Table of Contents
The greatest point of sale (POS) systems will help your business to take payments quickly and simply. However, as we will see below, POS systems may also enable your firm to do much more than this.
POS systems, which can be used for everything from customer intelligence and marketing to staff monitoring and inventory control, may help you simplify your organization by making payment processing, logistics, and inventory re-stocking even more efficient.
In order to assist you in selecting the most appropriate POS software for your company, we’ve put together this comprehensive guide that discusses all of the advantages and characteristics of POS solutions, as well as assessing and evaluating all the most prominent POS suppliers.
What Is a POS System?
“Point of sale” is an abbreviation that refers to the location in a business or café where a monetary transaction occurs. In the past, this nearly usually referred to the cash register, which is still a significant component of many current point-of-sale systems (it doesn’t have to be).
Today’s finest POS systems can do a wide range of tasks in addition to transaction management, including inventory management and discount. They can also interface seamlessly with back-end accounting software, as well as track and report on workers.
So, what exactly is a point-of-sale system? For the most part, POS systems are composed of four major components: a screen that allows the user to view and control information related to the transaction, a card reader, a receipt printer, and technology that connects everything together. Of course, in the retail industry, a barcode reader is also an integral element of the overall system.
They’re also described as ‘ePOS systems,’ whereby the ‘e’ represents ‘electronic,’ and the ‘POS’ stands for ‘point of sale’.
How Do I Use a POS System?
Consider how frequently you use your credit or debit card for transactions such as purchasing petrol, paying for your daily cappuccino or groceries, or acquiring that fantastic new dress or a set of golf equipment, to name a few examples. Using point-of-sale innovation, the system’s software employs a code on the package of the item you purchased as an inventory control system, as well as an effective process of controlling the transaction. In principle, a firm can track how many drinks, sweatshirts, or golf clubs have left their shop, as well as whether or not any have been returned. Additionally, the POS system may be able to expedite transactions — which is essential at a café or coffee shop, where a lengthy wait at the counter results in dissatisfied consumers. POS software that is more complex will actually gather data on purchases, client behavior (so that high rollers may be treated more favorably), which goods are selling well, and which ones are stagnating, among other things. All of this information can assist firms in increasing revenues while decreasing waste. Finally, in a bar or restaurant, a group of ten people will nearly invariably request that the bill be divided. Straightforward division through one ticket to ten is simple and quick with the correct point of sale system.
Benefits of a POS System
The availability of lightning-fast data connections throughout the globe means that now is an excellent moment for small retail enterprises to upgrade to point-of-sale systems that have the ability to substantially enhance revenues and efficiency. After taking into consideration all of the distinct advantages point of sale systems provide over a basic electronic cash register, it is no surprise that retail businesses of all types and sizes – from clothing stores to electronics retailers to furniture retailers – are quickly implementing point of sale systems that provide a swift return on investment due to the vast number of benefits they provide, some or all of which are listed below:
Greater Profits
Every company’s primary objective is to make money, and the appropriate point of sale system will include a slew of capabilities that are not accessible in simple stand-alone systems and that may help businesses increase their revenues. Every item sold may be traced back to its moment of purchase, retail location, and purchasing channel – whether it was purchased online or in person. This information, which is available in easy-to-read reports, can assist you in identifying the biggest sellers and prime buying periods. A point-of-sale system featuring built-in retail intelligence may identify upsell possibilities as well as goods that are frequently purchased in conjunction. This information may assist you in improving the way you organize exhibits and shelving in stores so that they are more visible and simpler to obtain for customers.
Save your resources
In addition to saving money, every small business wants to maximize profits. Point of sale systems may help businesses save money in a variety of ways, including through closer connection with their inventory management software. For example, you may use real-time inventory monitoring to improve the efficiency of your inventory management. Comprehensive reports generated by the POS solution may provide you with a bird’s eye perspective of your processes and an improved understanding of which parts of your organization can be made more productive. They can inform you which goods aren’t selling, and they can build an audit trail that will allow you to keep track of how things are doing even when you’re not there.
Increase the effectiveness of inventory management and purchasing
When recognizing sales patterns, your POS system should be able to utilize this information to improve the effectiveness of your inventory management system as well. This will remove the need for repeated orders and allow for more efficient “just in time” procurement procedures, which will save funds and warehouse space. Automatic purchase orders can also help you save thousands of hours by reducing the possibility of human mistakes.
Increase the quality of your customer relationships
Customer satisfaction is one of the most accurate indicators of a successful POS system. In a competitive industry, clients will pay as much attention to a hassle-free shopping experience as they will to the lowest pricing. The ability to provide higher consumer satisfaction is a critical factor in achieving long-term success; thus, you will need a point of sale application that enables your employees to spend more time engaging with customers in your shop. Integrated loyalty programs, gift cards, and accounts receivable charge account for regular shoppers will also be desirable for businesses with large numbers of customers. Using retail intelligence built into the platform, you will be able to target appealing offers to the right individuals at the right time.
Improvements in Data Security
It is also necessary for retail software that connects an improved stock control system with an advanced point of sale system to comply with data security requirements that safeguard against credit card fraud as well as other related risks. Make the decision to employ a point of sale solution that utilizes a centralized secure database including data backup, as this will ensure that retail data is error-free and consistent and that it is protected from intruders.
What You Should Look for in a POS System?
Every small business, regardless of its size, benefits from having a point of sale system. A POS system is capable of much more than simply sales monitoring and reporting; it may also save you both time and money by performing a variety of additional tasks. The following features will be found in a superb point of sale terminal for small businesses:
Affordable: Because SaaS pricing is based on a month-to-month subscription model and tablet-based hardware is reasonably priced, you won’t have to make a significant investment in on-premise software and gear that you may or may not opt to maintain. Hardware shouldn’t generally cost upwards of $1,000-$1,500 per station, depending on the configuration.
Customizable: A system that can be customized allows you to create the ideal point-of-sale system for your company, ensuring that you can only pay for the functionality you need and not for those you could do without. You may also alter or make additions as your company expands and develops.
Mobile: Tablet or iPad (as well as custom mobile hardware) solutions allow you to roam around your office while you go about your work. Some point-of-sale solutions may also include iPhone or smartphone integration, allowing you to accept payments while away from your desk or even if you don’t have a physical storefront.
Cloud-based: POS systems save all of your data securely in the cloud, allowing you to view your company data from any location in the globe. Cloud POS Packages are also scalable, and they are available in a variety of monthly price packages.
Modern Payment Acceptance: Your point of sale system should be capable of accepting not only currency and swiped transactions, but also chip cards and mobile/tapped payments (NFC), as well as gift vouchers, coupon codes, and store credit if possible. POS systems that accept QR code transactions and text payments are becoming increasingly common, allowing customers to pay using their own mobile devices.
Integrated Payment Processing: Decent point of sale systems should feature linked payment processing, either through an in-house payment service or through an external merchant account that can be integrated easily.
eCommerce Functionality: As more and more small companies move at least some of their sales online, your point of sale system should be able to accommodate online sales, either through an in-house eCommerce feature or by integration with a provider such as Shopify or BigCommerce.
Socially Distant Selling: In addition to typical eCommerce selling, a contemporary POS system will also offer novel online selling alternatives such as online purchases, delivery service, and roadside pickup—all of which are extremely crucial during the COVID-19 epidemic. During COVID, it is also becoming increasingly important that your system is capable of accepting the socially distant, contactless payment types indicated above.
Loyalty Features: With a customized loyalty program, you may entice consumers to return (in-house or integrated). Some POS solutions even allow you to develop a customized reward app for your clients, which they may use to track their purchases.
Business Administration Functions: A contemporary point-of-sale system should be capable of handling everything from personnel management and payroll to close orders and supplier relationships, among other functions. Eateries and retail establishments are likely to gain from industry-specific functionality such as table allocation and tipping capabilities. You may also profit from advanced inventory management services for restaurants.
Customer Support: You must be able to get in touch with your POS supplier at any time of day or night so that you can obtain assistance anytime you need it, even though your business operates on irregular hours or if you are working long hours or on a weekend. Ensure that you choose a POS supplier who can be reached immediately via the communication method of your choice.
Deciding on a POS System
However, while pricing and functionality like as inventory management, reporting and analytics are important considerations in your selection, there are certain extra, advantageous considerations that you should not neglect. When comparing different point-of-sale systems, keep these considerations in mind.
POS Software as a Service vs. Licenses
Many POS providers, like other software solutions, offer cloud-based SaaS subscription options, which are comparable to other software solutions. These are often the most cost-effective alternatives. This sort of subscription typically includes customer assistance as well as frequent software upgrades, ensuring that you are always using the most updated version of the program on your computer. Purchasing a software license, on the other hand, requires you to pay a hefty up-front price for the license, a monthly charge for administration and customer support, as well as a yearly update fee.
Plans for POS Software
Month-to-month subscriptions are the preferable choice, especially if this is your first time utilizing a POS system. If you find that the system is not an ideal fit for the company, you may cancel your membership reasonably quickly and painlessly. Certain businesses impose an additional fee for monthly plans. For those that pay in advance annually, certain companies may provide a discount. Use the program for a sufficient amount of time to become familiar with it and be sure that you will keep using it for a minimum a year before taking advantage of the discount. This will prevent you from becoming trapped in an incompatible system.
Purchasing POS Hardware vs. Renting POS Hardware
Acquire the necessary equipment, even if it means beginning with a really basic setup. (You may add to it when you become able to purchase different goods in the future.) This would save you both money and aggravation in the long run. Some suppliers provide “free” POS gear in exchange for signing a contract, while others allow you to lease POS technology rather than purchasing it, resulting in a lower initial outlay of funds. Despite how appealing these alternatives appear, they will cost you more money over the course of the contract – frequently by a factor of many times – than purchasing the POS equipment outright.
If you lease or take free equipment, the conditions are typically 3 to 5 years and are non-cancelable — even though you sell or liquidate your firm and surrender the equipment, you may be forced to continue the payment on it until the agreement ends. Furthermore, if the agreement contains an auto-renewal clause, you have a little period of time in which to cancel – typically 30 days, and only if you do so in writing.
Square
For the majority of small businesses, Square is the most cost-effective point-of-sale system available due of its low price point and simple-to-use software that includes choices for general purpose, commerce, restaurant, and appointment-based businesses. In each case, there is a basic plan that includes limitless sales and items, as well as an online store, as well as a $50-$60 month plan that adds more features and benefits. Accordingly, Square is our highest-scoring overall POS system, as well as the best free POS and mobile POS option. Our best pick for all-purpose commerce POS is Square for Retail, while our top pick for salons and spas is Square Appointments, which received the highest score in our survey.
There are also modular add-ons available, such as payroll management and marketing, as well as configurable hardware alternatives. View Square’s interface and hardware possibilities by scrolling through the photos in this section.
Square POS received a rating of 4.48 out of 5 stars in our review. The Square goods that are specialized to their respective industries were also examined, and they all had fairly comparable results. Square outperforms the competition in terms of pricing (its free app is the greatest value) and simplicity of use. You cannot search around for better payment rates since you are locked with Square Payments, thus Square lost points in this category. A lot of the more complex POS capabilities, such as marketing and loyalty, are only available as expensive add-ons, and Square does not offer extensive inventory or back-office administration, as do Lightspeed, Shopify, Upserve, and Toast, among others.
Key features
- Payment processing integrated: Handle credit and debit card payments in-person or online, contactless payments, mobile payments, and by invoicing, monthly or subscription invoicing, with next-day deposits. Square is one of the few point-of-sale systems that can accept immediate deposits for a small additional charge.
- Appointments on Square: Management of multiple appointment calendars, setup of online booking, allowing consumers to book and organize appointments through an online portal, fully automated SMS and email reminders, and the requirement of credit cards at the time of booking in order to avoid no-show and cancellation fees are all possible.
- Square for Retail: Use a QR code interface with omnichannel sales tools and inventory management capabilities such as barcode generation, supplier relationships, customer orders, and detailed sales data.
- Square for Restaurants: Incorporate online ordering, order management, kitchen display, interactive purchasing, table and seat organization, firing and coursing options, as well as menu reporting and administration.
- Square Dashboard: Handle transactions, track total revenue, see analytics, and coordinate employees, taxes, payroll, and other aspects of your business from a single cloud-based dashboard.
- Customer relationship management (CRM): includes the creation of consumer profiles as well as the collection and response to customer feedback. It can discover marketing campaign possibilities, propose marketing emails relying on your list of customers and actions, assess results, and develop appropriate strategies. It can also identify marketing campaign chances.
- Online store: Create a free website or online shop to sell items to customers for pickup, shipment, or delivery at a convenient location. Integrate shoppable posts on your current websites and social media accounts or create easy online ordering pages on your websites and social media accounts.
Pros
Free point-of-sale, the finest deal for small companies
Simple to use, with a quick set-up
Can expand in tandem with your company’s growth.
Cons
Inventory management is limited.
Businesses with a high level of risk should avoid using it.
There is only limited phone assistance.
Pricing
Shopify
With Shopify, you may sell items at events or on the move, as well as sell on social networks and third-party marketplaces. The platform includes a free POS system for selling products at gatherings or while on the go. Shopify offers a POS Pro package for brick-and-mortar businesses, which includes omnichannel selling capabilities, advanced inventory control, and more thorough analytics, among other features. Purchases, inventory, and customer information are all maintained in one place with all Shopify plans, making Shopify the ideal POS for multichannel retailers.
Shopify received a 4.47 out of 5 stars in our review, placing it second only to Square in terms of the overall rating. Unlike Square, which shines in terms of pricing and simplicity of use, Shopify received a flawless grade in terms of register features as well as a good score in terms of administration tools. As a result, while they received virtually similar grades, their individual abilities are vastly different. The most significant disadvantage of Shopify POS is that it requires an eCommerce membership, and many of the most useful POS features (such as intelligent inventory management and comprehensive reporting) need you to subscribe to Shopify POS Pro, which costs an extra $89 a month.
Key features
- Omnichannel selling: Allows customers to shop online and pick up or refund in-store.
- Products: You may create an endless variety of products, segments, and collections, each with various versions.
- Inventory management: It includes a better inventory program that allows you to do inventory counts, receive items with a barcode reader, generate low-stock notifications and precise inventory reports, anticipate demand, perform inventory valuation, and view sale item ideas.
- Managing customers: All Shopify plans come with tools for creating customer information with contact details and shopping habits, assigning client labels, tracking special requests, running targeted promotions, creating marketing content, and optimizing social media campaigns.
- Online sales: Shopify is indeed the top ecommerce platform for small businesses, but it also includes tools for selling on social networks and third-party marketplaces, as well as the ability to add “Buy” buttons to blogs.
Pros
- Small companies will benefit from this price.
- Sales solutions that are omnichannel and intelligent in their inventory management
- Interface that is simple to use and intuitive
- Ecommerce platform that is among the best in the industry
Cons
- Offline mode is unreliable.
- The functionalities of the free POS application are restricted.
- It is necessary to have an ecommerce membership.
Pricing
Vend
A point of sale system that runs on an iPad and the web, Vend is intended solely for brick-and-mortar businesses. In addition to installed rewards programs, credit sales, layaway facilities, offline computation, and efficient product catalog management, it is among the few POS systems on the market that does so. Vend connects with a variety of payment processors, allowing companies to shop for the best rates while also offering a variety of payment alternatives, such as PayPal, to customers.
Vend received a rating of 3.96 out of 5 stars in our review. It stands out for its ease of use as well as its management tools. Vend, like Lightspeed, is, on the other hand, rather expensive when compared to platforms such as Square. Also lacking is native eCommerce capability; you must link a third-party platform like Shopify or BigCommerce to use this feature.
Key features
- This user-friendly cloud solution includes offline operations, staff logins, and a variety of customizable options such as back order and on-account sales, shop credits, gift cards, and monthly payments.
- Product catalogs, low-stock notifications, and tax rate management are all possible with detailed inventory tools. Track variations and bundles, generate, integrate, and print bar codes, and establish a centralized product catalog.
- Barcode scanning app for mobile devices: Vend offers a free iOS software for scanning barcodes on the sales floor to do rapid inventory counts, accept shipments, and check up product data. Any necessary adjustments made in the app may be synced with the data in Vend’s reporting.
- Optional features and growth tools: Vend includes a built-in loyalty program and interacts with third-party solutions for ecommerce, accounting and staff scheduling, as well as inventory management across several channels.
Pros
- Checkout options that are flexible – built-in loyalty, shop credit, and layaway
- System that is easy to use and operates on all OS systems
- Availability of telephone assistance around the clock
Cons
- Integration of eCommerce is insufficient.
- Reporting tools that are fundamental
- Inadequate integration of email marketing
Pricing
Toast
Toast is a point-of-sale system (POS) for restaurants that are particularly intended for the foodservice sector. Back-of-house elements such as kitchen displays and inventory monitoring at the ingredient level are combined with front-of-house capabilities such as table planning, menu management, real-time feedback collection, and real-time feedback collecting Furthermore, Toast has digital ordering and delivery capabilities, as well as payroll facilities and a diverse selection of industry-specific equipment, making it the ideal POS system for the majority of restaurants.
Toast received a 4.44 out of 5 rating in our review because of the extensive capabilities that are packed within a user-friendly design. Toast was denied a better rating due to the presence of additional costs and the exclusion of a free trial. Furthermore, despite the fact that Toast offers a pay-as-you-go alternative with no monthly software expenses, all plans need a two-year commitment.
Key features
- Payment processing: Toast provides a plethora of cashless solutions, like online catalogs, mobile order and transactions, self-order kiosks, swipe and mobile wallet purchases, and QR codes. The use of mobile pocket-size terminals is also an option for tableside online reservation processing.
- Front-of-house features: include table mapping and administration, real-time customer feedback gathering, tickets instantly transmitted to the kitchen display, and order alerts.
- Reporting and back-office management: Toast provides full menu planning with ingredient-level monitoring, recipe pricing, waste and COGS reporting, payment processing, and revenue and performance statistics, all in real time.
- Online ordering and delivery: Incorporate online ordering with a personalized mobile version, real-time ingredient and menu changes, and customizable hours and delivery options.
- Managing your workforce: Toast provides automatic payroll, simple new-hire onboarding, including HR paperwork, staff scheduling, thorough labor analytics, and a perks platform for providing healthcare.
Pros
- All-in-one system that is simple to operate.
- Configurations that are adaptable in terms of hardware, programming, and pricing
- Support is available 24 hours a day, seven days a week.
Cons
- In addition, it is only compatible with Android devices and is not supported by Apple iOS.
- There is no free trial, and the commitment is for two years.
Pricing
Final Thoughts
The finest point-of-sale systems provide more to company owners than just a straightforward method of accepting money. Businesses can sell their products and services anywhere and at any time thanks to POS developments such as mobile-first technology. Artificial intelligence (AI) advancements in POS software imply that, instead of informing companies of how much goods they have on hand, POS systems can now inform businesses of exactly what they need to purchase, and in what amounts, to maximize profits. At a price that is affordable for small businesses, the finest point-of-sale software combines analytics with ease of use.
