Cross-selling refers to a method by which customers are given the chance to buy more products from the business entity. These products usually complement the original product purchased.

Cross-selling is used in a variety of industries. In the restaurant or fast food industry, for example, servers push certain products by suggesting that they be taken together with the original order, supposedly because they would complement each other. In this way, a bigger sale is made. The idea behind this strategy is to take a bigger slice of the market by addressing a bigger portion of the needs and wants of consumers.

Cross-selling may also be commonly used in retail selling. The salesperson could try to bundle up two different appliances which are to be used together (take a television set and DVD player, for example) and offer a discount or some kind of special arrangement. The important thing for a transaction to fall under the classification of cross-selling is for the additional product to complement the main purchase.

Cross-selling can also involve services. Some telecommunications companies can also provide, aside from just the phone line the consumer needs, a variety of other services. Examples of additional services could be broadband connections, mobile phone lines, or special overseas call packages. In this way, the phone company is able to meet a wider range of its clients’ needs.

Under this setup, the consumer is able to enjoy the convenience of availing of several products or services under one roof. However, the risk here is that if one of the additional components proves to be unsatisfying to the consumer, the company’s reputation could be tainted, even if the faulty device or unsatisfying service is separate from the main product offered.