What is a POS (Point-of-sale) System?
Updated: Sep 2, 2021
If you love shopping or are a retailer, you’ve most likely come across the term “point-of-sale” or its acronym POS. The point-of-sale is a crucial purchase point where customers execute the payment of services or goods. It’s available in physical stores where POS systems and terminals process card payments. It could also take place at a virtual sales point such as online transactions that rely on electronic devices and computers.
These days, independent retailers are shifting from conventional POS systems in favor of cloud-based POS solutions. If you’re interested in getting a scalable POS solution for your retail activities, you’ll need a good company that understands your industry and has a team of experienced developers on hand. Why don’t we take a closer look at POS software to have a better understanding of how it works and how it can help you?
How It Works
A POS system enables a business to accept payments from clients and track sales. While it sounds simple enough, it’s a setup that can function in different ways depending on whether you have a physical storefront, sell online, or both.
Today, contemporary POS systems are digital, which means that your business can process sales transactions from customers regardless of where they are. A digital POS simply needs a POS app and an internet-enabled device like a phone or tablet to function.
Types of POS Software
The two major kinds of POS software can be categorized as cloud-based and on-premise. On-premise software requires the buyer to be in a certain location to use it. Cloud-based software offers more flexibility because you can use any compatible and connected device to access it. This software is increasingly becoming mainstream and allows you to perform sales and business check-ins even when you aren't at the store.
Good POS software is compatible with most POS hardware and other tools. This is ideal for small businesses that sell online, have a physical store, and hold in-person events from time to time.
Must-Have Components in a POS System
When looking for POS systems, here are some aspects you’ll want to evaluate them for.
To obtain the most benefits, your POS software should allow integration with other systems. Ideally, it should be connected with your systems that monitor attendance & time, accounting, and management. An integrated system has less room for errors since you won’t have to manually transfer data from one system to another.
Below are some areas that will benefit from POS integration.
POS software that is connected to your inventory lets you keep tabs on your products and inventory levels. You can use automated software that is linked to your sales data and be informed when an item is running out of stock.
Management software informs you when your employees are working so you have an idea of their performance. Your team can use it for clocking in and out. Some software can even grant permissions so employees can perform certain tasks.
This feature allows you to recognize and proactively increase high-quality customers. Customer management systems collect relevant data about your consumers such as their buying history. This allows you to mine the data for your most valuable clients and analyze their spending behaviour.
Businesses of various sizes and in different industries understand the importance of this feature and understand why it shouldn't be overlooked. The methods by which a business acquires services and goods can potentially impact business expenses, profit margin, and overall success. Streamlining purchasing with suppliers helps ensure that you secure the best prices while maintaining sufficient inventory levels.
Benefits of POS Software
For many customers, the greatest pain point is the checkout experience. Good POS software accelerates the checkout process. By doing so, it effectively reduces queueing time while enhancing customer satisfaction and sales.
Contemporary POS options provide a range of checkout experiences, including mobile POS solutions and curb-side pickup options.
Enhance Sales with Analytics and Reporting
Although it's possible to manually track analytics with shared drives and spreadsheets, it can quickly become tedious and cumbersome, distracting you from more significant business matters. Good POS software will automatically monitor sales and sales-related operations so you can focus on more high-value tasks like helping customers and planning promotions.
Business accounting is a crucial but time-consuming task that numerous retailers struggle with. POS software automates accounting processes by keeping accurate data and providing faster access to it by linking with your accounting system. This provides you with accurate numbers across platforms at any time.
POS Software Makes a Huge Difference
Over the years, POS systems have advanced rapidly, yielding various benefits for businesses. Remember, the system you decide to work with makes a huge difference. It’s important to choose a system that can work with the systems you currently own and that can grow with your business.
To learn how our payment solutions can help you run your business more efficiently, schedule a free consultation with our merchant services team today.