The Point of Sale (POS) system includes hardware and software that allows you to make sales, accept payments, and record customer checkouts.
What is a Point of Sale System?
A Point of Sale (POS) system is hardware and software that helps your business accept payments from customers and make sales in-person. It also directs funds to your bank account after each sale.
Modern POS systems help merchants manage inventory, track sales performance, manage staff, collect customer contact information, and much more.
How Does a POS System Work?
At a basic level, a POS system calculates the total of the items a customer wants to purchase, processes the payment, and adjusts the inventory levels to reflect the sale. Here’s what a typical POS workflow looks like:
1. The customer selects your product
2. The POS system calculates the total price
3. The customer pays
4. The sale is completed
Components of POS Software
There are two main types of POS systems: local and cloud-based. A local POS system requires you to be onsite to use it. POS hardware is the most common in a local POS system. Cloud-based POS systems offer more flexibility, allowing you to run your business, serve customers, and accept payments using any mobile device with internet access.
Components of POS Hardware
POS hardware components include the following:
– POS Terminal: The POS terminal runs your POS software. Mobile POS software can be installed on any tablet, smartphone, desktop, or laptop with internet access.
– Cash Drawer: If you are not only processing cashless payments, you will need a place to put the cash that customers use to purchase your products.
– Tablet or Smartphone: Both of these mobile devices are commonly used in retail POS software. Store staff can process transactions and accept payments without making customers wait in line to pay. They are also useful for managing inventory and conducting stock-taking.
– Barcode Scanner: A barcode scanner reads product details and is used to make sales. It is also useful for checking product prices, available inventory quantities, and other details.
– Credit and Debit Card Reader: This device can read credit and debit cards. Cards can be read in various ways, including swiping, tapping, and EMV chip. You need this to process payments so you can receive funds from the customer’s bank.
– Receipt Printer: Although receipt printers are not always necessary, they are useful if you want to give customers the option to receive a printed receipt instead of an emailed receipt.
– Card Printer: There are some cases where you might need a card printer, such as when shipping a product to the customer’s shipping address from your store, for example. Having a card printer as part of your POS system setup allows you to do this instantly.
– Shipping Scale: If you are shipping items to customers, you will need a shipping scale to determine the shipping cost and the weight of the shipment you are charging for.
Benefits of Using a POS System
Modern POS systems offer more functionality beyond just processing transactions. They can also complete other business functions and assist in making important business decisions, including:
– Focusing your inventory management
– Collecting and visualizing sales data in real-time
– Building comprehensive customer profiles
– Accepting payments anywhere
– Improving store sales
– Opening new stores faster
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Adapting to Changing Business Needs
What Features Should a Point of Sale System Include?
In addition to core functions, there are other features that you should ensure are included in the point of sale system you choose, including:
– Integrated payment processing
– Mobile checkout
– Multi-channel inventory management
– Employee management
– Centralized reporting and analytics
– Flexible order fulfillment options
– Multi-store management
– Customer relationship management
– Apps and add-ons
– Reliable support
How to Choose the Best Point of Sale System
Whether you are considering opening your first retail store or are dissatisfied with your current point of sale system and thinking about switching, it is crucial to choose a point of sale system that supports your current needs and helps your brand grow as its needs evolve.
Finding the right point of sale system requires a lot of research and foresight, but the return on your investment is worth it. Start by assessing your current needs, then consider your future: Do you want to sell online and in-store? Are you looking to open additional stores?
To ensure the success of your business, your point of sale system should:
– Process sales and accept payments
– Assist you with flexible returns and exchanges and issuing store credit
– Help you offer flexible payment, purchase, and delivery options
– Assist you in serving multiple customers effectively
– Provide a complete view of your inventory across all locations, updated in real-time
– Enable you to sell wherever your customers are
– Provide strong analytics and reporting capabilities
– Provide quick access to customer files, order histories, and loyalty programs
– Offer strong app integrations to expand your point of sale system’s capabilities
– Easily integrate with your business technology (such as marketing, accounting software, etc.)
How to Buy a Point of Sale System
The most important part of finding the right point of sale system is doing the necessary research. When you’re running a full-time business, it can be difficult to find the time to assess your needs, explore options, and plan for the future.
However, here are some ways to research point of sale systems, test your options, and ensure you are making an informed decision that positions your business for the best chance of success, both today and in the future:
– Ask your network: Start by asking questions of people you know and trust. You may have a knowledgeable employee who can give a recommendation – they already know the ins and outs of your business and interact with customers regularly. They may have insight into the strengths and weaknesses of your current point of sale system and can provide valuable feedback on the features you should look for in your new point of sale solution.
– Check review sites: To understand how other merchants are using your point of sale system, read some review sites. You can compare competing point of sale systems and get a better understanding of their benefits and limitations from merchants with direct experience.
– Read case studies: For more details on how your point of sale system can help you achieve success, try reading some case studies published by the point of sale provider. These articles offer deep insights into individual success stories of businesses, including accounts of how the point of sale system drove better results for them.
– Try it for free: If the point of sale provider offers you the option to try their product before you buy, do it! The experience can give you a sense of whether the point of sale system will meet your unique business needs. You’ll be able to explore its features, see how easy it is to use, and test customer service quality before paying for services.
– Check the minimum contract requirement: Pay attention to minimum contracts, as some point of sale systems require merchants to agree to commit to usage for a specific period. This can be limiting for various reasons and might tie you to a tool that is not suitable for your business.
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Look at the real world: As a final step in finding the right point of sale system, shop around. Visit the retail stores you like, observe the point of sale system they are using, and enjoy the experience of being a customer there. Then ask them what they like and dislike about their point of sale system. These unbiased opinions may help you decide on the system that suits you.
What is the best point of sale system for retail?
Every retail business has its own needs, and every business owner should choose a point of sale system that meets those needs. While we may be biased, we work hard to make the Shopify point of sale system the best solution for merchants selling online and in person by unifying all the tools and reports they need in one easy-to-understand office.
For merchants looking to sell their products everywhere their customers are, the Shopify point of sale system is the best point of sale system. It allows you to manage your store’s inventory online and offline in one place and comes with hundreds of reports that unify sales and inventory data for both in-store and online, making it easy for merchants who sell in person and online to manage their business in one place instead of jumping from one system to another.
The Shopify point of sale system also integrates seamlessly with your Shopify online store. If you have multichannel ambitions, Shopify is the best way to achieve your goals without the need for complicated solutions or obscure, unreliable customizations.
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