when a plan renews or a product is due for replacement.
An upsell differs from a cross-sell, which offers a different but related item, such as a case with a phone, and from a product bundle, which packages several items together at one price. Many shops use all three, but each solves a different problem.
Why it matters
Upselling raises average order value without paying to win a new customer. Because the advertising cost of an order is broadly the same whether the basket holds £40 or £60, a higher order value improves the return on every pound of ad spend and lets you bid more competitively for new customers.
A good upsell helps the customer too. Someone buying a size that will run out in a week, or a basic model that cannot do what they need, is better served by seeing the alternative. A fair test is whether you would be comfortable making the same recommendation face to face in a shop.
UK law sets limits. Under the Consumer Contracts Regulations 2013 you need a customer’s express consent for any payment beyond the main price, so pre-ticked boxes that add insurance, warranties or premium delivery are not allowed. Pressure tactics such as false countdown timers can amount to misleading or aggressive practices, an area the CMA has been active in, as my entry on dark patterns explains.
Common mistakes
- Offering an upgrade that costs far more than the original item, which feels like a hard sell.
- Showing an upsell before the customer has chosen anything, so it competes with the main decision.
- Pre-ticking add-ons or quietly making the upgraded option the default.
- Recommending the most expensive product regardless of what the customer is buying.
- Judging upsells on take-up alone, without checking whether they raise returns or lower the conversion rate.
- Designing a post-purchase offer that looks like a payment error or a required step.
How to act on it
Look at your order data for natural upgrade paths: products that come in sizes or tiers, services with a premium option, and items where the bigger version is better value per unit. Start with one or two clear offers rather than a widget recommending products at random.
Write each upsell in terms of the customer’s benefit, such as cost per use, longer life or fewer reorders, and keep the decision a simple yes or no. Then measure three things together: how often the offer is taken, the change in average order value, and any change in conversion rate or returns.
A higher order value also changes what you can afford to spend on acquisition. When I run Facebook and Instagram ads for online shops, the order value after upsells is one of the figures I use to set target costs per purchase.