Upselling and Downselling: Definition & How It Works
Upselling and downselling are sales strategies used in the sales funnel to specifically increase the average revenue per customer (average order value). An upsell offers customers a higher-value upgrade, an add-on, or a premium option. A downsell serves as a more affordable alternative or a smaller package that is automatically suggested if an upsell is declined.
At a Glance
- Upsell offers a higher-value product or upgrade to maximize the order value.
- Downsell suggests a less expensive alternative if the first upgrade is not accepted.
- Combining both methods generates additional revenue and increases the conversion rate during the checkout process.
- Order bumps and 1-Click upsells are the most common methods for offering upsells and downsells
How do upselling and downselling work?
In an automated sales funnel, additional offers are presented at two different points in the purchasing process: directly on the payment page (order bump) and after payment is completed (1-Click upsell/downsell funnel).
Before Purchase: Order Bump on the Payment Page
Before the purchase is completed, customers see a relevant additional or alternative offer directly on the payment page. This can be either an upsell or a downsell. The customer may or may not select the offer, after which the purchase is completed.
After the Purchase: The 1-Click Upsell and Downsell Funnel
As soon as the main purchase (including any order bump) has been successfully paid for, the actual upsell funnel begins before the final thank-you page appears:
- The Upsell: The system displays a new page with an exclusive premium offer (for example, personalized one-on-one coaching). Since the payment information from the checkout is already securely stored, a single click on “Yes, add now” is all it takes to purchase the product immediately (1-Click Upsell).
- The Downsell: If customers click “No, thank you” instead, the funnel automatically unlocks a discounted alternative offer (downsell), such as access to two live Q&A sessions for a significantly lower price.
The advantage over traditional cross-selling: By technically separating order bumps (checkout) and 1-Click Funnels (post-purchase), you capitalize on the impulse to buy without jeopardizing the actual main purchase.
What is the difference between an order bump, an upsell, and a downsell?
The three come into play at different stages of the purchasing process. The Order Bump occurs before the purchase is finalized, while upsells and downsells follow afterward in the funnel.
Offer Type
Date and Time
Offer
Order Bump (usually a cross-sell)
Before completing the purchase, on the payment page
Small additional offer (checkbox)
Upsell
after purchase, via 1-Click
a higher-tier upgrade or premium offer
Downsell
after a rejected upsell
more affordable alternative
Practical Example of Upselling/Downselling
Sinem sells an online course for 199 euros. After the purchase, the funnel displays a 1-on-1 coaching session as an upsell, which many customers add with a single click. Those who decline are then presented with a downsell offering access to two live Q&A sessions at a lower price. This increases revenue per purchase without jeopardizing the main sale.
Common Misconceptions
"Up-sells after a purchase upset customers."
When placed in the right context during the purchase process, they are often accepted. Clicking “No, thank you” completes the purchase as usual.
"A downsell is a sign of weakness."
Downselling captures customers who found the initial offer too expensive, thereby securing additional revenue.
"Upsells only work with expensive products."
Even with low-priced main products, a suitable upgrade or bonus can increase the order total.
ablefy classification
ablefy offers an integrated funnel builder that covers both order bumps on the checkout page and downstream 1-Click upsell and downsell funnels. Additional offers can be linked to main products with just a few clicks. The system automatically processes payments using the payment method already on file, issues invoices, and activates access.
Frequently Asked Questions About Upselling and Downselling
What does "upsell" mean in German?
"Upsell" essentially means selling a higher-priced or additional product. There is no established German term for it; the English word is usually used.
Why do people combine upsells and downsells?
To maximize revenue per customer (upsell) while also capturing customers for whom the first add-on offer was too expensive (downsell).
Do post-purchase upsells deter customers from making the main purchase?
No. Because 1-Click upsells appear only after the purchase is complete, the main purchase is already secured. A declined add-on offer does not jeopardize it.
