The holidays are a great time to smash ecommerce revenue goals, but this typically comes at the expense of gross margin. Ad costs surge while discounts eat into whatever profit is left.
One way to fight back against this phenomenon is by strategically working to grow average order value (AOV). Upsells are a reliable, cost-effective way to do this because they don't require any additional ad spend.
Our friends at Zipify, who have analyzed over $1 billion in upsell revenue data, have offered to share what's currently working in the world of upsells.
Real examples from their data:
- Simple pre-purchase offer at Overtone: 31% AOV lift during BFCM
- Comprehensive upsell strategy at BOOM! Beauty: $5 million+ in total revenue since the strategy's inception
So why are so many merchants failing to get these results? Most don't know what products to upsell or when, or they only use post-purchase upsells and miss the massive opportunity to boost cart values before checkout.
The 3-Layer Upsell Funnel
This is a proven upsell funnel framework that Zipify uses with their enterprise clients on OneClickUpsells Plus (their enterprise upsell solution).
The data shows that upsells work differently at each stage of the buying journey. The most effective approach layers complementary strategies across the entire customer journey.
Layer 1: Pre-Purchase Offers
These are offers you make on the product page or in the shopping cart, before your customers start checkout.
This is one of the most underrated parts of the funnel and one of the biggest missed opportunities across Shopify stores. Most merchants don't start thinking about upsells until post-purchase, but these offers can lift AOV dramatically without discounting.
The Psychology Behind Pre-Purchase Upsells
When someone adds a product to their cart, they've already made a buying decision. They've overcome the initial purchase resistance. This is the ideal moment to present complementary products that enhance their purchase.
The key is relevance. Your upsell should feel like a natural extension of what they're already buying. If someone's buying skincare, offer the matching serum. If they're buying a camera, suggest the memory card and carrying case.
Real-World Example: The Basket Builder Strategy
At Overtone (an 8-figure hair dye brand), they added an upsell popup on the product page that appears when someone adds a product to cart. They loaded it with basket builders: gloves, a mixing brush, a bowl, color-safe shampoo. Low cost, high margin, and relevant to almost every order.
These weren't random accessories. They were genuinely useful items that improved the customer's experience. That one change helped lift AOV 31% during Black Friday.
Stores implementing pre-purchase upsells regularly see $100K+ in revenue within the first 90 days.
What to test in pre-purchase:
- Basket builders: Low-cost accessories or complementary items that enhance the main product experience and feel like a no-brainer addition.
- Size upgrades: Offer a larger quantity or premium version of the same product at a modest price increase to boost immediate order value.
- Seasonal bundles: Create themed product combinations that align with current holidays or shopping seasons to drive urgency and relevance.
- Subscriptions: Convert one-time buyers into recurring revenue by offering a subscription option with clear convenience and savings benefits.
Layer 2: In-Checkout Offers
If you're on Shopify Plus, you've got a massive advantage: you can add upsells directly into the checkout flow using checkout extensibility. These offers convert really well because they're contextual and non-disruptive. You're just giving people a simple way to improve their order. (Here's everything you need to know about Shopify checkout upsells in 2025)
The checkout environment is fundamentally different from pre-purchase. Your customer has moved from browsing to buying. They're focused on completing the transaction. This isn't the moment for complex decisions or multiple options.
The Checkout Psychology: Keep It Simple
In-checkout upsells work best when they're frictionless. A single offer. One click to add. No need to re-enter payment information. The offer should feel like a small enhancement to their existing order, not a new shopping decision.
OneClickUpsell's data shows these in-checkout offers consistently drive a 7.5% average lift in AOV when implemented strategically.
What to test in checkout:
- Premium bundle swaps: Give customers the option to upgrade their cart to a curated bundle at a discount, increasing total order value while delivering perceived savings.
- Warranties for high-ticket items: For expensive products, offering protection plans or extended warranties adds margin while providing genuine peace of mind.
Layer 3: Post-Purchase Offers
This is where most brands overcomplicate things. But the data shows that the most effective post-purchase offer by far is also the simplest. Just offer one more of what they just bought.
It sounds counterintuitive. They already bought it, why would they want another? But if the product is even remotely consumable or giftable, this works consistently with conversion rates around 10%.
Why "One More" Converts So Well
Think about the customer's mindset post-purchase. They've just bought your product. They're feeling good about the decision. They trust your brand enough to complete a transaction. They know exactly what they're getting because they literally just ordered it.
Now you're offering them another one at the moment when their confidence in the product is highest. For consumables, it's practical. For giftable items, it's convenient.
The offer appears on the thank-you page, immediately after purchase, when the buying momentum is still active. One click adds another unit to a new order.
This single tactic has driven millions in upsell revenue across thousands of brands because it's perfectly timed and hyper-relevant.
What to test post-purchase:
- One more of the same product: The highest-converting post-purchase offer, perfect for consumables or giftable items that customers naturally need multiples of.
- Mini or travel-size version: Give customers a way to try product variations or stock up on portable versions without a major commitment.
- Low-price mystery item: Clear out overstock while creating excitement, works especially well when positioned as a surprise gift or limited-time bonus.
How to Measure Upsell Performance
Implementing upsells without tracking performance is like driving blindfolded. You need clear metrics to understand what's working and where to optimize.
Key Metrics to Track
Upsell Conversion Rate: The percentage of customers who see an upsell offer and accept it. Industry benchmarks: Pre-purchase (5-15%), In-checkout (3-8%), Post-purchase (8-12%).
Revenue Per Visitor (RPV): Total revenue divided by total visitors. This is your north star metric because it captures the combined effect of conversion rate and AOV.
Average Order Value (AOV): Track AOV separately for orders with upsells vs. orders without. If your baseline AOV is $75 and your upsell AOV is $105, your upsells are adding $30 per order.
Upsell Revenue as % of Total Revenue: This shows how dependent your business is on upsells and whether there's room to grow. High-performing stores typically see 15-25% of revenue coming from upsells.
Lifetime Value (LTV) Impact: Do customers who accept upsells have higher lifetime value? Track retention rates and repeat purchase behavior for upsell acceptors vs. non-acceptors.
Segmentation is Critical
Don't just look at aggregate numbers. Segment your upsell performance by product category, customer type (new vs. returning), traffic source, device type, and time/season. This segmentation reveals optimization opportunities that aggregate data masks.
Testing Framework
Treat upsells like any other conversion optimization initiative:
- Offer selection testing: Which products convert best as upsells?
- Pricing testing: Does a discount increase take rate enough to offset lower margins?
- Copy testing: Which value proposition resonates most?
- Timing testing: When in the journey does each offer perform best?
- Design testing: How does presentation impact conversion?
Run one test at a time with clear hypotheses and success metrics.
How to Get Started
Now you know what to upsell, when to show it, and what's working right now across billions in transaction data.
The implementation piece is where most merchants get stuck. Writing compelling offers, matching the right products, building the flows, and testing what works takes significant time and technical resources. You're already managing emails, landing pages, and ad campaigns. Adding a comprehensive upsell strategy on top of that can feel overwhelming.
OneClickUpsell, a Shoplift partner, has built an AI-powered platform that automates much of this heavy lifting. You can launch upsell funnels across your store quickly, and the AI recommends high-converting upsells based on your store's data while self-optimizing over time.
Exclusive Offer for Shoplift Readers
For all merchants:
Get a 60-day free trial (double what they offer publicly). Launch AI-powered funnels across your entire store and start increasing your AOV with zero risk and no upfront cost. You can do it in under 5 minutes and generate free upsell revenue this holiday season.
Start your 60-day free trial →
For Shopify Plus stores:
Get a free 30-minute growth strategy session exclusively for Shopify Plus merchants. The OCU Plus Enterprise team will meet 1:1 with you to:
- Audit your current upsell setup
- Pinpoint your biggest revenue leaks
- Build you a plan to start increasing AOV immediately
This tactical session is designed to help Enterprise brands unlock 20-30% more revenue from the traffic you're already buying.
Frequently Asked Questions
What's the difference between an upsell and a cross-sell?
An upsell offers a higher-value version of what the customer is already buying (larger size, premium version, bundle), while a cross-sell offers complementary products (accessories, related items). Both increase AOV, but upsells typically have higher individual transaction value.
Will adding upsells slow down my site or hurt conversion rates?
When implemented properly, upsells should not negatively impact site speed or conversion. The key is using native Shopify integrations or well-optimized tools that don't add significant page load time.
How many upsell offers should I show to each customer?
Less is more. One well-timed, relevant offer typically outperforms multiple simultaneous options. You can layer offers across the journey (one pre-purchase, one in-checkout, one post-purchase), but at each stage, focus on a single compelling option.
Do upsells work for low-priced products or just premium items?
Upsells work across all price points, but the strategy differs. For low-priced items, focus on quantity offers or bundles. For premium items, warranties, accessories, and complementary products work well.
How do I know which products to upsell together?
Start with common-sense pairings (products frequently bought together, complementary items, accessories), then let data guide optimization. Look at your order history to see what customers naturally buy together.
