Retail POS Systems, Tools & Packages
Technology continues to drive retail forward and impact every stage of the customer journey. If you want to grow a successful retail business today, you need to leverage retail point of sale (POS) software.
This page introduces you to some of the most popular software in retail and has practical information to help you choose the best solutions for your business.
What is a retail POS system?
Simply put, a point of sale (POS) system is the system you use to record your sales. For retailers, this is usually the front desk where your customers go to purchase their goods. The typical set up usually has a computer, cash register, barcode scanner and receipt printer.
There are two types of POS systems:
- In-store POS: Also known as a legacy POS, an in-store POS system stores all of your data on a local database (i.e. the computer in your shop) and you can only access it from an in-store device. If you use an in-store POS system you may need a license for the software and you’ll need to ensure the system is maintained and updated.
- Cloud-based POS: A cloud-based POS system, also known as software as a service (SaaS), is linked to a remote server and data is automatically synced and backed up. This means you can access data and run your business from any device with an internet connection.
Technology and changing consumer behaviours have given rise to much more sophisticated POS systems that have the function to help you run and grow your business. POS systems today are also referred to as “retail management software” which paints a much more accurate picture of its capabilities.
What is a retail POS system used for?
POS systems have a variety of functions that offer a complete retail management solution. Here are some of the top features to look out for in a retail POS system:
- Ecommerce software: Online retail businesses need ecommerce software to set up and manage their online store. Ecommerce software is the engine behind all online retail operations such as inventory and catalogue management, automation of shipping and tax information, customer order management, website analytics and optimisation, and more.
- Inventory management software: Monitor and manage your inventory levels and make real-time adjustments as you order new stock. You can also receive alerts for low stock levels and gain insights on inventory trends for more efficient inventory management.
- Employee management: Track the hours your staff work, schedule and shifts and prepare payroll for efficiently.
- Customer relationship management (CRM): A CRM is a customer database that stores key customer information and details including purchase history. A CRM allows you to manage customer data, track leads, answer customer queries and track feedback. It also cracks open a wedge of opportunities to better understand your customers and their needs, and generate more effective marketing campaigns.
- Retail accounting: Manage transactions, monitor cash flow, set budgets, organise payroll and reduce manual back-end administration of running a small retail business.
What are the benefits of a retail POS system?
A good POS system is a vital element of a successful retail business and gives you the tools to manage your retail business from the bottom up. With the ability to track inventory and sales in real-time, employee management and analytics, a trusted POS system will free up your time, save money and automate tasks so you can focus on growth. Other benefits include:
- Improved customer experience
- Access to sales reports in real-time
- Leveraging data and customer insights
- Seamless employee management
- Flexible business management
- Improved inventory management
How do I choose the right retail software?
Choosing the right retail management software depends on your unique business requirements. For example, some software is geared towards ecommerce and retailers that need excellent inventory management and reporting functions.
Below are some key considerations when choosing a POS system:
- Type of retail business: Some POS systems are better suited to certain retail businesses e.g. single location stores, multi-location stores or omnichannel retail businesses.
- Usability: A POS system should be user-friendly with a quick learning curve for your staff.
- Scalability: Assess whether it can cater to your business needs if you plan to scale and grow.
- Integration with other systems: Determine if you need to sync a POS system with other systems e.g. accounting and marketing.
- Data recording and analytics: Good data insights and reporting features can help you identify strengths and weaknesses and make more informed business decisions.
- Customer support: A Good POS system will offer desiccated customer support and be on-hand to assist with any technical issues.
What is the best POS software for retail businesses?
The right POS system for your business ultimately depends on your business needs, size, system preferences and budget. Some of the most popular POS software for small retail businesses include:
- Shopify
- Square POS
- ShopKeep
- Vend
- PayPal Here
- Fresha
- Revel Systems
How much does a retail POS system cost?
When you purchase a retail POS system you will need to buy software and hardware. You have two options with the hardware: purchasing or leasing. There are pros and cons to both options, but the general consensus among industry professionals seems to be that purchasing is a better option. Leasing can end up costing you more over time and you may be tied into a non-negotiable contract.
Another cost factor to consider is choosing cloud-based or server-based software. Cloud-based software is generally cheaper than local-server options. Most POS providers offer flexible monthly packages for cloud-based software and may offer a discount for an annual subscription. To give you an idea, a cloud-based POS system usually starts from around $60 per month.
No matter what your budget is, it’s important to see a POS system as an investment in your business and a tool that will help you grow.
If you have any questions about retail POS systems, don’t hesitate to reach out to our community for advice and recommendations.
