Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue.
Upselling is the practice in which a business tries to motivate customers to purchase a higher-end product, an upgrade, or an additional item in order to make a more profitable sale.
For instance, a salesperson may influence a customer into purchasing the newest version of an item, rather than the less-expensive current model, by pointing out its additional features.
Another way of upselling is by creating fear over the durability of the purchase, particularly effective on expensive items such as electronics, where an extended warranty can offer peace of mind.
All techniques adopted and effectively practiced within firms are important strategies that are used for increasing revenues among current customers.
This is why adding on can be difficult, familiarity and relevance of suggestions is important, the seller wants to make sure that the items being shown still match the customers' initial thoughts and ideas.
[6] When upselling for higher cost items or add ons to customers for goods and services it is advised not to push the sale as it may become unethical.
In New Zealand, the "Consumer Guarantees Act of 1993" states that if the customer is unhappy with the goods or services rendered, they are entitled to a refund, or the business in question must compensate them for their troubles.