Upselling, Cross-Selling and Bundling
Accessories are powerful tools for retailers, generating higher margins than the sale of most core products. They provide the perfect opportunity for a retailer to upsell, cross sell and bundle. That’s because consumers are constantly looking for the coolest and sexiest product to show off on the block, in the schoolyard, in the dorm, at the gym or in the office. They constantly want to improve their current products and personalize them. More often than not, accessories offer the solution.
A key trend in consumer electronics has and will continue to be convergence. Although accessories and many core components are becoming smaller, they contain more features, which allow consumers to accomplish more with less. Smart phones are the perfect example, merging e-mail and Internet, audio and video, digital imaging, and GPS capabilities.
Selling GPS as a standalone unit can create a low margin for retailers, but cross selling it as an accessory can double those margins.