What is an upsell?

An upsell is a sales technique where you encourage a customer to buy a more premium, higher value version of what they already intend to purchase. In digital marketing and e commerce, an upsell typically increases average order value without needing to attract a new customer.

Instead of suggesting a different product, an upsell keeps the same core solution but upgrades it. That upgrade can be a larger package, a higher tier plan, or a version with extra features or services. For example, moving a customer from a basic Shopify app plan to a Pro plan with priority support and automation features is a classic upsell.

Upsell vs cross sell

An upsell focuses on improving the original choice, not adding new categories of products. Cross selling, on the other hand, suggests complementary items such as accessories or add ons. If a customer selects a standard software subscription and you recommend a premium tier, that is an upsell. If you then recommend onboarding services, that is cross sell.

For growth teams, this difference matters when you design funnels and track performance. You will often measure upsell success through metrics like increase in average order value, expansion revenue and customer lifetime value.

Why upsell matters for B2B and e commerce

For high volume webshops and SaaS companies, an effective upsell strategy is one of the fastest ways to grow revenue from existing traffic. You already paid to acquire the user through SEO, paid media or partnerships. A smart upsell makes each visit and each customer more profitable.

  • Upsell lifts revenue per order, which compounds strongly in high volume e commerce.
  • It increases net revenue retention for recurring models such as SaaS businesses.
  • It can improve customer experience when the upsell genuinely solves more of the user's problem.
  • It often has better margins, since the incremental cost of the upgrade is lower than new customer acquisition.
  • It provides richer data about willingness to pay, which feeds pricing and packaging decisions and connects directly to revenue metrics such as those in B2B SaaS metric frameworks.

Together, these effects make upsell a core lever in any performance focused growth strategy, especially when combined with strong SEO driven acquisition.

How to design a smart upsell

A strong upsell is relevant, timed well and clearly better for the customer. In practice, this means aligning the offer with the user's intent and context, such as their cart content, usage level or company size. For example, offering a priority support tier at checkout makes sense for a B2B buyer facing tight deadlines. Offering it to a casual free user does not.

In digital products, you can trigger an upsell when the user hits a limit, like number of projects or seats. In e commerce, you can show an upsell on product pages, in the cart, at checkout or even post purchase. The key is to position the upsell as a clearer, safer way to achieve the same goal, not as a hard sell.

Measuring upsell performance

To manage upsell like a pro, treat it as a dedicated experiment track. Monitor metrics such as upsell take rate, additional revenue per session, impact on conversion rate and refund or churn behaviour. If an upsell hurts primary conversion or long term retention, refine the offer or timing.

For growth minded teams, an upsell is not a one time tactic but a continuous optimisation loop. When you test, measure and iterate, upsell becomes a reliable lever for predictable, scalable revenue growth.