Retailers: Three product types you must offer
If you’re a retailer or online store owner, there are three product types you must offer in order to convert browsers into buyers.
1. Entry level products
Also known as Gateway Products, these are usually on the lower end of your price range and are often your best sellers. They are products that customers are willing to try first. An entry level product is also about showcasing your product designs, which can present a low risk opportunity for your customers.
An example of an entry level product
A fashion designer might include some neutral pieces in their collection that express their style, but which are less devoted to their signature colours. These designs might attract new buyers who are interested in wearing the designer’s clothes but who want to invest in something more generic first.
2. Cross- sell and up-sell products
Buyers often use the terms up-sell and cross-sell interchangeably, but strictly speaking, there’s a difference.
Cross-selling is when you recommend buying a product in addition to the one your customer is already purchasing. To do this, it’s useful to have items that pair with each other, but where one is slightly cheaper.
"Aspirational products are the ones your customers put on their wish lists. They’re premium-priced and therefore less of an impulse purchase."
For example, I might buy a pair of merino wool gloves from a business website, and at the checkout I’m prompted to buy a matching knitted hat.
As you can see, a cross-sell is not so much about the price of the extra item, but more about the pairing of two items.
Up-selling is when you recommend buying a more expensive product in the category your customer is already contemplating purchasing in. It involves offering them a more expensive, premium version, hence the ‘up’ sell. It’s a price-driven strategy.
For example, your jewellery store customer might ask whether you have a small gemstone necklace in aquamarine. You could suggest they look at the larger gemstone necklace also available in aquamarine but with a heavier chain and unique safety clasp.
3. Aspirational products
Aspirational products are the ones your customers put on their wish lists. They’re premium-priced and therefore less of an impulse purchase.
Understandably, customers will often buy something less expensive in your range before buying an aspirational product. For example, let’s say you sell artwork for children’s bedrooms. A buyer might fall in love with your wall art, but only be able to buy a small print for now, but a larger print later.
Incorporating these three product types into your range is better for both your customers and your bottom line.
What has been your experience with selling various products and product types?