What Is Downselling?
Downselling is a sales technique where a seller offers a lower-priced alternative to a customer who declines a higher-priced product or service.
Rather than losing the sale entirely, the seller suggests a more affordable option that still meets the customer's needs, preferences, or budget.
In e-commerce, this often occurs at the checkout stage or after a product is removed from a cart. The goal is to retain the customer by providing value while acknowledging their price sensitivity.
What Are the Benefits of Downselling?
- Increases Conversion Rates: When customers hesitate to buy a high-end product, offering a more affordable alternative can encourage them to complete the purchase.
- Reduces Cart Abandonment: By presenting cost-effective options before customers exit, downselling can recapture potential lost sales.
- Builds Customer Trust: Suggesting products that better align with the customer's needs or budget shows empathy and fosters loyalty.
- Enhances User Experience: Tailored recommendations make the buying process feel more personalized, improving overall satisfaction.
- Supports Long-Term Revenue: Though immediate profits may be lower, successful downselling keeps customers in the funnel, which can lead to future purchases.
What Is the Difference Between Downselling, Upselling, and Cross-Selling?
While all three are sales techniques aimed at increasing transaction value or customer retention, they differ in approach:
- Downselling: Offers a cheaper or simpler alternative when a customer declines a higher-priced option. It focuses on saving the sale.
- Upselling: Encourages the purchase of a more expensive version or add-ons that enhance the initial choice. It aims to increase the average order value.
- Cross-Selling: Recommends related or complementary products that can be purchased in addition to the chosen item. It expands the product bundle without changing the original selection.
Each method serves a distinct purpose, and effective sellers often use a mix of all three to optimize the customer journey.
5 Downselling Examples for E-Commerce
Tiered Product Options
A customer browsing a premium software plan may hesitate at the cost. In response, the platform offers a basic version with fewer features at a lower price point. This option still provides core functionality while easing the customer into the product ecosystem.
Exit-Intent Offers
When a shopper signals they're about to leave a product or checkout page, a pop-up window suggests a more affordable item in the same category. This can recapture attention and steer the customer toward a purchase they feel more comfortable making.
Abandoned Cart Emails
If a user leaves high-priced items in their cart without completing the transaction, a follow-up email can recommend budget-friendly alternatives. These messages often include price comparisons or brief descriptions highlighting value and suitability.
Freemium or Trial Versions
Instead of asking for a full commitment upfront, many software companies offer free trials or limited-access versions of their service. This allows users to experience the product’s benefits at no cost before upgrading later, lowering the entry barrier.
Product Page Recommendations
On product pages featuring expensive items, some retailers include a "You may also like" or "Lower-cost alternatives" section. This provides users with less expensive but related options, increasing the chance of conversion while respecting budget constraints.
