I’ll use the term “upselling” to cover both tactics because it’s the far more common term (and it’s what you’ll see most plugins and features use). Picture showing a storefront board of directors email WHY UPSELL DIGITAL PRODUCTS OVER PHYSICAL PRODUCTS? Simple. It’s all board of directors email about margin. Digital products are great to upsell next to physical products, as their sales board of directors email margins are much higher. It’s common for ecommerce stores selling physical products to offer add-on items at a discount to encourage the customer to purchase.
Since physical products often have slim margins, any discount eats into your profits even more. Digital products, however, have a nearly 100% net profit margin. They can be sold an infinite number of times and cost almost nothing to distribute, making them the perfect product for ecommerce stores to offer alongside their physical products. Consider this scenario: Your store has an average order value (AOV) of $100. A typical profit margin of 30% leaves you $30 in profit on an average order. You have two choices for
So They Don’t Ignore You
products to recommend as upsell items: A $30 physical product (with the same 30% profit margin) A $30 digital guide (at a 100% profit margin). Upselling the physical product nets you a $39 profit — only $9 more than you would have made otherwise. Offering the digital guide will increase the profit to $60, effectively doubling your profits with the same order value. That’s the power of digital upsells. So, what kinds of digital products should you offer? THREE TYPES OF DIGITAL PRODUCTS YOU CAN UPSELL