A business can increase its retail profits by upselling or cross selling, communicating with consumers or offering additional payment options. For instance, businesses can ask customers at checkout if they would prefer an upgraded version of the item or be interested in a complementary item. Likewise, opening lines of communication can help gain trust and answer questions for those unsure about making a purchase. Especially if the business has customers overseas, offering additional payment options can help lure customers who could not have otherwise been able to make the purchase.
Upselling or cross selling to increase retail profits can be done in the retail location or through most online shopping cart systems. Upselling refers to notifying customers that they can purchase the next higher edition or version of the product for a small increase in price. For instance, if a customer wants to purchase a baby stroller system, she could be offered the option of upgrading to the luxury edition at checkout. Cross selling is when customers are notified of a related product that may be of interest, such as an extended warranty or useful attachment. For example, retailers that sell digital cameras may also cross sell protective carrying cases to remind customers who may not have thought of purchasing one of its necessity, increasing the company's profit per customer.
Opening lines of communication can increase retail profits as well, by addressing consumer concerns and keeping the name of the company fresh in their minds for when they are ready to purchase. Customers are less likely to buy an item when they are unsure about its quality, safety or practicality. By allowing consumers to provide reviews and ask questions through its website or social networking sites, a company can convince those who were hesitant to make the purchase. The company should also stay in touch with consumers so they'll remember them when they are ready to make a purchase, such as by actively participating in social networking sites and sending newsletters or follow-up emails.
Offering additional payment options also can increase retail profits because it extends the business's reach by allowing customers to finance purchases if needed or use a variety of different credit cards. Providing customers with financing options allows businesses to sell more items immediately, increasing retail profits over time. Additionally, businesses with international customers generally should accept credit and debit cards that are popular in those countries, not just the ones for its domestic customers.
