Merchants with 10 to 50 products have an average of 7.5 times revenue compared to merchants with less than 10 products.
Gelato can help you save time when expanding and creating new products. We have a set of tools that will help you add your best-selling designs to new products in just a few clicks.
Techniques you can use to expand your catalog and increase your profits
Cross-selling
Upselling
Bundling
Cross-selling
This technique invites customers to buy related or complementary items, in essence, it helps you grow your sales by suggesting more products to buy.
The best cross-sell normally happens when the second item has a small discount (5-10%). To encourage cross-selling offer free shipping when customers add 1 or 2 more products to the cart.
Upselling
This sales strategy whereby a customer is encouraged to buy anything that would make their primary purchase even better. It’s like an upgrade to an existing order.
Include personalization as an upsell technique to increase the order value. For example, if your customer would like to add a name or choose a color for the design, that can be an upsell and you can charge an extra fee.
Bundling
Bundling is an effective and popular marketing strategy that involves selling multiple products as a package deal or as a single unit, to increase the average order value (AOV). Usually, when complimentary products are bundled together, customers get the bundled products at a discounted price, compared to the cost of individual products listed in the package. It feels like a win!
You can do bundling in 2 ways:
Pure bundling: when items sold in a package cannot be bought separately, creating a unique customer buying opportunity.
Mixed bundling: when items can be purchased individually, but when packaged together, they are sold at a discounted price.
While this technique may sound simple enough, the trick lies in figuring out the right mix of products to offer as bundles. Here are some recommendations:
Identify products that complement each other: Let's take wall-art products for example - to easily expand your wall-art selection check out our tutorial here.
Promote the bundle: Use various marketing channels (email marketing, social media) to promote the bundle and consider offering it as a limited-time promotion.
Monitor sales: Keep track of how well the bundle performs and adjust the discount or the products included as needed. Also, consider rotating the products included in the bundle to keep the offer fresh and appealing.
If you're using Shopify or Etsy, you can easily set up bundle promotions in your store. Shopify has a "Discounts" feature that allows you to create custom promotions and apply them to specific products or collections. Etsy has a similar feature called "Coupons," where you can create and manage discounts for your store.
Tips to expand your catalog:
Use our design expansion tool to expand into new products in just a few clicks.
Optimize your website and include up-selling and cross-selling notifications before and after purchase. For example, in the product pages, shopping cart, or during the checkout process.
Show the amount of money your customers are saving by buying a complimentary item on the checkout page.
Offering free shipping on high-value orders can also be a win.
Use our Price Setting tool and optimize your pricing strategy in an easy way for each market.