What are Upsell & Cross-sell Rates? – Formula and Ways to Increase Upsell & Cross-sell Rates [With Examples]

What are upsell & cross-sell rates?

Upsell rate is the percentage of customers who purchased a higher-end product than the one in question, on being encouraged by you.

Cross-sell rate is the percentage of customers who purchased related or complementary products suggested by you.

How to calculate upsell rate & cross-sell rate?

To calculate upsell rate, divide the ‘number of customers who purchased the upsell product’ by the ‘number of times it was offered’ and multiply by 100 to get a percentage.

To calculate cross-sell rate, divide the ‘number of customers who purchased the cross-sell product’ by the ‘number of times it was offered’ and multiply by 100 to get a percentage.

Formula for calculating upsell rate & cross-sell rate

Upsell Rate formula
Upsell Rate Formula
Cross sell Rate formula
Cross Sell Rate Formula

Real-life example of upsell rate & cross-sell rate

You run an e-commerce business and customers purchase your products through your website. You pulled on your upselling strategy by suggesting 500 customers to upgrade to a membership plan in order to get free shipping and fast delivery.

Out of those, 250 customers took your upsell product, that is, they upgraded to a membership plan. So, your upsell rate will be: 250/500 x 100 = 50%

And you carried your cross-selling by, suggesting 200 customers, who were buying a blow dryer to buy a straightener as well.

Out of those, 50 users took your cross-sell product, that is, they purchased both the related items. So now, your cross-sell rate will be: 50/200 x 100 = 25%

What’s considered a good upsell & cross-sell rate? (benchmark)

A company should strive to have 30% of its total revenue coming from expansion (upsell, cross-sell, and renewals)

Take a look at some research stats:

Conversion Rates of Cross-sells / Upsells in the Shopping Cart:

  • Less than 1% conversion (8% of retailers)
  • 1%-4% conversion (16% of retailers)
  • 5%-10% conversion (9% of retailers)
  • More than 10% conversion (3% of retailers)

Conversion Rates of Cross-sell / Upsells on Product Pages:

  • Less than 1% conversion (5% of retailers)
  • 1%-2% conversion (15% of retailers)
  • 3%-4% conversion (5% of retailers)
  • 5%-7% conversion (6% of retailers)
  • 8%-10% conversion (2% of retailers)
  • 11%-15% conversion (1% of retailers)
  • More than 15% conversion – 2% of retailers

Amazon shared that cross-sells were responsible for 35% of its sales in 2006!

Ways to increase your upsell rate & cross-sell rate

  • Tailor your recommendations: Aggressively selling without knowing your customer can rather hurt your conversions. You need to make sure you are upselling and cross-selling for products or services you know your customers are interested in. Read: 9 Upselling Techniques That Work Like a Charm
  • Offer them something valuable: While you’re upselling, make sure to offer something value adding and problem solving to your customers otherwise why would someone pay higher for a product.
  • Make data-driven suggestions: Analyze your customer’s past interactions and purchases to make data-driven suggestions that match their needs. Read: 10 Ways to Increase Average Order Value

Also Read: Related Metrics

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