Point of sale or POS systems are very common for any retail store, but we were never aware of the huge part they play in our online store’s growth and success.
Especially for small or growing businesses, POS systems are not only a glorified cash register, but they also help in managing multiple backend processes such as inventory and customer management, sales reports, data analysis, and much more to minimize the workload and employees required.
Thus, if you are thinking of buying a POS system and are not sure what it brings to the table? Then continue reading the points discussed below to find out the many types and advantages of a POS system and why it is a must for your retail and online business.
How does a POS system work?
A POS system is a combination of hardware and software. It provides a place where a customer pays and a receipt is generated.
The hardware is used for scanning, printing, and connecting all physical components, whereas the major work is being carried out by the software that takes care of orders, payment methods, and much more to simplify the checkout process.
Moreover, a POS system can be customized according to the business needs and requirements and does much more than accepting a transaction which we will discuss below.
Types of POS?
As stated above, there are different types of POS systems available depending on your business needs and requirements. Thus, we have identified some of the most popular options below which can be a good fit for your small business.
a). Cloud POS
A cloud POS system stores all transaction information in the cloud in real-time, which can be accessed from any compatible device from anywhere, thus you have your business on the go and don’t have to be physically present to manage sales, revenue, etc.
b). Multi-channel POS
A multi-channel POS can handle and sync multiple resource channels, such as a retail and eCommerce store, together and all their data.
For example, inventory, orders, and customers will automatically be updated on all the other channels if added into a single channel. In this way, you can manage multiple channels together with accurate data and information.
c). Mobile POS or mPOS
Through Mobile POS or mPOS, you can take the cash register to the customers instead of them coming to you and waiting in lines.
This is suitable for restaurants, festivals, supermarkets, etc. It is also a cloud-based POS system but requires advanced hardware as well rather than just mobile or iPad.
d). Self-service Kiosk POS
A self-service kiosk is usually found at fast-food restaurants or grocery stores where a person can order items and pay for their product by themselves at a single place without the help of an employee.
This reduces the number of staff required, waiting time, and the need for a checkout line.
POS and eCommerce Store
You must be thinking that a POS is usually associated with a retail store, so how can it help our online startup grow?
As mentioned above, a multichannel POS system can sync both your online and eCommerce store together, thus enabling you to update and manage information on both ends through a POS system.
In such cases, a POS system provides more than just a means to ring up an order, but it also enables you to manage multiple backend processes and run loyalty reward campaigns on your retail and eCommerce store together. It also simplifies the checkout process and improves the shopping experience.
You can select from the best WooCommerce POS plugins to get a perfect management solution for your business. Below we have listed some other benefits which we will discuss in detail.
1. Efficient and Fast
We all know that a POS system simplifies the checkout process and even makes it faster and more efficient, but how does that help a small online business?
A POS system makes it easy to collect data and information from multiple channels and analyze it for future marketing campaigns.
For example, by going through sales or inventory reports, you can know your best-selling item, loyal customer, peak selling hours, and much more. This type of data could direct you in the right direction and make your business more customer-related.
2. Inventory Management
The major advantage of using a POS system is inventory management.
When you are running a retail and online store simultaneously, chances are you can easily mess up your inventory. But with a POS system, this task is automatically updated.
For example, if a customer orders an item online, the stock will be updated on your POS system as well. Thus, you would always be aware of the quantity of all your items and can restock them accordingly or prevent overstocking.
3. Employee Management
A POS system also enables you to track your employees and their performance. Each employee has their login credentials, access can be restricted or allowed based on user roles.
You can track the number of sales, working hours, schedules, overall performance, and much more regarding your employees. This can help you determine your best employees, or those that are lacking in their performance.
You can also create schedules and accept or reject shift requests, etc.
4. Sales Analysis
A POS system generates detailed reports regarding sales, profit margins, orders, customers, the overall performance of the store, and much more. This gives you a deep insight into your business and identifies areas of improvement or error.
You can find out your best product, best employee, best resource channel, and improve your store accordingly.
5. Handle Business from Anywhere
A cloud-based POS system is great for small businesses as it enables you to manage all your operations from your mobile device.
You don’t need to be physically present to check in on your sales, customers, and orders. This ease of accessibility reduces workload and simplifies store management.
It also enables you to manage multiple stores, both online and retail, together smoothly and efficiently.
6. Multiple Payment Methods
POS systems provide your store with multiple payment methods. Chances are most of your customers would have different methods of payment and if they don’t find that at your store, it could cause you a sale.
Luckily, a POS system accepts MasterCard, Visa, Mobile wallet, bank transfer, cash, etc. This provides convenience to your customers and improves the user experience.
7. Customer Management
Your business should be focused on your customers’ wants and needs, especially for startups to gain success.
A POS system enables you to create individual customer profiles and track their order history. This helps in recognizing loyal customers and offering them discounts and coupons. Yes!
A POS system is also efficient for enabling promotional schemes. Customers can buy gift cards, redeem them, use coupons and discounts, and much more.
Customers can also rate their experience after shopping with your store. This helps in increasing customer engagement and brand awareness.
A POS system has multiple benefits other than the ones mentioned above. An online startup would highly benefit from a glorified cash register, that takes care of transactions as well as manages the store.
Choosing the right type of POS system depends on your business requirements but we prefer you to buy a complete system as it can help you determine areas of improvement, promote healthy growth, and strategize future marketing campaigns.
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Xaviera Khalid is the content writer at WooKeeper.com. She is an avid reader and uses her creativity to write interesting articles about WooCommerce and its related topics. She focuses on SEO-optimized content and provides factual writing.