How to use this calculator
- Enter or choose orders per month.
- Enter or choose orders that see the offer.
- Enter or choose take rate.
- Enter or choose average upsell value.
- Enter or choose gross margin on upsell items.
- The extra revenue per month updates as you type. Use Copy result or Share to keep it.
Method
Upsells = Orders × Shown% × Take%; Extra revenue = Upsells × Upsell value; AOV lift = Extra revenue ÷ Orders
- Shown%
- share of orders that see the offer
- Take%
- share of viewers who accept
Worked example
- Upsells = 2,000 × 80% × 12% = 192.
- Extra revenue = 192 × 25 = 4,800; gross profit at 50% = 2,400.
- AOV lift = 4,800 ÷ 2,000 = 2.40, so AOV goes from 50 to 52.40.
The upsell would add about 4,800 a month in revenue and 2,400 in gross profit, lifting AOV by 2.40 (4.8%).
What the result means
Judge an upsell on extra gross profit, and check that conversion did not fall: a pushy offer that costs even a small share of checkouts can wipe out the gain.
Assumptions and limits
- Showing the offer does not change the number of orders.
- Upsell items would not otherwise have been bought.
- Cannibalisation of items customers would have bought anyway, and any effect on conversion, are not modelled.
Questions
Upsell or cross-sell?
An upsell offers a better version of the item; a cross-sell offers a related item. The arithmetic here works for either.
Where do I get the take rate?
From an A/B test or your app’s reports. Until you have data, try a cautious range.