Point of sale systems – features and benefits guide.

As a retailer, you have a lot on your plate – there’s stock to order, invoices to pay and sales reports to prepare. And that’s just the start. A point of sale (POS) system can help to lighten the load.

What is a point of sale system?

A POS system allows your customers to pay for the products and services they purchase from your store. It’s generally comprised of both point of sale software and hardware, which work together to streamline your payment processes.\

What does a point of sale (POS) system do?

Point of sale is simply the place where a customer makes a purchase from you. Traditionally that was in-store. But today it could be in-store, online or via a mobile app. A point of sale system ensures this process is smooth, merging all payment information including inventory, sales, and customer management.

It primarily performs the functions of a basic cash register:

But you can also count on a POS system to assist with more advanced tasks such as inventory management, vendor communications and managing the costs of employee labor.\

Benefits of a point of sale (POS) system.

A POS system can revolutionize your eCommerce experience. By integrating with your eCommerce store, you can eliminate manual data entry, keep tabs on inventory in real-time, offer cross-channel promotions and customer incentives, and support in-store returns and pickups. \

Key benefits include:

Types of point of sale (POS) systems.

There are two primary types of POS systems: on-premise and cloud-based.\

On-premise POS systems.

With an on-premise system, the point of sale software is installed and held on a server in your facility. It may look similar to a touchscreen monitor or desktop computer.

Key points:

Cloud-based POS systems.

A cloud-based POS system is installed remotely and connected to the internet with your data stored remotely in the cloud. Remember you can’t access your data without Wi-Fi or mobile broadband.

Key points:

Top tip: Before you decide upon a cloud-based POS system, understand who will own the data. Be clear how it’s backed up and recovered too, so you can avoid issues if switching providers.

Other point of sale (POS) system types.

What is included in a POS system?

POS systems will typically include a mixture of point of sale software and hardware, including:

How does the point of sale system work?

POS systems provide the following baseline capabilities.\

Keep track of inventory.

Regardless of whether products are at your store, a warehouse, or a third-party fulfillment center, managing inventory can be daunting. Point of sale software helps minimize guesswork and manual errors. Use a POS system to ensure you have enough products in the right place at right time.\

Manage customer and sales data.

A POS system lets you collect and track customer information such as customer names, addresses, and order histories. Use this data to pinpoint your most loyal customers and gain a better understanding of the customer segments you plan to target in the future.

You can also track key sales metrics like in-store and online sales, sales per employee, and sales per channel. This information is essential to make informed, data-driven business decisions.\

Fulfillment options.

To succeed in today’s increasingly competitive marketplace, you must find creative ways to boost sales. A POS system can make this easier by offering in-store pickup, home delivery, and in-store returns for online purchases. Such flexibility is a great way to appeal to your customers while diversifying your revenue stream.\

Choosing a point of sale (POS) system.

There are countless options on the market. The following tips can help you select the best POS system for your business.\

Define your business needs.

Almost every POS system can help you manage inventory and sales. But what else? Do you need a system that accepts various payment options? Is reporting important for your sales team?

Decide on POS system type.

Your chosen industry will also help you determine the type of point of sale software you need. If you’re a dog groomer who travels to your customers, a mobile POS is likely the way to go.

Decide upon your POS budget.

POS systems vary in price. While some are basic and less expensive, others are state-of-the-art and cost more. Ask yourself how much you’d like to spend on your POS system? What pricing model do you prefer? Remember, the least expensive option isn’t necessarily best.

Set customer service expectations.

Point of sale software malfunctions cost. Consider your customer service expectations in the event of a system failure. Are you okay waiting a few days for a response via phone or email? Or is online chat or round-the-clock support a must-have?\

Essential features of a point of sale (POS) system.

Before you commit to purchasing a POS system, make sure it has the following features at a minimum.

Why choose Adobe Commerce to support your POS?

Adobe Commerce, powered by Magento is an eCommerce platform which integrates with a variety of high quality POS systems. It also offers an array of features which makes it easy to:

Explore point of sale extensions for Magento, powered by Adobe Commerce.