In the Print on Demand (POD) business, sales strategy plays a crucial role in increasing conversion rates, optimizing revenue, and retaining customers. One highly effective yet often overlooked strategy by sellers is Downsell. So, what exactly is Downsell, why is it important for POD sellers, and how can you apply it effectively? Let’s explore these questions in detail with FlashShip in the article below.
What is Downsell?
Downsell is a sales strategy where the seller offers a product or product bundle at a lower price than the original option the customer initially declined to purchase. The primary goal of Downsell is to retain the customer, increase conversion rates, and maximize sales opportunities — rather than letting the customer leave without making any purchase. This approach plays a vital role in the sales funnel, especially for sellers in the Print on Demand (POD) industry, where customer retention and optimizing every potential order are key to long-term success.
Example of Downsell in POD
Imagine a customer adds a hoodie priced at $39.99 to their cart, but when they reach the checkout step, they abandon it without completing the purchase. At that moment, your system displays a special offer: “Get a T-shirt with the same design for just $19.99 – Limited-time offer!”
This could prompt the customer to change their mind and purchase the lower-priced product instead. This is the essence of Downsell – an effective “rescue” step that turns a potential lost sale into a successful conversion.
In the POD industry, where products often have various price tiers, Downsell helps to:
- Maximize the value of paid traffic from ads on TikTok, Facebook, or Google.
- Recover marketing costs (ROAS) by reducing wasted clicks and impressions.
Increase cross-sell opportunities within promotional campaigns.
Differentiating Upsell and Downsell in POD Business
Downsell is often confused with Upsell, but these two strategies have different goals and are applied at different stages of the customer journey.
|
Criteria |
Upsell |
Downsell |
|
Goal |
Increase order value by encouraging customers to purchase a more expensive product or premium package. |
Retain the customer by offering a lower-priced product. |
|
When to Apply |
When the customer has already decided to buy or is in the checkout process. |
When the customer declines to buy or is about to leave. |
|
Example in POD |
Suggesting a $45 hoodie instead of a $25 T-shirt. |
Offering a $15 T-shirt when the customer declines a $35 hoodie. |
The Purpose of Downsell in POD
Why is Downsell an essential strategy for POD sellers? Let’s break down its core purposes:
Reduce Cart Abandonment Rate
Cart abandonment is a persistent headache for every online seller. Customers add products to their cart but then leave without completing the purchase. The reasons could vary, the price might be too high, shipping costs may seem unreasonable, or they simply change their minds. Downsell offers a practical solution to this problem.
When a customer declines to purchase a high-priced product, you can immediately introduce a similar but more affordable option. For example, if a customer doesn’t want to buy a $50 hoodie, you can offer them a $25 T-shirt with the same design instead. This approach helps you retain the customer and convert them into a buyer, rather than letting them leave empty-handed.
Increase Conversion Rate
The ultimate goal of any sales strategy is to boost the conversion rate. Since you’ve already invested time and money to drive traffic to your store, every potential customer is valuable. Downsell ensures that even if a customer rejects your main product, you still have a chance to make a sale.
Think of Downsell as a “safety net”. If the first “bait” doesn’t hook the customer, you have a second offer to keep them engaged. This not only maximizes the value of each visit but also increases your overall revenue.
Building Relationships and Establishing Trust
The purpose of Downsell goes beyond simply making a sale. When you offer a lower-priced alternative, it shows that you understand your customers’ needs. You’re not trying to “force” them into purchasing something they can’t afford or don’t really need.
This creates a positive experience and builds trust. Customers will see you as a thoughtful and reliable seller. When they have a good buying experience, they are more likely to return in the future, increasing their Customer Lifetime Value (CLV).
Attracting New Customers
For first-time buyers, there’s often hesitation and caution — they usually don’t want to spend too much money right away. Downsell offers a great entry point for these cautious shoppers.
By providing a lower-priced product, you remove the barrier of cost. This allows customers to experience the quality of your products and services without feeling pressured by a high price tag. Once they are satisfied, the likelihood of them coming back to purchase higher-priced products in the future increases significantly.
How Downsell Works in POD Business
So, how is Downsell applied in the real-world POD business? Below are the most common and effective methods:
Offering a Lower-Priced Product
This is the most basic form of Downsell. When a customer declines to purchase a higher-priced item, you immediately offer them another product with the same design but at a lower price.
Example:
- The customer declines to buy a hoodie ($50).
- You then suggest a T-shirt ($25) with the same design.
- Or, you could offer a ceramic mug ($15) or a tote bag ($18).
This approach keeps the customer engaged and gives them a more affordable way to complete the purchase.
Discounting the Original Product
Another effective Downsell method is to lower the price of the original product the customer declined. This is often done through a discount code or a surprise pop-up offer.
Example:
- The customer is about to leave the checkout page without buying a hoodie ($50).
- A pop-up appears:
“Wait! For today only, we’re giving you a 20% discount on this product. Complete your order now!”
This last-minute offer can motivate the customer to return and complete their purchase at a special price.
Offering a Simplified Version
If you’re selling a customizable product with multiple options, you can Downsell by suggesting a simpler version with fewer features at a lower price.
Example:
- You sell a custom T-shirt that can be printed on both the front and back for $30.
- The customer declines the offer.
- You then propose a single-sided print version for $20.
This method appeals to customers who still want the product but prefer a budget-friendly option.
Offering Products at the Top of the Sales Funnel
Downsell doesn’t only occur after a customer rejects a purchase — it can also be applied at the very beginning of the sales funnel.
Example:
- A customer visits your hoodie product page.
- On the same page, you also display lower-priced products such as T-shirts, ceramic mugs, or phone cases.
- This gives the customer more options and increases the chances that they will purchase at least one item.
Using Email Marketing
Email marketing is an incredibly effective tool for implementing Downsell strategies. When a customer abandons their cart, you can send an automated follow-up email to re-engage them.
Example:
- The customer added a hoodie to their cart but didn’t complete the purchase.
- After one hour, the system automatically sends an email: “Looks like you left something behind in your cart!”
In that email, you can suggest a lower-priced product, such as: “If you’re not ready to purchase the hoodie yet, check out these other great products with similar designs!”
This approach helps bring the customer back while giving them a budget-friendly alternative.
Benefits of Downsell for POD Sellers
Implementing Downsell strategically can bring numerous benefits to your POD business:
Maximize Revenue from Each Potential Customer
This is the most obvious benefit. Downsell allows you to “save” sales that might otherwise be lost. Instead of letting customers leave without buying anything, you can convert them into buyers by offering a lower-priced product. Every successful order, whether large or small, contributes to your overall revenue.
Increase Customer Lifetime Value (CLV)
When a customer purchases a downsell product, they begin their journey with your brand. If they have a positive experience and are satisfied with the product quality, they are more likely to return in the future. Next time, they may even be willing to purchase a higher-priced product. Downsell helps nurture long-term relationships, boosting the Customer Lifetime Value (CLV).
Improve Marketing Cost Efficiency
Advertising costs, CPC (Cost Per Click), CPM (Cost Per Mille), are constantly rising. Every visitor you bring to your store has value, and wasting that traffic is costly.
Downsell ensures you maximize the return on your marketing investment by converting hesitant customers, ultimately lowering your Customer Acquisition Cost (CAC).
Gather Valuable Customer Data & Insights
When running downsell campaigns, you collect valuable customer data. You’ll gain insights into why customers decline the initial offer whether it’s price-related or simply because they don’t need a premium product.
These insights allow you to:
- Understand customer behavior more deeply.
- Adjust product strategies and pricing models to better meet market demand in the future.
Reduce Risk for Both Sellers and Customers
For customers, a lower-priced downsell product reduces the risk of trying a new brand. They don’t have to spend a large amount of money on their first purchase.
For sellers, Downsell reduces the risk of losing a potential customer entirely. It’s a win-win strategy where both sides feel more comfortable and confident moving forward.
Important Considerations When Implementing Downsell in POD Business
While Downsell offers many benefits, to implement it effectively, there are several key points you need to keep in mind:
Don’t Devalue Your Brand
This is the most crucial factor. Downsell does not mean you’re “begging” customers to make a purchase. The downsell offer should feel natural and reasonable, not desperate. The product you offer as a downsell should never feel cheap or low-quality. Ensure that it maintains the same standard of printing and materials so customers continue to view your brand as trustworthy and premium.
Choose the Right Downsell Product
The downsell product should be closely related to the original product the customer declined. It must address a similar need, just at a lower price point.
Example: If you’re selling a T-shirt with a dog design, the downsell product could be a ceramic mug with the same dog design, not a phone case with a cat design. Relevance is key to making the offer compelling.
Time Your Downsell Correctly
Timing is everything. The downsell should be offered immediately after the customer rejects the initial offer. If you wait too long, they may leave and completely forget about your products.
Ideal moments for presenting a downsell include:
- On the checkout page, right as the customer is about to exit.
- On a confirmation page, such as “Are you sure you want to leave?”
- In an automated follow-up email after cart abandonment.
Personalize the Offer
Whenever possible, personalize your downsell to match the customer’s interest.
Example: If a customer declines to buy a hoodie with a “Love Dogs” design, offer them a T-shirt with the exact same design instead. This connection creates familiarity and significantly increases the chance of conversion.
Avoid Overusing Downsell
- While Downsell is powerful, overusing it can backfire. If every customer constantly receives a downsell offer, they may start expecting discounts and become unwilling to purchase products at full price.
- Use Downsell strategically and selectively, only when it truly makes sense to retain a customer or recover a potential lost sale. Downsell is a smart strategy that helps increase conversion rates, retain customers, and optimize advertising costs in the POD business.
Instead of letting customers walk away, sellers can use Downsell to offer more suitable products at better prices, ultimately building long-term relationships and increasing customer lifetime value (CLV). Start implementing Downsell today with popular POD products like T-shirts, hoodies, and tote bags, combined with automation tools to maximize efficiency and results.
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