In the offline world, quick service restaurant chains are a good example of cross-selling strategies in action. These restaurants often sell low cost, but high margin items like fries and other side dishes, along with the main course, which helps improve their profitability. Similarly, on e-commerce websites, many businesses focus on offering add-on accessories at the checkout page.
A customer is more likely to purchase the required additional items at the time of checkout if it offers savings on the shipping cost. According to reports, by adopting this cross-selling strategy, a prominent e-commerce marketplace can generate as much as 35% of its profits
. In addition, you are 60-70% more likely to sell to an existing customer versus the 5-20% likelihood of selling to a new customer. For an e-commerce marketplace, therefore, selling to existing customers is a golden opportunity to be tapped.